Cimas membership increases by 8%

Published: 07 August 2013

CIMAS,the country's oldest and largest medical aid company, says its members grew by eight percent to 191,000 for the year ending December 2012.

The company attributed the membership boost to the return of some affiliates who had left after allegedly experiencing poor service from the players they had joined.

Cimas said several returned after some of the new players folded after failing to cope with a tough operating environment characterised by liquidity constraints, high cost of capital and short term nature of available credit.

During the period under review, total contribution income amounted to US$83,5 million representing a 17 percent increase from 2011.

"Claims paid, at US$73,7 million, represented an 88 percent claims-loss ratio. This ratio has remained static over the past two years," said Cimas chairman Steve Kuipa.

He said the international norm of 80 percent has not been achieved since the economy was formally dollarized in January 2009.

Kuipa said the cost of healthcare in Zimbabwe was the highest in the region with members continuing to experience shortfalls in the treatment of certain conditions.

Kuipa said Cimas' chronic disease add-on membership had rebounded with the product witnessing a growth of 17 percent to 45 000 as at December 31, 2012.

"The society's consolidated revenue grew by 16 percent to US$97,5 million in the year under review. This growth was underpinned mainly by membership growth.

"The surplus for the year also grew by 78 percent on 2011. The reserve weeks for the year improved marginally to six weeks following high claims costs in the period," said Kuipa.

Patient numbers have grown by 12 percent from 103 359 in 2011.
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