Different types of channel, working , Mindset behind the
type of channel Selected, How it fuels and affect
the growth of the company.
Enrollment no: 030301057
The growing affluence of the Indian middle-class
accompanied with lifestyle-related diseases and
inflationary healthcare costs are driving the demand for
health insurance in India today.
Launch of new hospital chains with a stress on holistic
well-being is further accentuating this demand,
especially in urban areas.
Meanwhile the government, in collaboration with non-
governmental organisations and insurers, is launching
various schemes to provide low-cost health insurance
facility to all citizens.
The Report of Health and Family Welfare Government
of India, New Delhi projects that more than 630 million
persons, or about half of the country’s population, can be
covered with health insurance by 2015.
By this time, spending through health insurance is also
likely to reach 8.4 percent of total health spending, up
from 6.4 percent in 2011–12.
Why Health Insurance?
According to WHO Survey 99 % family will get a financial crunch
if any serious health problem will deducted.
LIFE is uncertain.
Medical insurance is more than just safeguard of your health - it
also prevents you from extra expenses
Peace of Mind: Should illness strike, you can have the peace of
mind that you and your family can have access to Private Care
Choice: You can choose the hospital that best suits you from the
appropriate Hospital listing
High Quality Care: You are assured High Quality Nursing care
Convenience: You can plan an operation to suit your particular
Bills from medical institutions even for situations not threatening your
life can lead to the fail of your finances.
Excellent Facilities: High quality facilities are made available to
Quality advice: You can rest assured that you will receive quality
advice from a consultant.
Tax Benefit under Section 80D.
Role of IRDA
As India contemplates a significant increase in public
spending on health care, The World Bank releases its
first comprehensive review of India's major government
sponsored health insurance schemes.
IRDA supported standalone health insurance companies
by allowing the companies by taking help of advisors
who all working for life / non life insurance.
IRDA realized the importance of service quality in
Components of Health Insurance- India
Brokers / Agent
Employer / Government
Provider of care
Apollo Munich Health Insurance-
Quality healthcare and Apollo have become synonymous in the
Indian subcontinent, a fact reiterated by global healthcare experts
and international accreditation bodies. Committed to bring world
class health care within the reach of every individual, Apollo
Hospitals Group has joined hands with Munich Health, a world
leader in the field of health insurance.
Apollo Munich Health is a joint venture between Asia’s largest
integrated healthcare provider, The Apollo Hospitals Group, and
Germany based Munich Re’s newest business segment, Munich
Health. The joint venture is poised to make good the conviction of
both the partners that Indian health insurance market is on the brink
of explosive growth
The company was incorporated in August. 2007. It is a specialized
health insurance company in India that has expertise in both health
and insurance and is able to leverage this understanding for the
benefit of its customers.
“Munich Health is in fact the new brand under which Munich Re is
now offering its healthcare-sector services to clients and partners
throughout the world. Munich Re is thus bringing together under
one banner its global insurance and reinsurance know-how in
Synergies between three fields of business:
Health reinsurance and services: We draw on the decades of
experience and strong, international market standing of Munich Re
in health reinsurance sector.
Primary health insurance: We provide primary insurance via
Munich Re companies around the world.
Risk management and services: We operate MedNet offices in
numerous countries to provide local insurance clients with managed
care services appropriate for the markets
Company’s Vision, Mission,
To be a trusted leader in the health insurance sector
by providing innovative solutions to the citizens of
“Our mission is to bring Healthcare of International
Standards within the reach of every individual. We
are committed to the achievement and maintenance
of excellence in education, research and healthcare
for the benefit of humanity.”
As a first step towards bringing in innovative insurance solutions, Apollo
Munich has launched its first generation products such as:
Easy Health Individual and Family Health Plans (In-Patient
Overseas Travel & Health Covers – individual, family and groups
Personal Accident Cover – Corporate and Individual
Optima Restore- Awarded with Innovation of the year award
Maxima – India’s first truly comprehensive health insurance plan
Optima Cash – A daily hospital cash product with maximum benefits.
Optima Plus – A unique top-Up plan for Individuals
Optima Senior- Exclusively for Seniors
Apollo Munich promises to constantly engage itself in developing
innovative health and travel insurance solutions catering to various
insurance needs that may exist in the market.
Apollo Munich is headquartered out of Gurgaon and has 39
operational offices apart from the corporate office covering
major metros and category - A, cities/towns.
Hospital Network: The products of Apollo Munich are valid
in all the hospitals across the country on a reimbursement
basis. In around 4000 trusted hospitals across 831 cities &
towns including the 53 Apollo Group hospitals the customers
can avail “Cashless Hospitalization” service.
Expected Growth: The Health Insurance market has been
growing at a CAGR of over 35% for the last three years. In
the last financial year the industry has registered a growth of
Apollo Munich envisages being a significant player in the
Health Insurance Segment and being at the forefront and
regularly introducing innovative health insurance products of
global standards in India.
It is a unique Health Insurance company as it is backed by India’s
largest integrated healthcare group, The Apollo Hospitals Group, in
partnership with Munich Health, world leaders in Health Insurance.
The joint venture brings together the complementary strengths of
its partners. The Apollo Hospitals group’s extensive understanding
of the healthcare domain & strong brand equity as a healthcare
brand, in India, combined with Munich Health’s technical expertise
provides a sound foundation for Apollo Munich.
The Apollo Hospitals Group has been a pioneer in corporate
healthcare and has significant understanding of this space which
includes disease patterns and incidence, in-depth knowledge of
prevention & wellness, provider profiles and behavior, besides
strong customer understanding and leads generation skills.
The Apollo Hospitals Group’s extensive healthcare infrastructure
comprising of large tertiary care hospitals, primary care clinics, the
largest retail pharmacy chain and rural reach through telemedicine
provides significant strength to Apollo Munich’s distribution
Munich Health’s extensive global reach and Apollo Munich’s
ability to leverage the same offers it a unique opportunity to offer
globally valid covers backed by superior service to the growing
population of Indian overseas travelers.
Munich Health is a pure Health Insurer with an extensive Health
Insurance expertise of 80 years of profound understanding of
scientific underwriting, product pricing, design of innovative
products backed by world class actuarial practices and technological
Types of Channels employed-
Working-The focus of this Channel is on Retail sales. In this mode of Channel, As
per IRDA mandate Agents or Advisors from Life, General or those having
Composite License can work or attach with Standalone Health Insurance Companies
for example Apollo Munich Health Insurance, Max Bupa etc.
On the basis of such Pre-requisites their Advisor Code is generated. After which they
can start working with the company.
The role of the Managers is to push these Advisors for the business and help them
along if they face any ambiguity. Therefore their role is to mainly provide Service.
The Advisors use to Undergo a proper training programme to get acquaint with the
product knowledge and objection handling aspect to pitch effectively to the
This type of Business Model focuses on following Aspects:
• Relationship Building
• Commissions or Payouts
Mindset behind the Channel Selected- As the Advisors who are getting
associated with the company mostly have rich Experience of the Insurance
sector as a whole. They generally use to have a existing Client base or
reputation in the market. By associating with a health Insurance Company
they can enhance their Portfolio of Offerings to the Customer. Further the
pay-out structure is of great appeal to them.
As Per IRDA mandate the Advisors will get 15% payouts on the business
generated by them on fresh business as well as on Renewals. Apart from
this Company regularly doles out lucrative Contests to motivate them to
achieve better results leading to accomplishing of the targets for a said
Quarter or for the year as a whole. Example would be Singapore Calling
Contest for JFM(January-February-March).
Share in Business growth- This Channel accounts to around 50% of the
total business generated for the Organization and among the highest of all
It is based on following approaches:
Need based-An Organization reaches to the company on its own.
Direct Approach- Corporate Organizations are being approached,
given presentations to make them aware about the need.
Reference based- Reference given by the Agents or Brokers (Note-
Commission of 15% will be passed on to them if deal gets
This Channel Exclusively deals only in Corporate Insurance that is
large Organizations in need of corporate group insurance for their
respective employees. This channel is handled completely by the
Company’s employees. They have the Sole responsibility to
generate leads and bring Business from the corporate fraternity.
It works on the procedures of Quotations and requirements by the
Corporate Clients. It generally takes time to get the deals
Minimum Requirement for the Corporate Insurance is of 50
Payouts- Payouts are same that is 15% as mentioned above on the fresh
business done as well as on Renewals.
Mindset behind the Channel Selected-As it requires Experience, maturity
and business acumen and a great deal of negotiations on its part to generate
business from such source, company separate its retail operations from the
said channel selected.
Share in Business growth- This Channel accounts to around 30% of the
total business generated for the Organization.
This Channel is also known as Broker Channel. It exclusively deals
with Financial Institutions having large presence across the cities.
SMC, Karvy, NJ etc are attached with the company. This mode of
channel has tremendous potential due to sheer volume of the
customer base these brokers encompass leading to better revenue
generation prospects for the organization.
Mindset behind the Channel Selected- As the Brokers have rich
Experience of the Insurance sector and Financial services sector as a
whole. They generally use to have a large and loyal Client base or
high reputation in the market. By associating with a health
Insurance Company they can enhance their Portfolio of Offerings to
the Customer. Further the pay-out structure is of great appeal to
Payouts- Payouts are same that is 15% as mentioned above on the
fresh business done as well as on Renewals.
Share in Business growth- This Channel accounts to around 15% of
the total business generated for the Organization.
D2C (Direct to Customer)-
This type of Channel Include COI’s(Centre of Influence).
COI’s- These are the ones who are in regular direct contact with
prospective customers. These might be Doctors, Pharmacist’s, Diagnostic
centre operators, Receptionist’s that is anyone who is directly or indirectly
associated with Healthcare Industry.
The COI’s use to generate only Leads which are further converted by the
employees of D2C Channel in contrast to Agency mode of channel where
Advisors are obligated to take care of the whole process that is from
generating leads to conversion as a customer for the company.
Next there is a Tele-calling Set up in HO (Gurgaon). Any Enquiry for a
policy there is further passed on as a lead to the D2C Channel employees
only on the basis of their geographical locations.
One of the most important Aspect of this type of channel is providing
SERVICE as that is taken care by the employees of D2C themselves as
there are no Agents or Advisors attached to it.
Payouts-As Per IRDA mandate the COI’S will get 15% payouts on
the final leads Converted by them. They will not get any
commissions on the Renewals.
Mindset behind the Channel Selected-
As COI’s are in constant touch with prospective Customers,
Company found it compelling to start this type of channel. The
leads given by these are quite Genuine in nature due to the
circumstantial conditions. This is a relatively new channel as
compared to others. This Channel finds its presence in few major
Cities (Ahmedabad, Jaipur, Delhi, Mumbai, Kolkata and
Bangalore). Apollo Hospitals and Apollo Pharmacies plays a major
role in this mode of channel as the requisite infrastructure required
is readily available.
This channel requires a special mention here as Apollo Munich
Health Insurance is the First Company to successfully implement
this type of Business Model.
Share in Business growth- This Channel accounts to around 5% of
the total business generated for the Organization.
• No Claim based loading
• No geography based Sub-limits
• 100% Lifelong Renewal.
• Clear Policy Wordings and Conditions.
• Cashless Access to the best 10,000 Doctors and 4500 Hospitals in over
• Our Healthcare and Health Insurance expertise.
• One of the Fastest Claims settlement in the Industry
• 50% No Claim Bonus in Optima Restore Health Plan- Highest in the
• Cashless Authorization-Over 90% cashless authorization done
within 2 hours of claim intimation
• Renewal Rate-Over 80% of our existing customers renew their
policy every year
Lack of Product offering in the category of Sugar and Diabetic
Only some of the products are performing well for the company.
Lack of presence in Rural and semi-urban areas.
Only 3% Market is Captured by Health Insurance Companies as a
whole, huge option to grow.
As Diseases and therefore Medical Costs are on the rise, Mediclaim
has increasingly felt as a necessity.
As Customers are increasingly becoming aware and educated about
the Health Insurance need and its importance, Scope of the
company to grow gets bigger.
More Companies are entering into the Health Insurance sector as
Government has increased the FDI limit from 26% to 49% for the
insurance companies, Competition is on the rise.
Changes in the Government Policies like changes in the Service Tax
structure (Changed from 10.3% in 2011-12 to 12.36% in 2012-13)
affects on the premium charged for different products.
Cut Throat Competition from companies like Max Bupa, Star
Health, ICICI Lombard and Bajaj Allianz.
Growth of Health Insurance in India
In 80s most of the hospitals in Indian government owned
and treatment was free of cost.
The private medical care the need for health insurance
was felt and various insurance companies introduced
Mediclaim insurance as a product. According to recent
news report health insurance continues fastest growing
segment with annual growth rate of 25%.health
insurance premium has also increase to Rs. 13345 crores
Among the Public Sector Undertakings (PSUs), United India
Insurance and National Insurance registered a strong growth
of 33 per cent and 27 per cent respectively. Whereas New
India recorded a growth of 17 per cent and Oriental has
shown a decline of 1.6 per cent as compared to the previous
year. Amongst the private players, ICICI Lombard has
retained its top position with a market share of 11 per cent
and growth of 12 per cent at the end of FY2011-12.
With the exception of Reliance General, IFFCO Tokio, Star
Health & Allied Insurance, all the other companies recorded a
growth during the period. Stand-alone Health Insurers Apollo
Munich and Max Bupa have shown significant growth during
the year. They registered a market share of 3 per cent and
1.00 per cent respectively at the end of FY2011-12.
Comparison of Standalone
Health Insurance companies
Apollo Munich Health Insurance has shown a remarkable growth
of 147.21% in its premium collections during the financial year
2010-2011 as compared to last year.
The insurer has pocketed new business premiums of Rs 283.45
crores during April 2010 to March 2011 as compared to Rs 114.66
crores collected during the corresponding period last year.
Apollo Munich Health Insurance, Star Health and Max
Bupa are the 3 standalone health insurers in the country. Max Bupa
being the latest entrant started operations in March 2010 and has
collected Rs 25.70 crores in new business premiums.
Star Health & Allied Insurance on the other hand started its
operations in 2006 and has gained a strong foothold in the health
insurance segment. The company has recorded a growth of 29.87%
since last year and collected premiums worth Rs 1248.88 crores in
FY 2010-11 as compared to Rs 961.64 crores in FY 2009-10.
Apollo Munich Health Insurance has recently clocked Rs.700
crores in March 2013.