Building a Not-for-Profit Health Insurance Company

Kumar Shailabh 

Profit is often associated with efficiency and hence the idea of a Not for profit Health Insurance Company will seem weird and out of place. It’s a no-go for investors - angel or otherwise.

Not-For-Profit implies that its for charitable purpose, it’s never read as “it is for things other than profit”. If its not profit, its someone’s loss or assigned for altruistic purposes.

However not for profit can also be a business model where the profits are not distributed but retained in the company as reserves. Shareholders of such a company may decide that they seek to reinvest in their future rather than take dividends.

For a business, like insurance, it makes a lot of sense if the profits become reserves. Such a business will focus on working for its shareholders on issues more important than profit- issues such as what the shareholders need in the long term than just profits. Profits will come because the business is done with a purpose not just because of profits. This is the business value of what is known as mutual insurance.

Uplift Mutual has been working in the not for profit for health mutual micro insurance mode using technology now for a year and half and the only way it can grow, it can scale, is that if gets an insurance license- but will a not for profit, a mutual , get investor/s to support for the massive license fees.                           

Remains to be seen.

What’s in for them-Social good? Altruism? Values?

Our understanding- An Insurance company that delivers value to its members clients and shareholders that goes beyond profit and impacts the lives by providing meaningful health protection.

Difficult? absolutely yes so far, Impossible maybe not!