Africa Health Insurance Market to Grow at CAGR of 6.50% during 2023–2029

Published | 01 January 2023

Africa health insurance market size is flourishing owing to rapid urbanization and industrialization, steady increase in income levels, and growing awareness about the benefits of health insurance products.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, expects Africa health insurance market size to grow at a steady CAGR of 6.50% during the forecast period between 2023 and 2029. The presence of numerous untapped markets is one of the key factors driving the Africa health insurance industry. However, a few developed markets, such as South Africa, are highly competitive due to the presence of well-capitalized local players. Key African market players are looking to capitalize on untapped regional opportunities while also exploring ventures in concentrated markets. Furthermore, an increase in literacy levels, combined with an increase in the number of educated youths, is creating a positive market outlook. An improved educational environment is expected to increase awareness of the associated benefits of insurance, creating lucrative opportunities for market participants. The rapid urbanization of the continent, the rise of the middle class, and an increasing working population are additional factors influencing the expansion of the insurance industry in Africa.

Africa Health Insurance Market – Overview

A type of health insurance that covers medical expenses incurred because of an illness is Health and Medical Insurance. These costs could include hospitalization, medication, or doctor visits. The rising cost of quality healthcare, increased demand for healthcare coverage as income levels rise, and an epidemiological shift toward noncommunicable diseases have made health and medical coverage mandatory. The expansion of this sector is significant in terms of the overall expansion of the general insurance industry. The insurance market is expanding because of significant government initiatives, strong democratic factors, a favorable regulatory framework, growing partnerships, product innovations, and dynamic distribution networks.

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Opportunity: Growing awareness about benefits of health insurance policies

The policyholder of a health insurance plan is reimbursed by the insurer for their medical costs, including hospitalization, surgeries, and treatments related to injuries. A health insurance policy is a type of contract where the insurance company guarantees payment for treatment costs in the event of future medical issues and the policyholder agrees to pay the premium amount following the insurance plan. Thus, the benefits of health insurance policies increase the market for health insurance in the Middle East and Africa growth prospects.

Challenge: Lack of knowledge about health insurance in rural areas

In the field of healthcare, many people across Africa are still unaware of the benefits of health insurance policies. With advancements in the field, medical care costs are rising all over the world. The healthcare sector is one of the fastest growing sectors due to technological advancements; however, the penetration rate of health insurance policies in rural areas remains low due to a lack of awareness about the benefits they provide.

Impact of COVID-19 on Africa Health Insurance Market

Several manufacturing and service sectors were impacted by COVID-19 in 2020–2021 because of workplace closures, supply chain disruptions, and transportation restrictions. It is anticipated that as the pandemic ends, the imbalance between supply and demand and how it affects prices will reverse. The demand for health insurance has significantly increased because of COVID-19's global spread. During the pandemic, the market for health insurance grew because of rising medical costs and disease-related fear. Health insurance companies also introduced plans and solutions to cover the costs of treating insurers with covid19 infections. Although other industries suffered significantly during the COVID-19 pandemic, the health insurance industry was growing significantly.

Africa Health Insurance Market – By Coverage Type

The life insurance and term insurance segments of the Africa health insurance market are based on the type of coverage they provide. The African market for health insurance is dominated by the life insurance segment. It is expected to rule the market in terms of sales and market share during the forecasted period. This is because life insurance policies offer many advantages, including guaranteed death benefits and permanent coverage. Furthermore, working professionals can reduce their tax liability by investing in these kinds of plans.

Term insurance is expected to have the second-highest market share during the forecast period. This is due to its extensive coverage and high cost. It primarily consists of health insurance, which protects against rising medical costs as well as medical emergencies such as critical illnesses. As a result, it is the best way to protect against medical expenses.

Competitive Landscape

Africa health insurance market is fiercely competitive. Prominent players in Africa health insurance market include Sanlam Limited Insurance Group, Old Mutual Limited, Liberty General Insurance Ltd., Wafa Assurance, Misr Life Insurance, MAMDA & MCMA, Hollard Group, AXA Insurance Morocco, Leadway Assurance Company Limited, Britam, Metropolitan Life Insurance Company, and Other Prominent Players. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in Africa health insurance market.

Don’t miss the business opportunity in the Africa Health Insurance Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Africa Health Insurance Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Africa Health Insurance Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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