This archive report was first published on 4 November 2019.
By implementing a universal health coverage plan, Kenya has an opportunity to improve the health and financial well-being of low-income households. One key strategy is to adopt microinsurance, which has been tested in countries such as Kenya, India, Pakistan, and Bangladesh with varying degrees of success.
Health microinsurance, or micro health insurance, is especially vital in helping poor families cope with financial shocks arising from treatment and management of diseases. In Kenya, the Ministry of Health estimates that 75 per cent of households finance medical treatment out of pocket, making health microinsurance all the more imperative.
Successful rollout of microinsurance depends on developing simple products that are easy to adopt, capable of wide distribution, and deliver a positive customer experience. Technology has been identified as a key success factor, especially in reaching the hitherto uninsured individuals and families.
However, the main challenge lies in developing micro health products that are not only simple to use and deploy but are also backed up by streamlined processes and efficient services. Such products should also be designed in a foolproof manner to minimize fraud, over-prescription of drugs and medical tests, and delayed settlement of claims.
Addressing mistrust and misconceptions surrounding insurance is also crucial. Incorporating preventative strategies to promote wellness and healthy lifestyles is essential. Lastly, a sustainable health microinsurance strategy should target middle-income earners, especially in the informal sector.
