CHAMWE KAIRA
Namibia’s medical aid fund industry remained financially stable in the second quarter of 2026, with average reserves rising to 44.8%, well above the statutory prudential minimum of 25% of gross contributions.
According to the latest Quarterly Statistical Bulletin released by the Namibia Financial Institutions Supervisory Authority (Namfisa), the sector’s reserve position provides a significant financial buffer against claims and other financial pressures.
The medical aid industry comprises seven registered funds, with the market highly concentrated among its three largest players.
Namibia Health Plan (NHP) Medical Aid Fund held the largest share of industry assets at 37.7%, followed by Namibia Medical Care (NMC) Medical Aid Fund at 31.4%. Renaissance Health Medical Aid Fund accounted for a further 14.3%.
Together, the three funds controlled 83.4% of total industry assets. Membership across the sector also continued to grow, increasing by 0.8% quarter-on-quarter and 2.1% year-on-year to 226 777 members. Pensioners accounted for 6.8% of total membership.
Total contributions increased by 1.4% from the previous quarter and 5.9% year-on-year to N$1.7 billion.
Quarterly claims, meanwhile, declined by 3% compared with the first quarter. However, claims were substantially higher on an annual basis, rising 19.3% year-on-year to N$1.5 billion.
Namfisa’s figures show that healthcare expenditure remained concentrated in three major categories.
Hospital admissions, medicines dispensed by pharmacies, and general practitioner and specialist consultations together accounted for 71.1% of total healthcare expenses during the quarter.
The industry also maintained a majority of its investments in Namibia. According to the bulletin, 58.1% of medical aid funds’ assets were invested in Namibian assets, while 41.9% were held outside the country.
The combination of rising membership and contributions, together with reserves substantially above the regulatory minimum, points to a relatively strong financial position for the medical aid fund industry during the quarter.
However, the 19.3% annual increase in claims was significantly higher than the 5.9% growth in contributions, indicating continued pressure on the sector’s claims costs.
