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Willingness to pay for health insurance: An analysis of the potential market for new low-cost health insurance products in Namibia

Author

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  • Gustafsson-Wright, Emily
  • Asfaw, Abay
  • van der Gaag, Jacques

Abstract

This study analyzes the willingness to pay for health insurance and hence the potential market for new low-cost health insurance product in Namibia, using the double bounded contingent valuation (DBCV) method. The findings suggest that 87 percent of the uninsured respondents are willing to join the proposed health insurance scheme and on average are willing to insure 3.2 individuals (around 90 percent of the average family size). On average respondents are willing to pay NAD 48 per capita per month and respondents in the poorest income quintile are willing to pay up to 11.4 percent of their income. This implies that private voluntary health insurance schemes, in addition to the potential for protecting the poor against the negative financial shock of illness, may be able to serve as a reliable income flow for health care providers in this setting.

Suggested Citation

  • Gustafsson-Wright, Emily & Asfaw, Abay & van der Gaag, Jacques, 2009. "Willingness to pay for health insurance: An analysis of the potential market for new low-cost health insurance products in Namibia," Social Science & Medicine, Elsevier, vol. 69(9), pages 1351-1359, November.
  • Handle: RePEc:eee:socmed:v:69:y:2009:i:9:p:1351-1359
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    References listed on IDEAS

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    1. Arcand, Jean-Louis & Mbaye, Linguère Mously, 2013. "Braving the Waves: The Role of Time and Risk Preferences in Illegal Migration from Senegal," IZA Discussion Papers 7517, Institute for the Study of Labor (IZA).
    2. Acharya, Arnab & Vellakkal, Sukumar & Taylor Fiona & Masset Edoardo & Satija, Ambika & Burke, Margaret & Ebrahim, Shah, 2013. "The impact of health insurance schemes for the informal sector in low- and middle-income countries : a systematic review," Policy Research Working Paper Series 6324, The World Bank.
    3. repec:exp:finnce:v:5:y:2017:i::p:73-85 is not listed on IDEAS
    4. Mekonnen, Tigist, 2017. "Willingness to pay for agricultural risk insurance as a strategy to adapt climate change," MERIT Working Papers 028, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. repec:spr:hecrev:v:7:y:2017:i:1:d:10.1186_s13561-017-0179-x is not listed on IDEAS
    6. Jean-Louis Arcand & Linguère M'Baye, 2011. "Braving the waves: The economics of clandestine migration from Africa," Working Papers halshs-00575606, HAL.
    7. Jens-Oliver Bock & Dirk Heider & Herbert Matschinger & Hermann Brenner & Kai-Uwe Saum & Walter E. Haefeli & Hans-Helmut König, 2016. "Willingness to pay for health insurance among the elderly population in Germany," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(2), pages 149-158, March.
    8. Hermann Donfouet & Pierre-Alexandre Mahieu & Eric Malin, 2013. "Using respondents’ uncertainty scores to mitigate hypothetical bias in community-based health insurance studies," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 277-285, April.
    9. Ali, Akhter, 2013. "Farmers’ Willingness to Pay for Index Based Crop Insurance in Pakistan: A Case Study on Food and Cash Crops of Rain-fed Areas," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(2).
    10. Binnendijk, Erika & Dror, David M. & Gerelle, Eric & Koren, Ruth, 2013. "Estimating Willingness-to-Pay for health insurance among rural poor in India by reference to Engel's law," Social Science & Medicine, Elsevier, vol. 76(C), pages 67-73.
    11. Shono, Aiko & Kondo, Masahide & Ohmae, Hiroshi & Okubo, Ichiro, 2014. "Willingness to pay for public health services in rural Central Java, Indonesia: Methodological considerations when using the contingent valuation method," Social Science & Medicine, Elsevier, vol. 110(C), pages 31-40.

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