Health insurance - Ethiopia

Ethiopia

Highlights

The Health insurance market market in Ethiopia is expected to witness significant growth in the coming years.
According to projections, the market size, measured by the gross written premium, is set to reach US$108.00m in 2024.
This indicates a robust demand for Health insurance market coverage among the population.
Looking at the average spending per capita in the Health insurance market market, it is estimated to amount to US$0.83 in 2024.
This figure highlights the financial commitment individuals are willing to make towards securing Health insurance market policies.
Furthermore, the gross written premium is anticipated to exhibit a compound annual growth rate (CAGR) of 9.09% between 2024 and 2029.
This positive growth trajectory is expected to result in a substantial increase in the market volume, reaching US$166.90m by 2029.
These figures demonstrate the potential for further expansion and development within the Health insurance market sector in Ethiopia.
In a global comparison, it is worth noting that the United States is projected to generate the highest gross written premium in 2024, with a staggering amount of US$1.7tn.
This highlights the significant scale of the American Health insurance market and its dominant position in the global landscape.
Overall, the Health insurance market market in Ethiopia is poised for growth, with increasing market size, per capita spending, and a positive growth rate.
These factors indicate a promising future for the sector, contributing to the overall healthcare landscape in the country.
The demand for affordable health insurance in Ethiopia is rapidly increasing due to the country's growing middle class and rising healthcare costs.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The health insurance market in Ethiopia is experiencing significant growth and development.

Customer preferences: Ethiopian consumers are increasingly recognizing the importance of having health insurance coverage to mitigate the high costs associated with medical treatments and services. As the country's healthcare system continues to improve, there is a growing demand for comprehensive health insurance plans that offer a wide range of coverage options.

Trends in the market: One of the key trends in the Ethiopian health insurance market is the rising popularity of private health insurance providers. With the government encouraging private sector participation in the healthcare industry, more insurance companies are entering the market to offer innovative and tailored health insurance products to meet the diverse needs of consumers. Additionally, there is a noticeable shift towards digital health insurance solutions, making it more convenient for individuals to access and manage their health insurance policies.

Local special circumstances: Ethiopia's healthcare system has been undergoing significant reforms to enhance the quality and accessibility of healthcare services across the country. As a result, there is a growing awareness among the population about the importance of health insurance as a means to secure affordable and timely medical care. The government's efforts to promote universal health coverage are also driving the expansion of the health insurance market in Ethiopia.

Underlying macroeconomic factors: The overall economic growth in Ethiopia, coupled with a rising middle-class population, is contributing to the expansion of the health insurance market. As more people have disposable income to spend on healthcare services, the demand for health insurance is expected to increase. Additionally, the government's focus on strengthening the healthcare infrastructure and regulatory framework is creating a conducive environment for the growth of the health insurance sector in the country.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.