The role of bundling in promoting sustainability of health insurance: evidence from Pakistan

This paper extends current literature on the impact of health microinsurance in emerging markets. Using a difference-in-differences approach, we explore the causal impact on client retention of bundling health insurance with microfinance in the context of a large-scale microfinance institution in Pakistan. We find that the programme has a significant and positive impact on client retention. Further, we find that this impact is sensitive to the age composition of the client base, with an average rate of retention higher among younger than older clients.