Research Methods

The methods chosen for implementation of the research can be summarized as follows:

1. International experience gathered on pro-poor organizations, microinsurance and relevant issues of poverty reduction build the starting point. These findings will be summarized and their applicability for the Indian context discussed. The partners bring in special experience and each an own focus on the topic. By bringing together the expertise of all the research design developed in detail ensures new insights by cross cutting the themes.

1. Based on the desk research new insights through field studies will be gained and some international findings will be tested in the Indian context. To generate real viable solutions both market sides of a microinsurance arrangement are taken into account.

1. Extensive research on the demand side ensures that insurance products will be developed, which are highly desired by the clientele. Aspects of the health seeking behaviour, perception of insurance and taking respect of the specific situation of the demand side can help to develop procedures for the supply side that decrease transaction costs and therefore the price while offering best protection possible. Various modern methodological approaches stemming from the areas of behaviouristic and experimental economics will be used additionally to more traditional quantitative and qualitative methods and surveys.
2. Focussing on the supply side highlights the current problems connected in providing microinsurance. Established insurance companies, obliged by IRDA to foster their business with the poor, face different problems as small schemes linked to them or running an independent risk-pool. But all schemes face problems in developing adequate products and pricing them in a way the poor can afford.

The focus of our methodology will be to establish what the poor consider as “value”, and what price they are willing to pay for the choice (and compensation) that health insurance can give them.

• Method 1: We will engage in Key Informant Interviews (KII) at the level of MIUs. This will result in case studies using the structure of InfoSure - Health Insurance Evaluation Methodology and Information System.
• Method 2: We shall also organize Focus Group Discussions (FGD), around key issues relating to the basic “research questions” that we identified earlier: how to build trust of the poor in insurance, what is fair benefit, what cost is acceptable, which choice (in benefits, providers, periodicity of payment, overall cost) would they prime, and how they can design products and services that can deliver on the choices identified in these FGD.
• Method 3: Additionally, we shall engage in a limited Household Survey, to capture quantitative data on utilization, socio-economic information, demographic information, and other related topic that are necessary for the formulation of reasoned analysis of the situation on the ground
• Method 4: Lastly, we shall engage in limited actuarial and statistical analysis of costs of benefits, in order to estimate the amount of capital needed to sustain the package they choose. We shall also use the actuarial analysis to estimate the amount of subsidy that should be funnelled into the MIUs from central government or other external sources, as compensation for the high concentration of low-income individuals in the risk pool.

From research to training and communication

1. Having gathered specific knowledge on problems faced by MIU in India and the expectations of their clients, recommendations are formed in order to improve their performance. Because financial stability of the schemes is one of the major problems expected and experienced in international contexts, a computer based template developed within the Social-Re project of Dr. Dror and adjusted to the specific needs analysed here will be implemented. This template improves management and accounting of the schemes; further recommendations derived from the findings contribute to the further improvement of the schemes.

1. MIU can stand alone but their existence and growth is enhanced if authorities use efficient instruments to support their growth and emergence. These recommendations are developed based on the specific knowledge gathered in the research and the work with the MIUs and are based on a vision for further development of the sector in India. This vision is developed with all stakeholders especially the government authorities. Long term impact and applicability of the measures proposed is guaranteed by this.

1. To ensure the impact of the recommendations formed they will be extensively communicated through conferences and workshops. Using conferences, seminars and workshops as means to communicate the information additional to publication brings in the advantage that informal networks build up among those participating and common discussion of the topics develops the results permanently further. The discussions taking place at these workshops and seminars are used as evaluation mechanism of the results. The cross-sectoral approach chosen by the consortium ensures with FICCI direct connections to those taking decisions in politics and the insurance industry and long term impact because of ongoing communication through FICCI after the end of the project.

1. During the whole project special attention is put on building capacity in India and among European students to ensure sustainable long term development in the sector of microinsurance. Common research activities with students in the Netherlands, India and Germany as well as Indian high calibre students taking part in the Master of Science programme at HEPL ensures the cross-cultural exchange of experience and perspectives on health insurance.