TABLE OF CONTENT

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Executive summary Company overview (background) Challenge and problem analysis The strategy and planning Measuring Conclusion Reference

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Executive summary Royal the UAEs largest specialized health insurance company, plays a key role in further exploiting and penetrating the market by clearly differentiating Royals competitive plans and services from the competition, to retain existing customers and exploit new prospects. Each department comprises a professional and creative team who continuously strive to provide new ideas when planning and executing events, campaigns as well as internal and external projects. The Health insurance Royal has challenges in premium price and the cost of health care. This paper show suggested solution by Strategic consideration and planning & measuring element. There are other insurance companies in the country and most of them they are giving low premium instead to attract members The competitor sales team for corporate company they are offering with lower price by reducing some benefit of the customer. Management should make changes in the insurance premium price by focusing with sales team. That is allowing sales managers to use their own judgment and there sales representative should have acquire good training for the current market situation, how to penetrate and hold customer by providing what customers they need by lowering the price.

Royal may control claims by cost sharing with customers, for example by charging lower premium if the individual involve in health care center like, running club and different types of sport for regular period of time In the mean while create good team work sprit among all employee by respecting each other and having good social communication environment that it can be different types of social activity that attract the employee to involve in the activities or sports etc. The other challenge: The cost of health care for in patient and out-patient treatment increase year to year. According to medical insurance industry observers, the cost of health care for in- and out-patient treatment has shot up by 30 to 40 per cent in the last three years. Suggestion Solution Planning and implementation will be approached by the involvement of health authority and uniform regulation to control the cost of health care for inpatient and outpatient across the country.

Organization Background

Royal was established to serve the health insurance market in the UAE, at the same time as maintaining exclusive direct access to the many public providers in Abu Dhabi, dubai, and western region. Royal offers technical products with added benefits, extended policy limits and wide geographical coverage also offers its clients complete comprehensive solutions as required by combining technical and basic products.

The insurance product provided by Royal for expatriate and emirates complying with their demand for the best possible health service available. By considering innovation, new branding, good insurance coverage and billing system Royal has a competitive advantage which is specialization in the health insurance field. Royal offers various insurance plans for its customers, ranging from basic plan health coverage to tailor made plans and multiple enhanced plans that vary according to their benefit schemes, policy limits and geographical coverage. Moreover, Royal customers have access to one of the largest global networks of quality healthcare providers.

Premier Plan - provides complete health insurance coverage worldwide with additional benefits. Global Plan - provides complete health insurance coverage worldwide.

International Plan - provides worldwide coverage excluding USA and Canada only, with emergency cases coverage worldwide. Regional Plan - provides worldwide coverage excluding USA, Canada and Europe, with emergency cases coverage worldwide. UAE Plan - provides coverage throughout the UAE and emergency cases coverage in the Arab countries as well As India, Sri Lanka, Pakistan , Bangladesh and the Philippines. Abu Dhabi Plan - provides insurance coverage within the Emirate of Abu Dhabi, and emergency coverage across the UAE for expatriates with monthly salaries below AED 5,000

The Organization Structure The organization has chief executive officer under this two department Human resource and Technical division. Service Officer, Medical Officer, Commercial Officer and Finance Officer Under service Officer: Strength Location highly suitable, it is located in the capital city of UAE, Hamdan street Head office and other area Air port road for corporate and group, Al Batten for corporate and group, center points like malls and governmental sector example immigration, chamber of commerce etc In addition to this in Al Ain for corporate customer and group as well individuals, Mustafa for corporate customer and group as well individuals, Dubai, western region Very focused management/staff, it have more than 1500 staffs from different nationalities and very strong management team. Well Rounded and Managed Business: Renewing a residency visa is subject to having valid health insurance; a resident must necessarily have paid for health insurance at least before renewing the residency. Expatriates new to the country must provide evidence of a health insurance registration before applying for a work or visit visa. The usual scenario however, includes an employer providing his employees and their dependents with a valid health insurance plan. Individuals and small companies who are not eligible for a basic health insurance plan must undergo a process of underwriting and medical evaluation prior to the issuance of their insurance policies. This mandatory rule assists Royal along with the other insurance plan to have highest market share.

While Emiratis have insurance for inpatient and outpatient health care under a plan called Thiqa, expatriates are insured either under the subsidized basic plan provided by National Health Insurance Company (Royal) or enhanced insurance plans with varying degrees of access. Royal Health Insurance Company received three awards at the Insurex Gala Dinner 2011. The E-business award, for its advanced website functionalities to process customers requests Public Awareness Campaign of the year, for Royal's efforts in raising awareness of safety for children by donating 7,000 car seats Corporate Social Responsibility Award for Royals contribution back to the society by supporting different events including the walkathon and cancer awareness events for diabetic patient and for other. Royal was presented with these awards in front of key industry representatives from competitors and brokers in addition to representatives from the Insurance Authority and Emirates Insurance Association. Royal introduce new technology in health insurance there is a terminal placed in central branch and it help customers with basic enquiries to receive the answers they need conveniently without the need wait for a retail sales representative. It is currently a pilot concept and will be implemented gradually across all branches The first Virtual Assistant videos are now live on Royals website. This interactive tool allows visitors to Royal website to watch videos on a variety of topics, such as products, how to submit a reimbursement claim, and many more videos that Royal staff will produce to provide insights on different topics that a customer would be interested to learn about. Royal is the first insurance company in the market to offer such a service. The internet has had an undeniable impact on our lives. It has enabled us to answer difficult questions, solve otherwise impenetrable problems, and at a greater level, to save lives. However, as information technology has advanced and progressed, Where once we may have been content to seek out information in a book, or through a friend, many of us now approach the internet directly when searching for information and answers to questions. Weakness Royal cost per member a little high when it compared with competitors, due to enhanced services and benefits and wide net work provider with in UAE and globally.

Opportunity Royal has great opportunity to expand its market in all the Emirates other than Abu Dhabi, Dubai and western region. Total population for uae now 7 million Royal have more than 2.1 million members now, when the mandatory insurance implemented in all emirates

There is an expectation for new regulation on health insurance will be implemented in the near future, that is the mandatory health insurance will be for all, As of now, only Abu Dhabi has mandatory health care insurance for all employees. That its gives to Royal high opportunity to have more customer by extending the new and value added product with innovation creating new customized products by advance technology. Using through online. This will create great opportunity to Royal Health Insurance to attract customers by providing the basic plan health coverage to tailor made plans and multiple enhanced plans that vary according to their benefit schemes, policy limits and geographical coverage. Royal customers will have access to the global networks healthcare providers. Premier Plan - provides complete health insurance coverage worldwide with additional benefits. Global Plan - provides complete health insurance coverage worldwide. International Plan - provides worldwide coverage excluding USA and Canada only, with emergency cases coverage worldwide. Regional Plan - provides worldwide coverage excluding USA, Canada and Europe, with emergency cases coverage worldwide. UAE Plan - provides coverage throughout the UAE and emergency cases coverage in the Arab countries as well as India, Sri Lanka, Pakistan, Bangladesh and the Philippines. Other additional new tailored plan Threat Market may become price sensitive. Challenges and Problems Pressure on premium prices lower margin. There are roughly 30 insurance companies in the country and most of them they are giving low premium instead to attract members. The competitor sales team for corporate company they are offering with lower price by reducing some benefit of the customer. Royal cost per member a little high due to enhanced services and benefits and wide net work provider with in UAE and globally. For example, those who have enhanced product when they went to hospital for treatment they will payee the price of medication and they will reimburse amount by filling the claim form for their insurance, for some prescribed medication they should buy only from their net work provider, if they did not found in their net work provider they will pay by cash and reimburse by submitting on claim forms. When we return to Royal Health insurance if one customer went to hospital for treatment he will payee deductible amount only aed20 for Basic plan, aed30 for UAE plan, aed50 for regional plan and above but for the treatment they will not payee after getting proper authorization from Royal Authorization department. Very low premiums are one example. According to medical insurance industry observers, the cost of health care for in- and outpatient treatment has shot up by 30 to 40 per cent in the last three years

Drug price increases, hospitals have raised their rates on a slew of services consulting fees, lab expenses, etc. by well over 20 per cent in the last three years and more. Medical insurance premiums could be in for a 10 to 20 per cent hike this year as insurers try to catch up with the increase cost of health care in the UAE. It could also be that the increases will become an annual exercise. This year's hike would also be a response to the "abuse" of the current low-premium regime by some health care operators as well as those seeking treatment. According to medical insurance industry observers, the cost of health care for in- and outpatient treatment has shot up by 30 to 40 per cent in the last three years, but the insurance premium charged has lagged considerably behind. "It's fair to say the local health-care industry has not lagged in prescribing all manner of treatments even when they are not required," said an official who oversees the healthcare insurance line at a leading local insurer.

Source Gulf news By Manoj Nair, Associate Editor Published: April 25, 2011 How it affect the organization Royal: - Likely impact on the stakeholder and reducing the market share Planning and implementation will be approached by the involvement of health authority and uniform regulation to control the cost of health care for inpatient and outpatient across the country. The Strategic consideration and planning The organization should have strategic objective to increase members/sales by Planning how to achieve the competitive premium computation, in return how to Increase the market share. Allowing sales managers to use their own judgment and there sales representative should have acquire good training for the current market situation, how to penetrate and hold customer by providing what customers they need In the mean while create good team work sprit among all employee by respecting each other and having good social communication environment that it can be different types of social activity that attract the employee to involve in the activities or sports etc. Managers should crate motivational environment to form desired behaviors by using intrinsic reward and extrinsic rewards

Create an incentive program for those who work above the mark and giving public recognition, giving praise for the well done job giving

promotion for those who done exceptional job, by doing these computation will be created among the employees

If the employee motivated for the company it have good benefit it bring achievement for the desired profit and target

Measuring progress

It will be tested the strategic program that is how it implemented review weekly or monthly meeting with sales and evaluating the sales achievement and take corrective measure on the area which is low achieved meanwhile for the positive indication give encouragement and support to have more.

It is necessary to measure how well the organization is progressing towards the attainment of its objectives and this is done by checking periodically through Key Performance Indicators. This is the essential measurement for Performance.

The organization objective is to increase members/sales. It should be checked the organization target for membership/sales increase or decrease? On a Monthly, quarterly semiannually or yearly basis, by these we can know how well the organization is accomplishing towards the goal. Managers are responsible for the result so by respect the different cultural represented in work force and prospect customers traditions which are

promotion for those who done exceptional job, by doing these computation will be created among the employees

If the employee motivated for the company it have good benefit it bring achievement for the desired profit and target

Measuring progress

It will be tested the strategic program that is how it implemented review weekly or monthly meeting with sales and evaluating the sales achievement and take corrective measure on the area which is low achieved meanwhile for the positive indication give encouragement and support to have more.

It is necessary to measure how well the organization is progressing towards the attainment of its objectives and this is done by checking periodically through Key Performance Indicators. This is the essential measurement for Performance.

The organization objective is to increase members/sales. It should be checked the organization target for membership/sales increase or decrease? On a Monthly, quarterly semi annually or yearly basis, by these we can know how well the organization is accomplishing towards the goal. Managers are responsible for the result so by respect the different cultural represented in work force and prospect customers traditions which are