Demand and Supply of Health Insurance

Demand and Supply of Health Insurance is a critical topic for Zambian tertiary students studying health economics, public health, or insurance management. This module delves into the economic rationale for health insurance, covering key concepts such as risk aversion, expected utility, actuarially fair premiums, and moral hazard. It analyzes the determinants of demand for insurance from a consumer perspective and the competitive supply of insurance policies, including premium calculation and loading fees. The topic provides a direct application to the Zambian context, examining schemes like NHIMA and private insurers (e.g., SES, Madison). Understanding this material is essential for students aiming to work in health financing, insurance regulation, or policy roles, as it explains how insurance markets function, why they sometimes fail (e.g., due to adverse selection), and the economic consequences of moral hazard. Mastery supports success in university exams and prepares learners to engage with debates on expanding health insurance coverage and improving financial risk protection in Zambia.