Balancing Client Value and Business Case in Kenyan Health Microinsurance

This paper aims to understand how profitability and client value complement and conflict with one another with respect to health insurance. To understand this, the MicroInsurance Centre’s Microinsurance Learning and Knowledge (MILK) project conducted extensive research on health microinsurance in Kenya from both a business case and client value perspective.

The paper provides an in-depth look at two private health insurance providers: the Afya Yetu Initiative and the British-American Insurance Company’s (Britam) microinsurance program with Majani tea farmers. To understand client value, MILK conducted two Client Math studies of hospitalization insurance products offered by these two private insurers. Financial outcome data for the two providers over the 5-year period 2008-2012 were analyzed to understand the business case. The paper covers the following sections in detail:

• Background of healthcare in Kenya, public and private insurance programs operating there, and the insurance products offered in the country;
• Description of the Client Math study of the value of two private microinsurance programs;
• Description of the business case analysis with a focus on methodology and cost-revenue analysis;
• Lessons learned with a focus on balancing client value and business case, and critical features of the various health microinsurance programs studied.