Determinants of Customer Retention in Health Insurance Sector

International Journal of Research and Innovation in Social Science (IJRISS) | Volume I, Issue II, February 2017 | ISSN 2454-6186

Determinants of Customer Retention in Health Insurance Sector

Jaya Nema¹, Dr. Sunita Jatav²

  ^{1, 2} Assistant Professor, Institute of Business Management & Research, IPS Academy, Rajendra Nagar, Indore (M.P.) – 452 012

Abstract – The purpose of this paper is to identify the determinants of customer retention in health insurance sector. Various dimensions have been taken under study and responses of 150 customers have been recorded on 5 point Likert scale by using scientifically developed questionnaire. Data was collected and analyzed and important determinants were found out which are critical for customer retention in health insurance industry. The results indicate that innovative products, competitive prices, prompt services of companies, employee responsiveness and empathy, tangibility of services and reliability of services offered are various determinants of customer retention found crucial in this study.

Keywords – Customer Retention, Health Insurance, Customer Loyalty.

I. INTRODUCTION

The health insurance industry is dynamic and has to respond radically to the ever changing global environment. Post liberalization with the entry of new players the industry has become very competitive. Therefore it is imperative for the health insurance companies to acquire new customers and retain the existing ones. Retaining customers not only makes the insurance company profitable, it helps offset new customer recruitment advertising and marketing costs.

Health Insurance policies insure against several illnesses and guarantee to stay financially secure should ever require treatment. They safeguard peace of mind, eliminate all worries about treatment expenses, and allow focusing energy on more important things, like getting better. Health is a major concern on everybody‟s mind these days. With sky rocketing medical expenses, the possibility of any illness leading to hospitalization or surgery is a constant source of anxiety unless the family has actively provided for funds to meet such an eventuality.

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