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Foreign Direct Investment in Health Insurance Sector: A Panacea to Iatrogenic Poverty

Savitha, B (2015) Foreign Direct Investment in Health Insurance Sector: A Panacea to Iatrogenic Poverty. In: Latest Significant Developments in Management, Economics and Educational Issues. Latest Significant Developments in Management, Economics and Educational Issues . Research India Publications, New Delhi, New Delhi. ISBN 978-93-84443-17-7

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Abstract

India is embarking on opening up its insurance industry to foreign direct investment that would give impetus to deeper penetration and pull the poor people from iatrogenic poverty. Huge inflow of foreign funds into health insurance sector would channelize resources to capture under penetrated areas through innovative products, technology infusion and new distribution channels making affordable and acceptable care to larger section of the population. It can meet capital needs of long term nature such as infrastructure. However, repatriation of profits of foreign investors would adversely affect the economy. Another area of concern is the lack of conditionality of social and rural sector coverage. Even with the infused funds, private players may ignore the large market at the bottom of the pyramid because of high transaction costs and low profits. With the passage of the time, these companies would realize that success lies in harnessing the vast rural market and not paying lip service as an obligation. India lacks an equitable and affordable health care system and urgently requires health financing mechanisms to bring mass population in insurance ambit. Since FDI is one of the promising mechanisms, this paper focuses on the opportunities and challenges to FDI in health insurance.

Item Type: Book Section
Uncontrolled Keywords: Insurance, foreign direct investment, health, rural, penetration
Subjects: Management > MIM Manipal
Depositing User: MIM User
Date Deposited: 31 Mar 2016 12:57
Last Modified: 18 Apr 2016 15:22
URI: http://eprints.manipal.edu/id/eprint/145714

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