The Nigeria insurance industry: how it can explore growth by technology adoption - Curacel

The Nigeria insurance industry: how it can explore growth by technology adoption

November 9, 2021
Author:hamad

Nigeria’s health insurance market has vast growth potential. According to Mordor Intelligence, given its position as the largest economy in Africa. Also, with its large and growing population mostly made up of the young, vast number of natural resources, and its substantial oil and gas reserves – these suggest the necessities it needs to grow the health insurance industry. 

The health insurance industry is amongst the fundamental components of the international economy by the quantity of income it produces. Most obviously, the vital social and commercial significance it plays in safeguarding individual and corporate risk in the occasion of unexpected hitches.

Covid-19 pandemics impacted employment, business activity, and trade. In 2020, global non-life premiums, expected to be flat for the year, including a 1% decline in developed markets. Despite these challenges, the insurance industry is expected to rebound by 3% growth in 2021, led by a potential 7% boost in emerging regions, according to Deloitte.

The Nigeria Economy and Health Coverage

Referencing an article by The Guardian, Nigeria is the 2nd biggest economy with the largest maker of oil and gas in the entire African continent. The country has the 3rd most extensive FDI stock in Africa because it persists in being the largest oil producer in Africa.

Moreover, Nigeria has a denationalized economy, truncated labor costs, and plentiful natural resources. Being the 7th largest populated nation in the world, it also has the biggest market in the whole of Africa.

A recent article by ThisDay points out that one of the primary needs in Nigeria is to adopt a comprehensive social health insurance scheme. 

The National Health Insurance Scheme (NHIS) main issue is the system-wide inequalities in its implementation, which have resulted in the lack of financial protection for the health care needs of most Nigerians. There are pointers that NHIS has improved. 

Read Also: Claims Management: Taking A Determined Stand Against Insurance Fraud

Reforming the country’s healthcare financing through a scrutiny of the NHIS Act is critical to achieving the objective.

Therefore the National Assembly needs to consider all the factors that militate against the implementation of the NHIS Act and amend the law appropriately.

As of December 31st, 2020, there were 1.03m individual policyholders, with the potential to increase to 10m+ in the Nigerian market.

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