A PROJECT REPORTONAPOLLO MUNICH HEALTH INSURANCEIn the subject
Advanced Financial Accounting
SUBMITTED TOUNIVERSITY OF MUMBAIFOR SEMESTER 2 OF M.COM.BYName
of the student(WALKE SHAMEE ARUN)(Roll No. 79)
UNDER THE GUIDANCE OFProf. Suraj Agarwal SirYEAR 2013 2014
ACKNOWLEDGEMENT
At the beginning, I would like to thank GOD for his shower of
blessing. The desire of completing this project was given by my
guide Prof. Suraj Agarwal Sir. I am very much thankful to him for
the guidance, support and for sparing his precious time from a busy
schedule.I would fail in my duty if I dont thank my parents who are
pillars of my life. Finally I would express my gratitude to all
those who directly and indirectly helped me in completing this
project.
(Signature of the student)
DECLARATION BY THE STUDENT
I, Walke Shamee Arun student of M.Com. Part-1 Accountancy, Roll
No. 79 hereby declare that the project for the Paper Advanced
Financial Accounting titled, Apollo Munich Health Insurance
submitted by me to University of Mumbai, Semester 2 examination
during the academic year 2013-2014, is based on actual work carried
by me under the guidance and supervision of prof. Suraj Agarwal
Sir.I further state that this work is original and not submitted
anywhere else for any examination.
Signature of student
CERTIFICATE
This is to certify that the project entitled Apollo Munich
Health Insurance submitted by Ms.Walke Shamee Arun Roll No. 79
student of M.Com. (Part-1) Management (University of Mumbai)
Semester 2 examination has not been submitted for any other
examination and does not form a part of any other course undergone
by the candidate. It is further certified that she has completed
all required phases of the project. This project is original to the
best of our knowledge and has been accepted for Internal
Assessment.
Internal Examiner External Examiner
Co-coordinator Principal
College seal
INDEXSR.NOParticularsPage No
(i)Cover Page1
(ii)Declaration Of The Student3
(iii)Certificate From The Institution4
(iv)Acknowledgement2
1Introduction on Bank of India6
2Introduction on Bank of Baroda8
A) Objective of studyB) Scope of the studyC) Limitation of the
study11
3Financial Statement12
4Comparative Analysis27
5Findings, suggestions and conclusion.34
6Bibliography.36
Apollo Munich Health Insurance Co. Ltd. is the new name for
Apollo DKV Insurance Co. Ltd. The new name was officially announced
today as the company embarks on the new re-branding exercise after
receiving the required shareholder and regulatory approvals to
change its name. The announcement of the 'Apollo Munich' name is a
significant milestone as the company is set to scale it's business
to garner a sizable share of the growing market for health
insurance. Headquartered in Gurgaon with an expanding national
presence, Apollo Munich is a joint venture between Asia's largest
integrated healthcare provider, The Apollo Hospitals Group, and
Germany based Munich Re's newest business segment, Munich
Health.Munich Health is in fact the new brand under which Munich Re
is now offering its healthcare sector services to clients and
partners throughout the world. Munich Re is thus bringing together
under one banner its global insurance and reinsurance know-how in
health. The new brand will come to stand for partnership,
excellence and clarity from a company that is the expert in both
health and insurance.The company's name change comes at a time when
the health industry sector in the country is growing at an
aggressive pace and Apollo Munich has set out to provide innovative
health insurance products to address "preventive" needs and not
merely focus on "curative" needs. Apollo Munich is 74:26
joint-ventures between Apollo Hospitals Group and Germany-based
Munich Re's newest business segment Munich Health, which came into
being following the re-organization of business. DKV is also part
of Munich Re of Germany.Munich Health draws on Munich Re's
insurance and reinsurance competence with over 5,000 employees and
clients in more than 40 countries. Munich Re stands for exceptional
solution-based expertise, consistent risk management, financial
stability and client proximity. This is how Munich Re creates value
for clients, shareholders and staff. In the financial year 2008,
the Group - which pursues an integrated business model consisting
of insurance and reinsurance - achieved a profit of 1.5bn on
premium income of around 38bn. It operates in all lines of
insurance, with around 44,000 employees throughout the
world.VisionTo be the trusted leader in health insurance by
providing innovative solutions to the citizens of
India.MissionConstantly introduce innovative Health Insurance and
Wellness solutions that meet customer needs.Build an organization
on the principles of transparency, trust and integrity.Create
opportunities for our employees to learn and grow in an enjoyable
work culture.Constantly deliver on our commitments to all the
stakeholders.EXECUTIVE SUMMARYApollo Munich has robust plans to
expand its branch network, double the number of policy selling
agents and increase the company headcount in its aim to achieve a
market penetration of 5% of the retail health insurance market by
2013-14.With a 60% growth in the financial year 2007-08 and a
market share of Rs. 5100 crores, health insurance is touted as the
fastest growing segment in non-life insurance sector in India in
the recent years.Zooming out the view to gain a broader vista we
find juxtaposed the World Bank report stating that there is only a
dismal 10% penetration of health insurance among the Indian
population and 24% of all hospitalized people are impoverished to
below poverty line, each year. Overall, Indian health sector is
still characterized by near absence of significant risk protection
against major healthcare related expenditure ensuring that that
large proportion of people, especially those in the bottom four
income quintiles borrow money or sell assets towards meeting this
end.In India, health care is financed through general tax revenue,
community financing, out of pocket payment and social and private
health insurance schemes. According to National Health Accounts
published by NCMH, India spends around 4.9% GDP on health making
the per capita total expenditure on health US$ 23, of which the per
capita Government expenditure on health is US$ 4. Hence, it is seen
that the total health expenditure is around 5% of GDP, with
breakdown of public expenditure (0.9%); private expenditure (4.0%).
The private expenditure can be further classified as out-of-pocket
(OOP) expenditure (3.6%) and employees/community financing (0.4%).
It is thus evident that public health investment has been
comparatively low.Nevertheless, governments at the centre as well
as many states have started large scale health insurance programmed
to protect their vulnerable groups from health related financial
Crises.Service Marketing EnvironmentThe marketing environment
surrounds and impacts upon the organization. There are three key
perspectives on the marketing environment, namely the
'macro-environment,' the 'micro-environment' and the 'internal
environment'.
The micro-environmentThis environment influences the
organization directly. It includes suppliers that deal directly or
indirectly, consumers and customers, and other local stakeholders.
Micro tends to suggest small, but this can be misleading. In this
context, micro describes the relationship between firms and the
driving forces that control this relationship. It is a more local
relationship, and the firm may exercise a degree of influence.The
macro-environmentThis includes all factors that can influence and
organization, but that are out of their direct control. A company
does not generally influence any laws (although it is accepted that
they could lobby or be part of a trade organization). It is
continuously changing, and the company needs to be flexible to
adapt. There may be aggressive competition and rivalry in a market.
Globalization means that there is always the threat of substitute
products and new entrants. The wider environment is also ever
changing, and the marketer needs to compensate for changes in
culture, politics, economics and technology.SWOT analysisSWOT
analysis is the analysis of the internal and external factors,
which Have impact on the survival of any organization. Now let's
make SWOT analysis for Apollo Munich Health Insurance.STRENGTHS:1)
Apollo Munich Health Insurance is the part of the Apollo Munich. 2)
The brand name is enough to sell the products easily. 3) Strong
liquidity from FII (Foreign Institutional Investor) was the major
reason for the up move. 4) Range of products 5) Apollo has a long
and strong history of solvency, financial stability.WEAKNESSES:1)
Newly established company, so people seems it risky.2) Lack of
staff.3) Lack of advertisement, so most of the customers are not
aware of the Apollo Munich Health Insurance.OPPORTUNITY:1) There is
a vast untapped market in India. The Health insurance penetration
in India is approximately 2.5%. So it has large potential. 2)
Intention of traditional products is to encourage long term,
regular and disciplined savings to systematically build up a target
fund. 3) The average insurance premium being collected by the
company has been growing exponentially year on year.
THREATS:1) The main threat is from the other players who have
grabbed approximately 15% of the market share.2) As the government
has scrapped the rebate on the Health insurance premium, the people
who used to invest in Health insurance for the sole motive of tax
benefit.PEST AnalysisPolitical FactorsIncreased service tax on
premium 5% discount on corporate premium Hike in FDI limit Pricing
control in general insurance Favorable regulation for rural
insuranceEconomic FactorsIncrease in Gross Domestic SavingsSocial
FactorsLow insurance coverage Rise in elderly population Changing
Indian perception Growth Islamic insurance Increase in lifestyle
diseasesTechnological FactorsAutomation of processesIncrease in CRM
solutionsInternet driven information eraBusiness Process Monitoring
(BPM)SERVICE MARKETING MIXThe services marketing mix is an
extension of the 4-Ps framework. The essential elements of product,
promotion, price and place remain but three additional variables -
people, physical evidence and process - are included to 7-Ps mix.
The need for the extension is due to the high degree of direct
contact between the CE providers and the customers, the highly
visible nature of the service process, and the simultaneity of the
production and consumption. While it is possible to discuss people,
physical evidence and process within the original-Ps framework (for
example people can be considered part of the product offering) the
extension allows a more thorough analysis of the marketing
ingredients necessary for successful services marketing.The
marketing mix is the combination of marketing activities that an
organization engages in so as to best meet the needs of its
targeted market. The Insurance business deals in selling services
and therefore due weight age in the formation of marketing mix for
the Insurance business is needed. The marketing mix includes
sub-mixes of the 7 P's of marketing i.e. the product, its price,
place, promotion, people, process & physical attraction. The
above mentioned 7 P's can be used for marketing of Insurance
products, in the following manner:1) PRODUCT:A product means what
we produce. If we produce goods, it means tangible product and when
we produce or generate services, it means intangible service
product. A product is both what a seller has to sell and a buyer
has to buy. Thus, an Insurance company sells services and therefore
services are their product. The development of flexible products to
suit individual requirements is what will differentiate the winners
from the also-rans. The key to success is in providing insurance
solutions, not standardized insurance products. The concept of
riders/optional benefits has already been a huge innovation brought
about by the new players, which has led to customization of
products for individual needs. However, companies may differentiate
themselves on the basis of product segments that they choose to
focus on and excel in.Apollo Munich Health Insurance Co. Ltd has
the following options in healthcare insurance products for the
benefit of Indian consumers namely:-a) Easy Health Standardb) Easy
Health Exclusivec)Easy Health Premiumthese products are available
on individual basis as well as floater policy.
2) PRICING:In the insurance business the pricing decisions are
concerned with:I) the premium charged against the policies,II)
Interest charged for defaulting the payment of premium and credit
facility,III) Commission charged for underwriting and consultancy
activities.With a view of influencing the target market or
prospects the formulation of pricing strategy becomes significant.
In a developing country like India where the disposable income in
the hands of prospects is low, the pricing decision also governs
the transformation of potential policyholders into actual
policyholders. The strategies may be high or low pricing keeping in
view the level or standard of customers or the policyholders. The
pricing in insurance is in the form of premium rates. The three
main factors used for determining the premium rates under a Health
insurance plan are mortality, expense and interest. The premium
rates are revised if there are any significant changes in any of
these factors.Price is a relevant differentiator only in two
segments - pure term insurance and in pure annuities. Here too,
service delivery and financial strength will need to be present at
a minimum acceptable level for price to be a relevant
differentiator. In case of savings oriented products, long term
returns generated will be more relevant than just the price of the
product. A focus on generating good investment performance and
keeping a tight control on costs will help in generating good
long-term maturity value for customers. Norms have been laid down
on all of these by IRDA and adhering to these while delivering good
returns will be a challenge.3) PLACE:This component of the
marketing mix is related to two important facets -I) Managing the
insurance person nel, andII) Locating a branch. The management of
agents and insurance person nel is found significant with the
viewpoint of maintaining the norms for offering the services.This
is also to process the services to the end user in such a way that
a gap between the services- promised and services - offered is
bridged over. In a majority of the service generating
organizations, such a gap is found existent which has been
instrumental in making worse the image problem. The transformation
of potential policyholders to the actual policyholders is a
difficult task that depends upon the professional excellence of the
person nel. The agents and the rural career agents acting as a
link, lack professionalism.The front-line staff and the branch
managers also are found not assigning due weight age to the
degeneration process. The insurance person nel if not managed
properly would make all efforts insensitive. Even if the policy
makers make provision for the quality up gradation, the promised
services hardly reach to the end users.4) PROMOTION:The insurance
services depend on effective promotional measures. In a country
like India, the rate of illiteracy is very high and the rural
economy has dominance in the national economy. It is essential to
have both person al and imperson al promotion strategies. In
promoting insurance business, the agents and the rural career
agents play an important role.
Due attention should be given in selecting the promotional tools
for agents and rural career agents and even for the branch managers
and front line staff. They also have to be given proper training in
order to create impulse buying. Advertising and Publicity,
organization of conferences and seminars, incentive to
policyholders are imperson al communication. Arranging Kirtans,
exhibitions, participation in fairs and festivals, rural wall
paintings and publicity drive through the mobile publicity van
units would be effective in creating the impulse buying and the
rural prospects would be easily transformed into actual
policyholders.The level of demand is latent and will have to be
activated considerably. The market needs to be developed. Greater
awareness of insurance and the need to have it as a protection tool
rather than as a tax planning measure needs to be appreciated by
the Indian people. Various communication tools including
advertising, direct marketing and road shows will contribute to all
this and different companies will take different approaches on
these.5) PEOPLE:Understanding the customer better allows designing
appropriate products. Being a service industry which involves a
high level of people interaction, it is very important to use this
resource efficiently in order to satisfy customers. Training,
development and strong relationships with intermediaries are the
key areas to be kept under consideration. Training the employees,
use of IT for efficiency, both at the staff and agent level, is one
of the important areas to look into.6) PROCESS:The process should
be customer friendly in insurance industry. The speed and accuracy
of payment is of great importance. The processing method should be
easy and convenient to the customers. Installment schemes should be
streamlined to cater to the ever growing demands of the customers.
IT & Data Warehousing will smoothen the process flow. IT will
help in servicing large no. of customers efficiently and bring down
overheads. Technology can either complement or supplement the
channels of distribution cost effectively. It can also help to
improve customer service levels. The use of data warehousing
management and mining will help to find out the profitability and
potential of various customers product segments.7) PHYSICAL
DISTRIBUTION:Distribution is a key determinant of success for all
insurance companies. Today, the nationalized insurers have a large
reach and presence in India. Building a distribution network is
very expensive and time consuming. If the insurers are willing to
take advantage of India's large population and reach a profitable
mass of customers, then new distribution avenues and alliances will
be necessary.Initially insurance was looked upon as a complex
product with a high advice and service component. Buyers prefer a
face-to-face interaction and they place a high premium on brand
names and reliability. As the awareness increases, the product
becomes simpler and they become off-the-shelf commodity products.
Today, various intermediaries, not necessarily insurance companies,
are selling insurance .Another innovative distribution channel that
could be used are the non-financial organizations. For an example,
insurance for consumer items like fridge and TV can be offered at
the point of sale. This increases the likelihood of insurance
sales. Alliances with manufacturers or retailers of consumer goods
will be possible and insurance can be one of the various incentives
offered.
SERVICE SEGMENTATIONMARKET SEGMENTATION FOR HEALTH INSURANCEA
market is composed of different users having different responses to
market offerings. This makes it essential that hospital
organizations, especially for making a microscopic study of users'
needs and requirement, make possible grouping of markets. The
marketing strategy formulated on the basis for segmenting the
market is income. To some extent regional considerations may also
be adopted as a base for segmenting the market. The below is the
segmentation on the basis of regional consideration:Another
important base for segmenting Insurance services may be income
group. This helps Insurance organizations in identifying the status
of the users of services. It is essential as the marketing
principles recommend different pricing strategies on the basis of
level of income.Customer Requirements& Customer
ExpectationsPurposeThe customer requirements delineate, in detail,
what the customer needs and how the project will serve those needs.
Requirements represent a detailed breakdown of the customer's
expectations for the project, as well as how the project
organization will serve those requirements. Requirements
documentation provides long-term guidance for development of the
work breakdown structure (WBS) and support for the customer and the
project organization as they work toward concurrence on what the
project needs to achieve. The customer requirements document serves
as an ongoing reference as to what elements of project work are
either in scope or out of scope, and in some cases, provides
insight into the degree of importance of some elements of
scope.ApplicationDepending on the nature of the document
(functional or technical), it will have radically different
applications. The functional requirements document addresses the
needs of the customer as expressed in terms of performance. The
technical requirements document addresses how those needs are to be
met. The functional requirements document is outlined in terms of
performance, capability, and customer expectations. The technical
requirements document is also outlined in those terms, coupled with
the technical response about how those needs will be served.Because
of the unique nature of projects, project requirements documents
may look different, even when they are generated by the same
organization.ApproachesSome organizations use the project
requirements documentation as a catch-all tool for every issue from
project risk to change control. Because the term requirements reach
across the breadth of the project, such applications are not
unreasonable. Although the requirements document may capture a wide
range of issues, however, it should focus on the needs that much be
met to ensure project success.ConsiderationsIn building the project
requirements document, managers may be tempted to fill in every
field, even when the information is not yet available. If
information is lacking for a particular component of the template,
it is prudent to document such information as currently
unavailable, rather than filling the void with guesswork. If
guesses are mixed with the validated project information, it
becomes challenging to discern which information is real and
current and which is the author's best guess.Encourage Customer
ComplaintsOne public agency found that three quarters of its
customers had no idea who to talk to if they had a problem. Many
customers think it's simply not worth the hassle to complain. They
are skeptical that the organization will do anything or they may
even fear retribution.
Best-in-business organizations actively encourage customer
complaints. Some companies even refer to what they do to encourage
complaints as "marketing" their complaint system. Companies make
consumer service cards available at the place of business. Many
solicit feedback wherever they post or publish customer service
standards, on all correspondence, on bills, and in the telephone
directory. Some offer discount coupons to encourage customer
feedback. Many publish information on how they can be contacted in
more than one language. They publish 1-800 and other numbers for
the company where consumers are most likely to see them, e.g., on
the product packaging. Companies also market their complaint
handling systems during conferences and meetings, in annual
reports, newspapers, association circulars, videos, audio tapes,
letters, press releases, speeches, and training sessions and via
electronic mail.Seek to Delight Their CustomersThe benchmarking
partners often use the phrase "delight the customer" and go out of
their way to exceed expectations. Often this means a compassionate
ear. An insurance company has a special team that deals with the
needs of grieving spouses. Companies give front-line employees the
authority to award customers who have complaints with products,
coupons, or even cash when it is necessary to resolve a complaint.
Even public sector employees are able to give certain products and
services to customers with complaints. For example, the U.S. Postal
Service can give up to Rs20 in stamps when it is appropriate. One
service company sets no limits on the front-line employees'
authority but tracks company norms for what it takes to resolve
particular types of problems. Team leaders look at and discuss
variances from these norms. Additionally, employees share ideas for
ways to resolve complaints creatively within or below company
norms.Understand Customer ExpectationsThese organizations
demonstrate a commitment to understanding the customer's
perspective. Most of the benchmarking partners send surveys to
customers who have complained recently to see how satisfied they
were with how the complaint was handled. Some call the customers to
determine satisfaction. One organization surveys every fourth
customer with a complaint. Another described complaints as "free
information" about their customers' needs and expectations.These
organizations supplement surveys of people who complain with
routine and often extensive data collection tools in order to
understand their customers. Customers are surveyed to determine
their level of satisfaction with existing services. Surveys are
sent with questions, often in a Likert Scale format where the
customer can select the degree of satisfaction on a scale, e.g.,
from one to five. These surveys assess customer satisfaction with
existing services, delivery of services, helpfulness of employees,
and overall performance of the organization. Some companies add a
few short questions to the end of customer calls or correspondence.
Companies also survey their front-line employees for their
attitudes as well as for their ideas for improved service, asking
their employees to take the customer's perspective. After the
nearby community complained about noise levels, the Red River Army
Depot changed the times they detonated ammunition and put
"listeners" (members of the community) at check-points throughout
the surrounding area to monitor noise levels. The partners focus on
clear customer target groups. One company that serves a wide
variety of customers decided to focus on its high-volume business
customers. Three months after a high-volume business customer has
complained, the company follows up to find out whether they are
still using their services and, if not, the reasons for
dissatisfaction. In addition, the company routinely solicits
feedback before, during, and after service. It conducts focus
groups and has established a Customer Advisory Council to drive
decisions related to this key target group.
Manage Customer ExpectationsThese organizations do not wait for
complaints to come in the door. They try to anticipate the needs
and problems of customers and to set realistic expectations through
customer education and communication strategies. Research shows
that 40 percent of complaints come from customers having inadequate
information about a product or a service. Using customer feedback
to understand customer expectations and needs, organizations
educate their customers and/or the public on what they can expect
from their products and services and what obligations and
responsibilities their customers have. For example, one
enforcement/ regulatory partner has extensive education on the
requirements and reasons for utilizing their services.SERVICE
RECOVERY STAGESThe goal of service recovery is to identify
customers with issues and then to address those issues to the
customers' satisfaction to promote customer retention. However,
service recovery doesn't just happen. It is a systematic business
process that must be designed properly and implemented in an
organization. Perhaps more importantly, the organizational culture
must be supportive of idea that customers are important and their
voice has value.Research has shown that customers who have had a
service failure resolved quickly and properly are more loyal to a
company than are customers who have never had a service failure --
significantly more loyal. Service Recovery practices are a critical
element in a Customer Loyalty Program.One way to think about
service recovery is that it is a positive approach to complaint
handling. Complaint handling has serious negative connotations;
whereas, service recovery has positive connotations. Complaint
handling is placating people, minimizing a negative. Service
recovery practices are a means to achieve the potential, latent
value a customer holds for a company by fostering an ongoing
positive relationship.Service recovery has a secondary value. It
creates positive word-of-mouth about your company and minimizes the
bad spin that lack of service recovery practices can create.1)
Develop innovative products and services that attract our targeted
customers and address inefficiencies in the Indian financial
sector.2) Increase our market share in India's expanding banking
and financial services industry by following a disciplined growth
strategy focusing on quality and not on quantity and delivering
high quality customer service.3) Maintain our current high
standards for asset quality through disciplined credit risk
management.4) Continue to develop products and services that reduce
our cost of funds.5) Focus on high earnings growth with low
volatility.Service Quality CustomizationApollo Munich Health is a
large insurance company. There is no funding from ministry of IRDA,
Govt. of India. The policy holders are only source of revenues.
Apollo Munich offers a large number of innovative products at
affordable prices. Therefore Apollo Munich Insurance has placed
itself more towards differentiation than focus.A SELF SERVICE
SERVICESCAPEThe service is designed around a customer helping self
with the service .The role of service employees is limited.
Customer performs most of the activities, either on their own or
with a little help from the provider. Examples are cinema halls,
gymnasium and self service restaurants etc. The service provider
must plan the facility exclusively with the customer in mind. The
facility design can attempt to position it for the desired market
segment, by making the facility pleasing and appropriate to use for
them. A gym layout and design and design (choice of equipment)
conveys the segment of population that is targeted - slimming
enthusiasts, body shapers, sportsperson s, business executives and
housewives or the youth.AN INTERPERSONAL SERVICESCAPEWhen a service
encounter requires a close interaction between the customers and
provide the service escape must be facilitate this interaction. An
interpersonal al service escape is appropriate. Hotels, hospitals,
schools and banks are examples of this type of service escapes,
they must be designed to attract, satisfy and facilitate the
activities of both conducive to the interaction between the two.A
REMOTE SERVICESCAPEThere are service settings where there is little
or no customer involvement in the service escape.
Telecommunications, insurance and call centres etc., are examples
of remote encounters. These use remote service escapes. They are
back office .The place has to be designed to keep employees'
motivation and morale high. The service escape should premeditate
ergonomically to facilitate teamwork, supervision and operational
efficiency.Roles of Service escapeA service escape is not a passive
setting it plays an important role in service transactions. An
evaluation of the roles they have in service encounters will reveal
how important it is to design an appropriate service escape. A
service escape plays four important roles.PackageService escapes
package' the service offer and communicate an image to the
customers of what they are going to get. It is the corporeal
manifestation of the service idea for interest groups to form a
shared appreciation-ma perceptible metaphor for an intangible
service. They are predetermined to render an intended image to the
service concept and evoke a particular sensory and emotional
reaction that sets the stage for a germane experience that augments
the efficacy of the offer. Appropriate servicescaping is a sure
shot way to create an image that the service provider is seeking to
put up. It also helps moderate customer expectation and reinforces
his experience and reminiscences. Servicescape is an outward
appearance of organization and thus can be critical in forming
initial impressions or setting up customer expectation.
FacilitatorAnother important job of servicescape is to act as an
a facilitator in assisting both the customers and service employees
to make most of the opportunity it should make the service
consumption comfortable convenient for the customer. For employees
it should be pleasant to conduct activities. This setting is
designed can enhanced or inhibits the efficient flow of activities
in the service setting making it easier or harder for customer and
employee to accomplish their goals .SocializeDesign of
servicescapes aids in socialization of both the customers and
employees, conveying expected roles, behavior and relationship.
Compare the servicescape of a public insurance company with that of
a private insurance company. In a public insurance company a large
part of the floor is marked as restricted, leaving little space in
the form of an arrow aisle along the outer walls of the hall for
customers. The message is clear -customer must not enter the
restricted area, that is where the most important job of the bank,
internal operations, is conducted and by entering that area,
customers will be interfering with that task Whereas private
insurance company approach customers with conviviability. The air
conditioned lounge with comfortable seats and a cold water
dispenser as you pass through a spotlessly clean glass door, makes
customers feel welcome. They are allowed more space to move and
occupying a seat across from executive's desks suggests those
customers are indeed central to all activity. The service with
public insurance company also suggests that customers have a formal
-official relationship with public insurers, whereas service
escapes in private banks encourage casual affable
interactions.DifferentiatorWith the layouts a customer can make out
what kind of insurance company it is. Candle lit tables with smooth
classical music and tables with clothes and pre-laid cutlery
differentiates a restaurant from other with flour cent colors and
pattern on the walls, blasting music, crowded with young boys and
girls and motorcycles at the makeshift parking in front. Clearly
the design of the servicescape differentiates one provider from its
competitors, and hints at eth segment the services are targeted at.
Companies adapt servicescape to reposition the services or identify
new customer segments.Employee & Customer role in service in
Service DeliveryThe company attributes its success to the
contributions made by its employees. We believe that our strength
is our people, so our Endeavour is to surpass their expectations
and give them the best possible work environment and benefits that
match the best in the industry.Talent management initiatives in
Apollo Munich Health Insurance are driven by a set of
organizational core competencies as well as position-specific
competencies. The competency set includes knowledge, skills,
experience, and person al traits (demonstrated through defined
behaviors) based on the bedrock of sharp vision and strong values
of Apollo Munich Health Insurance.
Working wonders at Apollo Munich Health InsuranceApollo Munich
Health Insurance Company (AMHIC) has implemented a Workflow on
Demand and Enterprise Retrieval System to improve customer service,
reduce cost of operations, and have the flexibility to quickly
launch new products.There are 14 major private insurance companies
pushing their products in the Indian market at present. With such
competition it is clear that these companies need to position their
products and services in a more impressive way. Apollo Munich
Health Insurance Company (AMHIC) also experienced this competitive
pressure and felt a need to retain its customers. Its processes
were constrained by high turnaround and low efficiencies; lack of
process monitoring, process control and tracking; and excessive
paper work and manual operations.
Apollo Munich Health Insurance Company LimitedMiscellaneous
Business revenue Account for the period ended 31st December
2013ParticularsScheduleFor the quarter ended 31.12.13Up to quarter
ended 31.12.13For the quarter ended 31.12.12Up to the quarter ended
31.12.12
(Rs.000)(Rs.000)(Rs.000)(Rs.000)
1Premium earned (Net)NL-4-Premium
schedule1338634395652411481563200110
2Profit/Loss on sale/redemption of
investment39101232728968186
3Others----
4Interest, Dividend & Rent Gross5891618517051585152104
Total (A)1401460415402112026373360400
1Claims Incurred (Net)NL-5-Claims
Schedule89044325974996941431903142
2CommissionNL-6-Commission Schedule166652386423105516282267
3Operating Expenses Relating To Insurance BusinessNL-7-Operating
Expenses Schedule55216515569194882901362951
4Premium Deficiency----
Total (B)1609260454084112879493549130
Operating Profit/ (Loss) from miscellaneous business C=
(A-B)(207800)(386820)(85312)(188370)
APPROPRIATIONS
Transfer to shareholders
Account(207800)(386820)(85312)(188370)
Transfer to catastrophe reserve----
Transfer to other reserves----
Total (C)(207800)(386820)(85312)(18370)
Profit & Loss Account for the Period Ended 31st December
2013ParticularsScheduleFor the quarter ended 31.12.13Up to the
quarter ended 31.12.13For the quarter ended 31.12.12Up to the
quarter ended 31.12.12
(Rs.000)(Rs.000)(Rs.000)(Rs.000)
1Operating Profit/Loss
(a) Fire Insurance----
(b) Marine Insurance----
(c) Miscellaneous Insurance (207800)(386820)(85312)(188730)
2Income from investments
(a) Interest, Dividend & Rent
-Gross4719314246840896115186
(b) Amortization of discount/ Premium1367456718498963
(c) Profit on sale of investment3223978823976682
Less: Loss on sale of investment----
3Other Income
(a) Profit on sale of fixed assets-27(10)1184
(b) Others -8024422110498
Total (A)(154500)(221946)(35956)(46218)
4Provisions(Other than taxation)
(a) For diminution in the value of investments.----
(b) For doubtful debts-296137
(c) Others----
5Other Expenses
(a) Expenses other than those related to insurance
Business38061136525289701
(b) Bad debts written off----
(c) Others----
Total (B)38061166125299738
Profit Before Tax(158306)(233607)(38488)(55956)
Provision for Taxation81202233265
Profit after Tax(158387)(233809)(38721)(56221)
APPOPRIATIONS
(a) Interim dividend paid during the year----
(b) Proposed final dividend----
(c) Dividend distribution tax----
(d) Transfer to any reserve----
Balance of profit/loss brought forward from last
year(3197809)(3122387)(3190890)(3173390)
Balance carried forward to balance
sheet(3356196)(3356196)(3229611)(3229611)
Balance Sheet as at 31st December, 2013ScheduleAs at 31.12.13As
at 31.12.12
(Rs.000)(Rs.000)
SOURCES OF FUNDS
Share Capital NL-8-Share Capital Schedule33098003089300
Share Application Money Pending Allotment--
Reserves & SurplusNL-10-Reserves & Surplus
Schedule24464142336414
Fair Value Change Account367194
BorrowingsNL-11-Borrowings Schedule--
Total57565815426408
APPLICATION OF FUNDS
InvestmentsNL-12-Investment Schedule40627643816082
LoansNL-13-Loans Schedule--
Fixed AssetsNL-14-Fixed Assets Schedule164576141624
Deferred tax asset149806
Current Assets
Cash and Bank balancesNL-15-Cash & Bank balance
Schedule948424886349
Advances and other assetsNL-16-Advances & Other Assets
schedule975723835445
Sub-Total (A)19241471721794
Current LiabilitiesNL-17-Current Liabilities
Schedule12347711197150
ProvisionsNL-18-Provisions Schedule2666137228553
Deferred Tax Liability--
Sub-Total (B)39009083482703
Net Current Assets (C)= (A-B)(1976761)(1760909)
Miscellaneous ExpenditureNL-19-Miscellaneous Expenditure
Schedule
Debit balance in Profit & Loss Account33561963229611
Total57565815426408
CONCLUSION1) APOLLO Munich Health Insurance was grown a lot
through its aggressive marketing strategies and the growth rate as
tremendous, through it is growing faster it has to work on certain
things and maintain the standard.2) This can be done through
introducing more innovative products and recruiting good quality
advisors because they are the pillars of the company and it is the
most valuable value added services that the company is having.3)
Therefore, the best company can do is giving the customer
something, which is little bit different and better than its
competitor. The company should also be successful in expressing the
extra features, which is given to the customer.4) The customer
should feel that whatever company is giving is something great, and
no one could ever imagine about it. This feeling makes the customer
feel that company is very much satisfying them. In addition, the
extra feature given to satisfying is something
great.BIBLIOGRAPHYwww.apollomunichinsurance.com/www.apollomunichinsurance.com/health-insurance-plans.aspxwww.linkedin.com/.../apollo-munich-health-insurance-company-ltdwww.munichhealth.com/en/about/activities/asia_pacific.aspxhealthinsuranceindia.blogspot.com/mumbai.quikr.com/Health-Insurance-Sites-by-Apollo-Munich-W0QQAdIdZ65965382