Implementing Health Insurance through Microcredit: A Case Study of SKS Microfinance, India
This paper describes the experience of SKS Microfinance, India’s third largest MFI in launching a mandatory catastrophic health insurance policy in Karnataka, India, and expanding it across all branches. Although health shocks are among the biggest and least predictable forms of uncertainty for a poor family, health insurance has not been seriously considered as a means of mitigating financial shocks for the poor.
SKS’s goal was to create a product that would be beneficial to all the stakeholders, namely, client, insurer and the MFI. This report documents the entire process at SKS, from conceptualization and product development to roll-out, including operational processes and challenges.
The report is part of a larger impact evaluation research project that seeks to assess the impact of providing health insurance with microcredit on poor households’ economic, social and health outcomes. It aims to help other MFIs learn from SKS’ successes and challenges in implementing the product.
