Hello everyone

We are all on the path to achieve great things and the next exam is part of the journey.

The quote above may seem counterintuitive for those of us who only like to be challenged once we feel we are ready, but for the technical exams we should not wait for that moment – we should test ourselves as soon as we believe we have understood the concepts. The early testing throws up the areas we need to address in time for us to adjust our understanding. But let’s not forget about the first part of the quote which is a must for mastering any exam.  Plan your strategy for the exam and practice it as part of your planning for the exam. Planning is indispensable.

The newsletter is not only a collection of articles it is hoped that you will be alerted to the indirect and direct impact of the events happening locally and globally on the financial services industry and the myriad ecosystems that constitute it. Some of these for example are the NHI and its implementation, the RAF and changing laws, our loadshedding woes, interest rate hikes etc. More broadly there is the Ukraine – Russia war, the USA Fed raising interest rates to curb inflation, likewise in the UK and Europe, the expectation for China’s economy to recover and climate change.

How are all of these useful to you as someone who is on a journey to qualify as an actuary? They create an awareness of the interconnectedness of events, nations and individuals and develop a bigger picture perspective. They also help keep you abreast of what is happening in your specialist area and so build on your intrinsic actuarial knowledge which will serve you in the A311, F100 and F200 exams. More importantly, over time you will improve your reading and writing skills and develop a critical eye and critical thinking both so important for actuaries who are looked upon to mitigate risk and come up with solutions to complex issues.

Please read or listen to the speech in the About YOU section by David Foster Wallace it will throw light on the value of the obvious. It will inspire you to think differently.

Remember that you can gain further insight into what it means to be an actuary by listening to the podcasts on So what’s it actuary about?

Enjoy!

MM Editorial Team

Economic matters

Marginal uptick in headline inflation to 4.8% y/y in August

Momentum Investments have released their report based on ‘Marginal uptick in headline inflation to 4.8% y/y in August’ prepared by the Momentum Investments Macro Research Team

This was written just as interest rates were held steady by the SARB. There is access to the full report on the article itself, providing a macroeconomic perspective of South Africa together with factors impacting growth since July 2023. 10min read

Close call as Reserve Bank holds on interest rates

The South African Reserve Bank’s Monetary Policy Committee has elected to hold rates in a tight vote. Three members of the committee voted for a hold, and two voted for an increase of 25 basis points.

The article gives you access to the full statement from the Reserve Bank which is very enlightening bringing into focus the interconnectedness of local and global factors that impact inflation and which inform steps taken by the Reserve Bank. 3min for article and 15min for the statement

CEO warns of state collapse in South Africa

This is an opinion piece by Busi Mavuso chief executive of Business Leadership South Africa (BLSA). She urges a number of reforms top of list being government spending. 3.5min read

Financial Services Industry

How do you best prepare for Cofi? Don’t focus on the legislation

National Treasury aims to promulgate the Conduct of Financial Institutions (Cofi) Bill in the fourth quarter of this year. The financial sector must prepare for it.

MUST READ: Anton Swanepoel of Trusted Advisors shares a best practice framework with advisers. 3.5min read

Adrian Gore: Discovery’s zip to R100bn journey has big lessons – here are the most important

This interview covers a lot of ground in the industry, it is honest and straight forward and comes to you from BizNews which is usually behind a paywall. It is a twenty minute interview with sections demarcated with time stamps – really convenient for the busy listener. 20min listen

Taking tech to tradition: Mitigating risk in the evolving financial services sector 

As technology distorts the boundaries between the physical and digital realms, adequate risk mitigation measures must be built into collaborations between banks and fintech companies.

You could take the research further and gain more insight into examples of collaborations and their associated risks here in SA. 3min read

Sanlam research delves into South Africans’ level of financial confidence

“Personal finances have a profound impact on human behaviour, influencing decision-making, lifestyle choices, relationships, and overall well-being. When individuals are financially confident, they are more inclined to experience a higher level of overall happiness and satisfaction,” Mariska Oosthuizen, Sanlam’s chief marketing officer said.

Sanlam used the research to compile its Financial Confidence Index. The index aims to establish a benchmark for measuring financial confidence and associated behaviours among South Africans. The research will be conducted annually.

Interesting statistics with a link to the full report at the end of the article. How do you think the research can be used? Can the survey be improved? 4min read

Diversity and Inclusion

Britain Proposes Diversity and Misconduct Rules for Financial Services Firms

For those of you who are drawn to work overseas, note that you should be aware of your rights. It is also prudent to find out more about the company’s diversity and inclusion policies. These should be on their website and you can raise it at the interview stage.  2min read

Life Insurance

Stress a key factor in cardiovascular disease, a top cause of mortality across SA

Dr Marion Morkel, Chief Medical Officer at Sanlam claims that:

stress has a substantial impact on the delicate balance of our autonomic nervous system, which guarantees that the heart beats rhythmically without conscious effort.

She goes on to say that persistent stress changes the hormonal system and causes frequent cortisol releases.

Why do we encourage stress in our lives, believing that we should be working at fever pitch all the time? It is frightening to think that we may subconsciously be accepting that this is the price for success and leadership.  3.5min read

General Insurance

How to think about climate change risk management in 2023

Climate change is one of the most pressing challenges of our time, and its impacts are being felt around the world. While some strides have been made in understanding climate change risk management, we are nowhere near dealing adequately with it. And yet, it is a significant area that requires attention.

Right now, is almost too late. 4min read

Legal professionals raise concerns over proposed amendments to RAF 

Don’t wait until you have an accident to find out how the RAF works. Actuarial input is vital. From a sustainability perspective it requires urgent attention and from a human rights perspective, we need to consider fairness and how victims can be protected. 2.5min read

Opportunity to drive Public and Private partnerships in Agriculture Insurance

The 2023 Agricultural Insurance Pulse Report indicates global hunger and food insecurity is on the rise with the number of undernourished people estimated to have increased up to 828 million in 2021.  Africa, unfortunately, makes up a large percentage with 57.9% of the population exposed to moderate or severe food insecurity.

3min read

Ship Insurance Facility Set Up for Ukraine Grain Exports, Broker Miller Says

Kyiv has launched what it calls a new temporary humanitarian corridor in an effort to break Russia’s de facto blockade. Two ships have sailed in the recent days from the Ukrainian port of Chornomorsk using the channel. Securing insurance cover has been vital.

2min read

Viewpoint: Solving Systemic Risk Is the Cyber Market’s Number One Priority

Cyber insurers can sometimes feel like systemic risk is unique to them: it isn’t. The Covid pandemic was about as systemic as it gets. Business Interruption insurers faced an avalanche of claims following the first lockdowns. And the industry failed in the eyes of thousands of small business owners. The reason was a failure to address the perennial problem of systemic risk. The cyber market mustn’t repeat the same mistakes.

Well written article bringing a lot of issues to the fore as far as systemic risk is concerned. 8min read

Health Insurance

Concern that NHI will widen inequality as comment deadline ends

Leading business groups as well as the Institute of Race Relations (IRR) are among the many objectors to the National Health Insurance (NHI) Bill in its current form, as the deadline for comment on the proposed legislation closed last week.

You need to stay abreast of the discussion as this will impact the sector dramatically and all citizens in general. 3.5min read

RAF amendment Bill ‘discriminates’ against medical scheme members

It also discriminates against those who are unable to pay for their medical costs up front. Read the article with a critical eye. Tally up the good and bad points and who is favoured. 4min read

Bonitas balancing increases with value and sustainability

Bonitas Medical Fund, one of the leading medical schemes in South Africa, announced its 2024 product line up today.

Do you think Bonitas continues to deliver affordable products of high utility? 5min read

Banking

Discovery Bank charts path to break-even in FY24

Owned by the financial services group − SA’s largest health insurer − Discovery Bank says despite recording a R767 million operating loss in the last year, its overall operating loss before new business acquisition costs was 39% better than in 2021, as it continues to expand its client base. The bank’s net income grew 67% to R1.2 billion during the year.

How is it possible to make such a loss and still continue to operate? At what point would it not be viable? Generate a few ideas on the page and then go back to 2018 when Discovery announced its bank and then in December 2020 when it was launched (COVID era) – you may get further insight. 2.5min read

FNB mulls blockchain tech to digitise title deeds

Is this a first step in the direction of participating once again in crypto assets? After reading the article what do you think could have been motivating factors to rethink the use of blockchain?  2.5min read

Investments

‘SA assets will outperform because they’re much cheaper’

Many South African fund managers are not using the full 45% offshore limit, partly because of the opportunities local assets offer.

Keep your critical eye in focus as you read this article. Note the different arguments for and against offshore investments. Nothing is clear cut. You have to have your client in mind. 3min read

Allan Gray is finding value in SA Inc shares

At a recent Morningstar Investment Conference held in Johannesburg, Acker said during a panel discussion that South Africa still faced considerable political and fiscal risks. However, at current ratings, Allan Gray found increasing value in locally focused SA Inc shares.

3min read

Cogence could hasten Discovery Invest’s growth

Discovery Invest believes its recently launched discretionary fund manager Cogence will ultimately provide the Discovery Group with significant growth in assets and earnings.

3.5min read

Retirement / Pensions

What can employers do to improve South Africa’s low retirement savings rate? 

Employers in South Africa are not legally required to offer their employees pension funds or retirement savings plans. However, many employers provide such plans as part of their employee benefits package. These employer-sponsored funds can be pension, provident, or retirement annuity funds.

A good primer or recap on pension contributions. 3.5min read

About YOU

This is Water by David Foster Wallace (Full Transcript and Audio)

“As I’m sure you guys know by now, it is extremely difficult to stay alert and attentive, instead of getting hypnotised by the constant monologue inside your own head (may be happening right now). Twenty years after my own graduation, I have come gradually to understand that the liberal arts cliché about teaching you how to think is actually shorthand for a much deeper, more serious idea: learning how to think really means learning how to exercise some control over how and what you think. It means being conscious and aware enough to choose what you pay attention to and to choose how you construct meaning from experience. Because if you cannot exercise this kind of choice in adult life, you will be totally hosed. Think of the old cliché about “the mind being an excellent servant but a terrible master.””

Light but meaningful speech, timeless and thought provoking. 12-15 minute read or 22 min audio.