Microinsurance

In East Africa, risk management tools for health care have traditionally centred on self-insurance and informal insurance. However, these “tools” often fall short of satisfying the financial burden of a household, and this can lead to financial crisis and poor health and in some cases even death.

Present research findings shed light on the options available for microinsurance providers for entering the market. This note highlights the three key criteria needed for assessing the effectiveness of insurance mechanisms – Coverage, Accessibility and Timeliness – and provides recommendations for new product design based on these three criteria.