presentation religare SCMHRD

8/7/2019 presentation religare SCMHRD

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Religare Health

InsuranceTeam Name : Prism

Symbiosis Centre For Management and Human ResourceDevelopment

Neha Baid

Surangi Banka


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CURRENT SCENARIO , NEED GAP

MARKET DRIVERS

COMPETITON

PROBLEMS FACED

SEGMENTATION, TARGETING ANDPOSITIONING


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` India has a population of 1.15 billion

` Population growth rate is 1.4%

` Only a small section of the total population (around

2%) is covered by health insurance so far.

` The age group of 15-64 is expected to grow

substantially.

32%

64%

5% Proportion of population

0-14

15-64

65+

Age

groups


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` Total Expenditure on health in India is nearly 6%

of the entire GDP

` 70% of this is out of pocket expenditure.

` More than 40% of hospitalized Indians have toborrow or sell assets to meet hospitalization costs.

` Therefore, an urgent need to fill the gap between

the present scenario and the desired one.


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` The average annual household consumption

in healthcare is expected to double between 2005

and 2025.

` According to World Bank Report, 99% of Indians willface financial crunch in case of any critical illness.

Hence the need for Health Insurance.

` Number of middle class families is expected to

increase substantially in the coming years.


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The Disease rates in India is increasing. India has one

of the highest heart disease and diabetes rates in the

world.

Need for long term and nursing care for senior citizens.

The Industryis expected to

see a CAGR

of around 41%

during FY2010-2013.


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` Currently, the market is dominated by public sector

insurers

` All the private health insurers put together account

for less than half the total health insurance premiumwritten in the country.

` However, with the fast expanding private health

insurers, the trend is to get reversed soon.


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0%

10%

0%

30%

40%

50%

60%

70%

80%

90%

100%

003-04 009-10

Companies in Indian health insurance sector

Public sector

Private sector

With the increasing dominance of the private sector, we see that the

opportunities for such players is increasing continuously.


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Health insurance

Companies

Non-Life Insurance

Comapnies

pecialise Health

Insuarnce

Companies

Life Insurance

Comapnies

Public ector:New

Ini a, Oriental,National an Unite

In ia

Private sector: ICICI

Lombar , Reliance, Bajaj Allianz

an others. Unite

tar Health an Allie Insurance

Apollo DKV Insurance

LIC

Private pla ers,etc

Health Insurance

Companies Landscape


10/19

3%

5%5%

11%

13%

14%17%

24%

8%

Market share of key Health Insuarance players(2008)

Star Health

Bajaj Allianz

Reliance

Oriental

ati nal

United India

ICICI L mbard

ew India

Others


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45%

13%

13%

8%

21%

Market share of key players inPrivate Health Insurance

Sector(2008)

ICICI Lombard

Reliance

Bajaj Allianz

Star Health

Others

Niche Market Leaders

Market FollowersMarket Boomers

Star Health

Apollo DKV

ICICI Lombard

Royal Sundaram

Tata AIG

IFFCO Tokio

Reliance

Bajaj Allianz

Niche Market Leaders

Market Boomers Market Followers

Star Health

Apollo DKV

ICICI Lombard

RelianceBajaj Allianz

Royal Sundaram

Tata AIG

IFFCO Tokio

New players

Others


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LOW TICKET SIZEOF THE POLICY

The average mediclaim premium last year was Rs.6,600 compared with an

average premium of Rs.15,500 for a life insurance policy. Therefore, commission

was also much less.

DIFFICULTY IN SELLING PURERISK POLICY

Claim is made only in case of illness that is covered in contrast with lifeinsurance where claim is inevitable.

PROBLEMS FACED


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PERCEPTIONOF THECUSTOMERS

It is generally perceived that Companies do not deliver when insured person is

hospitalised and claim is made.Abrupt withdrawl of cashless facility by Public sector Companies has aggravated

the belief.

TOOMANYEXCLUSIONSANDADMINISTRATIVE PROCEDURESNon- transparent procedures and delay in settlement of claims act as a deterrant

for the customer to purchase a policy.

BELIEF THAT IT IS A PRODUCT ONLYFOR THERICH

It is believed that in comparison with Life insurance, health insurance is

considered to be something meant only for the rich.


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Segmentation will be done on the basis of

demography

On the basis of income the population of India canbe divided into 3 categories:

High Income Group

Middle Income Group

Low Income Group


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Each income group can further be classified on the

basis of age.Age groups can be classified as follows :

Below 15 Years

15 to 65 Years Above 65 Years


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` Our Targeted Customers will be people of Age

group 15 to 65 years falling under the Middle

Income Group.

` We will be targeting the Tier II and Tier III cities for

the aforesaid customers.


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` Reasons:

` Age 15 to 65 Years is the income earning group


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`

Growth Potential is high when customers areattracted from medium Income group because of

the increasing demand of insurance.

` Along with Tier I cities we will penetrate into Tier IIcities because of the rapid development

opportunities and untapped customer group. This

will bring more people under health insurance.


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` Exposure through media : TV, Radio and Internet

` Product Mix and quality : new products with

optimal pricing, utmost flexibility in options such as

continuity, renew ability and portability.` Transparency in administrative procedure

` Standardisation of mediclaim policies

` Customer education

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