Why Micro Health Insurance Schemes Cannot Forego Reinsurance
Journal of Insurance and Risk Management (special issue on micro health insurance), Vol. 4, No. 7, 2005
29 Pages Posted: 27 Sep 2007
Micro health insurance units (MIUs) reduce negative financial consequences of healthcare costs for people who cannot access to formal and affordable health insurance. In order to survive, MIUs need capital to cover their outlier costs (whose probability of occurring is low but not zero). The first purpose of this study is to estimate the capital that MIUs require to secure their financial viability as stand-alone risk carriers. The second objective is to consider the cost/benefit of reinsurance as an alternative solution.
Keywords: reinsurance, micro health insurance, social insurance, insurance for the poor, community based health insurance, health financing
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