Repositioning Health Microinsurance Products for the Informal Sector Groups

Abstract

In the least developed countries, the informal sector faces great challenges in accessing healthcare services since most people are not mainstreamed. This has prompted the formation of groups as a way of empowerment. The objective of this study was to examine the factors contributing to health microinsurance uptake among the informal sector groups so as to enable companies to reposition in this market. Quantitative data was collected from 1600 informal sector groups, and Principal Component Analysis was used to extract the main factors. Structural Equation Modeling was applied to adjust for individual response styles, assess unobservable latent variables, provide numerical estimates for each of the parameters in the model and indicate the strength of the relationships. This study found that informal sector culture was highly rated in repositioning health microinsurance products, followed by the use of mobile phone technology, then the mode of communication, social capital and finally, perception. With the inclusion of mobile phone technology, payment options were insignificant. These findings implied that, for health microinsurance companies to reposition in the informal sector market, trust, product value, packaging design, group support and assets need to be prioritized.

Keywords

• health microinsurance uptake
• mobile phone technology
• trust