Health Insurance in Nigeria - How to Drive Adoption
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Health Insurance in Nigeria - How to Drive Adoption

Health insurance is fairly nascent in Nigeria. In fact, 97% of Nigeria’s population is not covered by any type of health insurance. The paltry 3% of the Nigerian population who are actively covered by health insurance are from their employers’ HMO, according to Dataphte

What this revelation emphasizes is that access to affordable healthcare in Nigeria remains out of reach for an average Nigerian, especially those with jobs or engagements outside of the formal sector of the economy.

Health insurance isn’t luxury, yet it is scarce

The Nigerian government keeps making efforts to drive the mainstream adoption of health insurance, one of such was the Insurance Act of 2003

The act regulates the operations of all forms of insurance in Nigeria, and the National Health Insurance Authority Act of 2022, which makes it mandatory for all employers, employees in all sectors (including informal sector), and all other Nigerians to access Health Insurance.  

With these policies in place, a lot is still expected from the private health sector, insurance companies and interested partners to sell health insurance to teeming Nigeria, more importantly because out-of-pocket cost of health in Nigeria is pretty expensive. 

embedded Health Insurance in Nigeria

State of Health Insurance in Africa 

Health insurance is crucial in providing accessible health care to people across Africa. Although South Africa, Angola, and Kenya have made significant progress in developing their insurance sectors, health insurance still needs to be developed in African regions. 

There are significant challenges when providing health care coverage across Africa. Some of the challenges are limited infrastructure and resources and high out-of-pocket expenses. African nations are continuously creating schemes and adjusting their laws to expand health insurance coverage and improve the healthcare sector's effectiveness.

Why Drive Adoption of Health Insurance in Nigeria?

Health insurance offers numerous benefits to individuals, companies, communities, and the economy as a whole, as the well-being of a country’s labour force will directly impact its productivity as a corporate state. 

Helping more Nigerians adopt health insurance will enormous social and monetary value to the Nigeria’s economy, some of which are:

Reduced Out-of-pocket Expenses

Access to health insurance coverage provides protection from unplanned out-of-pocket expenses to cover medical care. Reducing out-of-pocket expenses on a large scale in a low-income country like Nigeria will significantly increase disposable incomes in many Nigerian homes across all socio-economic classes. 

Improves Access To Quality Healthcare

Health insurance ensures that more Nigerians can access quality healthcare services, including timely treatments, specialist consultations, diagnostic tests, medications, etc. This will increase overall productivity and profitability of Nigerian businesses. 

Promotes Preventive Care

People with access to health insurance can prevent the progression of certain diseases and illnesses. There is more motivation to go for regular checkups and participate in wellness programs, thus, emphasizing proactive measures to maintain general health.

Prolonged Life Expectancy

Mass adoption of health insurance means that more Nigerians will live longer to positively contribute to the growth of the nation, as a healthy population is a wealthy one who can enrich themselves, their employers and country.. 

Embedded Health Insurance in Nigeria 02

Leveraging Embedded Health Insurance for Sales and Revenue Growth 

Embedded insurance is a method of selling insurance coverage as a part of a larger bundle at the point of sale. You can sell embedded insurance for life, travel, car, and health insurance. Leverage embedded health insurance by integrating it into products or services businesses offer. Look at some methods below.

Health Insurance as an Employee Benefit

Employee benefit is the most common form of embedded health insurance in Nigeria. By providing health insurance as an employee benefit, companies can attract valuable talent, build a culture of employee well-being, and retain valuable talent.

Leveraging Health Insurance as a Marketing Tool

Embedded health insurance can also be leveraged as a marketing tool to boost revenue growth, customer retention, and loyalty. Doing this will differentiate your brand and resonate with health-conscious consumers. Let’s see how:

Customer Loyalty Programs

Loyalty programs are a great idea to improve customer retention and ensure that your customers remain excited through the sales journey—partner with health insurance providers to create customer loyalty programs that match your brand.

Product Offerings

Lastly, incorporating health insurance into product offerings, such as extended warranties with medical coverage, can create a unique selling point for your business and increase sales.

Health insurance plays a significant role in improving health care in Africa and Nigeria. It will provide financial security and access to quality healthcare. Curacel provides AI-powered insurance infrastructure to support health claims management and integration of health insurance services in your offerings. Talk to our team now.

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