Survey review and synopsis done to understand and examine the antecedents of customer satisfaction and purchase intention regarding health insurance among millennials

1. SURVEY
REVIEW AND
SYNOPSIS
EXAMI NI NG THE ANTECEDENTS OF
CUSTOMER SATI SFACTI ON AND
PURCHASE I NTENTI ON REGARDI NG
HEALTH I NSURANCE AMONG
MI LLENNI ALS
BIRLA INSTITUTE OF
MANAGEMENT TECHNOLOGY
GREATER NOIDA
VASU GUPTA
20IN653
PRODUCTS AND PRACTICES OF LIFE INSURANCE

2. Abstract
As the fear of Covid 19 is eminent and
upscaling, Insurance sector has seen a
growth in sales of health insurance policies.
This research is aimed at examining the
antecedents of customer satisfaction and
purchase intention regarding health
insurance among millennials. The survey
consisting of various respondents was
carried out for the purpose of this research.
This is a survey review and synopsis report
taking a comprehensive look into the
experiences shared by the respondents right
from purchasing the policy, customer service
all the way to claims.
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

3. LIST OF RESPONDENTS
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

4. Lead company & why
As the survey is concentrated in Bareilly city all or most of the
respondents reside in this location. While being asked about their lead
heath insurer it was found that majority is insured by Star Health &
Allied Ins Co Ltd. While most respondents had a family floater plan, few
are also insured under individual health coverage plans. It was
interesting to know that one of the respondent has recently switched to
Max Bupa and few others were planning to switch their insurer to Max
Bupa in lieu of attractive features and added benefits such as unlimited
reloads comparatively cheaper premiums etc.
On being asked as to why Star Health is the choice of many, the
unanimous reply of the respondents was the high claim settlement
ratio . They also talked about the agent selling Star Health Policies
being a familiar figure among the top businesses houses in Bareilly and
a person who could be easily trusted and called upon if things went
wrong. They also highlighted the pro active nature of the agent in
respect to notifying when the renewal premiums are due and
convenience provided by him with regard to collection of cheques etc.
The respondents also highlighted the large network of hospitals in
Bareilly providing cashless facility to Star Health customers.
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

5. Purchase Experience
It is interesting to know that purchase experience has been different for
different respondents. While most were inexperienced buyers of the
policy hence believed on whatever the agents had suggested without any
comparison, as they trusted the words of the agent. There were some
having past purchase experience who made their decision after taking
efforts to compare the plans, premiums, network hospitals etc.
The overall purchasing experience of the respondents was satisfactory.
Upon being asked about any mis selling or rebates being provided, one of
the policyholder of Max Bupa Health Insurance co. responded in
affirmative. When asked for details the respondent talked about a rebate
that has been promised to him after the issuance of policy, he further
added that although the policy has been issued he's still waiting for the
amount to be reimbursed. It was found that respondent was unaware of
the fact that rebating is illegal and prohibited by the regulator. Even
after informing him about the provision he was not ready to give up on
the rebate amount been promised to him.
It should be noted here that although some respondents did visit online
aggregators to compare prices and features but none of them carried out
any purchase from these platforms the reason that they echoed was the
complex nature of these contracts and the fear of unknown. They were
ready to shell out few extra money on agent as it provided them sense of
safety and a person to go to in case of any dispute.
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

6. Online Presence
When asked about their insurer having online presence, it was found
that many didn't know that their insurer had social media presence,
although they were aware that their insurer had a website. None of
them followed their insurer on social media platforms.
As far as interactive opportunities are concerned, the respondents
heavily relied on their agents for servicing, endorsement, or
information on any new product.
It was found that a respondent did try to contact customer service on
their toll free number where he inquired about wheather a specific
hospital provided cashless facility, for which he was put on hold for
about half an hour after being disconnected twice in the whole
process. The respondent further added that email enquiries take upto
48hrs even then there is no gauranteed of absolute resolution, usually
there are counter queries and questions hence the process becomes
time taking and cumbersome. Respondents neither used the mobile
application nor they had visited the official website of the Insurer.
It can be inferred that though there have bern significant technological
advancements in the field of Insurance but the actual sales and
servicing still relies heavily on agents and this dependence will remain
even in the foreseeable future.
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

7. Understanding the terms
of Policy
Understanding of terms including benefits and features of the policy is
of utmost importance. It was found that most respondents had a fare
idea about the contract and its essential features. They knew about the
total sum insured, premiums to be paid and other basic features and
benefits. They acknowledged that the agent was calm and composed
and was able to explain the policy well. It should be noted here that
most respondents had bought a health policy for the first time in their
life and probably their last therefore it would not be wrong to assumed
that It would have been easily to solicit such customers.
There was a respondent who talked about his medical being managed
by the agent. He was an obese whose weight was misstated in the
proposal form to avoid additional premium. Upon being asked whether
he knew such misstatements could amount to forfeiture of his policy
and result in lapsation as it could amount to fraud, he replied that he
knew no such thing and acted solely on agent's advice.
It was concluded that although respondents had a fair idea about their
policies and the features and benefits it offered but lacked to
understand some of the crucial aspect and were confused when asked
about their waiting period, no claim bonus and diseases being exempt
in the policy.
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

8. Satisfaction
As most respondents had their experiences limited to purchase of the
policy. They were satisfied with the process and felt confident with their
decision. As health cost are mounting they acknowledged the
importance of medical policy while some felt their coverage to be less
and planned to increase it upon renewal.
There were few having experienced claim process who showed some
dissatisfaction towards the claim process. As some had their claims
repudiated while others did not received the entire amount. Those who
had to apply for reimbursement where the hospital did not provide
cashless facility found the process of collecting each and bill, reports
and submitting the same with TPA cumbersome.
Satisfaction varied from respondent to respondent who had availed
cashless facility found it better than those had to apply for
reimbursement. It should be noted here that most rated their satisfaction
level on the basis of purchasing the policy while a very few on the basis
of claim settlement.
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

9. Additional Purchase
While most respondents had purchased family floater
plans and were not planning to make any additional
purchase. Some respondents were planning to buy
policies for their children turning adult and will no
longer be covered in family floater plans. While some
others were planning to increase their total cover
having heard of huge hospitalization costs involved
during Covid. It was noticed that a handful of
respondents were looking to switch their policies with
companies offering better value, benefits and feature
for similar premium.
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

10. Claim Experience
There were few respondents who had indulged in the claim process each
having different set of unique experiences, hence to have a more in-
depth analysis of the process let us discuss some of these cases in brief.
Case 1: The respondent was suffering from a disease called fistula , the
respondent was insured by Religare health insurance and had the policy
for more than 5 yrs, he was advised to visit Delhi where more advanced
treatment was possible. A reputed hospital in Delhi specializes in these
surgeries, the cost were significant and the surgery required several
sittings, upon his exercising claim under the policy, to his surprise he
was informed that the disease was not covered under his policy,
disappointed and helpless he had to bear the entire out of his own
pocket. He switched to Max Bupa where he was offered better benefits
and features as compared to what was provided by his former insurer.
Case 2: In this case the respondent himself is a Star Health Agent and
LIC, a popular name in Bareilly. Upon being testing positive with Covid
he was admitted to a reputed hospital in Delhi. The company repudiated
the claim under vague conditions. Being a well known figure in Bareilly
his son had called the regional mangers and heads of several
departments and threated them of consequences if the claim was not
honored. Under the heat of the matter to avoid any dispute with the
agent, the company then decided to honor the claim.
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

11. Conclusion
Hence it can be concluded that those buying medical
policies are immature buyers or are first time buyers of
these policies and probably the last. Respondents relied
heavily on agent services. They trust the words of agent due
to complex nature of these policies. They only understand
the basic features of the policy ignoring minute details.
Their interaction is only limited to the renewal premiums
they are being paying. Respondents rarely made any use of
their insurer's online presence. Agents are the go to choices
for and servicing aspect. Most are unware of the better
products that they can tap into for the similar premium as
compared to the benefits they are getting in their traditional
medical policies. Claims are not as easy as buying the policy
and at times better contacts and connections help in faster
claim processing.
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY