How should CBHI schemes be regulated?
Although CBHI schemes may start as informal, small-scale arrangements, governments can facilitate their emergence and enhance their performance through a supportive regulatory framework, especially to ensure financial sustainability. Many countries have excluded CBHI schemes from their regulatory framework or have applied lighter regulation for non-profit schemes. However, weak regulation, especially for reserve requirements, will expose consumers to risks of insufficient financial protection. To ensure solvency and encourage the creation of CBHI schemes, governments can provide guarantee funds. For a more detailed discussion of how to regulate private health insurance schemes in general, click here.
