Targeting and Reaching the Poor for Micro Health Insurance : Challenges and Opportunities

The penetration of health insurance in India is as low as 3%. The burden of healthcare costs is particularly very high in case of poor, as in most cases, they forgo daily wages to meet their healthcare needs. A number of insurance companies are trying to reach this market either by looking at the size of the market, or to meet the regulatory requirements, but the progress is very slow. Finding out innovative strategies and products to meet the diverse needs of the poor and, at the same time, control costs to make it economically viable is posing a great challenge. One of the ways to meet this dual challenge is to make a strategic tie-up with Microfinance Institutions (MFI) or organizations working in the field of microfinance. The paper tries to find out the synergies and challenges posed in such kind of alliance, with the help of empirical data findings of a few organizations working in this field