EJOCR105-230 |Received: 01 June 2017 | Accepted: 04 September 2017 | January-December-2017 [(6)1: 219-227] EUROPEAN JOURNAL OF CONTEMPORARY RESEARCH © 2017 CREATIVE COMMON ATTRIBUTION | Volume 6| Issue 1 | ISSN: 2444-8151 Measuring the Performance of Micro-Health Insurance Schemes in Pakistan Based on Novel Adaptive Neural Network Classifier Tehzeeb Mustafa 1,2 , Zhou Lulin 1,2 , Zinet Jamie Abdullahi 2 , Numair Nisar 1,2 1 Institute of Medical Insurance and Health Management, Jiangsu University, Zhenjiang, Jiangsu, P.R. China 2 School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu, P.R. China ABSTRACT Micro-health insurance models have emerged (in different forms) as a more reliable source of seeking financial protection for a significant proportion of Pakistanis against the downside of medical cost. Most micro-health insurance contributions end up with mutual funds hence the performance of the mutual fund determines to a large extent the sustainability of the scheme. This makes the mutual fund market an indispensable factor in stimulating or stifling healthcare access in Pakistan with health equity implications. We applied a novel fast adaptive neural network classifier (FANNC) to publicly available historical financial performance data from the Mutual Fund Association of Pakistan. We benchmarked our results against the outcome of a backpropagation neural network model (BPN) and measured speed of processing performance information for micro-health insurance managers looking for high earning but less risky investment destination for their vulnerable funds. The FANNC tool proved superior in terms of prediction error and processing time to existing robust models such as the Backpropagation neural network. Keywords: Microhealth, Insurance, Rewards, Funds, Pakistan, Neural Network INTRODUCTION Typical of most developing countries, health inequity has become endemic in Pakistan over time. Despite its resource potential, several Pakistani’s (especially those in rural areas) live under high financial catastrophe and impoverishment and are unable to meet the constantly rising cost of an “unreliable” healthcare service [1]. According to the World Health Organisation 55% of total healthcare cost in Pakistan is financed through Out of Pocket (OOP) while 26% of the population (largely public sector workers and military officers) have their healthcare cost partially funded by the state [2]. In 2016, the gross total OOP expenditure incurred by households in Pakistan exceeded $3.9 million dollars. In the midst of escalating healthcare cost among the majority low-income households, expenses associated with sudden illness, are managed through adopting several coping strategies such as drawing on savings, borrowing and selling productive assets such as poultry, cattle and land [3]. Yet these coping strategies have become frequently inadequate to fully cover the cost of healthcare leading to unexpected consequential debts that exacerbated the precarious financial situation of an already impoverished family [4]. Eventhough the health insurance system has gained some mileage in Pakistan due to swift learning from neighbors such as China, its intervention as a healthcare financial protection mechanism against excessive healthcare cost is still an adventure in transition [5]. In 2015, an elementary national health insurance that requires individuals to mandatorily enroll was introduced in Punjab but it collapsed under managerial crisis, accumulated debt owed to service providers, accusations of corruption