An Analysis of the Impact of the Introduction of the National Health Insurance Management Authority on the revenues of Private Insurance Companies: A Case Study of Sanlam, ZSIC Life, Prudential And Madison Life Insurance Companies in Zambia

Abstract

The study aims to determine whether private insurance companies face opportunities and challenges, as well as to evaluate the effect of NHIMA on market share and financial revenues. The study incorporates a mixed-methods design, with quantitative financial ratio analysis serving as the primary study methodology. Four prominent private insurance providers were included in the study population on the basis of their market share, financial stability, and industry impact. The purposive sampling technique is utilized to concentrate on entities that are representative of major players in the health insurance market of Zambia. It is deemed adequate to conduct a comprehensive analysis using the sample size of four companies. A qualitative examination of pertinent literature and quantitative analysis of financial statements comprise the data collection process. The study reveals the intricacies of the private insurance industry, as well as the prospects and obstacles that lie ahead. The study findings offer insights into major insurance companies in Zambia. Sanlam and ZSIC show favourable utilization trends, while Prudential faces challenges in claims management. Madison experiences fluctuations, and the absence of 2021-2022 data for ZSIC and Madison limits understanding. Retention Ratios highlight strategic shifts, with Prudential's fluctuations needing detailed examination. Market share analysis reveals shifts, with Sanlam maintaining a leading position but redistribution among key players. These findings provide valuable insights into the dynamics of the Zambian insurance market, emphasizing the need for continued scrutiny and strategic adaptation within the industry. The importance of continuous study endeavours is highlighted in the conclusion, which also suggests giving priority to annual industry reports, conducting comprehensive evaluations of NHIMA's influence, and incorporating qualitative data. By addressing these limitations, a greater understanding of the dynamic private insurance landscape in Zambia can be achieved. The study highlights the adaptability of the industry in the face of regulatory shifts and volatile market conditions, underscoring the significance of making well-informed decisions to determine its course. Key Words: National Health Insurance Management Authority, Private insurance, Financial impact, Revenue