Case Study
Microinsurance in Uganda: A Case Study of an Example of the Partner-Agent Model of Microinsurance Provision - NHHP/FINCA Uganda - Health Care Financing Plan
Does the partner-agent model of insurance reduce risk for the microfinance institution?
40 pages
This study reviews the partner-agent (P-A) model supporting the relationship between FINCA Uganda (FU), a Ugandan registered microfinance institute (MFI), and Nnsambya Hospital Healthcare Plan (NHHP), a health financing entity.
The study:
- Presents the mechanisms and practicalities of the model;
- Examines the satisfaction levels of the partners and the market;
- Identifies benefits and problems;
- Points out future potential applications;
- Reviews product development, testing and implementation processes;
- Provides information on the process;
- Identifies issues in the product cycle.
The study methodology was as follows:
- Field visits, interviews, document reviews;
- Use of Participatory Rapid Appraisal (PRA) and focus groups;
- Review of accounts, claims records and other relevant documents.
The paper argues that the PA model has:
- Allowed for new business development in ways that reduce risk to the microfinance institute (MFI);
- Offered innovative insurance products to MFI clients.
The paper offers the following summary of lessons learned from the research:
- Developing and testing a protocol is very essential to the product development process;
- Staff have to be trained well;
- Financial problems do not fall on the MFI;
- Premium prices must be structured to cover costs from the start;
- Donor funding could prove detrimental to the pricing of the product;
- Clients need to have a savings mechanism available to save for the periodic premium;
- Marketing has to be consistent;
- An MFI needs a simple information system.
About this Publication
Published