WellaHealth: Affordable health coverage throughout Nigeria

Nigeria’s underfunded public health system leads many patients to seek care in private facilities whose services they can ill afford. At more than USD 5 per month, health insurance is also prohibitively expensive given the monthly minimum wage of USD 66. Most of the less than 10% of people with traditional insurance are in formal employment. 

All this translates into high out-of-pocket healthcare costs. Of the USD 7.7 billion in such costs in 2016, USD 3 billion was for minor illnesses like malaria, from which 25% of Nigerians suffer in any given year. Especially in lower-income households, people often self-medicate or wait for an illness to worsen before seeking care. Thereafter, they may face even bigger financial burdens and a higher likelihood of medical complications or even death. More than half of families in Nigeria are at risk of falling into poverty after a catastrophic health event. 

WellaHealth offers Nigerians micro-insurance health plans for fees starting at USD 1 per month. Its insurance covers common illnesses such as malaria, upper respiratory tract infections and viral infections – including drugs to treat them – via point-of-care testing at professionally staffed pharmacies in WellaHealth’s provider network. Patients need no cash at the point of care, and claims are settled instantly. 

Plan users have access to telemedicine consultations, chronic disease screening, drug discounts and, under the USD 1.50 monthly plan, cashback of up to USD 220 to offset hospital bills. Integration of other fintech partners’ solutions into the WellaHealth platform further gives them access to a suite of financing solutions, including a free health savings wallet and instant point-of-care credit based on AI-powered creditworthiness scoring. 

In addition to quality healthcare and protection against common health shocks at affordable prices, the company thus offers its customers convenience (through an easy-to-use mobile phone interface and automated financial services at point of care), inclusive finance (including credit, savings accounts and insurance), accessibility (owing to care delivery through local pharmacies) and no need to carry cash for unplanned expenses. 

With support from the Entrepreneurs for Resilience Award programme, WellaHealth began building a network of community-based mobile money agents with the training, marketing material and technology needed to educate potential customers about the benefits of microinsurance and to onboard them to the service. 

WellaHealth aimed to gain over 100 000 new customers through new agents. From July 2021 to October 2023, their efforts reached 838 500 people, improving the health resilience of 167 700 people and expanding their provider network from 1 200 to over 2 000 local pharmacies. They partnered with Airtel, selling over 100 000 plans in six months, but faced challenges with profit sharing and customer retention. 

With Swiss Re Foundation's support, WellaHealth conducted a customer survey, revealing that customers valued the quality and convenience of services. They also built a new financial model and strengthened their capital-raising strategy. Despite challenges like high loss ratios and macroeconomic issues in Nigeria, WellaHealth continues to grow and adapt their approach. 

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