Zimbabweans Prioritize Funeral Cover Over Health Insurance, Experts Warn

Health experts in Zimbabwe have raised alarm over the country’s preference for investing in funeral cover rather than health insurance, leaving the Government with the burden of addressing the healthcare needs of approximately 90 percent of the population.

The concern was highlighted at the recent Association of Healthcare Funders of Zimbabwe (AHFoZ) 2024 annual all-stakeholders health conference held in Victoria Falls.

Mrs. Shylet Sanyanga, the AHFoZ chief executive officer, underscored the disparity between funeral cover and health insurance investments. According to AHFoZ, only 1.63 million Zimbabweans, or less than 11 percent of the population, have medical aid cover. This figure starkly contrasts with the high prevalence of funeral cover among the populace.

Speaking at the conference, Mrs. Sanyanga urged citizens to shift their focus towards prioritizing health insurance. “We need a change in culture and priorities so that people invest in health insurance instead of focusing solely on funeral cover,” she stated. She identified several factors contributing to the reluctance to secure medical aid, including economic hardships, high medical fees, inflation, and unemployment.

Despite the availability of various medical aid products suited for different budgets, many Zimbabweans continue to prioritize funeral expenses over their health. Mrs. Sanyanga pointed out that there are 36 registered medical aid societies in Zimbabwe, collectively covering only 10.8 percent of the population. She noted that while burial services are a priority for many, other countries are focusing on longevity and healthcare.

In 2023, AHFoZ members paid a total of ZWL$103 billion and US$25 million in healthcare claims, a significant increase from ZWL$17 billion and US$11 million in 2022. Medical aid societies are reported to account for 80 percent of healthcare service providers’ income. The majority of claims were directed towards medication (21 percent), hospital fees (20 percent), and general practitioner services (9.8 percent).

The insured population predominantly comprises the elite, who prefer expensive private healthcare services. In response to healthcare fraud, waste, and abuse, AHFoZ has collaborated with law enforcement agencies, including the police and the Allied Health Practitioners Council of Zimbabwe. This collaboration led to the recovery of US$451,000 and ZWL$641 million in fraudulent claims in 2023.

Efforts are underway to partner with additional stakeholders such as the Zimbabwe Anti-Corruption Commission (ZACC), the National Prosecuting Authority, and the Reserve Bank of Zimbabwe’s Financial Intelligence Unit. AHFoZ is also upgrading its risk management portal to improve the reporting of fraud, waste, and abuse in real-time.

Mrs. Sanyanga emphasized the need for medical aid societies to provide comprehensive care, including prevention, treatment, and rehabilitation, to gain the trust of citizens. She advocated for international best practices where 80 percent of contributions should go towards healthcare claims and 20 percent towards non-healthcare costs, including statutory reserves and administration.

Health economist Professor Albert Makochekanwa highlighted that 90 percent of Zimbabweans view medical aid as a luxury, opting instead for alternative health solutions due to low incomes. Many conference delegates noted that funeral service providers have delivered better services compared to medical aid providers, contributing to a lack of confidence in health insurance.

Dr. Douglas Mombeshora, the Minister of Health and Child Care, addressed the cultural aspect of the issue, stating, “People have more respect for the dead than the living. We need to talk more and convince our people that a dead person is of no use in health terms.”