Right now health insurance in Africa constitutes a tale of two continents. The very affluent can take advantage of private insurance with top-tier doctors and hospitals. However, many families rely on crowded state-run facilities, with long wait times and not always the best of care or they have to pay out of pocket for medical services. The current situation leaves a huge gap in the middle. In order to make a difference different parties need to unite and start utilizing technological advances that exist in today's marketplace.
The market for healthcare in Africa is worth some $35 billion, according to McKinsey. About half of Africa's health expenditure is estimated to come from out-of-pocket payments. With patients paying over the counter, a sudden health crisis can cause severe financial hardship for families. And the cash economy can allow counterfeit medicines and unlicensed dispensaries to flourish. The World Health Organization (WHO) considers health insurance "a promising means for achieving universal healthcare coverage." The goal of universal health coverage is to provide everyone with access to the quality health services they need at a reasonable cost. Clearly, more and better coverage would transform healthcare in Africa. Africa needs affordable pre-paid private health insurance. A few years ago, Kenya launched a successful private program that provides basic quality medical care at low cost. Costs are lessened by keeping medical tests to a minimum and using doctors' time efficiently, with nurses performing tasks doctors don't need to do. The Kenyan program costs about $11 a person, compared to $30 - $40 per patient the WHO estimates for a basic medical system. One of our healthcare portfolio companies, Sphera Bluoshen, has developed an innovative solution called M Health that is being implemented in Russia and elsewhere, and will be soon be tested in Africa. M Health allows mobile consultation 24/7 for pediatric and general medicine through its mobile app. We've found that M Health provides easier access to healthcare, with better quality, increased efficiency and reduced costs. Patients can communicate easily with their doctors, receive medical information to which they never before had access, and essentially control their own health. A report by KPMG Africa calls technology a positive "disruptor" that can transform the system. According to our studies on mHealth, 20% of patients in emerging countries would pay more than $5 annually for this type of service, vs. 10% in developed countries. 82% of patients with poorly managed conditions are engaged in mHealth and 40% of payers encourage patients to monitor their condition through the service. Africamentor.com describes some of these technologies now helping to change lives. In many parts of Africa, when an x-ray or other medical image has been taken, there is no guarantee that the image will be seen by a technician or physician who is qualified to read it correctly and make a diagnosis. Now radiologists can read medical images remotely, to provide reports and consultation for doctors and hospitals in rural areas or small towns. Another company, according to the article, has developed a vast digital library of medical information, including doctors' credentials, which can be accessed on a smartphone. And an African entrepreneur has invented a computer tablet that allows heart examinations such as electrocardiograms to be conducted at remote, rural locations which have never before been able to perform these critical tests. The increasing adoption of cell phones and mobile technologies allows for many innovations. For example, Kenya is piloting a portable kit consisting of a mobile app and clip-on hardware that transforms a smartphone into an eye examination tool. Another example is one state governor who simply gave expectant mothers cell phones so they can could call health professionals when they had a health issue, and receive calls to remind them to take their medicines or get their check-ups. This step greatly cuts the incidence of maternity-related complications. Governments, providers, investors, employers and others in the private sector need to come together to develop innovative models that will work according to the needs of individual countries. It is very difficult today to obtain a license and to meet the regulatory requirements for health insurance in Africa. Today it is still challenging to provide real solutions to the people who need them most. Quality healthcare for all is a challenge in many parts of the world, not just in Africa. We can make progress toward more feasible insurance, better coverage and quality healthcare in Africa - by employing the latest technology combined with the will to get it done. Zandre Campos is chairman and CEO of Angola Capital Investments (ACI), an international investment firm that invests in companies in the healthcare, energy, transportation, hospitality, and real estate sectors throughout Africa. The mission of ACI is to create global value for developing countries in Africa, while contributing to their economic development. According to the Financial Accounting Standards Board (FASB), the cost method of accounting is a legitimate accounting method to account for investments. If the investment is such that there is no substantial influence of the investment holder over the company invested in, or if there is no readily determinable fair value of the investment, the cost method of accounting for investments is usually the one used. Under this method, the investment is recorded in the balance sheet at historical cost. Here is a brief look into what is the concept and usage of the cost method of accounting without getting into the nitty-gritty of its types, like full cost method, average cost method, etc.
Cost Method of Accounting for Investments The points below highlight the cost method of accounting for investments specifically and not the general methods of cost accounting that are used in the internal firm product or service costing (accounting). The original cost of the investment, that is the historical cost which was paid for the investment, when it was first bought, is the one that is recorded in the balance sheet.Once the balance sheet entry has been made, no further adjustments and changes are required to be made, unless the fair market value of the investment drops to such an extent that there is doubt over any kind of possible recovery. Under such a circumstance, a permanent write-off of the investment is made.If any dividends are declared on the investment in question, the dividends are recorded like normal dividends and the usual accounting entries are passed for the same.Any undistributed earnings on the investments are not recorded in the owner's balance sheet and hence have no effect on the final balance sheet, per se.The consolidation process under this method of accounting requires that both, the investment account and the dividend account, be eliminated completely when the parent and the subsidiary consolidate their accounts. You can use accounting software to aid with the consolidation process.It is important to note here that no matter which method of accounting is used (cost or equity), the consolidated financial statements will be identical for both.If the parent company uses the cost method of accounting for investments, the consolidation worksheet entries go in the following sequence. The consolidation starts with eliminating the book value of net assets at acquisition from the parent's balance sheet. The second step is to record all excess costs incurred in or during the consolidation phase. The difference between the effect of prior periods on retained earnings and the current effects on the income statement and balance sheet are then amortized. A series of elimination entries then follow, namely, dividend income, accumulated depreciation at acquisition, and other inter-company transactions. Equity Method vs. Cost Method of Accounting for Investments Below are a few differences between the equity accounting method for investments and the cost accounting method for investments. The equity method of accounting is used when there is a significant influence or control, with the investment being between 20 to 50 percent of the total stock of the firm invested in. The cost method, as mentioned earlier, is preferably used for lesser investment percentages.It has an advantage over equity method of accounting when there is no fair, easily determinable value for the investment.It is easier to calculate the return on investment and do other financial analysis of figures when the equity accounting method is used. As the cost method uses working paper and not the general ledger, all figures must be tracked there first.It includes less paperwork than the equity method. On the other hand, being more comprehensive, the financial statements done using the equity method are more useful to the internal management for facilitating analysis.The best scoring point of the equity method over the cost method is that it has an easy self-checking feature, i.e., the consolidated financial statements should tally with certain parent figures and when they don't, the problem can be easily identified and corrected. The cost method has no such self-check feature.Hope this article helps you in understanding the method a little better. If you had any trouble understanding the accounting terminology, you can look it up on the glossary of accounting terms and definitions. DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/xdtqtx/governance_risk)
has announced the addition of the "Governance, Risk and Compliance - The South African Insurance Industry" report to their offering. 'Governance, Risk and Compliance - The South African Insurance Industry' report is the result of extensive research into the insurance regulatory framework in South Africa. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operations of insurance and reinsurance companies and intermediaries. The report brings together research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, recent and upcoming changes in regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country. Summary: The report provides insights into the governance, risk and compliance framework pertaining to the insurance industry in South Africa, including: An overview of the insurance regulatory framework in South Africa. The latest key changes and changes expected in South African insurance regulatory framework. Key regulations and market practices related to different types of insurance product in the country. Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in South Africa . Key Highlights: The South African insurance industry is supervised and regulated by the FSB. The placement of non-admitted insurance is permitted only with an approval from the FSB, provided no other insurer is providing such insurance at equitable terms. The key classes of compulsory insurance include motor third-party liability insurance, aviation third-party liability insurance and public liability insurance. Key Topics Covered: 1 Introduction 2 Governance, Risk and Compliance 3 Appendix Companies Mentioned Life Insurance Ltd Absa Life Ltd AIG Life South Africa Ltd Clientele Life Assurance Company Ltd King Price Insurance Company Ltd Clientele General Insurance Ltd Absa Insurance Company Ltd. African Reinsurance Corporation (SA) Ltd General Reinsurance Africa Ltd RGS Reinsurance Company For more information visit http://www.researchandmarkets.com/research/xdtqtx/governance_risk Supporting President Mandela's Democratic Reforms, Company Is
First U.S.-Based Insurer to Re-Enter Post-Apartheid South Africa; Will Insure Multinationals, Local Firms, Groups And Individuals PHILADELPHIA, Nov. 3 /PRNewswire/ -- CIGNA International announced today that it has reacquired a former subsidiary, Concord Insurance Company Limited of South Africa. The company, which will be renamed CIGNA Insurance Company Limited, will continue to be based in Johannesburg, with branch offices in Cape Town, Durban and Pretoria. CIGNA thus becomes the first U.S.-based international insurance organization to re-enter South Africa since the U.S. sanctions were lifted. U.S. Secretary of Commerce Ronald H. Brown, who led the first post- apartheid Presidential trade and investment mission to South Africa last autumn, welcomed CIGNA's announcement. "In support of both democracy and free trade in South Africa, the Clinton Administration applauds the actions of CIGNA and other companies whose return to South Africa will help build a stable and open South African economy, while enhancing economic growth at home," Secretary Brown said. Previously known as CIGNA Insurance Company South Africa Ltd., Concord was sold to its employees in 1987, following the imposition of sanctions by the US government, and by state and local authorities in the U.S. against South Africa. The company operated profitably prior to the divestiture and has produced profitable results consistently since then. In 1993, the company generated revenues of approximately $20 million (R55 million). When reacquired, the company will extend to South African customers the broad capabilities of the CIGNA companies' international insurance network. As CIGNA Insurance Company Limited, the company will deliver a wider range of insurance products and services, including property and casualty coverages for South African businesses; risk management programs for multinational firms investing in South Africa; group and employee benefits programs; and accident and health coverages. "With the abolition of apartheid and the completion of the country's first open elections, we want to show our unqualified support for the process of democratization set in motion by President Nelson Mandela," said H. Edward Hanway, president of CIGNA International. "South Africa's economy will begin to expand as more American, European and Asian companies respond to President Mandela's call to establish operations there. CIGNA is proud and gratified to be part of that process." As one of the world's largest and strongest insurance and financial services organizations, CIGNA is "very well positioned to contribute to the strength of the South Africa's insurance market," Hanway added. "With that in mind, we're glad to have a part in what we see as the insurance industry's expanded role in helping to enhance the quality of life in South Africa." CIGNA International is an operating business of CIGNA Corporation (NYSE: CI). With operations in some 50 countries, consolidated assets of approximately $85 billion and shareholders' equity of approximately $6 billion, CIGNA ranks among the largest insurance, health care and financial services enterprises in the world. /delval/ -0- 11/3/94 /CONTACT: Paul Gallanda of CIGNA, 215-761-4746/ (CI) CO: CIGNA International; CIGNA Corporation ST: Pennsylvania IN: INS SU: TNM MK -- PH038 -- 1354 11/03/94 14:44 EST COPYRIGHT 1994 PR Newswire Association LLC No portion of this article can be reproduced without the express written permission from the copyright holder. Copyright 1994 Gale, Cengage Learning. All rights reserved. The healthcare system in South Africa can be defined according to two sectors, namely public and private. The private sector is growing, but still significantly smaller than the public sector.
The private sector caters to around 7 million- mostly higher net worth people, leaving the public sector to cater for the rest. Ironically, the public sector actually spends less each year than the private sector even though it provides healthcare services to the majority of the population. Statutory bodies such as The Health Professions Council of South Africa are on a constant mission to monitor and improve the standard of healthcare in South Africa. The health professions council was founded to provide guidance to medical professionals as well as to monitor, regulate and improve the practice of healthcare in South Africa. This is achieved by setting and maintaining standards with regard to professional conduct, training and education, safety and ethical behaviour. The HPCSA caters to the public and private sector. It provides a development system that offers seminars and workshops to medical professionals to maintain and improve the quality of the services they render. Members pay for these workshops through an annual membership fee. The council consists of 12 professional boards. Each board is responsible for managing and implementing the procedures relating to that particular area of medical practice. The 12 boards are categorized according to medical field and are as follows: 1) Dental Therapy and Oral Hygiene 2) Dietetics 3) Emergency Care 4) Environmental Health 5) Medical and Dental, (and medical science) 6) Medical Technology 7) Occupational Therapy, Medical Orthotics / Prosthectics and Arts Theory 8) Optometry and Dispensing Opticians 9) Physiotherapy, Podiatry and Biokinetics 10) Psychology and Clinical Technology 11) Speech, Language and Hearing Professions 12) Radiography and Clinical Technology The HPCSA follows a regulatory framework that includes the founding Health Professions Act 56 of 1974. The framework defines the scope of each profession and outlines the procedures to be followed by the HPCSA in monitoring the activities of healthcare practitioners. Registration with the HPCSA is required to legally practice in any of the 12 fields of specialization. The registration process varies between the different professional boards. Once registered, it is also the responsibility of the involved parties to provide as accurate and up to date information as possible. Advertised Products Versus Perception from a South African Perspective
by: Andrew Smit A South African publication revealed that South Africa's top 100 advertisers spent in excess of $930 million on building their brands in 2005. Some individual companies spent upwards of $28 million on advertising to drive their brands home. What's being advertised and what's being delivered are two totally opposite things. Customers have been left by the way side reeling at the fact they have just been coned in many instances. "If the brand experience does not measure up to the advertised expectation, Mr Joe Public is guaranteed to walk away. This is one of the great tragedies of brand communication efforts."- Terry Behan Why is there a major flaw in advertised products versus the delivery thereof, simple, the average business spends six times more to attract new customers than it does to keep old ones. Service quality in South Africa needs huge attention, this is not only our problem it is also a global problem. One of the single greatest keys to longterm success can be summed up in three simple words: quality customer service. Major brand suppliers have no idea about these simple words, they could care less because they have no competition in their field. Consumers have no choice but to purchase from these suppliers and hope nothing goes wrong with the product, God forbid they have a problem and have to ask for help. Painting pretty pictures for the consumer is what sell products, delivering on the fine print can either make or break a brand or company for that matter. All companies have one thing in common, they sell commodities and the strange thing about that statement is consumers do not buy commodities. Despite all of the untold millions of products and services available for sale in today's market place, customers will exchange their hard earned cash for only two things: Good Feelings and Solutions to problems. Don't sell me clothes. Sell me a sharp appearence, style and attractiveness. Don't sell me insurance. Sell me peace of mind and a great future for my family and me. Many customers are being left in the lurch because of promises made to them by companies. They are not delivering on what is advertised nor are they taking responsibility for after sales help. In my opinion they actually have no idea about what customers actually want and need. The customers perception is everything, overpromising and building unrealistic expectations by companies and their side kicks the marketing divisions are killing the consumers trust. A man flying Air Zimbabwe from Johannesburg, South Africa to Victoria Falls, Zimbabwe last month was treated toa personalized flight and a once in a lifetime experience, Today.com reported.
Talk about eerie, former World Chess Championship finalist Nigel Short was the lone passenger aboard the 105-seat Boeing 737 departing Johannesburg for the world's largest waterfall. "I went to check in and they said don't be late because we only have four passengers," Short told Today.com. "So, I got to my gate on time and there was no one there. I was uncomfortable because I thought maybe I made a mistake or arrived too early. The gate listed on my ticket was correct, so I went back four or five times and there was still no sign of anyone." The flight crew eventually arrived to inform Short that he would be traveling solo. After moving from his assigned aisle seat to one of the many available window seats, Short received a personalized safety demonstration and announcements from the flight crew. "They would say things like, 'Mr. Short, we're beginning our descent,'" he told Today.com. Despite the lack of passengers, Short opted to remain in economy. Acting Air Zimbabwe CEO Edmund Makona's personal assistant Emma Benhura explained why the deserted flight wasn't canceled via NewsDay: "Please be advised that the aircraft in question operated Victoria Falls-Bulawayo then Johannesburg and it became necessary for operational reasons to position the aircraft to Victoria Falls to operate a scheduled flight Victoria Falls-Harare. The flight had therefore been rescheduled and some of the booked passengers had opted for other earlier flights." Ironically, Short's unique journey to his destination became arguably amore memorable experience than the trip itself. "The Falls were great," he told Today.com. "But, I can't imagine I'll have such an experience like the flight ever again." More from TravelPulse What Are Hotel Guests' Biggest Pet Peeves? Video Offers Sweeping Tour Of Los Angeles By Drone Statistics Show US National Parks Not as Dangerous as Perceived Who Are The Biggest Pre-Flight Boozers? 5 Canyons You Have To See To Believe http://www.foxnews.com/travel/2015/08/18/passenger-takes-solo-flight-from-south-africa-to-zimbabwe.html |
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