Anchoring Bias in Health Insurance: Insights and Debiasing Pathways from Indian Knowledge Systems

Authors

  • KM Vineeth Associate Professor and Head, Post Graduate Department of Commerce, Government College, Tripunithura, Kerala - 682301 & Research Guide in Commerce, Maharaja’s College (Autonomous), Ernakulam, Kerala – 682011 https://orcid.org/0000-0001-5329-5963
  • Krishna Nambiar Research Scholar in Commerce. Maharaja’s College (Autonomous), Ernakulam, Kerala – 682011 & Assistant Professor of Commerce, Payyannur College, Payyannur, Kannur, Kerala - 670327 https://orcid.org/0000-0001-8656-6109

DOI:

https://doi.org/10.53983/ijmds.v14n8.004

Keywords:

Anchoring Bias, Debiasing, Health Insurance Decisions, Indian Knowledge Systems

Abstract

Anchoring bias—a cognitive tendency to rely heavily on the first piece of information encountered—has a profound influence on consumer decision-making in health insurance. Individuals often fixate on the initial premium quoted, neglecting to evaluate policy features such as coverage adequacy, exclusions, and long-term benefits. This results in suboptimal insurance choices and increased vulnerability to financial risk. While behavioral economics has proposed various debiasing strategies, the integration of Indigenous Knowledge Systems (IKS) offers a culturally rooted and holistic approach to addressing this bias. Drawing upon principles from Indian philosophical traditions, including Viveka (discriminative wisdom), Samyama (discipline of focus), Yukta Āhāra-Vihāra (balance in choices), and Niti (practical wisdom), this paper develops a conceptual framework for IKS-informed debiasing of anchoring bias in health insurance decisions. The study adopts a qualitative, conceptual methodology, mapping bias manifestations to corresponding IKS constructs and proposing tailored debiasing techniques. The findings highlight how ancient wisdom can complement modern behavioral insights, fostering reflective, balanced, and informed decision-making among consumers. The paper contributes to both the behavioral finance literature and health insurance practice by offering a novel IKS-based debiasing framework, with implications for policy design, consumer education, and sustainable financial wellbeing.

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Author Biographies

KM Vineeth, Associate Professor and Head, Post Graduate Department of Commerce, Government College, Tripunithura, Kerala - 682301 & Research Guide in Commerce, Maharaja’s College (Autonomous), Ernakulam, Kerala – 682011

KM Vineeth received his Bachelors, Masters and Ph.D. in Commerce from Mahatma Gandhi University,

Kottayam, Kerala, India. He also obtained a Masters in Business Administration from Bharathiar University, Coimbatore, Tamilnadu, India. He qualified UGC NET in Commerce as well as Management. With more than 19 years of total teaching experience and 10 years of post Ph.D. research experience, he is currently working as Associate Professor of Commerce at Government College Tripunithura, Kerala, India and a research supervisor for Ph.D. in Commerce at Mahatma Gandhi University, Kottayam. He is also a member of the Board of Studies of Commerce/Management at different prestigious autonomous institutions in the State; viz., St. Thomas College Palai, Christ College Irinjalakuda, Sahrudaya College of Advanced Studies and the like. He is presently the Vice President of Indian Accounting Association Kochi Chapter and a Life Member of Indian Commerce Association. Moreover, he is a patron class member of Indian Institute of Scientific Heritage. He serves as member of different RACs, adjudication commitees and peer reviewer to different journals.

Krishna Nambiar, Research Scholar in Commerce. Maharaja’s College (Autonomous), Ernakulam, Kerala – 682011 & Assistant Professor of Commerce, Payyannur College, Payyannur, Kannur, Kerala - 670327

Krishna Nambiar received her Bachelors and Masters in Commerce from Kannur University and cleared UGC NET. She has also completed Bachelors in Education from Mahatma Gandhi University, Kottayam. She has been teaching at Payyannur College, Kannur from 2013 and presently pursuing PhD at Mahatma Gandhi University, Kottayam. She is a life member of Indian Accounting Association.

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Published

16-08-2025

How to Cite

Vineeth, K. M., and K. Nambiar. “Anchoring Bias in Health Insurance: Insights and Debiasing Pathways from Indian Knowledge Systems”. International Journal of Management and Development Studies, vol. 14, no. 8, Aug. 2025, pp. 25-31, doi:10.53983/ijmds.v14n8.004.

Issue

Vol. 14 No. 8 (2025): International Journal of Management and Development Studies

Section

Articles