Top 8 Medical Insurance Companies In Kenya In 2016Posted on 2017-10-22
The medical insurance business in Kenya continues to be the second largest market segment behind the car insurance business. Despite strong competition from the National Health Insurance Fund (NHIF), the gross underwritten premiums for medical insurance rose by 30.40% to KSh 38.78 Billions in 2016 compared to the 29.67 Billions underwritten in 2015.
The NHIF has continued to increase its membership nationwide as the law mandates it and also expanded the number of medical insurance providers and services offered e.g. maternity, dental, optical, cancer treatments, dialysis and a whole host of specialist services. As the NHIF scheme continues to increase its coverage, experts would have expected the private health insurance premiums to reduce.
The leading names in the insurance industry continued to carry the biggest chunk of the medical insurance premiums with Jubilee Insurance carrying the pack. Four health insurance companies recorded premiums of over KSh 4 Billions equivalent to USD 40 millions. Of the total 32 health insurance companies in Kenya, 20 of them made underwriting losses, which remains an unsustainable figure. The losses totalled to over KSh 620 millions for the year 2016. This results from a total claims size of KSh 17.9 Billions which has continued to rise sharply from the figure of KSh 15.1 Billions in the year 2015. This is a sharp increase of over 18.5% in just one year. Fraud continues to be the leading cause of underwriting losses in the market coupled together with the practice of undercutting on medical insurance quotes especially for the corporate segment of the market. The top 5 biggest health insurance companies remain unchanged from the year 2015, the giants continue to eat the largest share of the market.
JUBILEE Insurance Company
Jubilee Insurance has been in the Kenyan market for over 80 years and is the biggest insurance company for both general insurance and life insurance having held the dominant spot for the last 5 years. In the general insurance, it controls just over 10% of the market.
For the year ending 2016, Jubilee wrote over KSh 9.2 Billions nearly 3 Billions over and above the second placed AAR Insurance.
Unsurprisingly it also had the second largest profit in the list of the health insurance companies. It has one of the most popular retail products named the JCARE range which caters for the individuals and families and SMEs. Through its partnership with different banks in Kenya, it reaches the masses and yet still maintains a large backing from the corporate clientele boasting some of the biggest insurance schemes in the country.
AAR Insurance Company
AAR Insurance continues to hold on to the second position. AAR has traditionally been known as a pure medical insurance company but just owing to the challenging operating environment in the health insurance business, it has also diversified into other lines of general insurance business albeit selectively. It has continued to avoid loss heavy businesses like motor insurance. AAR has a strong retail market share for the medical plans for individuals and families, in addition it has some of the biggest medical insurance accounts for NGOs and Parastatals in Kenya. For the year 2016, AAR had a total premium size of KSh 6.4 Billions and made a paltry profit of KSh 64 Millions.
UAP OLD MUTUAL Insurance Company
UAP insurance company recently renamed to UAP Old Mutual after the entry of the Old Mutual Group. It continues to be a leading general insurance company in Kenya and across the East African region boasting presence in over 3 countries in the region. In addition it has a large share of the business in the life insurance and pensions and asset management in Kenya. For 2016, it came in at position 3 underwriting a premium of KSh 6.2 Billions and making a loss of over KSh 190 millions.
Resolution Insurance is a powerhouse of medical insurance across the East African region. In the last two years it has diversified into offering more than just medical insurance and now offers all types of general insurance products in Kenya. For the health insurance business, the company wrote a premium of KSh 3.6 billions coming in 4th place. However, it made the biggest underwriting loss of almost KSh 400 millions being the biggest in the industry.
It has a strong segment of health insurance products from the high end products for individuals and families to the medium and affordable products. These are the VALUE and HARMONY plans.
It has also introduced many different health insurance linked products like the ZARA personal accident covers for passengers across Kenya. It has a strong segment of versatile medical insurance plans called the FAIDA and FARAJA products which combine both inpatient and outpatient in one plan with a selected list of medical insurance providers.
APA Insurance Company
APA is a general insurance, life insurance and asset management powerhouse in Kenya. Under the APOLLO brand, it has been known as a leading asset management company providing services for investment to small and medium investors. It has a large life insurance department and has grown to be one of the leading players. In last financial year, APA underwrote medical insurance premiums of just under KSh 3 Billions and made a respectable profit of KSh 85 millions. It has a wide range of health insurance plans for families and individuals under the Afya Nafuu and Jamii Product lines in the market.
BRITAM is a leading insurance company in East and Central Africa covering all types of insurance from pensions, general insurance, medical insurance, life insurance and asset management.
It wrote an insurance premium for the medical business of KSh 1.83 billions and made a measly underwriting profit of KSh 3 millions.
BRITAM has several medical insurance products. The main product is the EQUIMED which is in partnership with Equity Bank, it is a cover for individuals and families. It covers all inpatient, outpatient and maternity costs with minimum age of entry at 1 – 75 years of age.
BRITAM also has the Afya Tele product which is a low end SME product, very cost effective with a smaller network of medical providers.
The South African owned general insurance company is a traditional heavyweight in the Kenyan insurance industry. In 2016, it wrote medical insurance premiums of over KSh 1.76 Billions and made a record profit of KSh 126 millions, being one of the most profitable health insurance companies by gross premiums ratio.
It has a range of BLUE medical insurance plans composing of the CORE, LITE, CLASSIC, PLUS, ELITE.
BLUE Health Cover is a suite of health insurance products offering a comprehensive set of health benefits to employer groups in Kenya and across the continent of Africa.
It caters for healthcare needs across a number of different income brackets to ensure the most comprehensive cover at affordable rates.
CIC GENERAL Insurance Company
CIC Insurance is a new re-entrant into the health insurance business after having closed the medical insurance division due to very toxic performance. CIC wrote a book of health insurance business totalling to KSh 1.38 Billion, coming in at position number 8 in the industry. CIC made a total underwriting profit in the medical business of KSh 68 millions bucking the trend of health insurance companies making losses. CIC offers health insurance plans for corporates, SMEs and the retail market. The retail plans termed CIC Medisure Family covering in patient costs, outpatient, optical, dental and maternity cover. The limits range from KSh 300,000 to KSh 5,000,000 and come in the six packages below
- 5,000,000 CIC Prestige
- 3,500,000 CIC Premier
- 2,000,000 CIC Superior
- 1,000,000 CIC Comprehensive
- 500,000 CIC Standard
- 300,000 CIC Essential