It is no secret that the cost of quality healthcare in South Africa is very expensive and that medical schemes face an uphill battle every day when it comes to containing their costs. Part of this challenge is the fact that fraud, waste and abuse is rampant in the industry and the current fee-for-service model means that medical schemes continuously face the hamster wheel of making payments while trying to address these challenges.

When the Financial Sector Conduct Authority (FSCA) announced that it would be implementing regulatory reforms arising from the findings of the Retail Distribution Review (RDR), there was a lot of concern expressed by insurers and advisers alike. Key aspects of RDR that need to be taken into consideration is that its aims include the delivery of suitable products and fair access to suitable advice for financial customers; and enabling customers to understand and compare the nature, value and cost of advice and other services intermediaries provide.