Question

As discussed in Poor Economics, SKS Microfinance introduced a pilot health insurance program in 2007 in order to mitigate what type of problem that insurance providers typically face?

Answer 1

For struggling families living in poverty, economic shocks can be devastating. An unexpected home or equipment repair, loss of income, or ailing family member can drain money needed for food and housing. Health shocks are among the largest and least predictable forms of uncertainty that a poor family can face. In developing countries, high levels of poverty and poor health conditions have the potential to make health shocks all the more frequent and dangerous. Formal health insurance has the potential to mitigate the impact of health shocks.


sources- http://www.povertyactionlab.org/evaluation/providing-health-insurance-through-microfinance-networks-rural-karnataka-india