Page 262 - India Insurance Report 2023- BIMTECH

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2.3 Understanding the Link between Financial Inclusion and Health

Financial inclusion positively impacts health outcomes by enabling individuals to afford necessary
healthcare services, promoting health insurance coverage, supporting health infrastructure development,
and empowering individuals through financial education. Proactive healthcare measures and informed
health decisions are encouraged in financially inclusive societies, leading to better overall health outcomes
(World Bank, 2022).

2.4 Health insurance in Bangladesh

Health insurance, provided by government agencies, private corporations, or non-profit
organizations, is a means of sharing the collective medical risk across policy subscribers. However,
health insurance has historically been uncommon in Bangladesh, with limited governmental support or
promotion. Only non-life insurers are currently allowed to offer standalone health insurance plans,
while life insurers often package health coverage with life plans, primarily for large corporations’ employee
benefits. The concept of insurance assistance gained traction in the late 1990s, but health insurance
remains relatively underutilized in the country (Health Insurance in Bangladesh: In Need of Rapid
Improvement - LCP, 2021).

3. Methodology

The research was undertaken to explore health seeking behavior of Bangladeshi underserved people
and role of financial inclusion for providing better facilities. This study aims to support both strategic
decisions and to design and develop healthcare interventions for underserved communities to improve
their lives. This chapter consists of different elements of the research methodology, such as research
objectives, research questions, research nature and methods, etc.

3.1 Objectives of the Research

1. To assess the current state of inclusive finance initiatives in Bangladesh, particularly those targeting
healthcare accessibility;

2. To identify the primary barriers and challenges hindering the widespread adoption of health insurance
among the population;

3. To find out the social health protection desire and affordability of the underserved households; and

4. To evaluate the effectiveness of existing health insurance schemes in Bangladesh and identify
opportunities for expanding coverage to underserved and vulnerable populations;

5. To propose practical policy recommendations aimed at enhancing the integration of inclusive finance
with health insurance systems to improve healthcare in Bangladesh.