Factors Driving Policy Holders in Selecting Health Insurance Companies
S. Taj Sulthana *
Research Department of Commerce, The American College Madurai-02, India.
A. Martin David
Research Department of Commerce, The American College Madurai-02, India.
*Author to whom correspondence should be addressed.
Abstract
The health insurance market is highly competitive, requiring insurers to understand the factors influencing policyholders’ selection decisions. Using a quantitative approach and factor analysis, this study was conducted in Madurai during the year 2025 to identify the key determinants driving policyholders in choosing health insurance companies. The findings reveal two major dimensions: the Coverage Factor, which includes customizable policies and a wide hospital network, and the Service Factor, which comprises additional benefits, customer support quality, and comprehensive coverage. The results indicate that insurers should enhance service standards, expand flexible coverage options, and invest in user-friendly digital platforms to improve customer experience. Strengthening transparency, ethical practices, claim settlement efficiency, and value-added benefits will further build trust and customer loyalty. These strategic initiatives are essential for ensuring policyholder satisfaction and sustaining competitive advantage in the health insurance market.
Keywords: Health insurance, policyholder decisions, service quality, coverage flexibility, factor analysis, insurance selection factors, digital platforms, customer satisfaction