Healthcare Insurance A Services Perspective

Presented by: | Aman Mahajan | Abhishek Kaul | Prudhvi Kotagiri | | Somil Shrivastava | Yash Parikh |

ANSWER 1- HEALTHCARE INSURANCE OVERVIEW

HEALTHCARE INSURANCE OVERVIEW

Low market penetration Less than 15% Private health insurance 2.2 % Growth-15% CAGR till 2015 50% of indian population till 2013 Indian insurance industry with gross written premiums for health insurance increased by 16 per cent from Rs. 13,212 crore in 2011-12 to Rs. 15,341 crore in 2012-13 Increase in health care spend

Over 30 health insurance products in the category offered by both life and non-life insurers

MARKET GROWTH

STAKEHOLDERS

INDIA V/S OTHERS

MARKET PLAYERS

OPPORTUNITIES
Growing population Rising income level Increase literacy rate

Lifestyle related diseases

Inflationary health care cost

FDI norms
Medical tourism

ISSUES & CHALLENGES

Approaches to increase access of both healthcare and health insurance
within the rural fabric of India Demand supply gap Gap in information around healthcare from multiple stakeholders Smarter ways to manage healthcare costs

Creation of an accredited network of healthcare providers Health Care

Spend 1% Of GDP

CONTD
Major talking points : Efficiency

Affordability 350 Million BPL

Accessibility of health insurance 700 Million in Rural & Semi-urban areas Mistrust between providers and insurers Non-standardized practices and formats in an evolving industry

ANSWER 2- CUSTOMER SEGMENTS

HEALTH COVERAGE'S - INDIA

Insurance schemes can be broadly divided into categories such as: Government or state-based systems Market-based systems (private and voluntary)

Employer provided insurance schemes

Member organization (NGO or cooperative)-based systems

CUSTOMER SEGMENTATION
FOR THE HEALTHCARE INSURANCE, CLIENTS CAN BE SEGMENTED BY
AGE

CURRENT HEALTH CONDITIONS

INCOME JOB CATEGORY SIZE OF FAMILY AND NUMBER OF DEPENDENTS TYPE OF SERVICE REQUIRED FREQUENCY OF SERVICE REQUIRED PROBABILITY OF LONG TERM RELATIONSHIP

SEGMENT: AGE & CURRENT HEALTH STATUS

AGE:
AGE PREMIUM AMOUNT : DIRECT RELATION

AGE RELATED ILLNESSES

CURRENT HEALTH STATUS

HEALTH PREMIUM AMOUNT: INVERSE RELATION ILLNESSES THAT NEED ATTENTION WILL INCREASE FREQUENCY OF HEALTHCARE NEEDED

SEGMENTS: INCOME & JOB CATEGORY

INCOME:
INCOME DETERMINES STANDARD OF LIVING AND HENCE QUALITY OF HEALTHCARE NEEDED MAY ALSO BE CONNECTED TO GENERAL STRESS LEVELS OF INDIVIDUAL

JOB CATEGORY
DESK JOBS MAY LEAD TO SEDENTARY LIFESTYLE AND ASSOCIATED ILLNESSES MODERATE PHYSICAL ACTIVITY GOOD BALANCE FIELD JOBS MAY LEAD TO HIGH PHYSICAL STRESS

DANGEROUS JOBS HIGHER PREMIUMS - GREATER PROBABILITY OF HEALTHCARE NEEDED

SEGMENT: SIZE OF FAMILY & NUMBER OF DEPENDENTS

AGE OF FAMILY MEMBERS YOUNG AND OLD MEMBERS ARE DEPENDENTS
POTENTIAL FUTURE EARNING OF YOUNG MEMBERS POTENTIAL FUTURE HEALTHCARE COSTS OF OLDER MEMBERS LARGER FAMILIES MAY HAVE MORE THAN 1 EARNING MEMBER

SEGMENT: TYPE AND FREQUENCY OF SERVICE

CLIENTS MAY HAVE DIVERSE HEALTHCARE NEEDS

QUALITY OF HEALTHCARE MAY BE DEPENDENT ON SEVERAL FACTORS

APPROPRIATE COVERAGE FOR DIFFERENT INCOME SEGMENTS THOSE WITH AILMENTS MAY HAVE MORE FREQUENT HEALTHCARE NEEDS AND HENCE PAY HIGHER PREMIUMS

TYPE OF SEGMENT TO BE TARGETED: PROBABILITY OF LONG TERM CONTRACT

CUSTOMER LIFE SPAN MAY INCREASE DEPENDING ON QUALITY OF SERVICE OFFERED
SOME POTENTIAL LONG TERM CLIENTS:
YOUNGER PEOPLE STARTING FAMILIES MIDDLE AGED WITH SMALL FAMILIES LARGE FAMILIES WITH MORE THAN ONE EARNING MEMBER

SHORT TERM CLIENTS

INSURANCE AS PART OF EMPLOYMENT JOBS MAY CHANGE
UNSATISFIED CUSTOMERS MAY NOT HAVE BEEN PROVIDED COVERAGE WHEN NEEDED

ANSWER 3- MARKETING STRATEGY

HEALTHCARE INSURANCE- SOME QUESTIONS

In which channel? Does one plan work for all segments? What is the segments health literacy?

How frequent is engagement?

Who is the healthcare decision-maker (the Healthcare CEO) of the household?

MARKETING STRATEGY- TARGETED MARKETING

Segmenting the Audience
Live and work Proximity to Healthcare

Different geographic sectors- Urban & Rural

Location Intelligence
Geo Information Systems Visually in maps or charts Tailor made communication according to the demographics

CONTD
Differentiated Products
Product to appeal to the head of the family Products customized as per the needs Differentiated products as per income levels Rural and Urban related products

CONTD
Differentiated Pricing
Customized products- to have variation in price Pricing to be specific to all the income segments

Differentiated Multi- Channel

Rural Channel- Setup shops in rural health centers Channel members to have sufficient knowledge Training to channel members and sales forc

CONTD
Communication Strategy
RURAL
Head of the Village- Influencer Local radios

URBAN
Use of Doctors- more effective Banks to bundle products along with

Regional language advertisements

Benefits clearly explained through the influencer

Insurance products
Fear Advertising- to indicate the importance

Use of TV commercials and newspaper

ads

RECOMMENDATIONS
THREE TIER MODEL MULTIPLE PRICE POINTS CREDIBLE CREDIT BUREAU- TO HAVE RELIABLE & ACCURATE DATA

TAX INCENTIVES TO MAKE IT MORE ATTRACTIVE

REDUCTION IN PREMIUMS- BELOW THE POVERTY LINE REGULATOR FOR HEALTHCARE- REFORMS BY GOVERNMENT- CHECKS & BALANCES GROUP COVERAGE'S FOR EMPLOYEES

CUSTOMER RELATIONSHIP MANAGEMENT

GOING BEYOND THE SERVICE PROVIDER - CLIENT RELATIONSHIP PROVIDING SUPERIOR SERVICES CUSTOMIZED TO EACH CLIENT REDUCING UNNECESSARY PAPER WORK FOR BOTH PARTIES INCREASING THE DELIVERY SPEED ENABLING REPEAT PURCHASES + LOYALTY PROGRAMS CREATING CUSTOMER LOCK-IN

CUSTOMER LOYALTY
ENSURING REPEAT PURCHASES REDUCING THE CHANCE THAT CUSTOMER SHALL SEARCH FOR OTHER PROVIDERS REDUCING THE PREMIUM PRICE ON INSURANCE FOR MULTIPLE YEARS REDUCING THE PREMIUM FOR REPEAT PURCHASES INCREASING SIMPLICITY OF SERVICE RENEWAL

EXPERIENCE : BAJAJ ALLIANZ LIFE

SIMPLE ONLINE FORM
INSURANCE AMOUNT SUGGESTION

ADDITIONAL FEATURES
SERVICE AGREEMENT PAYMENT GATEWAY CERTIFICATE PRODUCED

REPEAT PURCHASE PROMOTION

EMAILS/PHONE 2 MONTHS BEFORE SERVICE EXPIRY OPTION FOR INSTANT RENEWAL AND CASH-ON-DELIVERY

NO FORM FILLING NEEDED