Microinsurance: A Case Study of an Example of the Provider Model of Microinsurance Provision - GRET Cambodia

Publication Date: 1 Jan 2001
Published by: MicroSave
Document Type: Case Study

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Is the “provider model” an effective method of insurance for the rural poor?

This document attempts to review the activities of “GRET Cambodia” in its role as a health care financing provider. The paper aims to:

• Provide an understanding of the mechanisms and practicalities of the “provider model”;
• Indicate the level of market satisfaction with the model;
• Review the process of product development, testing and implementation.

The paper discusses:

• The context of the study.
• Various aspects of the product such as:
  • Market research;
  • Product design;
  • Pilot testing;
  • Implementation;
  • Institutional impact.
• Results seen, in the context of original objectives.

The paper lists the following lessons learned:

• The insurer should utilize existing infrastructure to improve efficiency and reduce costs;
• It is important to track data aggressively and make necessary adjustments rapidly;
• An annual insurance cycle, with set entry points, facilitates the administrative activities of the insurer, but can act as a deterrent to potential clients;
• Providing health insurance in rural areas may call for reiterations of the methodology;
• The severe 100% increase in premiums for the second year, resulted in a high dropout rate;
• The inputs of a doctor are highly beneficial;
• Alterations to the model should be made prior to the payment of premiums.

The paper concludes by listing:

• Specific strategies used by “GRET” to manage insurance risks;
• Strengths and weaknesses of the program;
• Threats to, and opportunities for, the program.