Strategic Mgmt ICICI vs BAJAJ ALLIANZ

7/31/2019 Strategic Mgmt ICICI vs BAJAJ ALLIANZ

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ICICI LOMBARD VS.BAJAJ ALLIANZHEALTH INSURANCE

• KALPESH SOLANKI.• DEEPAK NIKAM.

• PRAVIN MOTE.• KIRAN KAMBLE.• RAVI MAGARE.



ICICI LOMBARD

VISION

• To be the leading provider of insurance servicesin India.



CONTD....MISSION:

• We will leverage our people, technology, speed andfinancial 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 India’s

potential.

• Maintain a healthy financial profile and diversify ourearnings 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 onhealthcare. The health insurance cover is stilllimited to only 15 per cent of the total populationof India.

• Indian Health insurance market is expected to

grow at a CAGR of 43 per cent between 2011 and2015. The market penetration will be three foldhigher in 2015 as it is one of the fastest growingsegments in non-life insurance.




• The key growth drivers are increasing awareness of health insurance, rising healthcare costs, supporting

demographic profiles, de-tariffing of the generalinsurance industry and rationalisation of premiumrates.

• The key market restraints are inadequate healthcare

infrastructure, limited reach, significantunderwriting losses for health insurance business inIndia, lack of standardisation and accreditationnorms in the healthcare industry and insufficientdata on Indian consumers and disease patterns.




• The future trends in this sector are a shift infocus from group insurance to retail insuranceportfolio, rationalisation of premium in groupinsurance policies, sub-limits, like co-pay anddeductibles will increase and government

companies are likely to increase their healthcareofferings.



HEALTH INSURANCE PENETRATION





CONTD…. • ICICI Lombard General Insurance Company had

the highest market share in the gross premiumunderwritten by private non-life insurers inIndia between April-December 2011.

• According to figures released by the InsuranceRegulatory and Development Authority, ICICILombard had a market share of 9.07 per cent with a total gross premium underwritten acrossall segments at Rs 3,812 crore, compared withRs 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 totalgross premium underwritten.

• Among the public players, New India had thehighest market share of 14.96 per cent with Rs

6,287 crore of total gross premiumunderwritten.• 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 2900hospitals across India.

Continue to enjoy quality service even during claimsettlements with - ICICI Lombard Health Care - ourown in-house health claim processing and wellnessteam which is not the case when compared withBajaj Allianz



PRODUCTS COMPARISON

Free health check-up coupon for any oneinsured family member, valid for the policy period which is not provided by Bajaj AllianzCalled 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 thepolicy, for a period of 10 consecutive days, ormore. No such benefit provided by bajaj allianz.



PRODUCTS COMPARISON

• PERSONAL PROTECT V/S INDIVIDUALHEALTH GUARD

• Optional coverage against AccidentalHospitalisation Expenses and AccidentalHospital Daily Allowance whereas in Bajaj

Allianz offers very vaguely in that only pre andpost hospitalization expenses will be covered



PRODUCTS COMPARISON• Customised coverage that allows you to choose between Rs 3 Lakhs, Rs 5 Lakhs, Rs 10 Lakhs, Rs15 Lakhs, Rs 20 Lakhs and Rs 25 Lakhs SumInsured whereas no such benefit is available inBA.

• However, there is income tax benefit availableunder 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 coveringall gynaecological diseases includingmalignancies. This is not the case with IL, but inits 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

OPERATIONS

LOGISTICS

MARKETING

ANDSALES

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 andpolicy 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 toevery 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, onlineservices, 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 arerequired 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.



• Marketing and salesHow buyers can be convinced to purchase the product

(e.g. advertising, promotion, distribution)Marketing and sales team of ICICI is trained enough fortelemarketing, online marketing, face to face customer meeting etc.

PRIMARY ACTIVITIES



PRIMARY ACTIVITIES

• After sales services:Providing better services after sale of policy product.

Developed call center services.



SWOT ANALYSIS

STRENGTHPioneer in introducing

innovative concepts in theIndian health Insurancesector.

Market leadershipDiversified product

portfolio

WEAKNESSCharge a high premium

amount as compared to otherplayers in the market.

Poor customer service.

OPPORTUNITIESTarget youth.Provide NRI service.Use multi-channel

approach.

THREATSMajor 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 inlast few years.

Has got one of the largestdistribution network to reach thecustomers across the country withmore than 2 lakhs agents, 900offices, 200 corporate agents etc.

WEAKNESS

They have to compete with GOVTplayers.

They apparently have weak customer relation management.

OPPORTUNITIESLarge untapped marketDistinguishable product

THREATSPresence 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 FINANCIALSTATEMENTICICI LOMBARD AND BAJAJ ALLIANZ



ICICI LOMBARD• The operational profit ratio upto the year end of

March 31 2011 was 3% and it has been increasesto 16% in six months.

• Liquid assets to liability ratio was constant uptothe year ended 31 March 2011 till for the sixmonth ended 31 March 2011.

• Return on net worth upto the year march 2011 was 4% which was increase to 11% in next sixmonths.



BAJAJ ALLIANZ• Operational profit ratio for the March 31 /2011 was 15% but in quarter period of time it wasnegative i.e -21%

• Liquid assets to liabilities ratio for the yearended 31 March was 33% and within quarterended it was become 36%.

• Return on net worth ratio for the year ended 31March 2011 was 5%, next quarter ended it was -7%.



• The total sources of funds for ICICI Lombard asat 31 March 2011 was 194,399 ( in lakh ) which

has decreases to 190,651 (in lakh) as at 31March 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 frominvestment, 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 anddecreases 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 softwareincluding language enabled customized services.To collaborate with various (CBHI) Community Based HealthInsurances and other initiatives of (GOI) Government of India.



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