MICROCAPITAL BRIEF: Study from MicroInsurance Innovation Facility (MIF) of the International Labor Organization (ILO) Supports Utility of Health Microinsurance in Rural Senegal

The MicroInsurance Innovation Facility (MIF), an initiative of the International Labor Organization (ILO) Social Finance Program, recently published a research paper that analyzes the determinants of the utilization of curative care in a rural area of Senegal where health insurance will be extended as part of a pilot project for the national insurance scheme for agricultural workers. In August 2008, the government of Senegal voted to adopt the National Agro-sylvo-pastoral Health Insurance Law in order to protect every individual working in the agricultural sector from health risks. Fifteen percent of the Senegalese population has health insurance.

The researchers first performed a literature review of studies on healthcare indicating that determinants of the likelihood of seeking treatment from a qualified provider include availability of a health facility, level of education, gender, relationship to the head of household and health insurance. The researchers then carried out surveys with 505 households and the staff of 18 community health centers during May and June 2009, which confirmed the same key determinants of healthcare access. Furthermore, the researchers found that insured people were 2.4 times more likely to seek care than the uninsured, a fact that the authors attribute to the lower out-of-pocket expense for those who are insured. Conversely, a lack of financial protection for the poorest individuals can perpetuate healthcare inequality – and even income inequality – as deferred care may increase health problems and out-of-pocket spending may lead households to sell assets to finance their healthcare.

By: Jacqueline Foelster, Research Associate

About MicroInsurance Innovation Facility (MIF): Launched in 2008 with a USD 34 million grant from the Bill & Melinda Gates Foundation, the Microinsurance Innovation Facility (MIF) is housed at the International Labour Organization’s (ILO’s) Social Finance Programme. MIF’s goal is to increase the availability of insurance for low-income families in developing countries to help them overcome poverty. MIF provides grants to help organizations develop innovative microinsurance products, with an emphasis on agriculture, health, life and property insurance. MIF also provides technical assistance and advice. ILO is an agency of the United Nations.

About International Labor Organization (ILO): The International Labor Organization is an agency of the United Nations (UN) whose objective is to advance opportunities for men and women to obtain decent and productive work in conditions of freedom, equity, security and human dignity. Its founding mission is that labor peace is critical to prosperity.

Sources and Resources:

[1] International Labor Organization, 2011, http://www.ilo.org/public/english/employment/mifacility/download/repaper2.pdf

MicroCapital Universe: Microfinance Innovation Facility (MIF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microinsurance+Innovation+Facility+%28MIF%29

MicroCapital Universe: International Labor Organization (ILO), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Labor+Organization

MicroCapital.org Article, May 18, 2010: “A New Study Published by the MicroInsurance Innovation Facility of the International Labor Organization Indicates 2.1% of the Potential African Market is Covered by Insurance”, https://www.microcapital.org/microcapital-brief-a-new-study-published-by-the-microfinance-insurance-innovation-facility-of-the-international-labour-office-indicates-21-of-the-potential-african-market-is-covered-by-insurance/

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