Health insurance is designed to reduce economic difficulties following illness or injury. However, in developing countries few companies market health insurance to poor households. Insurance companies do not target poor consumers for many reasons, ranging from their inconsistent incomes, which may lead to missed premium payments, to the relatively high transaction costs of servicing an inexpensive insurance policy. These problems are similar to those faced by the credit industry in developing countries, which led to the creation of micro-finance. Micro-health insurance agencies have followed the lead of micro-finance and have started to offer insurance to this previously unserved population.
courtesy Human Sciences Happy Hours, Phnom Penh