South Africa Healthcare Insurance Market Analysis

South Africa Healthcare Insurance Market Analysis


$ 3999

South African healthcare insurance market is projected to grow from $13.17 Bn in 2022 to $25.92 Bn by 2030, registering a CAGR of 8.83% during the forecast period of 2022-30. The main factors driving the growth would be increasing demand for private healthcare, rising healthcare costs, regulatory reforms and technological advancements. The market is segmented by the component, provider, coverage, health insurance plans and end-user. Some of the major players include Bonitas, Discovery Health, Momentum Health, Afrocentric Health and Bestmed Medical.

ID: IN10ZAHS008 CATEGORY: Healthcare Services GEOGRAPHY: South Africa AUTHOR: Neha Davda

Buy Now

South Africa Healthcare Insurance Market Executive Summary

South African healthcare insurance market is projected to grow from $13.17 Bn in 2022 to $25.92 Bn by 2030, registering a CAGR of 8.83% during the forecast period of 2022-30. South Africa's national healthcare spending as a share of GDP in 2019 was 9.11% or $547 per person.

An integrated public and private healthcare system exists in South Africa. The bulk of the population receives healthcare services from the public sector, although it frequently struggles to keep up with demand due to understaffing and funding issues. Contrarily, the private sector serves a smaller proportion of the population but is better supported and has access to more resources.

The market for health insurance has expanded as a result of the rise in private healthcare demand in South Africa during the past few years. Several companies, including Momentum Health, Discovery Health, and Bonitas, provide private health insurance. These companies provide a variety of health insurance plans to meet the needs of different individuals and groups.

South Africa Healthcare Insurance Market

Market Dynamics

Market Growth Drivers

The South African healthcare Insurance market is expected to be driven by factors such as:

  1. Increasing demand for private healthcare- With the increase in the need for private healthcare services in South Africa, more people are searching for healthcare insurance solutions that can provide them access to these services, particularly the individuals who are dissatisfied with the quality of care offered by the public healthcare system
  2. Rising healthcare costs- In South Africa, healthcare costs are increasing rapidly, due to the reasons such as increased demand for healthcare services, ageing population, developments in medical technology, and an ageing population. As a result, more people are searching for strategies to control these expenses, such as by purchasing health insurance
  3. Regulatory reforms- Recently, the government of South Africa has undertaken a number of regulatory measures to encourage more competition in the health insurance market. These reforms have encouraged the entry of new players, resulting in rising competition and more options for customers which help in market expansion
  4. Technological advancements- Technological advancements are increasing the demand for more advanced and expensive healthcare services in South Africa. For individuals who want to obtain these services without having to incur a significant amount out of pocket expense, healthcare insurance solutions are becoming more and more crucial

Market Restraints

The following factors are expected to limit the growth of the healthcare insurance market in South Africa:

  1. Inequality- South Africa has a wide imbalance between the rich and the poor, and the healthcare system reflects it. People who can afford health insurance have access to high-quality medical care, while those who cannot often receive mediocre treatment. This is severely causing hindrances to the health insurance market expansion
  2. Affordability- In South Africa, health insurance premiums can be very expensive, particularly for those with a low level of income. As a result, a large number of people are not able to pay for health insurance and restrict themselves from using private healthcare services
  3. Regulatory challenges- South Africa has a complex regulatory framework for the healthcare insurance sector which is governed by a number of regulatory authorities. This might make it difficult for new players to enter the market as well as challenging for consumers to select from limited healthcare insurance plans for them

Competitive Landscape

Key Players

  • Bonitas (ZAF)- Bonitas, which was founded in 1982, is the second-largest provider of medical insurance in South Africa. A variety of cost-effective medical aid alternatives are available from Bonitas, including coverage for outpatient benefits, chronic medicine, and catastrophic medical costs
  • Discovery Health (ZAF)- Discovery is a proudly South African-founded financial services company that provides services in life insurance, healthcare, short-term insurance, long-term savings, banking, and wellness sectors
  • Momentum Health (ZAF)- Momentum is leading the way in new-age thinking in the health sector and offering the people of South Africa services that are unmatched. It is a financial services firm that offers investment, insurance, and healthcare solutions
  • Afrocentric Health (ZAF)- One of the cornerstones of the group's business structure is AfroCentric Health, which is supported by interests in the technology and resource industries. The Medscheme service inside AfroCentric Health offers complete service packages for both healthcare management and risk management
  • Bestmed Medical (ZAF)- Bestmed is the largest self-administered medical scheme in South Africa. It provides a variety of health insurance packages to single people, families, and businesses. These goods come in the form of hospital plans, savings plans, and conventional medical scheme options

Notable News

2019- In the field of Service Design, Momentum's Smart Underwriting solution took home a Silver Loerie Award. Customers can interact with the insurer in real time on common channels thanks to the solution, which reinvents the underwriting process.

2021- The South African Customer Satisfaction Index (SA-CSI) 2020 and 2021 gave Bestmed the greatest ratings for perceived quality, perceived value, customer service, and customer loyalty in the Medical Scheme Industry Category.

1. Executive Summary
1.1 Service Overview
1.2 Global Scenario
1.3 Country Overview
1.4 Healthcare Scenario in Country
1.5 Healthcare Services Market in Country
1.6 Recent Developments in the Country

2. Market Size and Forecasting
2.1 Market Size (With Excel and Methodology)
2.2 Market Segmentation (Check all Segments in Segmentation Section)

3. Market Dynamics
3.1 Market Drivers
3.2 Market Restraints

4. Competitive Landscape
4.1 Major Market Share

4.2 Key Company Profile (Check all Companies in the Summary Section)

4.2.1 Company
4.2.1.1 Overview
4.2.1.2 Product Applications and Services
4.2.1.3 Recent Developments
4.2.1.4 Partnerships Ecosystem
4.2.1.5 Financials (Based on Availability)

5. Reimbursement Scenario
5.1 Reimbursement Regulation
5.2 Reimbursement Process for Services
5.3 Reimbursement Process for Treatment

6. Methodology and Scope

Healthcare Insurance Market Segmentation

By Provider (Revenue, USD Billion):

It mainly includes healthcare insurance that provides safety against the increasing cost of medical treatments and in case of health emergencies such as critical illnesses. Hence, it is the best way to safeguard medical expenses.

  • Public
  • Private

By Coverage Type (Revenue, USD Billion):

In terms of sales and market share, it is anticipated to rule the market over the projection period. This is explained by a number of benefits provided by life insurance, including guaranteed death payout and permanent coverage. Additionally, investing in these kinds of plans enables working professionals to save taxes

  • Life Insurance
  • Term Insurance

By Health Insurance Plans (Revenue, USD Billion):

  • Health Maintenance Organization (HMO)
  • Preferred Provider Organization (PPO)
  • Exclusive Provider Organization (EPO)
  • Point of Service (POS)
  • High Deductible Health Plan (HDHP)

By Demographics (Revenue, USD Billion):

  • Minors
  • Adults
  • Seniors

There is a high prevalence of lifestyle disease in the adult population that can increase health risks in the future. The population is more prone to cardiac and other diseases that require hospitalization. Healthcare insurance plans for seniors are more of a necessity, especially in the case of retirement. Also, it carries various advantages such as no medical screening before buying plans, includes coverage of the outpatient department, and provides the benefit of fee annual checkups along with lifetime renewability.

By End-user (Revenue, USD Billion):

  • Individuals
  • ?Corporates

A large number of people buy individual health plans as they are also customizable. Also, it gives more control over deductibles, co-pays, and benefits limits and is not dependent on employment status.

Insights10 will provide you with the reports within 10 key parameters which are:

  1. Market Overview
  2. Market Growth Drivers & Restraints
  3. Epidemiology of Disease Type
  4. Market Segmentation
  5. Market Share
  6. Competitive Landscape
  7. Key Company Profiles
  8. Healthcare Policies & Regulatory Framework
  9. Reimbursement Scenario
  10. Factors Driving Future Growth

Based on our many years of experience, we believe that these are the parameters that are critical to decision-making for business stakeholders. Our focused approach to developing reports focused on 10 key parameters, enabled us to arrive at the name “Insights10”.

 

Stage I: Market Data Collection

Primary Interviews: We have developed a network of experts, freelancers, and researchers across countries through which we engage with local experts to gather key data points and assumptions about each market. We also engage regularly with some of the best market research agencies such as Atheneum, GuidePoint, GLG, etc. to conduct surveys and interviews, and build intelligence. We have language translators as a part of our team, who between them can cover 30+ languages allowing us to extract better local insights.

Secondary Data Collection: We have developed strong expertise and experience in secondary data collection methods for developing unique data sets and research material. We gather data from multiple reliable sources to maintain a high level of accuracy and consistency. The market data is analyzed and forecasted using appropriate statistical and coherent models. The report offers an overall analysis of the market size, growth, and market share as well as a segment-level analysis of the specific market. Our report includes precise, to-the-point information related to the overall market, competition, growth drivers, challenges, regulatory updates, and competition.

Data Sources: We have access to multiple highly reliable free and subscription data sources. We have many years of experience to understand which sources are more dependable for what and which to prefer for the reliable and latest information. The key sources of information include the following, but are not limited to:

 

 

Stage II: Market Data Analysis and Statistical Model

Market Trends: We generally look at macro parameters and micro indicators. The macro parameters include changes in government policies, demand and supply of the market, government intervention programs, and major market share. The micro indicators are GDP growth, market size, market volume, etc. We also understand nuances specific to each country like the US, Canada, India, Germany, etc., and have worked across 60+ countries and hence not only understand global trends but how these differ by country, how payment models, market structure, cultural parameters, etc. differ in each country.

Market Sizing and Analysis: Our expert data analytics team has created various market forecast models by employing the top-down approach i.e. starting with the large overall market and segmenting different areas and the bottom-up approach i.e. starting with population and epidemiology and rolling up based on spend, etc., estimating the size of the market, and distributing among the geographic and/or product segments.

The top-down approach is mainly used for new product forecasting and the bottom-up approach is used for demand estimation of any product for different countries summed up to form the total market. We are able to round off insights and build stronger forecasts because we always do both these methods and triangulate the final numbers.

The study on the market covers the analysis of the leading geographies such as Asia-Pacific, Africa, Europe, Middle East, North America, and  Latin America for the period of 2022 to 2030. The qualitative analysis covers the industry landscape and trends, market opportunities, competitive landscape, and policy and regulatory scenario, and the quantitative analysis covers different market estimates and forecasts.

Data Triangulation & Validation:

Data triangulation of various sources and results of the research are carried out by benchmarking with reliable sources such as industry statistics, statistical databases, and company-level averages, etc.

We make sure to finalize the numbers in alignment with the market research. Firstly, our internal experts ensure thorough validation and checking to ensure accurate and precise analysis and then validation is also done using a multiple-data analysis model. Two-level validation is done and entails the finalization of the report scope and the way of representation pattern.

 

 

Stage III: Interpretation and Presentation

Analysis & Interpretation: The information gathered is then analyzed and synthesized. The second series of interviews are done if necessary to check and validate. The future opportunities are analyzed by understanding product commercialization and many other factors. It also comprises the analysis of data discrepancies observed across various data sources. Information procured from secondary and primary results is then, interpreted by considering the following parameters: (a partial list)

  • Establishing market drivers and trends
  • Analyzing the regulatory landscape to understand future growth
  • Market Segment based analysis to obtain revenue/volume
  • ​Analyzing current needs and determining penetration to estimate the market

Insights: Our reports deliver actionable insights backed with supporting facts and figures to assist you in achieving exemplary growth. Our in-depth analyses are interspersed with relevant insights and statistics to offer an executive-level view of a given market. The description helps in correlating many minor factors affecting the market and their impact on the different segments within the market.

Data curated from the analysis and interpretation are drawn to portray all in one consolidated report.

Presentation & Reporting: The market research report is presented in different forms such as charts by using a scientific approach for easy understanding. Historic, current, and future analysis is provided for each market in terms of both value and volume. The size of the market is interpreted in the US Dollar value and the respective unit, based on the product, for volume consumption.

The foreign exchange rates are calculated on the respective dates and for the respective regions covered in the study.

To request a free sample copy of this report, please complete the form below.


We value your inquiry and offer free customization with every report to fulfil your exact research needs.


This report addresses

  • Intelligent insights to take informed business decisions
  • Qualitative, acute and result oriented market analysis
  • Market size and forecasts from 2022 to 2030
  • Opportunities for expansion and in-depth market analysis
  • Segmentation and regional revenue forecasts
  • Analysis of the market share and competitive landscape
  • Strategic Recommendations to chart future course of action
  • Comprehensive Market Research Report in PDF and PPT formats

Need more?

  • Ask our analyst how this study was put together to learn more
  • Discuss additional requirements as part of the free customisation
  • Add more countries or regions to the scope 
  • Get answers to specific business questions 
  • Develop the business case to launch the product
  • Find out how this report may influence your business revenue
Last updated on: 18 September 2023
Updated by: Dhruv Joshi

Related reports (by category)


Related reports (by geography)


subscribe to our newsletter
up