Recent research shows that health insurance policies available today have features which undermine the credibility of the market such as annual re-underwriting and non guaranteed renewables. These features although manage insurers risk leaves a poor first impression on customers which often affects the sustainability and perception of the health insurance schemes.
Despite the huge potential in the health insurance space, there is a wide gap between buyers of health insurers in the formal and informal sector. The research shows that succeeding in the health insurance market will require insurers to take a long term view enhancing the customer experience and ensuring a positive first experience of private insurance. It will also involve cultivating new and better relationships with providers based on delivery of care, to agreed quality standards and ensuring values for patients.