presentation religare scmhrd
TRANSCRIPT
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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
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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