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Managed health solutions -- Naya Jeevan

About the Project

 
Project Name: Managed health solutions -- Naya Jeevan
Type of Facility Project: Microinsurance innovation grantee
Region: Asia and the Pacific
Sub Topics: Business models, Other channels, Partnerships, Value-added services, Health
Type of Risk Carrier: Mutual or community-based
Type of Distribution Channel: Non-governmental organization
 

Organizational Overview

Naya Jeevan (meaning "new life" in Urdu/Hindi) is a Karachi-based health microinsurance (HMI) initiative targeting the socio-economically marginalized in Pakistan. It is an intermediary that pools groups of low-income individuals from both formal and informal sectors under a single, socially protective consortium. It negotiates commercial group health insurance from established and highly reputable insurers like Allianz, Saudi Pak, Jubilee Insurance, IGI, and Pak-Qatar Takaful at preferential, below-market rates on behalf of its members.

 

Project Description

Naya Jeevan’s most important innovation is that, unlike other HMI ventures, it does not try to shrink insurance premiums to meet the ability to pay of its target population. Instead, it systematically seeks well-resourced sponsors who have a defined relationship with the beneficiary (e.g. employers, contractors, supply chain partners) and therefore have a sustainable reason and ability to pay all or part of the premium for a low-income beneficiary. Given the negotiated discount on commercial ...READ MORE
 

Beneficiaries

The project will target the urban, working poor employed in both the formal and informal sectors, specifically, low-income contract workers earning $2 - $6/day in a variety of employer groups and domestic workers of higher income employees of multinational corporations (MNCs).

 

Learning Agenda

  • To what extent and how effectively will multinational corporations, academic institutions, SMEs and NGOs serve as efficient distribution channels for the Naya Jeevan health plan? How scalable and replicable is this model across these various channels?
  • To what extent will provision of tangible, value-added services to low-income beneficiaries accelerate enrolment & retention while improving socioeconomic and health outcomes?

Project Status

Key Performance Indicators

Coverage Indicators

2009

2010

2011

2012

2013

No. of Client Orgs.

10

48

108       

97

83

No. of Beneficiaries

426

2479

15632

16892

25190

Growth Rate

 

582 %

630 %

105%

149%

Renewal Rate – Client Orgs.

 

 

82 %

                        

57%     

94%

Renewal Rate – Lives

 

 

79 %

83%

89%

Service Indicators

 

 

 

 

 

Trainings – Client Orgs.

 

38

72

57

56

Trainings – Lives

 

1,285

3,025

1070

1327

Medical Exam - Client Orgs.

 

30

69

46

42

Medical Exam – Lives

 

1,063

1,581

1531

950

Preventive Health Workshops- Client Orgs.

 

1

78

14

9

Preventive Health Workshops- Lives

 

44

1,572

228

316

Calls Received - Helpline

24

760

3,011

1729

878

Number of Beneficiaries with Claims

3

68

397

 

                           

542

334

 

Number of Clients with Claims

2

18

52         

52

    

33           

Amount Claims in PKR

48,491

1,145,019

8,047,701

8,436,589

 

4,667,840

Claim Ratio

 

47.45 %

93.8 %

59%

44%

* Final 2013 Figures to be available at the end of 2013

Financial Budget

  • US$ 360,000 in revenues in 2012-13
  • US$ 480,000 budgeted for operating expenses in 2013-14

Naya Jeevan receives revenue in the form of insurance contributions from employers, financial sponsors, employees, and beneficiaries. These contributions are usually received as annual payments in advance. The main expense for Naya Jeevan is the health insurance premium payments that are paid to the insurers on behalf of its low-income members. A gross operating margin of around 30 per cent is generated. This covers other selling, general, and administration expenses operating expenses. Naya Jeevan aims to achieve sustainability (that is, positive cash-flow) at approximately 150,000 enrolled lives, projected conservatively for 2015. 

 
 
Project Updates
As of December 2013 Naya Jeevan was launched with a very lean operating budget in 2009, and has used the Microinsurance Innovation Facility’s Grant and other grants to considerably strengthen its organizational structure, processes, and capacity.  Key personnel such as a communications director, marketing manager, customer services coordinator, field team leader, and field force enrolment officers have been recruited, trained, and equipped with the necessary hardware (not all of them h...READ MORE

Project Lessons

On providing value to clients through tangible health benefits, and improving long-term demand for health microinsurance Volume-based discounts and strategic sponsorship for health insurance can provide a means to offer more comprehensive benefits at an affordable cost to low income clients. Naya Jeevan’s innovative approach includes partnering with top health insurers to offer customized and meaningful coverage. Its experience so far suggests that through...READ MORE
 
 
On innovating towards sustainability and scalability: What are the most durable and effective distribution channels? One of the major barriers to success for innovative business models in Pakistan is skepticism about market innovations. In Pakistan, markets and customers are intrinsically suspicious of market innovations that are ‘disruptive’, and there is a tendency to wait on the sidelines and observe how pioneers perform before embracing innovati...READ MORE
 
 
On identifying niche, ‘early-adopter’ industrial segments within the SME sector The most successful example of early SME adopters of Naya Jeevan’s integrated health plan is the upscale food and beverage industrial segment. Hints of positive contagion have been observed, when, for example, informal workers at one restaurant who are insured with Naya Jeevan have spoken positively about their experience to the uninsured workers of a nearby restaurant, cre...READ MORE
 
 
Project page contributor/s:  Owais Rasool (Naya Jeevan), Jeanna Holtz, Asher Hasan and Alice Merry (The Facility)
 
 
Date of last update:  Feburary 2016