Advanced Search
MyIDEAS: Login to save this article or follow this journal

Development and Sustainability of Emerging Health Insurance Markets: Evidence from Microinsurance in Pakistan

Contents:

Author Info

  • Yi (Kitty) Yao

    ()
    (Department of Actuarial Science, Risk Management and Insurance, School of Business, University of Wisconsin at Madison, Madison, WI, U.S.)

Registered author(s):

    Abstract

    Despite widespread interest in expanding insurance at the bottom of the economic pyramid, the viability of emerging microinsurance programmes is questioned because of their high loss ratios and doubts about their sustainability. The purpose of this research is to derive implications for the viable provision of products for emerging microinsurers by investigating the degree of sustainability of a micro health insurance programme in its early years of development. Using data from a micro health insurance programme in Pakistan, this paper analyses how claim rates evolve as households renew their policies and finds that households that have larger claims during the policy period are more likely to renew their policies for the next period. Although on the surface that pattern is consistent with adverse selection and decreasing sustainability, it was found instead that when compared with households buying the insurance for the first time, renewed households have significantly lower claim frequency and total claim amounts. Taken together, these results may suggest that there are forces affecting insurance demand for renewed households that may lead to an improved risk portfolio.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.palgrave-journals.com/gpp/journal/v38/n1/pdf/gpp201219a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/gpp/journal/v38/n1/full/gpp201219a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal The Geneva Papers on Risk and Insurance Issues and Practice.

    Volume (Year): 38 (2013)
    Issue (Month): 1 (January)
    Pages: 160-180

    as in new window
    Handle: RePEc:pal:gpprii:v:38:y:2013:i:1:p:160-180

    Contact details of provider:
    Web page: http://www.palgrave-journals.com/

    Order Information:
    Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
    Email:
    Web: http://www.palgrave-journals.com/pal/subscribe/index.html

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:38:y:2013:i:1:p:160-180. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.