Promotion startegies of apollo munich health insurance
1. 1
PROJECT REPORT
ON
“PROMOTION STARTEGIES OF APOLLO
MUNICH HEALTH INSURANCE”
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of: SUBMITTED BY:
Department of MBA
I.M.S ENGINEERING COLLEGE, GHAZIABAD
Affiliated to APJ Abdul kalam Technical university, Lucknow
8. 8
EXECUTIVE SUMMARY
The penetration of health insurance in India has been low. It is estimated
that only about 27% of Indians are covered under any form of health
insurance, according to data from national health profile released in april
(2019). In terms of the market share, the size of the commercial insurance
is barely 3.69% of the total health spending in the country. The Indian
health insurance scenario is a mix of mandatory social health insurance
(SHI), voluntary private health insurance and community-based health
insurance (CBHI). Health insurance is thus really a minor player in the
health ecosystem.
The concept of insurance is intimately related to security. Insurance acts
as a protective shield against risk and future uncertainties. Traditionally, a
risk-averse behaviour has been characteristic feature of Indians who
preferred a “low & certain” disposable income to a “high& uncertain”
one.
Hence insurance has become a close associate of Indians since 1818,
when Oriental Life Insurance Company was started by Europeans in
Kolkata to cater to the needs of their own community.
Apollo Munich, a specialized health insurance company in India, has
proficiency in both health and insurance and uses this comprehension for
the benefit of its clients and has emerged from the partners that are expert
in both health and insurance.
9. 9
The Apollo Group of Hospitals. Munich Health, a newest business
segment of Munich Re’s draws on its insurance and reinsurance
proficiency with over 5,000 employees and customers in more than 40
countries.
Munich stands for consistent risk management, exceptional solution-
based expertise, client proximity and financial stability. In this way,
Munich Re creates value for shareholders, customers, and staff. In the
financial year 2018, this insurance and reinsurance Group reached a
premium revenue of around Rs 5.5trillion. It functions in all lines of
insurance, with around 74,000 employees all across the world.
A successful product or service means nothing unless the benefit of such
a service can be communicated clearly to the target market. An
organization promotional strategy consists of:
Advertising: Is any non-personal paid form of communication using any
form of mass- media. Public relations: Involves developing positive
relationships with the organization media public. The art of good public
relations is not only to obtain favourable publicity within the media, but it
is also involves being able to handle successfully negative attention. Sales
promotion: Commonly used to obtain an increase in sales short term.
Could involve using money off coupons or special offers. Personal
selling: Selling a product service one to one. By personalizing
advertising, response rates increase thus increasing the chance of
improving sales.
Direct Mail: Is the sending of publicity material to a named person within
an organization
10. 10
This project is an attempt to understand and measure:
The impact of advertising in the market.
The effectiveness of advertisement / promotional activities for a
particular product.
To know the promotional strategies of Apollo Munich
To know how they face their competitor’s strategies.
To know how they survive in the cutthroat competition.
12. 12
INDUSTRY PROFILE
Health insurance, like other forms of insurance, is a form of collectivism
by means of which people collectively pool their risk, in this case the risk
of incurring medical expenses. The collective is usually publicly owned
or else is organized on a non-profit basis for the members of the pool,
though in some countries health insurance pools may also be managed by
for-profit companies. It is sometimes used more broadly to include
insurance covering disability or long-term nursing or custodial care
needs. It may be provided through a government-sponsored social
insurance program, or from private insurance companies. It may be
purchased on a group basis (e.g., by a firm to cover its employees) or
purchased by an individual. In each case, the covered groups or
individuals pay premiums or taxes to help protect themselves from
unexpected healthcare expenses. Similar benefits paying for medical
expenses may also be provided through social welfare programs funded
by the government.
By estimating the overall risk of healthcare expenses, a routine
finance structure (such as a monthly premium or annual tax) can be
developed, ensuring that money is available to pay for the healthcare
benefits specified in the insurance agreement. The benefit is administered
by a central organization such as a government agency, private business,
or not-for-profit entity.
13. 13
History and Evolution
The concept of health insurance was proposed in 1694 by Hugh the Elder
Chamberlin from the Peter Chamberlin family. In the late 19th century,
"accident insurance" began to be available, which operated much like
modern disability insurance. This payment model continued until the start
of the 20th century in some jurisdictions (like California), where all laws
regulating health insurance actually referred to disability insurance.
Accident insurance was first offered in the United States by the Franklin
Health Assurance Company of Massachusetts. This firm, founded in
1850, offered insurance against injuries arising from railroad and
steamboat accidents. Sixty organizations were offering accident insurance
in the U.S. by 1866, but the industry consolidated rapidly soon thereafter.
While there were earlier experiments, the origins of sickness coverage in
the U.S. effectively date from 1890. The first employer-sponsored group
disability policy was issued in 1911.
Before the development of medical expense insurance, patients were
expected to pay all other health care costs out of their own pockets, under
what is known as the fee-for-service business model. During the middle
to late 20th century, traditional disability insurance evolved into modern
health insurance programs. Today, most comprehensive private health
insurance programs cover the cost of routine, preventive, and emergency
health care procedures, and most prescription drugs, but this is not always
the case.
14. 14
Hospital and medical expense policies were introduced during the first
half of the 20th century. During the 1920s, individual hospitals began
offering services to individuals on a pre-paid basis, eventually leading to
the development of Cross organizations. The predecessors of today's
Health Maintenance Organizations (HMOs) originated beginning in 1929,
through the 1930s and on during World War II.
How It Works
A health insurance policy is a contract between an insurance company
and an individual or his sponsor (e.g. an employer). The contract can be
renewable annually or monthly. The type and amount of health care costs
that will be covered by the health insurance company are specified in
advance, in the member contract or "Evidence of Coverage" booklet. The
individual insured person's obligations may take several forms:
Premium: The amount the policy-holder or his sponsor (e.g. an
employer) pays to the health plan each month to purchase health
coverage.
Deductible: The amount that the insured must pay out-of-pocket
before the health insurer pays its share. For example, a policy-
holder might have to pay a $500 deductible per year, before any of
their health care is covered by the health insurer. It may take
several doctor's visits or prescription refills before the insured
15. 15
person reaches the deductible and the insurance company starts to
pay for care.
Co-payment: The amount that the insured person must pay out of
pocket before the health insurer pays for a particular visit or
service. For example, an insured person might pay a $45 co-
payment for a doctor's visit, or to obtain a prescription. A co-
payment must be paid each time a particular service is obtained.
Coinsurance: Instead of, or in addition to, paying a fixed amount
up front (a co-payment), the co-insurance is a percentage of the
total cost that insured person may also pay. For example, the
member might have to pay 20% of the cost of a surgery over and
above a co-payment, while the insurance company pays the other
80%. If there is an upper limit on coinsurance, the policy-holder
could end up owing very little, or a great deal, depending on the
actual costs of the services they obtain.
Exclusions: Not all services are covered. The insured person is
generally expected to pay the full cost of non-covered services out
of their own pocket.
Coverage limits: Some health insurance policies only pay for
health care up to a certain dollar amount. The insured person may
be expected to pay any charges in excess of the health plan's
16. 16
maximum payment for a specific service. In addition, some
insurance company schemes have annual or lifetime coverage
maximums. In these cases, the health plan will stop payment when
they reach the benefit maximum, and the policy-holder must pay
all remaining costs.
Out-of-pocket maximums: Similar to coverage limits, except that
in this case, the insured person's payment obligation ends when
they reach the out-of-pocket maximum, and the health company
pays all further covered costs. Out-of-pocket maximums can be
limited to a specific benefit category (such as prescription drugs) or
can apply to all coverage provided during a specific benefit year.
Capitation: An amount paid by an insurer to a health care provider,
for which the provider agrees to treat all members of the insurer.
In-Network Provider: (U.S. term) A health care provider on a list
of providers preselected by the insurer. The insurer will offer
discounted coinsurance or co-payments, or additional benefits, to a
plan member to see an in-network provider. Generally, providers in
network are providers who have a contract with the insurer to
accept rates further discounted from the "usual and customary"
charges the insurer pays to out-of-network providers.
17. 17
Prior Authorization: A certification or authorization that an insurer
provides prior to medical service occurring. Obtaining an
authorization means that the insurer is obligated to pay for the
service, assuming it matches what was authorized. Many smaller,
routine services do not require authorization.[9]
Explanation of Benefits: A document sent by an insurer to a patient
explaining what was covered for a medical service, and how they
arrived at the payment amount and patient responsibility amount.
Prescription drug plans are a form of insurance offered through some
employer benefit plans in the U.S., where the patient pays a copayment
and the prescription drug insurance part or all of the balance for drugs
covered in the formulary of the plan.Some, if not most, health care
providers in the United States will agree to bill the insurance company if
patients are willing to sign an agreement that they will be responsible for
the amount that the insurance company doesn't pay. The insurance
company pays out of network providers according to "reasonable and
customary" charges, which may be less than the provider's usual fee. The
provider may also have a separate contract with the insurer to accept what
amounts to a discounted rate or capitation to the provider's standard
charges. It generally costs the patient less to use an in-network provider.
18. 18
Health Care And The World
The Commonwealth Fund, in its annual survey, "Mirror, Mirror on the
Wall", compares the performance of the health care systems in Australia,
New Zealand, the United Kingdom, Germany, Canada and the U.S. Its
2007 study found that, although the U.S. system is the most expensive, it
consistently under-performs compared to the other countries.[14]
One
difference between the U.S. and the other countries in the study is that the
U.S. is the only country without universal health insurance coverage.
Australia
The public health system is called Medicare. It ensures free universal
access to hospital treatment and subsidized out-of-hospital medical
treatment. It is funded by a 1.5% tax levy on all taxpayers, an extra 1%
levy on high income earners, as well as general revenue.
The private health system is funded by a number of private health
insurance organizations. The largest of these is Medibank Private, which
is government-owned, but operates as a government business enterprise
under the same regulatory regime as all other registered private health
funds. The Coalition Howard government had announced that Medibank
would be privatized if it won the 2007 election, however they were
defeated by the Australian Labor Party under Kevin Rudd which had
already pledged that it would remain in government ownership.
Some private health insurers are 'for profit' enterprises such as Australian
Unity , and some are non-profit organizations such as HCF Health
Insurance and GMHBA Health Insurance.
19. 19
Some have membership restricted to particular groups, but the majority
has open membership. Membership to most health funds is now also
available through comparison websites like money time, select or the
decision assistance sites Help Me Choose and the latest entry You
Compare. These comparison sites operate on a commission-basis by
agreement with their participating health funds.
Most aspects of private health insurance in Australia are regulated by the
Private Health Insurance Act 2007. Complaints and reporting of the
private health industry is carried out by an independent government
agency, the Private Health Insurance Ombudsman [15]
. The ombudsman
publishes an annual report that outlines the number and nature of
complaints per health fund compared to their market share [16]
[ The
private health system in Australia operates on a "community rating"
basis, whereby premiums do not vary solely because of a person's
previous medical history, current state of health, or (generally speaking)
their age (but see Lifetime Health Cover below). Balancing this are
waiting periods, in particular for pre-existing conditions (usually referred
to within the industry as PEA, which stands for "pre-existing ailment").
Funds are entitled to impose a waiting period of up to 12 months on
benefits for any medical condition the signs and symptoms of which
existed during the six months ending on the day the person first took out
insurance. They are also entitled to impose a 12-month waiting period for
benefits for treatment relating to an obstetric condition, and a 2-month
waiting period for all other benefits when a person first takes out private
insurance.
20. 20
Funds have the discretion to reduce or remove such waiting periods in
individual cases. They are also free not to impose them to begin with, but
this would place such a fund at risk of "adverse selection", attracting a
disproportionate number of members from other funds, or from the pool
of intending members who might otherwise have joined other funds. It
would also attract people with existing medical conditions, who might not
otherwise have taken out insurance at all because of the denial of benefits
for 12 months due to the PEA Rule. The benefits paid out for these
conditions would create pressure on premiums for all the fund's members,
causing some to drop their membership, which would lead to further rises
in premiums, and a vicious cycle of higher premiums-leaving members
would ensue.
There are a number of other matters about which funds are not permitted
to discriminate between members in terms of premiums, benefits or
membership - these include racial origin, religion, sex, sexual orientation,
nature of employment, and leisure activities. Premiums for a fund's
product that is sold in more than one state can vary from state to state, but
not within the same state.
The Australian government has introduced a number of incentives to
encourage adults to take out private hospital insurance. These include:
Lifetime Health Cover: If a person has not taken out private
hospital cover by the 1st July after their 31st birthday, then when
(and if) they do so after this time, their premiums must include a
loading of 2% per annum for each year they were without hospital
cover.
21. 21
Thus, a person taking out private cover for the first time at age 40
will pay a 20 per cent loading. The loading is removed after 10
years of continuous hospital cover. The loading applies only to
premiums for hospital cover, not to ancillary (extras) cover.
Medicare Levy Surcharge: People whose taxable income is greater
than a specified amount (currently $70,000 for singles and
$140,000 for couples) and who do not have an adequate level of
private hospital cover must pay a 1% surcharge on top of the
standard 1.5% Medicare Levy. The rationale is that if the people in
this income group are forced to pay more money one way or
another, most would choose to purchase hospital insurance with it,
with the possibility of a benefit in the event that they need private
hospital treatment - rather than pay it in the form of extra tax as
well as having to meet their own private hospital costs.
The Australian government announced in May 2008 that it
proposes to increase the thresholds, to $100,000 for singles and
$150,000 for families. These changes require legislative approval.
A bill to change the law has been introduced but was not passed by
the Senate. An amended version was passed on 16 October 2008.
There have been criticisms that the changes will cause many
people to drop their private health insurance, causing a further
burden on the public hospital system, and a rise in premiums for
those who stay with the private system. Other commentators
believe the effect will be minimal.
22. 22
Private Health Insurance Rebate: The government subsidises the
premiums for all private health insurance cover, including hospital
and ancillary (extras), by 30%, 35% or 40%, depending on age.
The Rudd Government announced in May 2009 that as of July
2010, the Rebate would become means-tested, and offered on a
sliding scale.
Canada
Health care is constitutionally mainly a provincial government
responsibility in Canada (the main exceptions being federal government
responsibility for services provided to aboriginal peoples covered by
treaties, the Royal Canadian Mounted Police, the armed forces, and
members of parliament). Consequently each province administers its own
health insurance program. The federal government influences health
insurance by virtue of its fiscal powers - it transfers cash and tax points to
the provinces to help cover the costs of the universal health insurance
programs. Under the Canada Health Act, the federal government
mandates and enforces the requirement that all people have free access to
what are termed "medically necessary services," defined primarily as care
delivered by physicians or in hospitals, and the nursing component of
long term residential care. If provinces allow doctors or institutions to
charge patients for medically necessary services, the federal government
reduces its payments to the provinces by the amount of the prohibited
charges. Collectively, the public provincial health insurance systems in
Canada are frequently referred to as Medicare.
23. 23
This public insurance is tax-funded out of general government revenues,
although British Columbia and Ontario levy a mandatory premium with
flat rates for individuals and families to generate additional revenues - in
essence a surtax. Private health insurance is allowed, but in six provincial
governments only for services that the public health plans do not cover,
for example, semi-private or private rooms in hospitals and prescription
drug plans. Four provinces allow insurance for services also mandated by
the Canada Health Act, but in practice there is no market for it. All
Canadians are free to use private insurance for elective medical services
such as laser vision correction surgery, cosmetic surgery, and other non-
basic medical procedures. Some 65% of Canadians have some form of
supplementary private health insurance; many of them receive it through
their employers. Private-sector services not paid for by the government
account for nearly 30 percent of total health care spending.
In 2005, the Supreme Court of Canada ruled, in Chaoulli v. Quebec, that
the province's prohibition on private insurance for health care already
insured by the provincial plan violated the Quebec Charter of Rights and
Freedoms, and in particular the sections dealing with the right to life and
security, if there were unacceptably long wait times for treatment, as was
alleged in this case. The ruling has not changed the overall pattern of
health insurance across Canada but has spurred on attempts to tackle the
core issues of supply and demand and the impact of wait times.
24. 24
France
The national system of health insurance was instituted in 1945, just after
the end of the Second World War. It was a compromise between Gaullist
and Communist representatives in the French parliament. The
Conservative Gaullists were opposed to a state-run healthcare system,
while the Communists were supportive of a complete nationalization of
health care along a British Beverage model.
The resulting programme is profession-based: all people working are
required to pay a portion of their income to a not-for-profit health
insurance fund, which mutualisms the risk of illness, and which
reimburses medical expenses at varying rates. Children and spouses of
insured people are eligible for benefits, as well. Each fund is free to
manage its own budget, and used to reimburse medical expenses at the
rate it saw fit, however following a number of reforms in recent years, the
majority of funds provide the same level of reimbursement and benefits.
The government has two responsibilities in this system.
The first government responsibility is the fixing of the rate at
which medical expenses should be negotiated, and it does this in
two ways: The Ministry of Health directly negotiates prices of
medicine with the manufacturers, based on the average price of
sale observed in neighbouring countries. A board of doctors and
experts decides if the medicine provides a valuable enough medical
benefit to be reimbursed (note that most medicine is reimbursed,
including homeopathy).
25. 25
In parallel, the government fixes the reimbursment rate for medical
services: this means that a doctor is free to charge the fee that he
wishes for a consultation or an examination, but the social security
system will only reimburse it at a pre-set rate. These tariffs are set
annually through negotiation with doctors' representative
organisations.
The second government responsibility is oversight of the health-
insurance funds, to ensure that they are correctly managing the
sums they receive, and to ensure oversight of the public hospital
network.
Today, this system is more-or-less intact. All citizens and legal foreign
residents of France are covered by one of these mandatory programs,
which continue to be funded by worker participation. However, since
1945, a number of major changes have been introduced. Firstly, the
different health-care funds (there are five: General, Independent,
Agricultural, Student, Public Servants) now all reimburse at the same
rate. Secondly, since 2000, the government now provides health care to
those who are not covered by a mandatory regime (those who have never
worked and who are not students, meaning the very rich or the very
poor). This regime, unlike the worker-financed ones, is financed via
general taxation and reimburses at a higher rate than the profession-based
system for those who cannot afford to make up the difference. Finally, to
counter the rise in health-care costs, the government has installed two
plans, (in 2004 and 2006), which require insured people to declare a
26. 26
referring doctor in order to be fully reimbursed for specialist visits, and
which installed a mandatory co-pay of 1 € (about $1.45) for a doctor visit,
0,50 € (about 80 ¢) for each box of medicine prescribed, and a fee of 16-
18 € (20-25 $) per day for hospital stays and for expensive procedures.
An important element of the French insurance system is solidarity: the
more ill a person becomes, the less the person pays. This means that for
people with serious or chronic illnesses, the insurance system reimburses
them 100 % of expenses, and waives their co-pay charges.
Finally, for fees that the mandatory system does not cover, there is a large
range of private complementary insurance plans available. The market for
these programs is very competitive, and often subsidized by the
employer, which means that premiums are usually modest. 85% of
French people benefit from complementary private health insurance.
Netherlands
In 2006, a new system of health insurance came into force in the
Netherlands. This new system avoids the two pitfalls of adverse selection
and moral hazard associated with traditional forms of health insurance by
using a combination of regulation and an insurance equalization pool.
Moral hazard is avoided by mandating that insurance companies provide
at least one policy which meets a government set minimum standard level
of coverage, and all adult residents are obliged by law to purchase this
coverage from an insurance company of their choice. All insurance
companies receive funds from the equalization pool to help cover the cost
of this government-mandated coverage.
27. 27
This pool is run by a regulator which collects salary-based contributions
from employers, which make up about 50% of all health care funding,
and funding from the government to cover people who cannot afford
health care, which makes up an additional 5%.
The remaining 45% of health care funding comes from insurance
premiums paid by the public, for which companies compete on price,
though the variation between the various competing insurers is only about
5%. However, insurance companies are free to sell additional policies to
provide coverage beyond the national minimum. These policies do not
receive funding from the equalization pool, but cover additional
treatments, such as dental procedures and physiotherapy, which are not
paid for by the mandatory policy.
Funding from the equalization pool is distributed to insurance companies
for each person they insure under the required policy. However, high-risk
individuals get more from the pool, and low-income persons and children
under 18 have their insurance paid for entirely. Because of this, insurance
companies no longer find insuring high risk individuals an unappealing
proposition, avoiding the potential problem of adverse selection.
Insurance companies are not allowed to have co-payments, caps, or
deductibles, or to deny coverage to any person applying for a policy, or to
charge anything other than their nationally set and published standard
premiums. Therefore, every person buying insurance will pay the same
price as everyone else buying the same policy, and every person will get
at least the minimum level of coverage.
28. 28
United Kingdom
The UK's National Health Service (NHS) is a publicly funded healthcare
system that provides coverage to everyone normally resident in the UK. It
is not strictly an insurance system because (a) there are no premiums
collected, (b) costs are not charged at the patient level and (c) costs are
not pre-paid from a pool. However, it does achieve the main aim of
insurance which is to spread financial risk arising from ill-health. The
costs of running the NHS (est. £104 billion in 2007-8)are met directly
from general taxation. The NHS provides the majority of health care in
the UK, including primary care, in-patient care, long-term health care,
ophthalmology and dentistry.
Private health care has continued parallel to the NHS, paid for largely by
private insurance, but it is used by less than 8% of the population, and
generally as a top-up to NHS services. There are many treatments that the
private sector does not provide. For example, health insurance on
pregnancy is generally not covered or covered with restricting clauses.[26]
Typical exclusions for Bupa schemes (and many other insurers) include:
ageing, menopause and puberty; AIDS/HIV; allergies or allergic
disorders; birth control, conception, sexual problems and sex changes;
chronic conditions; complications from excluded or restricted conditions/
treatment; convalescence, rehabilitation and general nursing care ;
cosmetic, reconstructive or weight loss treatment; deafness; dental/oral
treatment (such as fillings, gum disease, jaw shrinkage, etc); dialysis;
drugs and dressings for out-patient or take-home use† ;
29. 29
experimental drugs and treatment; eyesight; HRT and bone densitometry;
learning difficulties, behavioural and developmental problems; overseas
treatment and repatriation; physical aids and devices; pre-existing or
special conditions; pregnancy and childbirth; screening and preventive
treatment; sleep problems and disorders; speech disorders; temporary
relief of symptoms(except in exceptional circumstances)
There are a number of other companies in the United Kingdom which
include, among others, AXA,Aviva, Groupama Healthcare, WPA and
PruHealth. Similar exclusions apply, depending on the policy which is
purchased.
Recently (2009) the main representative body of British Medical
physicians, the British Medical Association, adopted a policy statement
expressing concerns about developments in the health insurance market
in the UK. In its Annual Representative Meeting which had been agreed
earlier by the Consultants Policy Group (i.e. Senior physicians) stating
that the BMA was "extremely concerned that the policies of some private
healthcare insurance companies are preventing or restricting patients
exercising choice about (i) the consultants who treat them; (ii) the
hospital at which they are treated; (iii) making top up payments to cover
any gap between the funding provided by their insurance company and
the cost of their chosen private treatment." It went in to "call on the BMA
to publicise these concerns so that patients are fully informed when
making choices about private healthcare insurance."
30. 30
The NHS offers patients a choice of hospitals and consultants and does
not charge for its services.The private sector has been used to increase
NHS capacity despite a large proportion of the British public opposing
such involvement. According to the World Health Organization,
government funding covered 86% of overall health care expenditures in
the UK as of 2004, with private expenditures covering the remaining
14%.
United States
The United States health care system relies heavily on private health
insurance, which is the primary source of coverage for most Americans.
According to the CDC, approximately 58% of Americans have private
health insurance. Public programs provide the primary source of coverage
for most senior citizens and for low-income children and families who
meet certain eligibility requirements. The primary public programs are
Medicare, a federal social insurance program for seniors and certain
disabled individuals, Medicaid, funded jointly by the federal government
and states but administered at the state level, which covers certain very
low income children and their families, and SCHIP, also a federal-state
partnership that serves certain children and families who do not qualify
for Medicaid but who cannot afford private coverage. Other public
programs include military health benefits provided through TRICARE
and the Veterans Health Administration and benefits provided through
the Indian Health Service. Some states have additional programs for low-
income individuals.
31. 31
A recent study found that 62 percent of all bankruptcies filed in 2007
were linked to medical expenses. Of those who filed for bankruptcy,
nearly 80 percent had health insurance. In just three years, the Medicare
and Medicaid programs will account for 50 percent of all national health
spending. This has fueled an outcry for an overhaul of the health care
system in the United States. The House of Representatives passed a
health care reform bill by a vote of 220-215 on November 7, 2009.
Currently the fate of the bill rests on the Senate. The legislation once
included changes that would give the government the power to negotiate
policy premiums and to provide a public option, but in an effort to
acquire the necessary votes to prevent a Republican filibuster the public
option was eliminated from the bill. This would have given citizens the
option to buy into public programs like Medicare for which current
members pay only $96.40 monthly. Instead the bill now requires that all
Americans purchase private health insurance or be subject to fines. The
insurance industry represents a significant lobbying group in the United
States. The major health interests have spent an average of $1.4 million
per day to lobby Congress so far this year and are on track to spend more
than half a billion dollars by the end 2009. On March 21, 2010, the House
of Representatives passed a bill proposed by President Obama, which will
supposedly offer a wide range of coverage and extend it to roughly 32
million more Americans without coverage.
California
In 2007, 87% of Californians had some form of health insurance.
Services in California range from private offerings:
32. 32
HMOs, PPOs to public programs: Medi-Cal, Medicare, and Healthy
Families (SCHIP).California developed a solution to assist people across
the State and is one of the only States to have an Office devoted to giving
people tips and resources to get the best care possible. California's Office
of the Patient Advocate was established July 2000 to publish a yearly
Health Care Quality Report Card on the Top HMOs, PPOs, and Medical
Groups and to create and distribute helpful tips and resources to give
Californians the tools needed to get the best care.
Additionally, California has a Help Center that assists Californians when
they have problems with their health insurance. The Help Center is run by
the Department of Managed Health Care, the government department that
oversees and regulates HMOs and some PPOs.
Germany
Germany has Europe's oldest universal health care system, with origins
dating back to Otto von Bismarck's Social legislation, which included the
Health Insurance Bill of 1883, Accident Insurance Bill of 1884, and Old
Age and Disability Insurance Bill of 1889. As mandatory health
insurance, these bills originally applied only to low-income workers and
certain government employees; their coverage, and that of subsequent
legislation gradually expanded to cover virtually the entire population.
Currently 85% of the population is covered by a basic health insurance
plan provided by statute, which provides a standard level of coverage.
The remainder opt for private health insurance, which frequently offers
additional benefits.
33. 33
According to the World Health Organization, Germany's health care
system was 77% government-funded and 23% privately funded as of
2004.The government partially reimburses the costs for low-wage
workers, whose premiums are capped at a predetermined value. Higher
wage workers pay a premium based on their salary. They may also opt for
private insurance, which is generally more expensive, but whose price
may vary based on the individual's health status.
Reimbursement is on a fee-for-service basis, but the number of
physicians allowed to accept Statutory Health Insurance in a given locale
is regulated by the government and professional societies.
Co payments were introduced in the 1980s in an attempt to prevent over
utilization. The average length of hospital stay in Germany has decreased
in recent years from 14 days to 9 days, still considerably longer than
average stays in the United States (5 to 6 days).Part of the difference is
that the chief consideration for hospital reimbursement is the number of
hospital days as opposed to procedures or diagnosis. Drug costs have
increased substantially, rising nearly 60% from 1991 through 2005.
Despite attempts to contain costs, overall health care expenditures rose to
10.7% of GDP in 2005, comparable to other western European nations,
but substantially less than that spent in the U.S. (nearly 16% of GDP).
34. 34
Development in India
Social security for medical emergencies is not new to the indian ethos.It
is a common practice for villagers to take a ‘piruvu’ (a collection) to
support a household with a sick patient. However, health insurance, as we
know it today, was introduced only in 1912 when the first Insurance Act
was passed (Devadasan 2004). The current version of the Insurance Act
was introduced in 1938. Since then there was little change till 1972 when
the insurance industry was nationalized and 107 private insurance
companies were brought under the umbrella of the General Insurance
Corporation(GIC). Private and foreign entrepreneurs were allowed to
enter the market with the enactment of the Insurance Regulatory and
Development Act (IRDA) in 1999.The penetration of health insurance in
India has been low. It is estimated that only about 27% of Indians are
covered under any form of health insurance. In terms of the market share,
the size of the commercial insurance is barely 3.56% of the total health
spending in the country. The Indian health insurance scenario is a mix of
mandatory social health insurance (SHI), voluntary private health
insurance and community-based health insurance (CBHI). Health
insurance is thus really a minor player in the health ecosystem.
The concept of insurance is intimately related to security. Insurance acts
as a protective shield against risk and future uncertainties. Traditionally, a
risk-averse .Behaviorhas been characteristic feature of Indians who
preferred a “low & certain” disposable income to a “high& uncertain”
one.
35. 35
Hence insurance has become a close associate of Indians since 1818,
when Oriental Life Insurance Company was started by Europeans in
Kolkata to cater to the needs of their own community. The age was
characterized by intense racial discrimination as Indian.
Insurance policy holders were charged higher premiums than their
foreign counterparts. The first Indian Insurance Company to cover Indian
lives at normal rates was Bombay Mutual Life Assurance Society which
was established in the year 1870.By the dawn of the 20 .The century, new
insurance companies started mushrooming up. In order to regulate the
insurance business in India and to certify the premium rate tables and
periodic valuations of the insurance companies, the Life Insurance
Companies Act and the Provident Fund Act were passed to regulate the
Insurance Business in India in 1912. Such statistical estimates made by
actuaries revealed the disparity that existed between Indiana foreign
companies.
The Indian Insurance Sector went through a full circle of phases from
being unregulated to completely regulate and then being partly
deregulated which is the present situation. Brief on how the events folded
up is discussed as follows: The Insurance Act of 1938 was the first
legislation governing all forms of insurance to provide strict state controls
over insurance business.
In 19th January, 1956, the life insurance in India was completely
nationalized through the Life Insurance Corporation Act of 1956.
36. 36
At that time, there were 245 insurance companies of both Indian and
foreign origin. Government accomplished its policy of nationalization by
acquiring the management of the companies. Bearing this objective in
mind, the Life Insurance Corporation (LIC) of India was created on 1st
September, 1956 which has grown in leaps and bounds henceforth, to
become the largest insurance company in India. The General Insurance
Business (Nationalization) Act of 1972 was formulated with the objective
of nationalizing nearly 100 general insurance companies and
subsequently amalgamating them into four basic companies namely
National Insurance, New India Assurance, Oriental Insurance and United
India Insurance which have their headquarters in four metropolitan cities.
The Insurance Regulatory and Development Authority (IRDA) Act of
1999 deregulated the insurance sector in India and allowed the entry of
private companies into the insurance sector. Moreover, the flow of
Foreign Direct Investment (FDI) was also restricted to 26 % of the total
capital held by the Indian Insurance Companies.
Some of the important milestones in the life insurance business in India
1912: The Indian insurance Companies Act enacted as the first statute to
regulate the insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non-life
insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance
Act with the objective of protecting the interests of the insuring public.
37. 37
1956: Indian and foreign insurers and provident societies taken over by
the central government were nationalized. LIC formed by an Act of
Parliament, viz. LIC Act, 1956,with a capital contribution of Rs. 5 crore
from the Government of India.
Insurance is an Rs.400 billion business in India, and together with
banking services adds about 7% to India’s GDP. Gross premium
collection is about 2% of GDP and has been growing by 15 - 20% per
annum. India also has the highest number of life insurance policies in
force in the world, and total investible funds with the LIC are almost 8%
of GDP. Yet more than three-fourths of India's insurable population has
no life insurance or pension cover. Health insurance of any kind is
negligible and other forms of non-life insurance are much below
international standards. To tap the vast insurance potential and to
mobilize long - term savings we need reforms which include revitalizing
and restructuring of the public sector companies, and opening up the
sector to private players. A statutory body needs to be made to regulate
the market and promote a healthy market structure. Insurance Regulatory
Authority (IRA) is one such body, which checks on these tendencies. IRA
role comprises of following three functions:
a. Protection of consumer's interest.
b. To ensure financial soundness and solvency of the insurance industry,
and
c. To ensure healthy growth of the insurance market.
38. 38
An insurance policy protects the buyer at some cost against the financial
loss arising from specified risk. Different situations and different people
require a different mix of risk cost combinations. Insurance companies
provide these by offering schemes of different kinds. Unfortunately the
concept of insurance is not popular in our country. As per the latest
estimates, the total premium income generated by life and general
insurance in India is estimated at around a meager 3.56% of GDP.
However India’s share of world insurance market has shown an increase
of 10% from 0.31 in 1996-97 to 0.34% in 1997-98. India's market share
in the life insurance business showed a real growth of 11% thereby
outperforming the global average of 7.7%. Non-life business grew by
3.1against global average of 0.20%. In India insurance spending per
capita was among the
lowest in the world at $7.6 compared to $7 in the previous year. Amongst
the emerging economies, India is one of the least insured countries but
the potential for further growth is phenomenal, as a significant portion of
its population is in services and the life expectancy has also increased
over the years.
The nationalized insurance industry has not offered consumers a variety
of products. Opening of the sector to private firms will foster
competition, innovation, and variety of products. It would also generate
greater awareness on the need for buying insurance as a service and not
merely for tax exemption, which is currently done. On the demand side, a
strong correlation between demand for insurance and per capita income
level suggests that high economic growth can spur growth in demand .
40. 40
COMPANY PROFILE
Apollo Munich Health Insurance Co. Ltd. (previously known as Apollo
DKV Insurance Co. Ltd) is a joint venture company promoted by The
Apollo Hospitals Group and Munich Health, Munich Res newest business
segment. The Product offerings include health, personal accident and
travel insurance plans for individual as well as families. For groups and
corporate sector, Apollo Munich offers Group health, personal accident
and travel insurance plans which are customizable as per the insurance
need of a particular group.
Apollo Munich, a specialized health insurance company in India, has
proficiency in both health and insurance and uses this comprehension for
the benefit of its clients and has emerged from the partners that are expert
in both health and insurance.
The Apollo Group of Hospitals. Munich Health, a newest business
segment of Munich Re’s, draws on its insurance and reinsurance
proficiency with over 5,000 employees and customers in more than 40
countries. Munich Re stands for consistent risk management, exceptional
solution-based expertise, client proximity and financial stability. In this
way, Munich Re creates value for shareholders, customers, and staff. In
the financial year 2018, this insurance and reinsurance Group reached a
on premium revenue of around Rs 5.5trillion. It functions in all lines of
insurance, with around 1,94,000 employees all across the world.
41. 41
3.1 Vision
“To be the trusted leader in health insurance by providing innovative
solutions to the citizens of India.”
3.2 Mission
Constantly introduce innovative Health Insurance and Wellness
solutions that meet customer needs.
Build an organisation 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
3.3 Values of the company
i. SECURITY: providing long term financial security to its policy
holders will be co'sconstantendeavor. It will be doing this by
offering life insurance and pension products.
ii. TRUST: Co appreciates the trust placed by its policy holders in it
hence; Co will aim tomanage their investments very carefully and
live up to this trust.
42. 42
iii. INNOVATION: recognizing the different needs of customer,
Company will be offering a range of innovative products to meet
these needs.
As a leading insurance company, we are committed to providing the best
possible service for our clients. Since the establishment of the company,
we have set a number of long term strategic goals.
They are keen to achieve. On top of our goals is to build a strong loyal
customer base that we always try to enrich by providing the best services
at competitive costs. They have broadened their range of services over the
years, in order to reach out for more customers and meet their precise
needs.
One of the main objectives of the company is to maintain a stable
financial position in the market along with a stable growth in capital over
the years. To be able to compete in a fast emerging market, we have to
keep up with needs of our clients. Our services are updated according to
their demands.Innovative services were presented according to the needs
of the new market. They try to cover as many sectors as possible using
our long experience in the insurance field.Finally, their achievements and
clients speak for them, which proves that they are on the right track.
43. 43
3.4 Management Profile
Ms. Shobana Kamineni , CHAIRPERSON
Ms.ShobanaKamineni has a degree in Economics and
20 years experience in the healthcare industry. She
was employee Apollo Hospitals and is part of the
founding family.
Ms.Suneeta Reddy, DIRTECOR
Ms.Suneeta Reddy received her Bachelor of Arts
degree in Economics and Marketing. She holds a
diploma in Financial Management from the
Institute of Financial Management and
Research.
Mr. Wolfgang Diels, Head of Munich
Health/Global Markets 2
Wolfgang Diels was born on 7 December 1954 in
Goeppingen/Northern Wuerttemberg, Germany. He
obtained his degree in law from Tuebingen and
Munich in 1983.
44. 44
Mr. M.B.N. Rao, Independent Director
Mr. M.B.N. Rao (61) former Chairman and
Managing Director of Canara Bank and Indian
Bank, has graduated with a B. Sc degree in
Agriculture. He has extensive and in-depth
knowledge of over 38 years in varied fields that
include Banking and Finance, Economics, Foreign
Exchange, Money and Capital
Mr. Krishnan Ramachandran, Chief Operating
Officer
Mr. Krishnan Ramachandran was born in Chennai,
India. As Chief Operating Officer he handles
Underwriting, Actuarial, Claims & Provider
Management, Customer Service and Technology.
Mr. Ravi Vishwanath, Chief Marketing Officer
Ravi Vishwanath has over 13 years of global
experience in Insurance sector. He has worked with
different economies worldwide like Mid East,
Africa, and Asia.
45. 45
Mr.Srikanth K, Chief Financial Officer and
Company Secretary
Mr.Srikanth anchors the finance functions of the
company. He is a versatile finance professional
with over 18 years experience in BFSI space. He
handled several intricate assignments spanning
across finance, accounting.
Dr.Sriharsha A Achar, Chief People Officer
Dr.Sriharsha A. Achar brings in experience spanning 23 years and his
vast experience covers several industries, such as Manufacturing,
Pharmaceuticals and Electronics. Apart from this, he had also worked
with BPO/ ITES.
48. 48
STRENGHT :-
No Claim based loading.
No geography based sub limits.
100% lifelong renewal.
Clear policy wordings and condition.
Cashless access to the best 10,000 doctor and 5000 hospitals in
over approx 800 cities.
Our heath care and heath insurance expertise.
One of the fastest claims settlement in the industry.
50% no claim bonus one optima restore plan – highest in the
industry.
Cashless authorization – over 90% cashless authorization done
in less 2 hour of claim intimidation.
Renewal rate – over 80% of our existing customers renewal
their policy every year.
WEAKNESS :-
LACK OF PRODUCT OFFERING IN THE CATEGORY OF SUGAR
AND DIABETIC .
ONLY SOME OF THE PRODUCT ARE PERFORMING WELL FOR
THE COMPANY .
LACK OF PRESENCE IN RURAL AND SEMI-URBAN AREAS.
49. 49
OPPORTUNITIES :-
ONLY 3.56% MARKET IS CAPTURED BY APOLLO MUNICH
HEALTH INSURANCE COMPANY AS A WHOLE , HUGE OPTION TO
GROW.
AS DISEASES NAD THEREFORE MEDICAL COSTS ARE ON THE
RISE , MEDICLAIM HAS INCREASINGLY FELT AS NECESSITY.
AS A CUSTOMER ARE INCREASIGLY BECOMING AWARE AND
EDUCATE ABOUT THE HEALTH INSURANCE NEED AND ITS
IMPORTANCE . SCOPE OF THE COMPANY TO GROW GETS
BIGGER .
THREAT :-
MORE COMPANIES ARE ENTERING INTO THE HEALTH INDUSTRY
SECTOR AS GOVERNMENT HAS INCREASED THE FDI LIMMIT
FROM 26% TO 49% FOR THE INSURANCE COMPANIES IS ON THE
RISE.
CHANGES IN THE GOVERNMENT POILICIES LIKE IN THE SERVICE
TAX STRUCTURE (CHANGED FROM 10.3% IN 2011-2012 TO
12.36%IN 2010-2013) AFFECTS ON THE CHARGED FOR DIFFERENT
PRODUCTS .
CUT THROAT COMPETITION FROM COMPANIES LIKE MAX BUPA ,
STAR HEALTH , ICICI LOMBARD , BAJAJ ALLIANZ , LIC LIFE
INSURANCE .
51. 51
RESEARCH DESIGN
Introduction
A systematized study requires proper planning and implementation of the
same. So, this research design includes an outline of the study, which was
conducted at “HDFC Standard Life Insurance Company Limited”. Hapur.
The design of the study contains information stating the statement of the
problem, objective of the study, need for the study, and scope of the
study, significance of the study, research methodology, and sources of
data, tools and techniques of data collection, plan of analysis, limitations
of the study,sampling and sampling design.
Objectives Of The study
A)Primary Objective
To understand & measure the impact of advertising in the market.
To measure the effectiveness of advertisement / promotional
activities for a particular product class and corporate advertising.
To understand and measure the affect of advertising in brand-
building, brand re-call and finally the choice of a plan while buying
it.
B) Secondary objective
To know the promotional strategies of Apollo Munich
To know how they face their competitor’s strategies.
To know how they survive in the cutthroat competition.
Advertisement.
52. 52
Scope Of The Study
Evaluation of advertising campaign effectiveness is a form of research
though it is somewhat different from other forms. Most advertising
research is used to predict what might occur in the market place.
Effectiveness research, on the other hand is used to determine exactly
what did happen. Although this information might be used as a basis for
future actions, its basic purpose is to measure what occurred as a result of
the advertising campaign and, therefore, what return was received on the
investment made.
Limitations Of The Study:
Survey will be conducted only for individuals.
This survey is useful only to certain period of time.
The survey will be conducted only in Hapur city,
The survey will be conducted only to customers.
Some of the major points of the health insurance policy were not
let out.
Some of the information was confidential. Which do company &
its employees only use.So such information’s are not reviled
outside for the general public.
Methodology of Research:
I. Type of Research
The research carried out in this study is both exploratory and descriptive
in nature.
53. 53
II. Sample size
Random sampling has been adopted for the study. The sample size taken
up for the study was 100 respondents. The respondents include
professionals, self-employed, employed, and businessmen.
III. Tool for data collection
The study was done based on the collection of Primary & Secondary data.
Primary Data: Primary data was collected with the use of questionnaire
and personal interaction with the company employees and general public.
Secondary Data
These are data that were collected for another purpose and already exist
somewhere. These data can be collected through external & internal
sources. Internal sources include accounting record, sales force reports &
miscellaneous report.
Relevant secondary for the project is company market share, economic
status with respect to the competitors and it has been obtained by IRDA
journals.
The data was collected by
Browsing different websites on internet.
Visiting the library of college.
Referring various articles, report, journals, and magazines on
insurance.
Referring different books & previous project report.
55. 55
DATA ANALYSIS & ANALYSIS
TABLE 1
Table 1: showing the occupation of respondents
OCCUPATION
NO. OF
RESPONDENTS
% OF
RESPONDENTS
EMPLOYED 61 61%
BUSINESS 10 10%
SELF EMPLOYED 26 26%
OTHERS 3 3%
TOTAL 100 100%
Analysis
From the above table, it can be analyzed that out of 100 respondents 61%
of the respondents are employed, 10% of the respondents are belonging to
business, 26% of the respondents are self-employed and 3% are belongs
to others.
56. 56
GRAPH 1
Graph 1:showing the occupation of respondents
Interpretation
It can be inferred from the data that more number of employed people
take insurance.So,the company should emphasize and formulate products
appropriate to employed customers.
0
10
20
30
40
50
60
70
EMPLOYED BUSINESS SELF EMPLOYED PROFESSION
Occupation
Kinds of respondents
57. 57
TABLE 2
Table 2:showing the age group of respondents
AGE GROUPS NO. OF
RESPONDENTS
% OF
RESPONDENTS
20-30 years 14 14%
31-40 years 30 30%
41-50 years 35 35%
51 and above 21 21%
Total 100 100%
Analysis
From the above table we can infer that, highest percentages of
respondents belong to the age group of 41-50 years.
58. 58
GRAPH 2
Graph 2: showing the age group of the respondents.
Interpretation
From the analysis we can infer that people in the age group of 41-50 take
insurance services. They have sufficient funds to invest. Therefore the
company should target the potential customer in this age group.
0%
5%
10%
15%
20%
25%
30%
35%
20‐30 31‐40 41‐50 51 & above
AGE GROUP
14%
30%
35%
21%
Series1
59. 59
TABLE 3
Showing response about media to reach the customer.
Media Number of respondent % of respondent
Magazine 23 23%
Internet 20 20%
TV 57 57%
Analysis
57% of the respondents believe that TV is the best media to reach
customers and the rest 20 and 23 percent believe that internet and
magazine are the best media respectively.
60. 60
GRAPH 3
Graph 3: Showing response about media to reach the customer.
Interpretation
From the above graph we can interpret that majority of the respondent
think that TV is the best media to reach the customers.
Magazine
Internet
TV
61. 61
TABLE 4
Table 4: Showing the next best media to reach customers other
than TV.
Media Number of respondent % of respondent
Newspaper 55 55%
Internet 23 23%
Hoardings 20 20%
Radio 2 2%
Analysis
From the table above we can say that 55% of the respondents feel that
newspaper is the next best media to TV.whereas,23% think that Internet
is the next best followed by hoardings and radio.
62. 62
GRAPH 4
Graph 4:showing the next best media to reach customers other
than TV.
Interpretation
From the analysis we can infer that newspaper and internet are the next
best media to reach customers. So the company should allocate adequate
funds for advertising through these media.
0
10
20
30
40
50
60
Newspaper Internet Hoardings Radio
38
42
20
2
63. 63
TABLE 5
Table 5:showing how often people share interesting ad with
family and friends
PARAMETERs Number of respondent % of respondent
Never 20 20%
Rarely 23 23%
Sometimes 35 35%
Often 10 10%
Very Often 12 12%
Analysis
From the above table we can infer that close to 35 % people share ads
sometimes with their relatives and friends. Whereas 12 % do it very
often.
64. 64
GRAPH 5
Graph 5: showing how often people share interesting ad with
family and friends.
Interpretation
From the analysis we can infer that a good advertisement can lead to
word of mouth by the customer and create a brand equity for the
company.
0
5
10
15
20
25
30
35
Never Rarely Sometimes Often Very Often
20
23
35
10
12
65. 65
TABLE 6
Table 6: Showing respondent awareness about health insurance
advertisement.
Awareness Number of respondent % of respondent
YES 92 92%
NO 8 8%
Analysis
From the above table we can see that 92% of the people are aware of
health insurance advertisements.
66. 66
GRAPH 6
Graph 6: Showing respondent awareness about health insurance
advertisement.
Interpretation
From the above table & graph we can interpret that majority of the
respondents are aware of health insurance advertisement. Constant
reinforcement and benefits can bring greater sales of various policies.
92%
8%
YES
NO
67. 67
TABLE 7
Table 7: Showing TV channel on which ads are watched
frequently.
Channels Number of respondent % of respondent
ZEE TV 25 25%
SONY 10 10%
STAR 12 12%
NEWS CHANNEL 53 53%
Analysis
From the above table we can see that 53% of the respondents see ads
mostly on news channels whereas only an average of 15% see it on other
entertainment channels.
68. 68
GRAPH 7
Graph 7: Showing TV channel on which ads are watched
frequently.
Interpretation
From the above table & graph we can interpret that most of the
respondent prefer news channel to be the best option for advertisement.
0%
10%
20%
30%
40%
50%
60%
ZEE TV SONY STAR NEWS
CHANNEL
25%
10% 12%
53%
69. 69
TABLE 8
Table 8: Showing Popularity of companies’ ad on TV
ANALYSIS
From the above table we see that 35% of the respondent think that hdfc’s ads are most
popular whereas 30% think that lic india ad are most popular . Only 20% and 10% of
them belive that apollo munich health and reliance ads are most popular respectively.
Companies Number of respondent % of respondent
LIC India 30 30%
HDFC Standard Life 35 35%
Apollo Munich 25 25%
Reliance Insurance 10 10%
70. 70
GRAPH 8
Graph 8: Showing Popularity of companies’ ad on TV
Interpretation
From the above table and graph we can infer that HDFC Life is the most
popular on TV followed by LIC India. Apollo Munich should focus on
creative ad to attract the customer.
0 10 20 30 40
LIC INDIA
HDFC Standard Life
Apollo Munich
Reliance Insurance
Series1
71. 71
TABLE 9
Table 9: Showing how many people can recall the content of the
ad.
Awareness Number of respondent % of respondent
YES 72 72%
NO 28 28%
Analysis
From the above table we can see that 72% of the respondents can recall
the content of the ad. Whereas only 28% of them cannot.
72. 72
GRAPH 9
Graph 9: Showing how many people can recall the content of
the ad.
Interpretation
From the above table and graph we can infer that majority of the people
can recall the content in the ad.
72%
28%
Yes
No
73. 73
TABLE 10.
Table 10: Showing the no.of respondents who gotinfluenced by
the ad to buy the policy.
Analysis
From the above table and we can see that around 83% of the respondents
got influenced by the ad to buy a policy whereas only 17% think
otherwise.
Parameters Number of respondent % of respondent
Yes 83 83%
No 17 17%
74. 74
GRAPH 10
Graph 10:Showing the no.of respondents who got influenced by
the ad to buy a policy.
Interpretation
From the above table and graph we can infer that majority of the viewers
got influenced by ads to buy a policy. The company should use
multichannels to influence the customers.
83%
17%
Yes
No
75. 75
TABLE 11
Table 11: showing the clarity of ads.
Analysis
From the above table we can infer that close to 50% of the respondents
highly agree that the advertisements clearly convey their message
whereas close to 20% disagree.
Parameters Number of respondent % of rate
HIGHLY AGREE 47 47%
AGREE 22 22%
NEITHER 0 0%
DISAGREE 14 14%
HIGHLY AGREE 17 17%
76. 76
GRAPH 11
Graph 11:Showing the clarity of ads.
Interpretation
From the analysis we can infer that ads need to be more clear in sending
their message as many respondents think that they aren’t clear enough.
Series1
0
10
20
30
40
50
Highly
Agree
Agree
Neither
Disagree
Highly
disAgree
47
22
0
14 17
77. 77
TABLE 12
Table 12:Showing the believability of ads.
Analysis
From the above table and graph we can infer that close to 45% of the
respondents highly agree that the advertisements are believable whereas
close to 20% disagree
Parameters Number of respondent % of parameters
Highly agree 27 27%
Agree 42 42%
Neither 0 0%
Disagree 17 17%
78. 78
GRAPH 12
Graph 12:Showing the believability of ads.
Interpretation
From the analysis we can infer that insurance ads are mostly believable.
0
5
10
15
20
25
30
35
40
45
Highly Agree Agree Neither Disagree Highly
disAgree
Series1
80. 80
.
SUMMARY OF
FINDINGS
The majority of the respondents 61% are employees.
35% percentage of respondents belongs to the age group between
41-50 years.
Majority of respondents 57% feel that TV is the best media for
insurance companies to reach customers.
Other than TV, people feel that newspaper 55% is the next best
media to reach customers.
Majority 35%People share interesting ads with family and friends
but not very often.
Majority of the respondents 92% are aware of health insurance.
Majority of the respondents 53% have watched insurance
advertisement on news channels.
HDFC Life is the most popular in terms of advertisement 35%
followed by LIC INDIA 30%.
Almost 70% of the respondents can recall the content of the
advertisement.
81. 81
Nearly 50% of the respondents believe that the advertisements
clearly convey their message.
Nearly 50% of the respondents feel that the ads are believable.
Majority of the respondents 83% feel that ads influenced them to
buy insurance products.
83. 83
SUGGESTIONS
Since TV ads are the most popular among viewers, Apollo Munich
needs to employ more of their advertisement funds to TV
advertisement.
Company should always try to keep in touch with the customer.
Since TV channels are the most popular channels where people
watch insurance ads advertisement in these channels need to be
given special attention.
Apollo Munich is getting more and more popular among people.
They need to come out with interesting ideas continuously and try
to create a special identity for themselves through their ad
campaigns.
Apollo Munich can conduct certain seminars or sponsor sporting
events to gain more popularity among people.
Apollo Munich should try to provide service of the highest order
for gaining more mouth to mouth publicity.
The advertisements need to be very precise and specific because a
lot of viewers still feel that the insurance ads aren’t clear enough.
The advertisements should be made believable.A lot of viewers
still don’t find the ads believable enough.
Apollo Munich needs to start ad campaigns for the rural
market.This will create awareness among people and company will
benefit from it in the future.
84. 84
CONCLUSION
There has been a tectonic shift in advertising the insurance companies.
Till 2 or 3 years back a typical Ad will showcase a small happy family
enjoying their life. Then one unfortunate Day the head of the family dies
in an accident and the rest of the family is drawn to rags. The ad ends up
saying Insurance can help them against such calamities. People bought
the idea and started buying insurance. But there was a basic flaw in them.
It tells the consumers about the advantages of having Insurance but
nothing about buying insurance from a particular insurance firm. So
casting such ads was helping the industry as a whole but not the specific
firm. If we see the recent ads they are talking about how “SBI Life” can
help smoothen your old age life or how Apollo Munich can get you
hassle free treatment in their large network of hospitals. This sounds more
logical. Each ad speaks about how their firm’s offers can help you instead
of telling how insurance as a whole can help you.
With all these analysis we can conclude that company is trying to develop
and grow itself in the health insurance industry because they have made
an impact in their early days itself.If the company continues to grow at
the same rate, it will become the market leader in health insurance soon
enough.
86. 86
Annexure
Hello Sir/Madam,
I, _________, student of 3th
semester MBA am conducting a research
on the promotional strategies used by INSURANCE COMPANIES. The
purpose of this study is to understand, capture,assesses and evaluate the
effectiveness of the advertisement.
I would appreciate if you could spend about 15 Min. and communicate
your feelings, expression,comments and impact on you with respect to the
content of the advertisement. Please give your honest opinion and be sure
that this information collected will be purely confidential and not be
shared with any other entity in term of commercialization.
Name:
Q1.Occupation:
Employed Self-employed Business Others
Q2.Age group:
20-30 years 31-40 years 41-50 years51 & above
Q3. Which media you use for information/entertainment?
o TV
o Radio
o Newspaper
o Internet
87. 87
Q4. How often do you share interesting advertising with your family or
friends?
Never Rarely Sometimes Often Very often
Q5. Have you seen any Health Insurance Product Ad?
o Yes
o No
Q6. On Which channel you watch mostly?
o Zee T.V
o Sony
o Star
o News Channel
Q7. Can you recall the content of the Ad?
o Yes
o No
Q8. Which company ad do you find mostly?
o LIC India
o HDFC Std. Life Insurance Co.
o ICICI Prudential Life Insurance Co. Ltd.
o Reliance Life Insurance Co. Ltd.
Q9. Do you think the ad has influenced you to buy it?
o Yes
o No
88. 88
Q10. Other than T.V,where do you see Health insurance ad?
o Internet
o Newspaper
o Hoardings
o Radio
Q11.The message in the ad understandable?
Highly Agree Agree Neither Disagree
Highly disagree
Q12.Is the message in the ad believeable?
Highly Agree Agree Neither Disagree
Highly disagree
