The South African insurance industry is constantly growing and new insurance companies are appearing all the time. Even some companies whose business is not primarily insurance have jumped on the bandwagon and are offering insurance packages as part of shopper loyalty schemes. The focus of this article is health insurance: is current state and the trends that are affecting it.
A large percentage of the population in South Africa is underprivileged and situated in the lower income bracket. These people have to rely on a public health care system that is heavily over-used and under-financed. Those in the higher income brackets are able to afford to take out health insurance with insurance companies in the private sector. It is estimated that around 18% of the population have health insurance through the private health care system of medical aid schemes.
Since the beginning of the 21st century South Africa has experience major challenges in the health care sector, due to under -funding and rising medical costs. Because of this private companies had to come up with new solutions to provide affordable cover for people. Medical aid schemes offer affordable cover depending on what you choose to take cover. One of South Africa's major insurance companies is Discovery Health who has 1.5 million members. However there are many other smaller insurance companies offering these medical aid schemes, even international companies, so it is important to look around and check out the different policies before you buy. Also remember to check the fine print as many insurance companies are notorious for prolonging the pay out of claims and some do whatever they kind to find a loop hole which allows them to right to not settle a claim.
Foreign health insurance companies are showing an interest in South Africa and entering the marketplace offering the usual cover as well as special policies to expatriates that include, for example, the transporting of the body of a deceased person back to their home country.
The health care system and the health insurance industry in South Africa is very uncertain. Although Government has proposed a new National Health Insurance (NHI) which it hopes to implement by 2012, which will offer free health care for all, some people are sceptical that this ambitious health care plan will be effective. The reason for this being, as stated by the sceptics is that in order for it to work, you need about 10 million people paying tax and South Africa at present only has 5 million tax payers, as the money to pay for this health insurance will be coming from tax payers money. South Africa as is as the smaller tax payer base in terms of international standards. Government hopes to start the NHI in 2012 starting with the rural areas and then rolling over to the rest of the country over a 14 year period.
South Africa seems to still have a long way to go before the health insurance industry and health industry on a whole is balanced to benefit all who need health care. If the sceptics are right then it seems that the private health insurance sector will still be growing in the near future.
A large percentage of the population in South Africa is underprivileged and situated in the lower income bracket. These people have to rely on a public health care system that is heavily over-used and under-financed. Those in the higher income brackets are able to afford to take out health insurance with insurance companies in the private sector. It is estimated that around 18% of the population have health insurance through the private health care system of medical aid schemes.
Since the beginning of the 21st century South Africa has experience major challenges in the health care sector, due to under -funding and rising medical costs. Because of this private companies had to come up with new solutions to provide affordable cover for people. Medical aid schemes offer affordable cover depending on what you choose to take cover. One of South Africa's major insurance companies is Discovery Health who has 1.5 million members. However there are many other smaller insurance companies offering these medical aid schemes, even international companies, so it is important to look around and check out the different policies before you buy. Also remember to check the fine print as many insurance companies are notorious for prolonging the pay out of claims and some do whatever they kind to find a loop hole which allows them to right to not settle a claim.
Foreign health insurance companies are showing an interest in South Africa and entering the marketplace offering the usual cover as well as special policies to expatriates that include, for example, the transporting of the body of a deceased person back to their home country.
The health care system and the health insurance industry in South Africa is very uncertain. Although Government has proposed a new National Health Insurance (NHI) which it hopes to implement by 2012, which will offer free health care for all, some people are sceptical that this ambitious health care plan will be effective. The reason for this being, as stated by the sceptics is that in order for it to work, you need about 10 million people paying tax and South Africa at present only has 5 million tax payers, as the money to pay for this health insurance will be coming from tax payers money. South Africa as is as the smaller tax payer base in terms of international standards. Government hopes to start the NHI in 2012 starting with the rural areas and then rolling over to the rest of the country over a 14 year period.
South Africa seems to still have a long way to go before the health insurance industry and health industry on a whole is balanced to benefit all who need health care. If the sceptics are right then it seems that the private health insurance sector will still be growing in the near future.