Ranking the Critical Buying Factors of Private Health Insurance Using Analytic Hierarchy Process

Abstract

It is usually a significantly complex decision to buy private health insurance. There are multiple factors which influence a buyer’s decision before s/he decides to buy a health insurance policy. In an Indian context it becomes even more imperative to know the exact influencing factors which can lead towards a purchase of private health insurance especially by consumers from low earning groups. This paper presents an identification of factors which influence the decision of buying health insurance product by specific consumer groups namely Auto Rickshaw Drivers, Cab Drivers, Panwalla, Women home maids in an Indian perspective as seen by expert sales professionals who have sold specific products to these consumer groups. Ten expert sales professionals were presented with a collection of nine important factors which influence buying of private health insurance and through Analytic Hierarchy Process were requested to identify and rank the factors which they considered most influential from the point of view of specific consumer groups. The Analytic Hierarchy Process approach identifies and ranks Premium, Customer Service and Claims settlement history as the top three criterion in private health insurance buying. This analysis offers insights into the expectations of specific consumer groups from private health insurance providers.