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Repositioning Health Microinsurance Products for the Informal Sector Groups

Author

Listed:
  • Levi Ng’ang’a Mbugua

    (Department of Statistics and Computational Mathematics, School of Mathematics and Actuarial Science, The Technical University of Kenya, Nairobi P.O. Box 52428-00200, Kenya)

  • John Odhiambo Magambo

    (Insurance for All (IFA) Insurance Agency Ltd., Nairobi P.O. Box 13517-00800, Kenya)

Abstract

In the least developed countries, the informal sector faces great challenges in accessing healthcare services since most people are not mainstreamed. This has prompted the formation of groups as a way of empowerment. The objective of this study was to examine the factors contributing to health microinsurance uptake among the informal sector groups so as to enable companies to reposition in this market. Quantitative data was collected from 1600 informal sector groups, and Principal Component Analysis was used to extract the main factors. Structural Equation Modeling was applied to adjust for individual response styles, assess unobservable latent variables, provide numerical estimates for each of the parameters in the model and indicate the strength of the relationships. This study found that informal sector culture was highly rated in repositioning health microinsurance products, followed by the use of mobile phone technology, then the mode of communication, social capital and finally, perception. With the inclusion of mobile phone technology, payment options were insignificant. These findings implied that, for health microinsurance companies to reposition in the informal sector market, trust, product value, packaging design, group support and assets need to be prioritized.

Suggested Citation

  • Levi Ng’ang’a Mbugua & John Odhiambo Magambo, 2022. "Repositioning Health Microinsurance Products for the Informal Sector Groups," Businesses, MDPI, vol. 3(1), pages 1-17, December.
    • Handle: RePEc:gam:jbusin:v:3:y:2022:i:1:p:2-35:d:1016773
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    References listed on IDEAS

    as
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    4. Michał Lewandowski, 2017. "Prospect Theory Versus Expected Utility Theory: Assumptions, Predictions, Intuition and Modelling of Risk Attitudes," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 9(4), pages 275-321, December.
    5. David Mark Dror, 2018. "The Demand for (Micro) Health Insurance in the Informal Sector," World Scientific Book Chapters, in: Financing Micro Health Insurance Theory, Methods and Evidence, chapter 2, pages 43-66, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

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