What are the benefits to Health Insurance Companies by providing cashless facility?

There are several benefits for health insurance companies to provide cashless facility to their insured persons. Some of these benefits are:

  1. Customer satisfaction:

    Cashless facility offers insured persons a convenient and hassle-free payment experience, leading to increased customer satisfaction. Satisfied customers are more likely to renew their policies and recommend the insurance company to others.

  2. Competitive advantage:

    Offering cashless facility can help insurance companies gain a competitive advantage over other insurers who do not offer cashless facility. This can help attract more customers and improve the reputation of the insurance company.

  3. Improved customer retention:

    Cashless facility can improve customer retention by reducing the likelihood of insured persons switching to other insurance providers. This is because insured persons may be reluctant to switch providers if they have to give up the convenience of cashless facility.

  4. Improved payment process:

    Cashless facility offers a streamlined payment process, reducing the administrative work for insurance companies. Insurance companies do not have to worry about collecting payments from insured persons or following up on claims for reimbursement.

  5. Better control over medical expenses:

    Cashless facility allows insurance companies to have better control over medical expenses by negotiating rates with empanelled hospitals. This can help insurance companies reduce costs and improve their profitability.

Overall, providing cashless facility to insured persons offers several benefits to health insurance companies, including increased customer satisfaction, competitive advantage, improved customer retention, streamlined payment process, and better control over medical expenses.