Health insurance - Nigeria | Statista Market Forecast

The Health insurance market market in Nigeria is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is set to reach US$60.97m in 2024.
This indicates a promising future for the sector.
Furthermore, the average spending per capita in the Health insurance market market is estimated to be US$0.27 in 2024.
This figure highlights the financial commitment individuals are willing to make towards securing Health insurance market coverage.
Looking ahead, the gross written premium is anticipated to exhibit an annual growth rate of -3.45% between 2024 and 2029.
By the end of this period, the market volume is projected to reach US$51.16m.
This steady growth reflects the increasing demand for Health insurance market services in Nigeria.
When compared to other countries globally, the United States stands out as the leader in terms of gross written premium.
In 2024, the United States is expected to generate a staggering US$1.7tn in the Health insurance market market.
This showcases the scale and significance of the American market in the global context.
The health insurance market in Nigeria is experiencing a surge in demand as more individuals recognize the importance of having access to quality healthcare services.

Definition:

Health insurance is a financial arrangement in which individuals or groups pay regular premiums to a provider, typically an insurance company. In exchange for these premiums, the insurer offers coverage and financial assistance for various healthcare-related costs, including but not limited to medical consultations, hospitalization, prescription medications, and other medical services. According to our current definition, the health insurance market includes voluntary health insurances.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Voluntary health insurance contributions

Compulsory health insurance contributions
Government schemes
Out-of-pocket payments
Reinsurance

The Health insurance market in Nigeria is experiencing significant growth and development.

Customer preferences: Customers in Nigeria are increasingly recognizing the importance of health insurance in providing financial protection against unexpected medical expenses. With rising healthcare costs and a growing middle-class population, more individuals and families are seeking comprehensive health insurance coverage to ensure access to quality healthcare services.

Trends in the market: One of the key trends in the Nigerian health insurance market is the expansion of health insurance products tailored to different segments of the population. Insurers are offering innovative packages that cater to the specific needs of young professionals, families, and senior citizens. Additionally, there is a notable increase in the adoption of technology in the distribution and management of health insurance policies, making it more convenient for customers to access and utilize their coverage.

Local special circumstances: In Nigeria, the implementation of the National Health Insurance Scheme (NHIS) has played a significant role in driving the growth of the health insurance market. The government's efforts to increase awareness about the benefits of health insurance and expand coverage to underserved populations have contributed to the overall development of the sector. Furthermore, partnerships between insurance companies and healthcare providers have improved the quality of healthcare services available to insured individuals, further incentivizing more people to enroll in health insurance plans.

Underlying macroeconomic factors: The economic growth and increasing disposable income levels in Nigeria have had a positive impact on the health insurance market. As more people are able to afford health insurance premiums, the market has witnessed a surge in demand for various health insurance products. Moreover, regulatory reforms aimed at enhancing the efficiency and transparency of the insurance sector have boosted consumer confidence in health insurance providers, encouraging more Nigerians to invest in comprehensive health coverage for themselves and their families.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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