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Circular 6 of 2021: IFRS 17 survey results and CMS monitoring tools

The Council for Medical Schemes conducted a survey to assess the readiness of schemes to apply International Financial Reporting Standards (IFRS) 17 Insurance Contracts. The results of this survey are discussed below.

Number of responses received

The survey was completed by 48 individual schemes: 10 open schemes and 38 restricted schemes.

These schemes represent 75.6% of the number of medical schemes beneficiaries as at 31 December 2019 (open scheme beneficiaries: 73.6%; restricted scheme beneficiaries: 78.1%).

Recognition pattern

The following four medical schemes would need to consider the pattern of the release of their risk as either the benefit years are from 1 July to 30 June or the repricing of products occur mid-year (i.e. mid-year contribution increase): Glencore Medical Scheme, Imperial and Motus Medical Aid, Massmart Health Plan, and Old Mutual Staff Medical Aid Fund.

Schemes whose benefit year also differs from its accounting year would also need to consider the unexpired risk portion as at 31 December (i.e. the liability for the remaining coverage).

Read up more on the results here.