Togo health insurance branch loses 106 billion CFA francs
African health insurers met in Lomé to address a sector growing at 10% annually but facing significant financial losses.
Africa's health insurance sector, despite growing by about 10% annually since 2014, is facing substantial deficits. The first African health insurance symposium, held in Lomé on November 4 and 5, revealed that the CIMA zone accumulated an operating deficit of 106 billion CFA francs between 2020 and 2024.
The symposium, organized by FANAF and APSAT, brought together health ministers, insurance directors, and industry leaders. Participants identified causes for the losses including insufficient data for pricing, price wars, unapplied adjustment clauses, poorly managed direct payment systems, medical overconsumption, and weak controls. Mamadou Koné, president of FANAF, questioned the sustainability of promising protection that is financed at a loss.
To address these issues, a roadmap for 2027-2030 is being developed. The Togolese Minister of Health highlighted the struggle of low-income citizens who must choose between food and medical care, emphasizing the need for insurers to innovate with affordable, accessible products that cover essential needs. The minister stressed that inclusion in insurance is not charity but requires adaptation to real needs.
Why it mattersTogo's health insurance sector is experiencing significant financial losses, impacting the ability to provide affordable coverage for citizens.