Operations Research and Decisions | 2026
Authors: Kapungu I.; Mbare N.S.; Mwakisisile A.J.; Sinkwembe E.E.
DOI: 10.37190/ord/210427
Journal: Operations Research and Decisions
Year: 2026
Publisher: Wroclaw University of Science and Technology
Document Type: Article
Open Access: All Open Access; Gold Open Access; Green Open Access
Cited by: 0
Several studies have reported about sustainability issues of the National Health Insurance Fund (NHIF) due to a mismatch between assets and liabilities. Despite these studies, no study has worked on the asset and liability management (ALM) of NHIF. In response to that, we applied a stochastic programming model to devise a decision framework that proposed an appropriate funding strategy to ensure financial sustainability of NHIF over the next 10 years. The model was formulated based on the regulations of Tanzania, with scenarios for random parameters generated by ARIMA and VAR models. We also performed convergence and stability tests to determine the appropriate scenario tree for our model. Numerical results suggest that remedial contributions in some stages, along with formulating an investment portfolio that favors government securities and fixed deposits, promises financial sustainability of NHIF over the next decade. © 2025 Authors
asset; financial sustainability; Health insurance; liability; stochastic programming