Welcome to Mind Matters week of 29 August 

International news 

Did you know that 2 September is International Actuaries Day?

On September 2, 1895, the very first International Congress of Actuaries (ICA) was first held in Brussels. The purpose of this event was to prove to governments of various nations that actuaries existed and performed a legitimate and needed field of work; since then the profession has grown by leaps and bounds. As such, the date of September 2 remains the most significant and identifiable moment in history where actuaries from various countries came together for the very first time and laid the ground for the profession we know today.

The International Association of Actuaries held a Webinar to celebrate the day in 2022 - pity we were too late to pick it up!

This year’s theme: The Big Risk Conversation – Why International Matters Matter to Actuaries? 

IAA President Roseanne Harris and our 3 keynote speakers will speak on the following topics:

• How the actuarial profession contributes to topics of global relevance and how these topics are vitally relevant to every actuary.
• The Sustainable Insurance Forum, and how climate issues affect actuarial work across the globe.
• Actuaries as guardians of the public trust – responsibly ensuring financial protection for all.
• Big global risks and how all can benefit from innovative actuarial thinking and broadening our perspectives in our intertwined global interactions.

Unfortunately we've missed the Webinar, but I will try find a recording as it would be very interesting to listen to the above topics. 

G7 Expected to Advance Russia Oil Price Cap Plans With Insurance Playing Key Role

Group of Seven finance ministers are expected to firm up plans on Friday to impose a price cap on Russian oil aimed at slashing revenues for Moscow’s war in Ukraine but keeping crude flowing to avoid price spikes, G7 officials said.

The ministers from the club of wealthy industrial democracies are due to meet virtually and are seen as likely to issue a communique that lays out their implementation plans. 

How would insurance play a role here? Read the 3 min article it may offer some insights. 

Biden invites Ramaphosa to White House to talk trade and food security, but Ukraine war likely to top agenda

Neither the White House nor the President’s office have mentioned Russia’s war in Ukraine, but the latter’s reference to ‘global challenges’ suggests the leaders will be tackling the thorny issue.

Ramaphosa’s spokesperson, Vincent Magwenya, confirmed the meeting on Friday morning, adding: “Over and above the issues outlined by the White House, President Ramaphosa will raise the issue of supporting Africa’s transition from food insecurity to food security, which he also tabled at the meeting of the G7 leaders. Peace and stability in our region and the rest of the world will also be discussed.”

An interesting article given the current context - and the law about to go to Senate penalising any country that allows Russian investment. 4 min read

Local industry news

Discovery challenges RAF decision to stop paying members’ claims

Discovery Health has launched an urgent application to stop the Road Accident Fund (RAF) from rejecting valid medical claims submitted by members of medical schemes.

Discovery contends that the RAF Act does not provide for limiting liability in cases where a private medical scheme has already paid a claimant’s medical expenses.

A highly contentious topic for a number of reasons, not least of all for no consultation with medical schemes and the huge losses that could be incurred by the directive. Read the two comments below the article for more insight. 4 min read

Growing the pipeline of black actuarial talent

How can the short-term insurance industry attract and retain a more diverse pool of actuarial talent? This is the issue that Ronald Richman, Chief Actuary at Old Mutual Insure, addresses this International Actuaries Day, observed annually on the 2nd of September. 

According to the statistics by the Association of South African Black Actuarial Professionals (ASABA), South Africa has 109 Black African Fellow Actuaries, compared to the 974 White Fellow Actuaries: an 800% disparity, and only a small percentage of these actuaries hold a qualification in the non-life space.

Ron Richman then goes into the reasons he believes has held transformation back in this space. 3 min read

Did South Africa’s biggest insurers collude on fixing premiums?

This article sets out to cover the questions below which are on most people's minds. 3 min 30 sec read

Why is the commission involved in the affairs of insurers?

What is the commission’s case about?

Can premiums be manipulated to enrich insurance companies?

What kind of penalties can be imposed against the insurers?

What do the insurers have to say about the commission’s investigation?

Averting grey-listing depends on progress with enforcement

National Treasury has reiterated its message that changing legislation will not be enough to avert a potential grey-listing next year; the authorities will have to demonstrate commitment and progress with enforcing legislation aimed at combating financial crimes.

This article goes a little further than last week's one and should also be read together with the one below. 3 min read

South Africa’s grey-listing threat and its implications

The Financial Action Task Force (FATF) conducted a Mutual Evaluation Assessment on South Africa and found that the country has poor legal, regulatory, and operational measures for combating money laundering and terrorist financing.

These findings have placed South Africa at risk of being grey-listed by the FATF.

This article is based on Ofentsi Alec Theledi's reading of the evaluation as an Anti- Money laundering specialist and is a very good read on the subject. 4 min read

Treasury publishes omnibus anti-money laundering bill

The process to address deficiencies in the country’s anti-money laundering and anti-terrorism financing legislation got under way this week after Minister of Finance Enoch Godongwana tabled the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill.

This article covers in brief amendments to Fica, FSRA, Companies Act, Trust Property Control Act, and the NPO act.  Do you think that these measures are good? 4 min read

Health Matters

CMS’s bid to strike a deal for Health Squared members fails

Earlier this week, Business Day reported that Health Squared’s administrator, Agility Health, was holding discussions with the scheme to try to ensure its most vulnerable members, such as those who were hospitalised, or receiving renal dialysis or ambulatory oxygen, did not face a break in healthcare services or unpaid medical bills after August 31.

It quoted Agility Health’s chief executive, Tebogo Phaleng, as saying: “We are asking the scheme to continue paying for specific scenarios [beyond the August 31 deadline]. There are legal considerations, but there are ethical and compassionate considerations as well.”

This is a very sad state of affairs for the more than 14 thousand principle members and their close to 24 thousand beneficiaries. What would your response to the situation be? 3 min read 

Mom wins court battle against medical scheme

• A mother desperate to save her son has secured an interim order forcing Medihelp Medical Scheme to pay for an expensive drug to treat a rare medical condition.
• The medical scheme refused twice to pay for Elaprase, the only registered treatment for Hunter Syndrome in South Africa.
• The legal dispute revolved around whether the treatment falls under prescribed minimum benefits.

An Alberton mom has won a significant court battle against her medical aid scheme forcing it to pay for an expensive drug that her three-year-old son needs to treat a rare inherited genetic disorder.

3 min read. 

Climate crisis and insurance 

Low Rate of Flood Insurance Cover Spells Danger as Climate Crisis Deepens

Insured losses from floods doubled to $80 billion globally during 2011-2020 compared to the previous decade, while insurance penetration lingered at just 18%, according to Swiss Re Institute’s economic insights report focused on floods.

Reuters' authors report that Swiss Re sees great potential for insurance in flood prone areas, but who would be able to afford it? 2 min read

Cyber 

Cyber Attacks on Western European Firms on the Rise Since Ukraine War: Italy Minister

The minister, Luigi Di Maio, said on Friday that the attacks are part of a destabilization strategy seen since the invasion in February, without specifying their source.

With or without the war in the Ukraine cyber attacks have been on the increase and insurance journals continue to highlight this.  Why do you think this is so? 2 min read, with more detail on how cyber can be curtailed in the article below. 

Cyber Loop: A Model for Sustained Cyber Resilience.

There is nothing linear about cyber security. This is the guiding principle of The Cyber Loop, a cyber risk management model for sustained cyber resilience that unites stakeholders irrespective of role to make better decisions on cyber risk.

This article takes its message from Aaon's Cyber Loop Whitepaper and gives us eight key points to consider in mitigating the risk of attack. See how many you wold have already known about. 3 min 30 sec read

AI: debate on its value and dangers

Why care about AI risk? We’ve updated our research

The idea this week: future AI systems could bring huge benefits, but also pose risks to our ability to create a flourishing future — and perhaps even to the existence of humanity.

We’re often asked why, as an organisation dedicated to trying to do the most good we can, we focus so much on shaping the future of artificial intelligence.

To answer that question, I’ve written our longest and most in-depth problem profile to date. I go through: 

• What I consider to be the strongest arguments that advanced AI systems pose an existential risk
• How substantial I think this risk is
• Why it seems plausible we could face this risk before the end of the century
• How neglected this problem is by society as a whole
• What you could do to help

Following several others in the field, I make the case that the biggest risks posed by AI are about power.

For those of you passionate about AI you will find this weeks' discussion on 80000 hours website fascinating and very well researched. You can read sections or the overview in 8 mins. 

About YOU

Leadership Tips: Forget Time Management; Learn to Master Your Attention

The key to productivity could be changing your focus from time management to learning to master your attention. Showing gratitude may boost your emotions—and your immune system. Sometimes you need to hit the pause button to refocus and re-energize.

This article brings you excellent tips from experts at the top of their game. Their advice can easily be transferred into a student and young professional's setting. 3 min 30 sec read. 

8 Tips for Managing Your Time, Yourself

This article was written a year ago with versions of lockdown still in place globally. However, the research that backs up the tips is credible and the advice still stands. Please take some time to read this article and if you need it you can delve deeper into the sources provided. 4 min read