Customer Value Creation—A Case Study of Indian Health Insurance Industry from Value Net Perspective

Abstract

In the current era of digital business ecosystem, firms have been looking for fresh perspectives to frame its business strategies and create value for customers. Competitive advantage can be generated only when the value created by a firm for its customers exceeds the cost of creating such value. Creating value for customers in health insurance has been a strategic priority for insurance firms. Indian health insurance firms are competing in the area of launching new products which are technology driven and are striving to provide more value to the society through their services. This study explored the value creation process in the health insurance industry. Using case study research with health insurance industry as unit of analysis, this study explored the interactions between stakeholders within the boundaries of the health insurance ecosystem. The role of the stakeholders was explicated using the value net framework which categorised them into customers, competitors/substitutes and suppliers. A value creation framework based on stakeholder collaboration was proposed for the health insurance industry which would further enhance the competitive advantage of health insurance firms in India.