Health Policies and Services: Perspective from the Insurance Sector

Abstract

Rampant growth visible in the insurance sector in India is undoubtedly the health insurance industry. There are both opportunities and restraints within the promotion and dispersal of insurance products in India. This paper aims to study the customer purchase pattern of the health insurance policyholders and analyse the effects of demographic variables such as gender, age, educational qualification, occupation, family monthly income and marital status of the policyholders. The data is collected from about 400 individuals in Tamil Nadu, India using simple random sampling technique. Structured questionnaire was used for collecting primary data. Nonparametric chi-square test of independence/association is used for testing the association between demographic variables and the purchase pattern of health insurance policyholders. The findings of the study revealed that six out of the eight demographic variables have a very strong and significant relationship with the purchase pattern of health insurance policies. The two demographic variables (Gender and No. of members in the family) do not significantly affect the purchasing pattern of general insurance policies. However, other demographic variables (Age, Income, Marital status, Residing locality, education and occupation) have a very significant impact on the purchase pattern of health insurance policies. It is suggested that the general that insurance companies should consider these demographic variables carefully to increase the overall sales of general insurance policies, along with premium service quality as every customer is distinct with respect to his or her needs and wants. The launch of Pradhan Mantri Fasal Bima Yojana (PMFBY) and National Health Protection Scheme under Ayushman Bharat, holds heavy expectations, which increases penetration of insurance in India, from nearly 34% to 50%. The study on the customer demographic profile & purchase pattern of the health insurance policyholders with demographic variables such as gender, age, educational qualification, occupation, family monthly income and marital status of the policyholders is an original piece of work by the researchers. However, the topic may be common and a number of studies in this area have been conducted earlier too. The study would help to understand the market trends and changing customers’ needs and wants and evaluate their demographic profile & behaviour of policyholders towards insurance schemes. Such studies provide valuable base data for the insurance companies, banks, financial sector companies and marketers to re-design their services, according to needs and wants of their customers.