Exploring the Impact of Labour Force Variability on the Performance of the Health Insurance Industry in Lusaka

Abstract

The purpose of this research was to look into the risk implications of the variability of the labour force on the performance of health insurance companies in Lusaka. As the city's economic landscape changes, it is critical to understand how the labour market conditions affect the performance of health insurance, as a result the accessibility and affordability of healthcare services for individuals and households. This study sought to shed light on the potential risks faced by insurers and policyholders in Lusaka by examining the relationship between employment, unemployment and health insurance performance. A mixed-methods approach was to be used to achieve this goal, combining quantitative data analysis and qualitative interviews (survey). Quantitative data was gathered from a variety of sources, including the Zambia Statistics Agency for demographic information and the National Health Insurance Management Authority (NHIMA) for health insurance contributions data and yearly performance. To identify relationships and the possible risk variables, these datasets were analysed statistically using techniques such as regression analysis and correlation tests. In addition, qualitative interviews with persons living within Kanyama constituency were carried out. The outcomes included a thorough understanding of the impact of employment and unemployment on health insurance performance in Kanyama constituency as it was observed that when there are more unemployed people in a community the less likely it is to find people with health insurance and vice versa. The data from NHIMA gave insights on how this can affect insurance companies which was evident in the yearly financial performance records as the reduction in the employed labour force coincided with reduction in contributions and reduced investment returns. The following recommendations were made inlight of the findings; The Kanyama Constituency's unemployment problems should be addressed in order to help people afford health insurance. The government and health insurance companies also need to be adaptable and take steps to promote economic resilience, as well as a review by the government of its policies to create an environment that is favourable to the growth of the health insurance industry in Lusaka.