Reinsurance of health insurance for the informal sector
Deficient financing of health services in low-income countries and the absence of universal insurance coverage leaves most of the informal sector in medical indigence, because people cannot assume the financial consequences of illness. The role of communities in solving this problem has been recogni...
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| Format: | Article |
| Language: | English |
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The World Health Organization
2001-01-01
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| Series: | Bulletin of the World Health Organization |
| Subjects: | |
| Online Access: | http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862001000700013 |
| _version_ | 1797282353823875072 |
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| author | Dror David M. |
| author_facet | Dror David M. |
| author_sort | Dror David M. |
| collection | DOAJ |
| description | Deficient financing of health services in low-income countries and the absence of universal insurance coverage leaves most of the informal sector in medical indigence, because people cannot assume the financial consequences of illness. The role of communities in solving this problem has been recognized, and many initiatives are under way. However, community financing is rarely structured as health insurance. Communities that pool risks (or offer insurance) have been described as micro-insurance units. The sources of their financial instability and the options for stabilization are explained. Field data from Uganda and the Philippines, as well as simulated situations, are used to examine the arguments. The article focuses on risk transfer from micro-insurance units to reinsurance. The main insight of the study is that when the financial results of micro-insurance units can be estimated, they can enter reinsurance treaties and be stabilized from the first year. The second insight is that the reinsurance pool may require several years of operation before reaching cost neutrality. |
| first_indexed | 2024-03-07T17:11:36Z |
| format | Article |
| id | doaj.art-4792ca2fa60b46faba6219009da8daf4 |
| institution | Directory Open Access Journal |
| issn | 0042-9686 |
| language | English |
| last_indexed | 2024-03-07T17:11:36Z |
| publishDate | 2001-01-01 |
| publisher | The World Health Organization |
| record_format | Article |
| series | Bulletin of the World Health Organization |
| spelling | doaj.art-4792ca2fa60b46faba6219009da8daf42024-03-03T00:57:12ZengThe World Health OrganizationBulletin of the World Health Organization0042-96862001-01-01797672678Reinsurance of health insurance for the informal sectorDror David M.Deficient financing of health services in low-income countries and the absence of universal insurance coverage leaves most of the informal sector in medical indigence, because people cannot assume the financial consequences of illness. The role of communities in solving this problem has been recognized, and many initiatives are under way. However, community financing is rarely structured as health insurance. Communities that pool risks (or offer insurance) have been described as micro-insurance units. The sources of their financial instability and the options for stabilization are explained. Field data from Uganda and the Philippines, as well as simulated situations, are used to examine the arguments. The article focuses on risk transfer from micro-insurance units to reinsurance. The main insight of the study is that when the financial results of micro-insurance units can be estimated, they can enter reinsurance treaties and be stabilized from the first year. The second insight is that the reinsurance pool may require several years of operation before reaching cost neutrality.http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862001000700013Insurance, Health/trendsInsurance carriers/organization and administrationFinancing, Health/methodsInsurance pools/organization and administrationCommunity networks/utilizationRisk assessmentDeveloping countries |
| spellingShingle | Dror David M. Reinsurance of health insurance for the informal sector Bulletin of the World Health Organization Insurance, Health/trends Insurance carriers/organization and administration Financing, Health/methods Insurance pools/organization and administration Community networks/utilization Risk assessment Developing countries |
| title | Reinsurance of health insurance for the informal sector |
| title_full | Reinsurance of health insurance for the informal sector |
| title_fullStr | Reinsurance of health insurance for the informal sector |
| title_full_unstemmed | Reinsurance of health insurance for the informal sector |
| title_short | Reinsurance of health insurance for the informal sector |
| title_sort | reinsurance of health insurance for the informal sector |
| topic | Insurance, Health/trends Insurance carriers/organization and administration Financing, Health/methods Insurance pools/organization and administration Community networks/utilization Risk assessment Developing countries |
| url | http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862001000700013 |
| work_keys_str_mv | AT drordavidm reinsuranceofhealthinsurancefortheinformalsector |