Building Social Safety Nets: Community Based Micro-Insurance at Annapurna Pariwar

This chapter provides an updated overview of the global landscape of micro-insurance with a focus on life and health micro-insurance. Micro-insurance, designed to serve low-income populations, plays a crucial role in providing financial protection to vulnerable communities, especially in developing countries. In particular, this chapter will delve into the beneficial features of Annapurna Pariwar’s insurance model, which can be recognised as an exemplary case in the micro-insurance industry. Annapurna Pariwar’s approach is unique in its ability to offer affordable and accessible health coverage to underserved populations, ensuring that even those with limited financial resources can receive the care they need. The chapter will highlight the key attributes of this program, such as its premium structures, including family members of the beneficiary, comprehensive coverage, and community-driven approach. These characteristics contribute to the sustainability and long-term success of Annapurna Pariwar’s health insurance program, making it a valuable case study for other initiatives. Finally, the chapter concludes by drawing important lessons from Annapurna Pariwar’s model, offering insights for future micro-insurance programs aiming to replicate its success. These lessons will serve as a guide for policymakers, insurance providers, and development organisations seeking to design and implement sustainable micro-insurance solutions that effectively address the healthcare needs of low-income populations. This work represents an updated version of a chapter from my Doctoral Thesis (The role of community health insurance in perfecting financial inclusion, Indian Institute of Management Ahmedabad, 2016). Additionally, I authored a more detailed and accessible book intended for a broader audience (Community based health insurance: Planting a seed for tomorrow’s need, Dada Purao Research & Training Institute, 2017).