Newly published policy note cites potential efficiencies of private voluntary health insurance

There is now general recognition that, with strong public policies, the private sector can contribute to both health and financial objectives in service delivery, life sciences, supply chains, and the education of health workers. However, opinion is more divided on the role of the private sector in financing health care.

A recently published IFC-World Bank Health in Africa Initiative Policy Note weighs the pros and cons of the role of private voluntary health insurance in Africa. The analysis shows that private voluntary health insurance already plays a role in the region, and, under the right conditions, presents opportunities to facilitate a country's achievement of development objectives.

The challenge is to develop regulatory frameworks that have been adapted to a country’s institutional capacities and have carefully set rules and standards. Private voluntary health insurance can efficiently operate and develop by contributing to three major development objectives:

• securing sustainable financing for health care providers that serve the health needs of vulnerable populations;
• providing financial protection against the impoverishing cost of illness; and
• reducing social exclusion from organized health financing and delivery systems.