South African Actuarial Journal Volume 1 (2001)


The appropriate disposal of retirement fund surpluses

Author(s): A Asher
This paper attempts to clarify the different paradigms from which defined benefit funds are viewed, and the financial nature of the contracts implicit in their rules. Suggestions are made as to the principles that trustees might follow in applying the surpluses for the benefit of stakeholders.
Keywords: Pension funds; surpluses; defined benefit; fiduciary duties

The appropriate disposal of retirement fund surpluses (pdf)


Parameterisation of expected residual lifetime after seroconversion in a Ugandan sample population

Author(s): DA Polakow, TT Dunne and JAG Whitworth
The consequences of the HIV/AIDS epidemic in Africa are expected to be considerable. A great deal of what is presently known about the HIV/AIDS epidemic has originated from studies in Europe or the Americas, or from urban African contexts. In contrast, the majority of people in sub-Saharan Africa infected with the virus will live in rural communities. It is important that demographic information be obtained for this rural African environment. This contribution is aimed at investigation and verification of HIV-1 mortality patterns in a rural African context. The authors examine eight years of incident HIV mortality data arising from the Masaka district in Uganda. These data are bivariate and of a type termed doubly censored. The authors explore the non-parametric procedures required for estimation of self-consistent patterns using doubly censored data. Information on age and gender is also incorporated into the analyses. The results are parameterised using a range of survival probability models. The Gompertz probability model provides a reasonable emulation of eight years of empirical underlying hazard, over all age classes, and can be considered as a reasonable first approximation to the HIV/AIDS mortality model for the phenomenon and context of this study. The results also indicate that expected time to death at seroconversion is appreciably affected by age at seroconversion. Extrapolation of these mortality patterns into the future will, however, necessarily remain unsubstantiated until further data become available and the ability to generalise these findings to other contexts remains a subject worthy of further study.
Keywords: AIDS/HIV modelling; HIV-1 mortality; doubly censored data; African AIDS mortality patterns; Gompertz model

Parameterisation of expected residual lifetime after seroconversion in a Ugandan sample population (pdf)


The fall of the bamboo curtain: A review of complementary medicine in South Africa

Author(s): KS Caldis, HD McLeod and PR Smith
This paper considers the increased interest in and usage of complementary medicine. The movement is being led worldwide, not by healthcare professionals or the funders of healthcare, but by consumers. In South Africa, a pilot study was undertaken in 1999 to identify existing sources of data and collate information as an initial baseline of the practice of and interest in complementary medicine. The paper summarises the findings of that study. The legal framework for the practice of complementary medicine in South Africa is described, the range of therapies is given and the number of practitioners is estimated. First indications of the use by consumers and the coverage by medical schemes are reported. An introduction to the status of African traditional medicine is given. Resources for the actuary wishing to gain more understanding of this consumer-driven movement are suggested.
Keywords: Healthcare; complementary medicine; alternative medicine; traditional medicine; medical schemes

The fall of the bamboo curtain: A review of complementary medicine in South Africa (pdf)


The use and abuse of reinsurance in medical schemes

Author(s): HD McLeod, PG Slattery and AM van den Heever
An investigation by the regulatory authorities into the use of reinsurance by medical schemes indicated clear problems with reinsurance agreements and cases where the contracts were resulting in substantial losses for members of schemes. It was shown that in a number of cases reinsurance had become a conduit for systematically removing surplus from medical schemes, thus undermining the security of members of those schemes. This paper summarises the key features of the investigation into the use of reinsurance by medical schemes over the period 1996 to 1999. The paper then outlines the actions taken by the regulatory authorities. The specific areas of abuse are described and the conduct of trustees, brokers, administrators and insurance companies is discussed. This leads to the question of the professional responsibilities of actuaries in the design and implementation of these arrangements.
Keywords: Medical schemes; reinsurance; regulation; professionalism; trustee responsibility

The use and abuse of reinsurance in medical schemes (pdf)


An empirical approach to immunization in South Africa

Author(s): AJ Maitland
This paper presents an empirical approach to immunizing South African nominal liabilities in the presence of non-parallel yield-curve shifts. The results are compared with immunization strategies based on Fisher-Weil duration and illustrate the value in immunizing against non-parallel shifts.
Keywords: Immunization; South Africa; principal components; nominal liabilities; arbitrage

An empirical approach to immunization in South Africa (pdf)



SAAJ Volume 1 Editorial (pdf)

The views and opinions expressed in this journal are, unless otherwise stated, those of the authors. Editorial opinion or comment is, unless otherwise stated, that of the Editor and publication thereof does not indicate the agreement of the Actuarial Society of South Africa.

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ISSN-8: 1680-2179
ISSN-13: 977-1680-2170-02