Africa Health Payer: Health Insurer Expands Market
BY ABDUEL ELINAZA(Tanzania Daily News):
RESOLUTION Insurance, a health insurer, has made possible for its clients to receive health services across East African Community (EAC) hassle free, thanks to technology advancements.
The firm, which entered the Dar es Salaam market as a brokerage firm in 2009, said its clients only need to carry their identification badge and call over 450 medical service providers in the region to receive service. The firm's Group Chief Executive Officer, Mr Peter Nduati, told the 'Daily News' that currently their services are available in Kenya, Uganda and Tanzania while others would come on board soon.
"The vision of Resolution is to be the acknowledged leader and preferred provider of insurance services in Africa," Mr Nduati said. The CEO was speaking in Dar es Salaam during the launching of Resolution Insurance in the country after graduating from brokerage firm to a full-fledged health insurance.
Regal Insurance Broker, Ms Lulu Lwavu said unlike other health insurers, Resolution clients need only the ID with no need for cover letter and have to visit at their centres, a serve which is inhospitable. The CEO said there is a great potential insurance business in Tanzania as the penetration is merely 0.7 per cent per GDP, which is the lowest in the region against 1.0 per cent and 3.0 per cent in Uganda and Kenya respectively.
In that backdrop, the firm has invested 650,000US dollar (about 1.04bn/-) for state-of-the-art health insurance products in the country. Some of the fund would be directed into opening new agency offices in Kariakoo this year, then Arusha next year and in 2015 Mwanza, Mtwara and Mbeya. "There is big opportunity in health covers for the middle class, the area is not fully tapped," Mr Nduati said, "We target to have 12,000 family clients by 2013 from the current 1,700." He said the low penetration as per GDP measure demonstrates the untapped potential in the country, saying the market needs education and awareness in health insurance. "Peoples need to realise the importance of cover life and not vehicle only," the CEO, who once worked as a country head for AAR Health Services, said.