A STUDY ON CUSTOMERS’ PREFERENCE AND SATISFACTION TOWARDS HEALTH INSURANCE POLICIES WITH SPECIAL REFERENCE TO NORTH PARAVUR MUNICIPALITY

Abstract

India's health insurance industry has experienced substantial growth, driven by increased awareness of the importance of healthcare and financial protection. While only 25% of the population currently avails health insurance, changing perceptions due to lifestyle diseases and the impact of COVID-19 have spurred demand. The health insurance sector, launched in 1986, benefited from liberalization and the entry of both domestic and foreign players. Government initiatives like Ayushman Bharat have further expanded access to health coverage, especially for vulnerable populations, and are expected to increase penetration from 35% to 50%. Consumer behaviour has shifted significantly, with more individuals prioritizing preventive healthcare and seeking financial security against rising medical costs. The COVID-19 pandemic, in particular, altered perceptions, with the proportion of people considering health insurance a necessity rising from 10% to over 70%. The market is forecast to grow at a compound annual growth rate (CAGR) of 19% from 2019 to 2024, reflecting the sector's rapid expansion as consumers seek comprehensive coverage for medical emergencies and long-term wellbeing.