Africa Health Insurance Market Size Worth $50.3 Billion By 2030

Africa Health Insurance Market Growth & Trends

The Africa health insurance market size is anticipated to reach USD 50.3 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 5.26% from 2023 to 2030. The advantages of healthcare insurance in private and public sectors and the increase in the number of day care procedures are some of the factors driving the growth. Furthermore, an increase in healthcare expenditure is also a major factor propelling this growth.

Improving accessibility through expanded distribution and digital innovation is a major factor driving the regional market growth.In Africa, the transition to digital channels is already underway, and with it, new demands for service quality. Many insurers are currently beginning to digitize customer journeys.This trend has been accelerated by the COVID-19 epidemic, which has increased demand for digital and remote channels. It is anticipated that this trend will continue after the crisis. In several African nations, there will probably be a net rise in online and mobile banking of between 20 and 40 percent post-crisis.

Furthermore, key companies in the Africa health insurance industry undertake various strategic initiatives such as introducing new policies, partnerships, mergers, and acquisitions to expand and adoption of their insurance policies in the region. For instance, in June 2022, Santam acquired a South African insurance startup, JaSure.JaSure provides customers with digital insurance, which allows them to decide what they want to insure and when. This initiative was expected to strengthen the company’s position in the market.

Moreover, in July 2023, Sanlam entered into a partnership with Aetna Internationalto offer Africa’s most comprehensive health insurance plan. This new insurance plan will provide a wide range of advantages, a sizable direct billing medical network, adaptable payment alternatives, and improved member experiences with local in-country assistance.

Collaboration with governing agencies and regulatory organizations to help shape and boost the market’s growth. Many African nations are already taking advantage of new legislation, which has shown to be an expanded role of broader insurance penetration.The opportunity for insurers to work with regulators on issues like social security, solvency, and compliance requirements, as well as the tax advantages of life savings and pension products, is substantial.

On the other hand, because of the need for specialist risk-management capabilities and significant investment in security and information collecting, which has left the business fragmented and dependent on foreign investment, market penetration for life insurance has been gradual. The major market share of the continent's health insurance industry is made up of five nations: South Africa, Namibia, Kenya, Morocco, and Egypt.

 Request a free sample copy or view report summary: Africa Health Insurance Market Report

Africa Health Insurance Market Report Highlights

• Based on distribution channels, the brokers and individual agents dominated the market and accounted for the largest revenue share of over 67.54% in 2022. Brokers and agents serve as the client's long-term representatives for the duration of the policy about any changes

• Direct sales distribution channel is expected to hold a significant revenue share in the coming years owing to the high advantages of direct-to-consumer sales for insurance carriers

• Based on duration, the life-time coverage dominated in terms of revenue share in 2022 owing to the wide benefits offered by these insurance plans. The advantages include building tax-advantaged cash value, the same insurance premium for a lifetime

• By region, South Africa dominated the market in 2022. This is attributed to robust government support and the growing number of key players

Africa Health Insurance Market Segmentation

Grand View Research has segmented the Africa health insurance market based on duration, distribution channels, and region:

Africa Health Insurance Duration Outlook (Revenue, Billion, 2018 - 2030)

• Life-time Coverage

• Term Insurance

Africa Health Insurance Distribution Channels Outlook (Revenue, Billion, 2018 - 2030)

• Direct Sales

• Brokers and Individual Agents

• Bankers

• Others

Africa Health Insurance Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• Francophone Africa

• Anglophone West Africa

• Southern Africa

• North Africa

• East Africa

• Angola

• South Africa

List of Key Players in the Africa Health Insurance Market

• Santam

• Allianz Care

• Cigna Global

• Aetna International

• Globality Health

• Bupa Global

• Clements Worldwide

• Global Underwriters

• IMG

• Insured Nomads