Health insurance - South Africa | Statista Market Forecast

The Health insurance market market in South Africa is expected to reach a projected market size (gross written premium) of ZAR US$22.72bn by 2024.
In the same year, the average spending per capita in the Health insurance market market is estimated to be ZAR US$372.40.
It is anticipated that the gross written premium will experience an annual growth rate (CAGR 2024-2029) of 2.95%, leading to a market volume of ZAR US$26.28bn by 2029.
When compared globally, the United States is forecasted to generate the highest gross written premium of US$1.7tn in 2024.
South Africa's health insurance market is experiencing a surge in demand due to the country's growing middle class and increasing awareness about the importance of healthcare.

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 South Africa has been experiencing significant growth and transformation in recent years. Customer preferences in the South African health insurance market are shifting towards more comprehensive coverage options that offer a wide range of benefits. Customers are increasingly seeking plans that not only cover basic medical expenses but also provide additional services such as wellness programs, preventative care, and mental health support. This trend mirrors global consumer demands for more personalized and holistic healthcare solutions. Trends in the South African health insurance market indicate a rise in the adoption of digital technologies to enhance customer experience and streamline operations. Insurers are investing in online platforms, mobile apps, and telemedicine services to make it easier for customers to access healthcare services remotely. Additionally, there is a growing focus on data analytics and artificial intelligence to improve risk assessment and pricing strategies in the market. Local special circumstances in South Africa, such as a high burden of disease, an aging population, and disparities in healthcare access, are driving the evolution of the health insurance market. The country's healthcare system faces challenges related to affordability, quality, and availability of services, prompting individuals to seek private health insurance as a way to ensure timely and adequate medical care. This unique context influences the design of health insurance products and the strategies adopted by insurers to cater to the diverse needs of the population. Underlying macroeconomic factors, including economic growth, regulatory changes, and public health priorities, play a crucial role in shaping the health insurance market in South Africa. As the economy develops and household incomes rise, there is a growing demand for better healthcare services, leading to increased uptake of health insurance products. Government policies and regulations also impact the market dynamics, influencing competition, pricing, and coverage requirements for insurers operating in the country. Moreover, public health challenges such as the prevalence of chronic diseases and infectious outbreaks drive the need for innovative insurance solutions that address emerging health risks in the population.

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.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.