The nation’s healthcare sector which currently contributes about 1.04 percent to GDP, with annual gross premium of N180 billion, estimated to close at N200 billion by year-end, will double its contribution to the economy in five years, say analysts.
This growth, the analysts observe, will be driven by new legislation which would make demand for valid health insurance from all employers in public and private sector institutions compulsory. Besides, increased awareness by operators, as well as new investments on the service provider side, have also been identified as key for health sector growth in Nigeria.
Analysts who spoke to BusinessDay last night, said the potential of the sector is huge and would require government and stakeholders commitment to close the wide gap in health spend, put at N1.8 trillion annually, of which over 80 percent goes abroad, further undermining the local economy.
Tope Adeniyi, CEO, AXA Mansard Health, says a mandatory bill for health insurance, that will make such insurance compulsory for all employers, needs to be signed by the president .
Adeniyi further says that it must be compulsory for employers at state or local governments, as well as private sector employers, to provide for this facility, just like the Pension Reform Act, which compels employers having three employees and above, to enrol for pensions and group life insurance. “The same way, all employers should be mandated to buy valid health insurance for their employees,” Adeniyi adds.
He observes that countries such as the Netherlands, Switzerland and the USA, which have attained universal health coverage, had to drive it through health insurance systems.
“You cannot have government alone pay 100 percent for healthcare because it will always be very expensive. The evolution and upsurge of some diseases on account of climate change and lifestyle, as well as new technologies creating new solutions will raise the cost of health care, he said.
Adeniyi further observes that health insurance is the way to go, stating that if legislation comes on time and implementation becomes very rapid, it will see the health insurance sector ballooning from the current less than 4 percent of market share of the total population, and less than 1 percent of the GDP of the country, to about 2 percent in the next five year.
Koto Kamara, a Sierra-Leonean insurance expert in a chat with BusinesDay, had observed that government’s expenditure burden on health-care delivery can be significantly reduced and at the same time provide the citizenry with improved standard of living, if only the insurance industry could be positioned to play its critical role in the economy.
Kotor noted that the continent’s development must align with risk management and insurance based solutions, otherwise, government would continue to waste its resources on services that ought to be provided by the private sector.
Statistics show that the healthcare sector in Nigeria is public sector driven, with over 70 percent of total industry enrolment currently at 8.5 million lives.
The public sector includes the federal government which accounts for about 5 million lives; 3 million by private sector, with a large chunk coming from community based insurance, which constitutes about 1 million lives.
“Awareness is low and so a lot needs to be done by the industry to enlighten the public on the benefits of health insurance”, an industry chieftain said.
Modestus Anaesoronye
