Supplying Health Microinsurance: Lessons from East Africa

Health microinsurance[1 Microinsurance is “the protection of low-income people against specific perils in return for regular premium payments proportionate to the likelihood and cost of the risk involved.” Working Group on Microinsurance, Preliminary Donor Guidelines for Supporting Microinsurance. October 2003 www.microinsurancecentre.org (Accessed: 31 October 2003). [Google Scholar]] is a recent entrant in the effort to provide sustainable health financing products to low-income populations. Literature covering this area is sparse and limited to a focus on one delivery channel. Several other channels are beginning to show promise in this market, but these have not been carefully reviewed, compared, or contrasted. There is no significant literature that reviews these different models in a practical manner to aid institutions that are considering the development of a health microinsurance product. This study provides a better understanding of the effectiveness of these different models. It helps insurers and others to identify good and “bad” practices[2 McCord, M. J. and Buczkowski, G. 2004. “CARD MBA”. In The Philippines: CGAP Working Group on Microinsurance, Geneva: ILO. Good and Bad Practices Case Study No. 4 [Google Scholar]] within the various models so that they can: 1. decide which model is most appropriate for them, and2. benefit from the key lessons of others.