Dear Valued Intermediary,
In order to keep you updated, we would like to inform you that since the Council of Medical Schemes (CMS) released Circular 56 on the 14th of August 2020, this has been a key business consideration for Kaelo.
Kaelo has been proactively working on finding a suitable solution to this matter through a number of avenues including the extensive engagement with all relevant regulators; associated partners as well as gaining legal counsel on the matter.
We remain committed to provide innovative, essential, healthcare solutions enabling the physical and psychological well-being of all South Africans. The policyholder remains at the epicentre of our efforts and we wholly believe that intermediaries play an essential role in responsible distribution of these products. The ramifications of inappropriate distribution and therefore
inappropriate advice are widespread and include severely limiting the public access to affordable care as well as placing products into the market that do not produce beneficial health outcomes. It is for these reasons that Kaelo remains completely committed to our intermediaries.
We believe that certain requirements stated in Circular 56 may compromise access to healthcare and therefore we have addressed two key issues:
- The commission earned by intermediaries selling affordable health insurance policies and the impact on distribution and servicing of the existing customer base;
- The unbundling of insurance products.
We are confident we have an appropriate solution for each of these key matters and that when we implement them, we will have addressed the relevant needs of the regulators, our intermediaries, our corporate clients and our policyholders. We have established that we have time to implement these remedies and we will be in contact in due
course to set these in place.
