Health insurance - Tanzania | Statista Market Forecast

The Health insurance market market in Tanzania is projected to reach a market size (gross written premium) of US$57.74m in 2024.
In the same year, the average spending per capita in the Health insurance market market is estimated to be US$0.83.
Furthermore, the gross written premium is expected to exhibit an annual growth rate (CAGR 2024-2029) of 6.03%, resulting in a market volume of US$77.36m by 2029.
When compared globally, the United States is poised to generate the highest gross written premium of US$1.7tn in 2024.
In Tanzania, there is a growing trend towards micro health insurance plans that cater to the specific needs of the rural population.

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 Tanzania has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Tanzania are increasingly seeking health insurance coverage to mitigate the financial risks associated with healthcare expenses. With rising healthcare costs and a growing awareness of the importance of health insurance, there is a shift towards seeking comprehensive coverage that includes a wide range of medical services.

Trends in the market: One of the key trends in the Tanzanian health insurance market is the increasing penetration of health insurance products among the population. This can be attributed to a growing middle-class population with higher disposable incomes, as well as the expansion of insurance providers offering a variety of health insurance plans tailored to different customer needs. Additionally, the market is witnessing a trend towards digitalization, with insurance companies leveraging technology to improve access to insurance products and streamline the claims process.

Local special circumstances: In Tanzania, the government has been playing a significant role in promoting health insurance coverage among its citizens. With initiatives such as the National Health Insurance Fund (NHIF) aiming to provide affordable health insurance to all Tanzanians, there is a push towards universal health coverage. This has created a conducive environment for the growth of the health insurance market in the country.

Underlying macroeconomic factors: The growth of the health insurance market in Tanzania is also influenced by macroeconomic factors such as economic growth, urbanization, and demographic changes. As the economy continues to expand and urbanization rates increase, there is a greater need for quality healthcare services, driving demand for health insurance. Moreover, the country's young and growing population presents opportunities for insurance providers to tap into a large market of potential customers.

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.