ICICI LOMBARD VS.

BAJAJ ALLIANZ HEALTH INSURANCE

KALPESH SOLANKI. DEEPAK NIKAM. PRAVIN MOTE. KIRAN KAMBLE. RAVI MAGARE.

ICICI LOMBARD
VISION To be the leading provider of insurance services in India.

CONTD....
MISSION:
We will leverage our people, technology, speed and financial capital to: be the insurer of first choice for our customers by delivering high quality, world-class products and services. Expand the frontiers of our business globally. Play a proactive role in the full realisation of Indias potential. Maintain a healthy financial profile and diversify our earnings across businesses and geographies. Maintain high standards of governance and ethics. Contribute positively to the various countries and markets in which we operate. Create value for our stakeholders

HEALTH INSURANCE MARKET

India spends around 5 per cent of its GDP on healthcare. The health insurance cover is still limited to only 15 per cent of the total population of India. Indian Health insurance market is expected to grow at a CAGR of 43 per cent between 2011 and 2015. The market penetration will be three fold higher in 2015 as it is one of the fastest growing segments in non-life insurance.

HEALTH INSURANCE MARKET

The key growth drivers are increasing awareness of health insurance, rising healthcare costs, supporting demographic profiles, de-tariffing of the general insurance industry and rationalisation of premium rates. The key market restraints are inadequate healthcare infrastructure, limited reach, significant underwriting losses for health insurance business in India, lack of standardisation and accreditation norms in the healthcare industry and insufficient data on Indian consumers and disease patterns.

HEALTH INSURANCE MARKET

The future trends in this sector are a shift in focus from group insurance to retail insurance portfolio, rationalisation of premium in group insurance policies, sub-limits, like co-pay and deductibles will increase and government companies are likely to increase their healthcare offerings.

HEALTH INSURANCE PENETRATION

CONTD.
ICICI Lombard General Insurance Company had the highest market share in the gross premium underwritten by private non-life insurers in India between April-December 2011. According to figures released by the Insurance Regulatory and Development Authority, ICICI Lombard had a market share of 9.07 per cent with a total gross premium underwritten across all segments at Rs 3,812 crore, compared with Rs 3,123 crore in the year-ago period.

CONTD..
Bajaj Allianz came in second with a market share of 5.67 per cent and Rs 2,384 crore in the total gross premium underwritten. Among the public players, New India had the highest market share of 14.96 per cent with Rs 6,287 crore of total gross premium underwritten. United India followed with 13.82 per cent market share and a premium of Rs 5,808 crore.

VARIOUS PRODUCTS COMPARISON

FAMILY PROTECT PREMIER V/S FAMILY FLOATER HEALTH GUARD PLAN KEY DIFFERENCES Cashless claims facility at over 4,000+ hospitals across India as compared to 2900 hospitals across India. Continue to enjoy quality service even during claim settlements with - ICICI Lombard Health Care - our own in-house health claim processing and wellness team which is not the case when compared with Bajaj Allianz

PRODUCTS COMPARISON
Free health check-up coupon for any one insured family member, valid for the policy period which is not provided by Bajaj Allianz Called a Convalescence benefit, the insured, once during the policy period, is eligible for a benefit amount of 10,000 if hospitalised for any bodily injury or illness as covered under the policy, for a period of 10 consecutive days, or more. No such benefit provided by bajaj allianz.

PRODUCTS COMPARISON
PERSONAL PROTECT V/S INDIVIDUAL HEALTH GUARD Optional coverage against Accidental Hospitalisation Expenses and Accidental Hospital Daily Allowance whereas in Bajaj Allianz offers very vaguely in that only pre and post hospitalization expenses will be covered

PRODUCTS COMPARISON
Customised coverage that allows you to choose between Rs 3 Lakhs, Rs 5 Lakhs, Rs 10 Lakhs, Rs 15 Lakhs, Rs 20 Lakhs and Rs 25 Lakhs Sum Insured whereas no such benefit is available in BA. However, there is income tax benefit available under Bajaj which is not mentioned about in IL.

PRODUCTS COMPARISON
One major point of advantage is that Bajaj Allianz offers a special plan for women covering all gynaecological diseases including malignancies. This is not the case with IL, but in its place it offers a CRITICAL CARE plan for all emergency/critical illnesses.

VALUE CHAIN ANALYSIS OF ICICI LOMBARD

FIRM INFRASTRUCTURE

HUMAN RESOURSES MANAGEMENT

TECHNOLOGY DEVELOPMENT SOURCES OF REVENUE/ DEPOSITS OPERATI ONS LOGISTIC S MARKET ING AND SALES AFTER SALES SEVICES MARGIN

SUPPORTIVE ACTIVITIES Sources of revenue/ deposits:

Source of revenue is ICICI bank and other bank like RBI. Whereas other source is the merged company itself, with stake holders and policy holders.

SUPPORTIVE ACTIVITIES CONTD Technology development:

Developed and frequently updated the existing online services . Provides the information about the services by means of mobile service i.e. through SMS services, through online services or through television. Technology made is such that, it is user friendly and can be accessible to every one.

SUPPORTIVE ACTIVITIES CONTD.. Human resource management:

Those activities concerned with recruiting, developing, motivating and rewarding the workforce of a business. These will include providing training to employees about marketing, online services, tying-up of clients and etc.

SUPPORTIVE ACTIVITIES CONTD.. Firm infrastructure:

We have very well developed online services, marketing strategies, and our branches spread all over the India, which helps us to work more smoothly and efficiently by all means. Revenue generation skills by our consultants. Sufficient and efficient number of employees provided by HRM.

PRIMARY ACTIVITIES Logistics:

Our infrastructure are wide spread branches, and well developed online services. While financing is done by various banks and stake holders, which are required to enhance our business.

PRIMARY ACTIVITIES Operations:

Comprise the transformation of the inputs into the final product form. Providing better health insurance policies, to the respective eligible policy holder, with maximum benefits.

PRIMARY ACTIVITIES Marketing and sales

How buyers can be convinced to purchase the product (e.g. advertising, promotion, distribution) Marketing and sales team of ICICI is trained enough for telemarketing, online marketing, face to face customer meeting etc.

PRIMARY ACTIVITIES After sales services:

Providing better services after sale of policy product. Developed call center services.

SWOT ANALYSIS
STRENGTH Pioneer in introducing innovative concepts in the Indian health Insurance sector. Market leadership Diversified product portfolio OPPORTUNITIES Target youth. Provide NRI service. Use multi-channel approach. WEAKNESS Charge a high premium amount as compared to other players in the market. Poor customer service.

THREATS Major competition from government players. Excessive use of telesales.

SWOT ANALYSIS
STRENGTH Strong brand image. Has been one of the most profitable private health insurance company in last few years. Has got one of the largest distribution network to reach the customers across the country with more than 2 lakhs agents, 900 offices, 200 corporate agents etc. OPPORTUNITIES Large untapped market Distinguishable product WEAKNESS They have to compete with GOVT players. They apparently have weak customer relation management.

THREATS Presence of very strong competitors. Aggressive marketing by competitors.

KEY RATIOS OF ICICI LOMBARD

BALANCE SHEET

Profit and Loss

Profit and Loss (Contd)

REVENUE ACCOUNTS

KEY RATIOS

INTERPRETATION OF FINANCIAL STATEMENT

ICICI LOMBARD AND BAJAJ ALLIANZ

ICICI LOMBARD
The operational profit ratio upto the year end of March 31 2011 was 3% and it has been increases to 16% in six months. Liquid assets to liability ratio was constant upto the year ended 31 March 2011 till for the six month ended 31 March 2011. Return on net worth upto the year march 2011 was 4% which was increase to 11% in next six months.

BAJAJ ALLIANZ
Operational profit ratio for the March 31 /2011 was 15% but in quarter period of time it was negative i.e -21% Liquid assets to liabilities ratio for the year ended 31 March was 33% and within quarter ended it was become 36%. Return on net worth ratio for the year ended 31 March 2011 was 5%, next quarter ended it was 7%.

 The total sources of funds for ICICI Lombard as at 31 March 2011 was 194,399 ( in lakh ) which has decreases to 190,651 (in lakh) as at 31 March 2011. The total source of fund for Bajaj Allianz in the year 2011 was 8,356,054 which has increase 9,587,254 in March 2012. The profit and loss for ICICI Lombard in the year (operating profit/ loss, income from investment, other income) for the year 2011 was 3,899 lakh has been decreases to 3,326 lakh. For Bajaj Allianz in the year 2011 was 18,386 and decreases to 13,729 lakh in 2012.

FUTURE CORPORATE STRATEGIES

LONG TERM STRATEGIES:
To expand our costumer base and market to an international level through collaboration with region specific players.

FUTURE CORPORATE STRATEGIES

SHORT TERM STRATEGIES:
To ensure our presence among rural traders and market. To enhance existing online services and user friendly software including language enabled customized services. To collaborate with various (CBHI) Community Based Health Insurances and other initiatives of (GOI) Government of India.