Insurance Outlook : Volume 2

Customers get influenced by the immediate acquaintances of their social group who own Health Insurance. They primarily enquire about two aspects of their Health Insurance journey: Purchase and Claim experience. Word of Mouth plays a crucial role here as people don’t only suggest their insurer but also insurers they have heard good things about. This volume of Insurance Outlook answers the following 3 questions:

• How do customers get influenced while buying health insurance?
• Who plays most important role in final decision making?
• Which junctures of purchase, renewal and claim require constant hand-holding?

Evolution of customers through consultation and online research way before actual purchase

When it comes to final buying, people don’t buy Health Insurance without careful deliberation. They require a fair bit of explanation about the category, brands, modes of buying and T&C. They acquire more information from closest acquaintances based on the past experiences.

• Which are the good brands?
• What is the ideal coverage?
• How is the claim experience if they have any?

A known agent is also contacted to get more technical information about Health Insurance that can’t be answered by friends or family.

• What diseases are usually covered?
• Will nearby hospitals get covered in the plan?
• What are additional benefits?

Almost half customers pursue online research to get some of the answers on their own. These questions are the ones they find embarrassing to ask agents/friends or they want to get unbiased results.

• What is the difference between life and health insurance?
• Where to get the cheapest premium?
• What are different plans?

Most trusted source for information-gathering before making the final purchase

Highest weightage was given to family and friends by the customers to get honest information about Health Insurance. The customers resort to them to check first-hand experience about their brand and category in general. Information provided by agent and information which is available online, equally influence the customers. Both have unique influences. On one hand, agents help with a simplified explanation of technical jargons. On the other hand, online research brings DIY (Do It Yourself) unbiased information to the table.

Service interventions, explanations and updates are required by customers at each stage of their Health Insurance journey

Expectations of the customers at the time of renewal are basic and limited to communication and explanation. Maximum customers expect timely reminders, at least 30 days in advance. Reminders have to be in the form of emails and SMSs. They shouldn’t be bombarded with incessant calls. Customers also expressed the need for prompt explanation of certain aspects of the policy at the time of renewal. The increased premium happens to be a major cause of dissatisfaction so it needs to be explained properly. Approx. 1/4th customers also stated that they need information about NCB (No Claim Bonus) accumulation clearly. Appropriate suggestions are also expected at the time of renewal.

Customers certainly require hand-holding at the time of claims as this is the moment of truth for them. They are dependent on the insurance provider and apprehensive about the whole process. Maximum customers require information about the claim amount that will be approved right from the beginning of the admission. This will create a sense of assurance right from the beginning. Customers also need transparent and prompt information regarding documents and bills to be saved in case of reimbursement. The information should be very detailed (sign and stamp on each page etc.) to avoid rejection and rearranging everything again. Customers also feel the need to get clarity on non-covered items.