why resolution health

ENSURING WE REMAIN AHEAD OF THE CURVE, NOW AND IN THE FUTURE

As the medical scheme industry goes through a period of transition, which will likely see the landscape change dramatically if not completely, Resolution Health consistently takes active measures to ensure it remains competitive from a contributions, benefit richness and risk management perspective.

Here's why Resolution Health will consistently remain a Scheme of choice in an ever evolving industry landscape.

In the not so distant past, medical schemes could rely on their high reserves to see them through hard times. However, this strategy has recently seen many players’ reserves taking a marked knock as they struggle to remain competitive. 

Players who do not adjust their strategic goals to ensure ongoing financial sustainability, coupled with the competitive edge are set to quickly find themselves facing hard times that could cost them their financial security, necessitate dramatic benefit cuts and, eventually, significant membership losses.

Within this landscape, Resolution Health not only managed to remain competitive from a contributions point of view, but consistently increased its solvency while ensuring we maintain a healthy risk pool, lower non-healthcare costs and retain benefit richness across all options.

Our key indicators clearly show that within the medium sized scheme market, Resolution Health compares favourably and is showing resilience and ongoing strength where other schemes have deteriorated and have seen consistent loses over the past several years.

RESOLUTION HEALTH VS COMPETITOR SURPLUSES

 
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As you can see, the majority of schemes operating in our market sphere have seen a negative impact on their surpluses over the past 3 years. This points to severe pressure on their solvency as a result of unsustainable attempts to keep contribution increases low and maintain benefit richness.

In fact, the Global Credit Rating (GCR) has predicted substantial decreases in the solvency ratios of several major players in our market sphere in the coming months, some by as much as 12%.

In the foreseeable future, these schemes will have to either implement high increases or cut benefits to address their plummeting solvency. Resolution Health, on the contrary, continues to build reserves, maintain benefit richness and ensure consistent, market related contribution increases.

 

Of competitor schemes made losses after investment returns. In contrast, Resolution Health continues to show marked gains.

 

Our claims ratio is the best in our market segment and in line with industry norms. A poor claims ratio, coupled with a poor risk pool, inevitably results in healthcare losses and deficits. Where the risk of a scheme is good but the claims ratio unfavourable, schemes generally remedy these with higher contribution increases or substantial benefit cuts.

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We outperform 8 out of 10 of our direct competitors when it comes to average member age and pensioner ratio. This means we have one of the healthiest risk pools in our industry sphere and that your clients can look forward to below industry-average increases in the very near future.

We are one of only a small portion of schemes showing any positive growth in benefits and reserves. Currently the market is summed up as:


BIG SCHEMES
Have most of their members on their flagship options which are showing losses meaning that they will likely have to implement high increases or significant benefit cuts in the near future

MEDIUM SIZED SCHEMES
Reserves are declining so they’re expected to implement high increases or cut benefits as future strategies to ensure their sustainability

SMALL SCHEMES
Their reserves are being depleted and they will either seek amalgamations or have to dramatically increase contributions and cut benefits to survive

THE VERDICT?

Resolution Health,

  • Is ahead of the curve when it comes to managing its risk profile
  • Has well positioned options that offer benefit richness and value for money
  • Is financially sustainable with a positive financial outlook for the coming months and years
  • Is a well-managed and well positioned scheme within our market sphere
  • Has laid the foundation for ongoing growth of our reserves and can build on this by continuing to provide quality benefits at affordable prices, an achievement few competitors are positioned to do
  • Has strategically planned for the difficulties within the market, a lack of which is beginning to show amongst competitors
  • Is the go-to scheme in the medium sized medical scheme market, both now and in future