Stakeholders in Nigeria’s health insurance sector have warned that rising healthcare costs, low insurance penetration, and persistent trust deficits are threatening the long-term sustainability of the country’s Health Maintenance Organisation (HMO) model.

The concerns were raised at the fifth edition of the Hallmark Health Services Limited (HHSL) stakeholders’ engagement forum held in Lagos, where healthcare providers, regulators, and medical practitioners examined strategies for building a more resilient healthcare financing system.

The forum, themed “Collaborating for Sustainable Healthcare Systems: Financial Stability, Intelligent Systems, Regulatory Excellence, and Enhanced Stakeholder Experience,” highlighted the need for stronger collaboration to develop a healthcare system that is affordable, accessible, and capable of meeting the evolving healthcare needs of Nigerians.

Speaking at the forum, the Chairman of HHSL, Eddie Efekoha, said Nigeria’s healthcare sector is facing a defining moment marked by rising medical costs, workforce migration, exchange-rate volatility, and rapid technological transformation.

Efekoha noted that discussions at previous editions of the forum, which have been held yearly since 2022, have consistently highlighted the need for stronger collaboration among stakeholders to address systemic challenges and improve healthcare outcomes.

He stressed that sustainable healthcare systems can only be built through collective action rather than isolated interventions.

Delivering the keynote address, Faculty Lead and Principal Consultant at Facilitation and Training Services Limited, Olumide Ajomale, called for a fundamental shift in the relationship between HMOs, healthcare providers, and regulators.

He urged stakeholders to move from transactional healthcare delivery to value-based care, leverage data-driven decision-making and prioritise trust-building across the healthcare ecosystem.

Ajomale identified declining trust as a major obstacle to health insurance adoption, arguing that confidence in the system can be easily undermined by poor service delivery, cumbersome claims processes, and negative patient experiences.

Using the analogy of a domino chain, he said every component of the healthcare ecosystem depends on trust to function effectively. “If one domino collapses, every other domino collapses. What keeps each domino standing is the confidence that others can rely on it,” he said.

According to him, the true measure of any healthcare system lies not in its policies or technological infrastructure but in the quality of care and experience delivered to patients.