We have the pleasure of interviewing Mr. Du Yinliang, the CEO of Prescient Investment Management China. This is part of our series profiling professionals of Chinese descent in the financial services sector in South Africa. Your full name? Age now? Liang Du, 37 What has been your experience? CEO - Prescient Investment Management China Limited What do you do? Business development strategy, investment strategy. Your area of expertise? Investment management What is your place of birth? Shanghai, China When did you immigrate to South Africa? What brought you here? I went to Zaire in 1986 and went to South Africa in 1990. In the 1980s and 1990s, China was still a very poor country. Parents want to go abroad to help their children have better opportunities. Since my aunt married a Zairian resident, our family went to Zaire. Zaire had a huge coup in the 90s. During the riots, the first plane to leave Zaire was to South Africa. I stayed in South Africa ever since. Where did you study, and your qualifications? MBA (University of Cape Town), B.Bus.Sc – Actuarial Science (UCT) Why did you choose your line of studies? I didn’t know what to learn when I was young. I was doing well academically. I heard people say that UCT is the best university in South Africa. B.Bus.Sc-Actuarial Science is the most difficult undergraduate. As a young person, I don’t know what actuarial science was, let alone finance. Anyway, I thought to myself, I would learn it first. Fortunately it suits my nature. How did you get into the financial services sector? At the University of Cape Town, the boss of Prescient Investment Management was a professor of finance. In the Honours year, he was my supervisor for my Finance Honours project. The topic was how much money does a person need to retire? At that time, most of the students who studied actuarial science went to the insurance companies, I originally planned to go to Old Mutual. After completing the research, he said he liked my way of thinking and asked me if I wanted to join his company. I joked by asking for a salary doubling Old Mutual's offer, unexpectedly he agreed. I have been with Prescient for 15 years, I have found that I like this industry very much and it suits my abilities. The company is also very supportive of entrepreneurship. What are your hobbies and interests in your spare time? Reading, playing squash, playing video games. How do you see the future of South Africa? I have lived in South Africa for 26 years. I am both Chinese and South African. I love South Africa very much. I certainly hope that South Africa’s future will be successful. South Africa has many characteristics. Unfortunately, after many years of weak policies and corruption, it now faces a dilemma. Looking at the data of South Africa objectively, the risks are high. The economy needs reform, a lot of investments and infrastructure development, education, healthcare, and transportation. But the financial resources are limited, the national debt is high, and there is too much corruption. There is a danger of a vicious circle of shrinking the tax base due to the massive brain drain. The labour law does not support the development of a large number of small businesses. The lack of infrastructure makes it uncompetitive in many industries. The future of South Africa depends on everyone's contributions and sacrifices, but for everyone to sacrifice, the people need to unites, everyone needs to have a shared dream. It is difficult to say whether South Africa today has any determination to change. Of course I very much hope that South Africa can change and will definitely come back after retirement! How do you see China's future? There is no perfect government in the world, but China's general economic and social development has been very successful over the past 30 years, which can be said to be the opposite of South Africa. Infrastructure, planning, education, healthcare, anti-corruption, and opening-up for business have all made great progress. In 1990, China's per capita GDP was 300 US dollars, South Africa was 3,000 US dollars. In 2018, China's per capita GDP was 9600 US dollars, exceeding South Africa's 6200 US dollars. Today's China has the foundation of a successful country. Although there is a certain degree of friction with Trump, through the efforts of the Chinese and the current scale and foundation of China, there should be very successful development in the next ten to twenty years. I returned to China in 2016 and has lived here for four years. I can understand why China can succeed. People are united, transportation efficiency is high and cheap, general education is of high quality, basic healthcare is almost free, super safe, and the economy is active. Every day you can feel the energy of China. Naturally, the gap between the rich and the poor is also very large in China, but unlike South Africa, the older generation with poor education works hard every day to do blue-collar jobs and entrepreneurship, and the younger generation’s education has caught up with the level of developed countries. Whether starting a business or working, ordinary people all have jobs, and have more than enough. Everyone works hard. So in the near future, China will be a country capable of development. China now has capital, talents, infrastructure, and a good business environment. Of course, the biggest risk for China is to rely too much on good leadership. Just like Singapore, the Chinese government is very strong and the country will be very successful when it is well led. After Xi Jinping took office, he did a lot of anti-corruption work and changed the direction of China's development. After years of rapid opening up, China shared many similarities with South Africa a decade ago. There were too many corruptions, government agencies were becoming more and more ineffective, national assets were lost, and policies Just looked at the short-term, and let the next leader solve the long-term problems. Through many improvements and hard work, be it pollution, anti-corruption, product quality and safety, deleveraging, shadow banking risks, and transparency of government agencies, it can be said that the direction has changed. These changes are something everyone can experience. Although there are risks, I am confident that China will continue to grow and develop. What advice or encouragement do you have for university students who want to enter the financial services sector? Finance is a very fulfilling career, which gives me everything in my dreams, but young people who want to join the industry must like this industry before joining. Competition is fierce and pressure is high. If you choose the finance sector just for money, you will collapse. I have seen too many people burn out after five years. To be successful, you must have a passion for this industry and it matches your personality. The second point is that if you decide to join, you must be determined to work hard. Finance contains too much specialised knowledge. Only through hard work can you become an expert. I have never met a lazy person who is successful in finance. Everyone is not only smart but also working hard. People who are successful in finance must have high IQ and EQ, as well as the spirit of continuous improvement.
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It is now time to review your medical aid scheme cover for 2021. This means you have a window within which you can switch to a different plan for the new year. This window usually closes at the end of November (depending on your current provider), so don’t delay collecting the necessary information. This is not a decision to be rushed.
Why do I have to decide now? Medical aid providers allow you to switch to a higher plan once a year (at the end of the year) without penalties or consequences. If you want to save on premiums or you need to increase benefits, now is the time to do it. Generally, medical schemes give you until the end of the year to change your plan. What if I want to change providers altogether? If you are unhappy with your medical aid provider, you can switch to another at any time of the year. But before you do, consider the following: Waiting Periods Medical Aids by law must accept anyone who applies to join their scheme. To protect themselves from older or sickly members that join without having contributed to the risk pool, they usually impose a waiting period of between 3 and 12 months. Waiting periods will apply if 1) you have not been a member of another South African medical aid for the past three months or more, 2) if you change medical schemes before 2 years of being covered with your previous medical aid provider and 3) if you have a pre-existing medical condition. Finding out about any waiting periods is extremely important before deciding to change providers. Late joiner penalty As an additional means to manage the risk of older or sickly members joining without having contributed to the risk pool, medical schemes (according to the Medical Schemes Act) are entitles to add a late joiner penalty to your premium if you were not part of a medical scheme before 01 April 2001. The late joiner penalty is calculated (using a prescribed formula) based on the number of years that you were not on a registered South African medical scheme. The late joiner fee can range between 5% and 75% of the total contribution, depending on the number of years that you were not covered by a medical scheme. It is important to keep proof of all your previous medical scheme membership, as it would help reduce or remove the Late Joiner Penalty. General considerations When reviewing your medical aid plan, you should consider the following factors: - benefits - exclusions - co-payments and deductibles - provider network restrictions - financial soundness of the medical scheme - the medical scheme's service and ability to pay claims - premium (affordability) - gap cover product to supplement your medical aid. Please contact our health team, Tel 011-658-1333, Option 2, or email service@daberistic.com , to find out about different medical aid options. Sirago is one of the leading medical gap cover providers in South Africa. If you have medical aid, then Sirago gap cover is an essential supplement to your medical aid, to cover payment shortfalls. Sirago offers some of the premium, benefit-rich products. Overall, the premium increase will be 8.6%. It has some great updates and additions in 2021. These are:
Continuing with their focus on specific niche markets, they will be launching the following products:
2021 Sirago Gap Cover Premium Momentum Medical Scheme focuses more than ever on keeping benefit design stable and ensuring that their members continue to enjoy comprehensive and affordable benefits. The 3rd largest open medical aid scheme in South Africa, Momentum Medical Scheme has announced an average annual contribution increase of 3.9% for 2021. This is substantially lower that the weighted average annual contribution increase of 8.2% for 2020.
If you have any queries or are interested in joining Momentum Medical Scheme, please contact us on 011-658-1333, 076-200-5488 or email service@daberistic.com.
Introducing Vitality Active Gear In line with keeping members motivated for 2021, Discovery has introduced Vitality Active Gear. This will replace Healthy Gear; you no longer have to pay a fee to activate the benefit. Below is how this works:
Healthy Dining With Convenience From Ready-made Meals
Versatility With Discovery Mile The Shared Value rewards system now offers new ways to earn miles, members can redeem Discovery Miles with discount of up to 20% in an expanding partner network. Clients can use Discovery Miles to pay for a vast range of items, services and travel, which now include Travelstart and SafariNow. Local accommodation and car hire are also available on the Kulula.com booking platform. Members have pre-booking access to domestic flights, 72 hours before anyone else can. Discovery Bank clients with Vitality Money can get up to an upfront 75% discount on domestic flights. Explore more. Vitality Rates 2021 Author: Marizka Esterhuizen, Insurance Broker The main function of insurance is to put the insured into the same position as they were before a loss or accident. Santam states on their website that: “The retail value of a car (which is usually the higher value of the two) is the average price a car dealer would sell it for. In insurance terms, this means that if your car is covered for its retail value and it is written off in an accident or stolen without being recovered, the settlement amount will be based on the car’s retail value. If your car is insured for its retail value, it will be much easier to replace a damaged or stolen car with a similar make and model. The market value of a car is almost always lower than the retail value and takes into account a number of variables, including mileage, vehicle condition, service history and accident reports. If you were to sell your car privately, the market value would be the price that you could likely sell it for. Because this figure can vary from car to car, short-term insurers need to find a way to standardise the market value. The reasonable market value uses the retail value as the base and takes into account the amount of kilometres on your car’s odometer, the condition of the car as well as any extra items added to the car.” Therefore, if you insure your vehicle at market value you will not be able to replace the vehicle with a similar vehicle, leaving you in a worse position than before the loss or accident. You can use the calculator on Santam’s website to calculate the retail value of your vehicle by using the Auto Dealer Code, or your vehicles exact specifications, e.g. year, make, module etc. The Auto Dealer code was developed by TransUnion to specify vehicles. TransUnion has been gathering data over five decades and updates their data monthly to ensure that they provide accurate information in their guides. These guides are used by insurance, financing, and motor trader companies. “Can you please also explain why the Honda Jazz is insured for a less value, but the monthly insurance is higher than the Jeep Compass?”Insurance companies uses various factor that impact the rate at which the insurance premiums are calculated. These factors include, but are not limited to, the regular driver, vehicle specifications and the claims history.
Insurance premium rates are calculated by actuaries every year using data collected over the previous years. With today’s technologies and the vast well of data available, insurance companies have moved over to a client specific risk-based approach. Meaning that insurance rates are calculated per individual with vehicle insurance, insurance companies look at the regular driver, taking into account the following factors: • Age • Marital status • Gender • Occupation The vehicles specifications also play a role in calculation the rate. For example, older vehicles have been on the road longer and are therefore more prone to breakdowns, the parts are harder to find and therefore more expensive even if their retail value is lower than other vehicles. Hijacking statistics are also used, as a result vehicle like VW Polo’s that are more likely to be hijacked, have higher insurance rates. Insurance companies look at the following factors: • Year the vehicle was manufactured • Vehicle module • Vehicle make • The colour of the vehicle • Extras on the vehicle • Vehicle security • Where the vehicle is parked in the day and at night The claims history of the driver is used in calculating the rate for the premium, a higher loss ratio will result in a higher premium. • Your loss ratio, which is the losses an insurer incurs due to paid claims as a percentage of premiums earned. • Your loss ratio is calculated by dividing the claim amount by the annual premium. In conclusion, there are various factors that can result in the premium for the Honda Jazz being higher than the Jeep. To get help and advice on your car insurance, please contact 011-658-1333, Option 3, email service@daberistic.com to speak to one of our insurance brokers. Bonitas, the second-largest open medical scheme in South Africa, has recently released their 2021 updates and increment across all plans. Bonitas recognises that it has been a tough year. It has settled on lowest increase possible to maintain consistent service to the clients for 2021. With the guideline from the Council for Medical Schemes, Bonitas has settled on an average increase of 4.6% across all plans which will range between 0% and 7.1%. The BonFit Select plan has 0% increase. It is to ensure affordability and sustainability for all the members going forth as Bonitas has noted that 7 of its current options are priced between R1500 and R3000 per month, which is where the medical scheme market is experiencing growth currently. "Member behaviour has changed significantly, and demand is for innovation, accessibility and technology. This has the benefit of attracting, a younger, target audience and driving sustainability,” it said. Bonitas has introduced 2 new medical aid plans for 2021, these plans are induced by technology, called Edge.
BonStart and Bonstart Plus, are designed for economically active singles or couples, living in the larger metros, which include access to: • Private hospital network and full cover for emergencies • PMB chronic medicine • Day to day benefits including unlimited GP consultations • Layers of virtual care, dental and optical benefits; preventative care • Wellness screenings • Contraceptives and so much more… The above monthly premium is R1452 and R1731 for principal member respectively. This year has been a challenging year for most due to global pandemic hence personal assurance on safety is where Bonitas will develop and focus their core services like home-based care and day hospitals to reduce risks. Other developments for 2021 include: • Developing its WhatsApp channel and virtual technology platforms • Continuing with the virtual care platform, which provides access to GP consultations and free delivery of chronic medicine • Promoting mental health and mental wellbeing, with screening via the app and providing effective care where necessary • Using the Wellness Extender benefit to pay for up to three months of subscription fees for Run/Walk for life to help members get healthier. To speak to a Medical Aid Consultant, please email service@daberistic.com, Tel 011-658-1333, Option 2 for Medical Aid. |
AuthorKevin Yeh Archives
January 2025
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