Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award


Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

Pakistan has one of the lowest health insurance penetration in the world. To find out the reasons behind this low health insurance penetration I have conducted primary research under advice from my research adviser; Mr. Sibghatullah Hussaini.

Before going on to this exercise an in depth interview from the industry expert was conducted to get a corporate insight. An interview was also conducted with a potential survey participant to understand the possible information outcome to enable me to develop the questionnaire for conducting this study for finding out the reasons for low health insurance penetration in the country. From the corporate in-depth interview I found out that that there is low health insurance penetration because our insurance companies are geared towards B2B marketing. Companies sell to companies because of ease of getting the profits. Selling health insurance programs to larger enterprises and not mainly catering to individuals. Insurers are geared towards catering to larger enterprises and social organizations. So lack of focus from insurers on individual households is contributing towards low health insurance penetration.

The focus of this study was to find out the reasons for low health insurance penetration in the country. These have been found out by conducting primary research with a sample population of 60 individuals. The entire exercise took several weeks to complete. Following are the reasons for low health insurance penetration in the country per the results derived through the primary research:

Out of a total of 60 population sample size, 83% do not have health insurance policy. Out of this majority segment who does not hold health insurance policy. 38% reported that they never felt the need of purchasing a health insurance policy. This is closely related to the segment (18%) who reported that they have no knowledge regarding health insurance policy benefits. Both these segments are either used to spend medical expense out of their own pockets or by taking loan/contribution from their close relatives in case of hospitalization.

A significant sample size of 36% reported that nobody ever approached them to purchase health insurance policy. Some of them are used to insurance agents for life insurance policies and they think that agents should have created awareness about health insurance policy offers. This aiso shed some light on the ineffective marketing affairs for health insurance products by the insurance companies who are unable to create awareness regarding health insurance products.

Affordability has also come out as the major reason for not purchasing a health insurance policy. A total of 8% of the respondents reported that they do not hold health insurance policy and mentioned that they cannot afford health insurance policy premiums.



Available for download on Tuesday, December 31, 2030

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