Consumer Behavior and Decision-Making in Health Insurance Policy Purchases in Nepal

Authors

  • Surendra Prasad Joshi Faculty of Management, Thames International College, Tribhuvan University, Nepal.
  • Rewan Kumar Dahal Faculty of Management, Nepal Commerce Campus, Tribhuvan University, Nepal.
  • Dipendra Karki Faculty of Management, Nepal Commerce Campus, Tribhuvan University, Nepal.
  • Binod Ghimire Faculty of Management, Nepal Commerce Campus, Tribhuvan University, Nepal.

Keywords:

Consumer confidence, sustainable decision-making, trust in insurance

Abstract

Purpose: Health insurance serves as a lifeline with the prospect of financial security in the face of an insurance system, thinking that accidents in human life can occur at any time. This study analyzes the elements that influence people’s decisions to obtain health insurance coverage in Nepal.

Design/methodology/approach: It used descriptive and causal research design based on primary data collected from 385 prospective insurance consumers. It employed correlation and multiple regression analysis to conclude.

Findings: Findings show that there was a significant relationship between mental accounting, pricing, premium, brand trust, and risk perception with individuals’ insurance purchase decisions. Brand trust was revealed as the most powerful predictor,
followed by mental accounting.

Conclusion: The study concluded that financial concerns are important; trust in the insurance companies and consumers’ mental accounting of health-related expenses have a greater influence on purchasing behavior.

Implications: This study emphasizes the importance of brand trust and mental accounting in health insurance decisions in Nepal. The findings support efforts to improve financial security and achieve universal health coverage.

JEL Classification: D14, G22, I13, D91

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Published

2024-12-07

How to Cite

Prasad Joshi, S., Kumar Dahal, R. ., Karki, D., & Ghimire, B. . (2024). Consumer Behavior and Decision-Making in Health Insurance Policy Purchases in Nepal. Nepalese Journal of Insurance and Social Security, 7(1), 100–115. Retrieved from https://nepjol.info./index.php/njiss/article/view/72606

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