Apollo Munich Health Insurance Commerce Essay

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Apollo Munich Health Insurance Co. Ltd. is the new name for Apollo DKV Insurance Co. Ltd. The new name was officially announced today as the company embarks on the new re-branding exercise after receiving the required shareholder and regulatory approvals to change its name. The announcement of the 'Apollo Munich' name is a significant milestone as the company is set to scale it's business to garner a sizable share of the growing market forhealth insurance. Headquartered in Gurgaon with an expanding national presence, Apollo Munich 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.

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 health. The new brand will come to stand for partnership, excellence and clarity from a company that is the expert in both health and insurance.

The company's name change comes at a time when the health industry sector in the country is growing at an aggressive pace and Apollo Munich has set out to provide innovative health insurance products to address "preventive" needs and not merely focus on "curative" needs. Apollo Munich is 74:26 joint-ventures between Apollo Hospitals Group and Germany-based Munich Re's newest business segment Munich Health, which came into being following the re-organization of business. DKV is also part of Munich Re of Germany.

Munich Health draws on Munich Re's insurance and reinsurance competence with over 5,000 employees and clients in more than 40 countries. Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2008, the Group - which pursues an integrated business model consisting of insurance and reinsurance - achieved a profit of €1.5bn on premium income of around €38bn. It operates in all lines of insurance, with around 44,000 employees throughout the world.


To be the trusted leader in health insurance by providing innovative solutions to the citizens of India.


ü Constantly introduce innovative Health Insurance and Wellness solutions that meet customer needs.

ü Build an organization on the principles of transparency, trust and integrity.

ü Create opportunities for our employees to learn and grow in an enjoyable work culture.

ü Constantly deliver on our commitments to all the stakeholders.


Apollo Munich has robust plans to expand its branch network, double the number of policy selling agents and increase the company headcount in its aim to achieve a market penetration of 5% of the retail health insurance market by 2013-14.

With a 60% growth in the financial year 2007-08 and a market share of Rs. 5100 crores, health insurance is touted as the fastest growing segment in non-life insurance sector in India in the recent years.

Zooming out the view to gain a broader vista we find juxtaposed the World Bank report stating that there is only a dismal 10% penetration of health insurance among the Indian population and 24% of all hospitalized people are impoverished to below poverty line, each year.

Overall, Indian health sector is still characterized by near absence of significant risk protection against major healthcare related expenditure ensuring that that large proportion of people, especially those in the bottom four income quintiles borrow money or sell assets towards meeting this end.

In India, health care is financed through general tax revenue, community financing, out of pocket payment and social and private health insurance schemes. According to National Health Accounts published by NCMH, India spends around 4.9% GDP on health making the per capita total expenditure on health US$ 23, of which the per capita Government expenditure on health is US$ 4. Hence, it is seen that the total health expenditure is around 5% of GDP, with breakdown of public expenditure (0.9%); private expenditure (4.0%). The private expenditure can be further classified as out-of-pocket (OOP) expenditure (3.6%) and employees/community financing (0.4%). It is thus evident that public health investment has been comparatively low.

Nevertheless, governments at the centre as well as many states have started large scale health insurance programmed to protect their vulnerable groups from health related financial Crises.

Service Marketing Environment

The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'micro-environment' and the 'internal environment'.

The micro-environment

This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence.

The macro-environment

This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology.

SWOT analysis

SWOT analysis is the analysis of the internal and external factors, which Have impact on the survival of any organization. Now let's make SWOT analysis for Apollo Munich Health Insurance.


1) Apollo Munich Health Insurance is the part of the Apollo Munich.
2) The brand name is enough to sell the products easily.
3) Strong liquidity from FII (Foreign Institutional Investor) was the major reason for the up move.
4) Range of products
5) Apollo has a long and strong history of solvency, financial stability.


1) Newly established company, so people seems it risky.
2) Lack of staff.
3) Lack of advertisement, so most of the customers are not aware of the Apollo Munich Health Insurance.


1) There is a vast untapped market in India. The Health insurance penetration in India is approximately 2.5%. So it has large potential.
2) Intention of traditional products is to encourage long term, regular and disciplined savings to systematically build up a target fund.
3) The average insurance premium being collected by the company has been growing exponentially year on year.


1) The main threat is from the other players who have grabbed approximately 15% of the market share.
2) As the government has scrapped the rebate on the Health insurance premium, the people who used to invest in Health insurance for the sole motive of tax benefit.

PEST Analysis

Political Factors

ü Increased service tax on premium
ü 5% discount on corporate premium
ü Hike in FDI limit
ü Pricing control in general insurance
ü Favorable regulation for rural insurance

Economic Factors

ü Increase in Gross Domestic Savings

Social Factors

ü Low insurance coverage
ü Rise in elderly population
ü Changing Indian perception
ü Growth of Islamic insurance
ü Increase in lifestyle diseases

Technological Factors

ü Automation of processes
ü Increase in CRM solutions
ü Internet driven information era
ü Business Process Monitoring (BPM)


The services marketing mix is an extension of the 4-Ps framework. The essential elements of product, promotion, price and place remain but three additional variables - people, physical evidence and process - are included to 7-Ps mix. The need for the extension is due to the high degree of direct contact between the CE providers and the customers, the highly visible nature of the service process, and the simultaneity of the production and consumption. While it is possible to discuss people, physical evidence and process within the original-Ps framework (for example people can be considered part of the product offering) the extension allows a more thorough analysis of the marketing ingredients necessary for successful services marketing.

The marketing mix is the combination of marketing activities that an organization engages in so as to best meet the needs of its targeted market. The Insurance business deals in selling services and therefore due weight age in the formation of marketing mix for the Insurance business is needed. The marketing mix includes sub-mixes of the 7 P's of marketing i.e. the product, its price, place, promotion, people, process & physical attraction. The above mentioned 7 P's can be used for marketing of Insurance products, in the following manner:


A product means what we produce. If we produce goods, it means tangible product and when we produce or generate services, it means intangible service product. A product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore services are their product. The development of flexible products to suit individual requirements is what will differentiate the winners from the also-rans. The key to success is in providing insurance solutions, not standardized insurance products. The concept of riders/optional benefits has already been a huge innovation brought about by the new players, which has led to customization of products for individual needs. However, companies may differentiate themselves on the basis of product segments that they choose to focus on and excel in.

Apollo Munich Health Insurance Co. Ltd has the following options in healthcare insurance products for the benefit of Indian consumers namely:-

a) Easy Health Standard

b) Easy Health Exclusive

c)Easy Health Premium

these products are available on individual basis as well as floater policy.


In the insurance business the pricing decisions are concerned with:

I) the premium charged against the policies,

II) Interest charged for defaulting the payment of premium and credit facility,

III) Commission charged for underwriting and consultancy activities.

With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. In a developing country like India where the disposable income in the hands of prospects is low, the pricing decision also governs the transformation of potential policyholders into actual policyholders. The strategies may be high or low pricing keeping in view the level or standard of customers or the policyholders. The pricing in insurance is in the form of premium rates. The three main factors used for determining the premium rates under a Health insurance plan are mortality, expense and interest. The premium rates are revised if there are any significant changes in any of these factors.

Price is a relevant differentiator only in two segments - pure term insurance and in pure annuities. Here too, service delivery and financial strength will need to be present at a minimum acceptable level for price to be a relevant differentiator. In case of savings oriented products, long term returns generated will be more relevant than just the price of the product. A focus on generating good investment performance and keeping a tight control on costs will help in generating good long-term maturity value for customers. Norms have been laid down on all of these by IRDA and adhering to these while delivering good returns will be a challenge.


This component of the marketing mix is related to two important facets -

I) Managing the insurance person nel, and

II) Locating a branch. The management of agents and insurance person nel is found significant with the viewpoint of maintaining the norms for offering the services.

This is also to process the services to the end user in such a way that a gap between the services- promised and services - offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem. The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence of the person nel. The agents and the rural career agents acting as a link, lack professionalism.

The front-line staff and the branch managers also are found not assigning due weight age to the degeneration process. The insurance person nel if not managed properly would make all efforts insensitive. Even if the policy makers make provision for the quality up gradation, the promised services hardly reach to the end users.


The insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy is very high and the rural economy has dominance in the national economy. It is essential to have both person al and imperson al promotion strategies. In promoting insurance business, the agents and the rural career agents play an important role.

Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch managers and front line staff. They also have to be given proper training in order to create impulse buying. Advertising and Publicity, organization of conferences and seminars, incentive to policyholders are imperson al communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through the mobile publicity van units would be effective in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders.

The level of demand is latent and will have to be activated considerably. The market needs to be developed. Greater awareness of insurance and the need to have it as a protection tool rather than as a tax planning measure needs to be appreciated by the Indian people. Various communication tools including advertising, direct marketing and road shows will contribute to all this and different companies will take different approaches on these.


Understanding the customer better allows designing appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. Training the employees, use of IT for efficiency, both at the staff and agent level, is one of the important areas to look into.


The process should be customer friendly in insurance industry. The speed and accuracy of payment is of great importance. The processing method should be easy and convenient to the customers. Installment schemes should be streamlined to cater to the ever growing demands of the customers. IT & Data Warehousing will smoothen the process flow. IT will help in servicing large no. of customers efficiently and bring down overheads. Technology can either complement or supplement the channels of distribution cost effectively. It can also help to improve customer service levels. The use of data warehousing management and mining will help to find out the profitability and potential of various customers product segments.


Distribution is a key determinant of success for all insurance companies. Today, the nationalized insurers have a large reach and presence in India. Building a distribution network is very expensive and time consuming. If the insurers are willing to take advantage of India's large population and reach a profitable mass of customers, then new distribution avenues and alliances will be necessary.

Initially insurance was looked upon as a complex product with a high advice and service component. Buyers prefer a face-to-face interaction and they place a high premium on brand names and reliability. As the awareness increases, the product becomes simpler and they become off-the-shelf commodity products. Today, various intermediaries, not necessarily insurance companies, are selling insurance .Another innovative distribution channel that could be used are the non-financial organizations. For an example, insurance for consumer items like fridge and TV can be offered at the point of sale. This increases the likelihood of insurance sales. Alliances with manufacturers or retailers of consumer goods will be possible and insurance can be one of the various incentives offered.



A market is composed of different users having different responses to market offerings. This makes it essential that hospital organizations, especially for making a microscopic study of users' needs and requirement, make possible grouping of markets. The marketing strategy formulated on the basis for segmenting the market is income. To some extent regional considerations may also be adopted as a base for segmenting the market. The below is the segmentation on the basis of regional consideration:

Another important base for segmenting Insurance services may be income group. This helps Insurance organizations in identifying the status of the users of services. It is essential as the marketing principles recommend different pricing strategies on the basis of level of income.

Customer Requirements& Customer Expectations


The customer requirements delineate, in detail, what the customer needs and how the project will serve those needs. Requirements represent a detailed breakdown of the customer's expectations for the project, as well as how the project organization will serve those requirements. Requirements documentation provides long-term guidance for development of the work breakdown structure (WBS) and support for the customer and the project organization as they work toward concurrence on what the project needs to achieve. The customer requirements document serves as an ongoing reference as to what elements of project work are either in scope or out of scope, and in some cases, provides insight into the degree of importance of some elements of scope.


Depending on the nature of the document (functional or technical), it will have radically different applications. The functional requirements document addresses the needs of the customer as expressed in terms of performance. The technical requirements document addresses how those needs are to be met. The functional requirements document is outlined in terms of performance, capability, and customer expectations. The technical requirements document is also outlined in those terms, coupled with the technical response about how those needs will be served.

Because of the unique nature of projects, project requirements documents may look different, even when they are generated by the same organization.


Some organizations use the project requirements documentation as a catch-all tool for every issue from project risk to change control. Because the term requirements reach across the breadth of the project, such applications are not unreasonable. Although the requirements document may capture a wide range of issues, however, it should focus on the needs that much be met to ensure project success.


In building the project requirements document, managers may be tempted to fill in every field, even when the information is not yet available. If information is lacking for a particular component of the template, it is prudent to document such information as “currently unavailable,” rather than filling the void with guesswork. If guesses are mixed with the validated project information, it becomes challenging to discern which information is real and current and which is the author's best guess.

Encourage Customer Complaints

One public agency found that three quarters of its customers had no idea who to talk to if they had a problem. Many customers think it's simply not worth the hassle to complain. They are skeptical that the organization will do anything or they may even fear retribution.

Best-in-business organizations actively encourage customer complaints. Some companies even refer to what they do to encourage complaints as "marketing" their complaint system. Companies make consumer service cards available at the place of business. Many solicit feedback wherever they post or publish customer service standards, on all correspondence, on bills, and in the telephone directory. Some offer discount coupons to encourage customer feedback. Many publish information on how they can be contacted in more than one language. They publish 1-800 and other numbers for the company where consumers are most likely to see them, e.g., on the product packaging. Companies also market their complaint handling systems during conferences and meetings, in annual reports, newspapers, association circulars, videos, audio tapes, letters, press releases, speeches, and training sessions and via electronic mail.

Seek to Delight Their Customers

The benchmarking partners often use the phrase "delight the customer" and go out of their way to exceed expectations. Often this means a compassionate ear. An insurance company has a special team that deals with the needs of grieving spouses. Companies give front-line employees the authority to award customers who have complaints with products, coupons, or even cash when it is necessary to resolve a complaint. Even public sector employees are able to give certain products and services to customers with complaints. For example, the U.S. Postal Service can give up to Rs20 in stamps when it is appropriate. One service company sets no limits on the front-line employees' authority but tracks company norms for what it takes to resolve particular types of problems. Team leaders look at and discuss variances from these norms. Additionally, employees share ideas for ways to resolve complaints creatively within or below company norms.

Understand Customer Expectations

These organizations demonstrate a commitment to understanding the customer's perspective. Most of the benchmarking partners send surveys to customers who have complained recently to see how satisfied they were with how the complaint was handled. Some call the customers to determine satisfaction. One organization surveys every fourth customer with a complaint. Another described complaints as "free information" about their customers' needs and expectations.

These organizations supplement surveys of people who complain with routine and often extensive data collection tools in order to understand their customers. Customers are surveyed to determine their level of satisfaction with existing services. Surveys are sent with questions, often in a Likert Scale format where the customer can select the degree of satisfaction on a scale, e.g., from one to five. These surveys assess customer satisfaction with existing services, delivery of services, helpfulness of employees, and overall performance of the organization. Some companies add a few short questions to the end of customer calls or correspondence. Companies also survey their front-line employees for their attitudes as well as for their ideas for improved service, asking their employees to take the customer's perspective. After the nearby community complained about noise levels, the Red River Army Depot changed the times they detonated ammunition and put "listeners" (members of the community) at check-points throughout the surrounding area to monitor noise levels. The partners focus on clear customer target groups. One company that serves a wide variety of customers decided to focus on its high-volume business customers. Three months after a high-volume business customer has complained, the company follows up to find out whether they are still using their services and, if not, the reasons for dissatisfaction. In addition, the company routinely solicits feedback before, during, and after service. It conducts focus groups and has established a Customer Advisory Council to drive decisions related to this key target group.

Manage Customer Expectations

These organizations do not wait for complaints to come in the door. They try to anticipate the needs and problems of customers and to set realistic expectations through customer education and communication strategies. Research shows that 40 percent of complaints come from customers having inadequate information about a product or a service. Using customer feedback to understand customer expectations and needs, organizations educate their customers and/or the public on what they can expect from their products and services and what obligations and responsibilities their customers have. For example, one enforcement/ regulatory partner has extensive education on the requirements and reasons for utilizing their services.

Maintaining quality CONCERN

n Quality Control Procedures

Measure Outcomes

Measure Processes

n Controlling Quality through the Supply Chain


Distributed Delivery Network

n Enhancing the Operational Design Through Feedback

Properly measuring customer perceptions

Gap Model of Service Quality

Gap 1: Not Knowing What Customers Expect Company Perception of Customer Expectations - Actual

Gap 2: Not Selecting the Right Design Standards Service Design Standards - Company Perception of Customer Expectations

Gap 3: Not Delivering to Service Standards:

The Operations Gap

Actual Service Performance - Standards

Gap 4: Not Matching Performance to Promises

Actual Service Performance - Promised Performance

Gap 5: Customer Perceptions - Customer Expectations


The goal of service recovery is to identify customers with issues and then to address those issues to the customers' satisfaction to promote customer retention. However, service recovery doesn't just happen. It is a systematic business process that must be designed properly and implemented in an organization. Perhaps more importantly, the organizational culture must be supportive of idea that customers are important and their voice has value.

Research has shown that customers who have had a service failure resolved quickly and properly are more loyal to a company than are customers who have never had a service failure -- significantly more loyal. Service Recovery practices are a critical element in a Customer Loyalty Program.

One way to think about service recovery is that it is a positive approach to complaint handling. Complaint handling has serious negative connotations; whereas, service recovery has positive connotations. Complaint handling is placating people, minimizing a negative. Service recovery practices are a means to achieve the potential, latent value a customer holds for a company by fostering an ongoing positive relationship.

Service recovery has a secondary value. It creates positive word-of-mouth about your company and minimizes the bad spin that lack of service recovery practices can create.

ü Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector.

ü Increase our market share in India's expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service.

ü Maintain our current high standards for asset quality through disciplined credit risk management.

ü Continue to develop products and services that reduce our cost of funds.

ü Focus on high earnings growth with low volatility.


A blueprint is a type of paper-based reproduction usually of a technical drawing, documenting an Architecture or an engineering design. More generally, the term "blueprint" has come to be used to refer to any detailed plan.

Drafting Positioning Maps

Services can be classified into one of three operational positions: cost efficiency, service quality, and customization. Cost efficiency is an operational approach for a service that emphasizes industrialization procedures to reduce capital investment, labor, and operating costs. Customization is an operational approach where the service is designed to meet a customer's particular need. Service quality is an operational approach that emphasizes a superior level of service quality. The design of the service operation will vary depending on which position the firm wishes to emphasize. The service firms have the option of positioning its services ant any of these operational positions. A useful tool for managers is the position map. Let's analyze the position map of APOLLO MUNICH Health Insurance

Cost efficiency

Service Quality Customization

LIC Bajaj Allianz Kotak Reliance ICICI DLF SBI Max New York

Apollo Munich Health is a large insurance company. There is no funding from ministry of IRDA, Govt. of India. The policy holders are only source of revenues. Apollo Munich offers a large number of innovative products at affordable prices. Therefore Apollo Munich Insurance has placed itself more towards differentiation than focus.


The service is designed around a customer helping self with the service .The role of service employees is limited. Customer performs most of the activities, either on their own or with a little help from the provider. Examples are cinema halls, gymnasium and self service restaurants etc. The service provider must plan the facility exclusively with the customer in mind. The facility design can attempt to position it for the desired market segment, by making the facility pleasing and appropriate to use for them. A gym layout and design and design (choice of equipment) conveys the segment of population that is targeted - slimming enthusiasts, body shapers, sportsperson s, business executives and housewives or the youth.


When a service encounter requires a close interaction between the customers and provide the service escape must be facilitate this interaction. An interpersonal al service escape is appropriate. Hotels, hospitals, schools and banks are examples of this type of service escapes, they must be designed to attract, satisfy and facilitate the activities of both conducive to the interaction between the two.


There are service settings where there is little or no customer involvement in the servicescape. Telecommunications, insurance and call centres etc., are examples of remote encounters. These use remote servicescapes. They are back office .The place has to be designed to keep employees' motivation and morale high. The servicescape should premeditate ergonomically to facilitate teamwork, supervision and operational efficiency.

Roles of Servicescape

A servicescape is not a passive setting it plays an important role in service transactions. An evaluation of the roles they have in service encounters will reveal how important it is to design an appropriate servicescape. A servicescape plays four important roles.


Servicescapes ‘package' the service offer and communicate an image to the customers of what they are going to get. It is the corporeal manifestation of the service idea for interest groups to form a shared appreciation-ma perceptible metaphor for an intangible service. They are predetermined to render an intended image to the service concept and evoke a particular sensory and emotional reaction that sets the stage for a germane experience that augments the efficacy of the offer. Appropriate servicescaping is a sure shot way to create an image that the service provider is seeking to put up. It also helps moderate customer expectation and reinforces his experience and reminiscences. Servicescape is an outward appearance of organization and thus can be critical in forming initial impressions or setting up customer expectation.


Another important job of servicescape is to act as an a facilitator in assisting both the customers and service employees to make most of the opportunity it should make the service consumption comfortable convenient for the customer. For employees it should be pleasant to conduct activities. This setting is designed can enhanced or inhibits the efficient flow of activities in the service setting making it easier or harder for customer and employee to accomplish their goals .


Design of servicescapes aids in socialization of both the customers and employees, conveying expected roles, behavior and relationship. Compare the servicescape of a public insurance company with that of a private insurance company. In a public insurance company a large part of the floor is marked as restricted, leaving little space in the form of an arrow aisle along the outer walls of the hall for customers. The message is clear -customer must not enter the restricted area, that is where the most important job of the bank, internal operations, is conducted and by entering that area, customers will be interfering with that task Whereas private insurance company approach customers with conviviability. The air conditioned lounge with comfortable seats and a cold water dispenser as you pass through a spotlessly clean glass door, makes customers feel welcome. They are allowed more space to move and occupying a seat across from executive's desks suggests those customers are indeed central to all activity. The service with public insurance company also suggests that customers have a formal -official relationship with public insurers, whereas service escapes in private banks encourage casual affable interactions.


With the layouts a customer can make out what kind of insurance company it is. Candle lit tables with smooth classical music and tables with clothes and pre-laid cutlery differentiates a restaurant from other with flour cent colors and pattern on the walls, blasting music, crowded with young boys and girls and motorcycles at the makeshift parking in front. Clearly the design of the servicescape differentiates one provider from its competitors, and hints at eth segment the services are targeted at. Companies adapt servicescape to reposition the services or identify new customer segments.

Employee & Customer role in service in Service Delivery

The company attributes its success to the contributions made by its employees. We believe that our strength is our people, so our Endeavour is to surpass their expectations and give them the best possible work environment and benefits that match the best in the industry.

Talent management initiatives in Apollo Munich Health Insurance are driven by a set of organizational core competencies as well as position-specific competencies. The competency set includes knowledge, skills, experience, and person al traits (demonstrated through defined behaviors) based on the bedrock of sharp vision and strong values of Apollo Munich Health Insurance.

Working wonders at Apollo Munich Health Insurance

Apollo Munich Health Insurance Company (AMHIC) has implemented a Workflow on Demand and Enterprise Retrieval System to improve customer service, reduce cost of operations, and have the flexibility to quickly launch new products.

There are 14 major private insurance companies pushing their products in the Indian market at present. With such competition it is clear that these companies need to position their products and services in a more impressive way. Apollo Munich Health Insurance Company (AMHIC) also experienced this competitive pressure and felt a need to retain its customers. Its processes were constrained by high turnaround and low efficiencies; lack of process monitoring, process control and tracking; and excessive paper work and manual operations.


Many businesses either have a need to deliver or have customers who need delivery service.

Examples are merchandise for handicapped or elderly people, phone-in orders and catalog store deliveries of merchandise that comes in several days after it is ordered.

Maintaining a delivery service can be very expensive for local merchants. They must have a truck, commercial insurance, pay and insure a driver -- expenses that may be out of the question for a small business. This is why some would be happy to contract or refer delivery chores. Even businesses that have their own services can never predict how busy they might be at any particular time and may need help with backlogs, especially during high sales seasons.


Brand building through corporate advertising, defined generally as advertising that benefits a company's image by emphasizing its own resources, skills and/or character. Many astute business people now recognize corporate brands as fundamental business assets, and have begun reaching out to customers, prospects, and the financial community by advertising those brands.

Brand building advertising is synonymous with product advertising and is commonly seen in traditional mass media, including TV, radio, magazine, and newspaper. Brand building advertisements tend to be product/service- (or retailer-) oriented with the purpose to establish a positive image and creating demand for a product or service that leads to eventual purchase. The communication route is typically one-to-many and is designed to reach a mass audience by using a tactic of at capturing the attention of users.


Market Price

Market value is a price paid for agents with similar experience in the same market for comparable services. The challenge is to discover the "true" market value. When starting out, most agents ask a few friends and colleagues what the "going rate" is for a particular type of service, and then they adjust the answers based on their own view of how they fit into this market.

While this approach may work for someone who truly has no concept of what to charge and must come up with a quote in a few hours, it is fraught with dangers. One that new agents seem to fear consistently is quoting a high rate and losing the business; they set a low fee they think they can get. Another problem is that some people assume they must set a low price for their services to break into a market. Then, they think, they can raise their prices when they are established. The difficulty is that they have put themselves into a niche and clients immediately start thinking of them as less qualified than their higher priced counterparts.

Another source of the problem may stem from a rather naive view of pricing. Some people assume that the old price/demand curve they saw in Economics 101 applies to all goods and services. In this model, the lower the price, the higher the demand, thus producing the familiar curve:

The pitfall with this model is that it assumes a perfect market in which both buyers and sellers are equally knowledgeable. All buyers know all sellers and agree on the value of each seller's services. Of course, that is where the model breaks down. There is no way for every buyer to know everyone providing a service; if you think it is possible for buyers to agree on the value of even one provider, try sitting on a committee whose job it is to select the carpet for a high rise condo building's lobby.

But this type of approach won't work for everyone. Dick's advantage was that he was an expert in a narrow field and knew many people who needed his special skills. He also had the nerve to set a high price and avoid a nervous giggle when stating it to a client.

So, the Market Price approach works well if the consultant has no idea what to charge and will accept any rough estimate or if he knows what the right market price is.

Cost Plus

One method for more experienced as well as for those just starting out is to base the fee on what he or she would earn as a staff employee. However, this approach fails to take into account costs the consultant incurs as a businessperson. To make a fair comparison, he or she needs to consider:


Unlike staff jobs, agents are not paid when they are not working. For example, the majority of employers pay their employees when they take time from the job to attend conventions, training programs, and meetings held during the day by professional associations (not to mention the time spent on the phone for non-billable calls, potty time, and long lunches with prospects). Unless an extremely generous (and perhaps unbalanced) client decides he will benefit by sending a consultant to a seminar, she pays for it herself. Not only must she pay the cost of attending the seminar, she must also pay for her time for attending.

Experienced agents estimate that, as a maximum, they can sell 1500 hours of their time a year (or 15-16 days a month). And that is in a good year. An average over several years is more likely to be 1200. For prudent calculating, financial planners recommend a base of 1000 hours a year. The rest of the time agents are:

Marketing Improving skills

Making copies researching clients

Buying supplies keeping records

Invoicing clients Worrying

But using the annual salary is a good place to start. For example, assume a reasonable salary in industry for senior people is Rs80, 000. Setting the salary means, with no expenses or benefits, a consultant must charge at least Rs80/hour just to offset the salary.
Delivering Service through Intermediaries

Apollo Munich Health Insurance intermediary delivers upon the dynamic needs of our clients. We secure broad coverage and solutions across all lines of business and types of reinsurance. Our primary and reinsurance professionals deliver creative financial as well as traditional broking capabilities. We act as advocates for our clients. Our teams are fully immersed in the reinsurance industry and the challenges and opportunities that companies face every day.
Managing waiting lines

Queuing theory is the mathematical study of waiting lines (or queues). The theory enables mathematical analysis of several related processes, including arriving at the (back of the) queue, waiting in the queue (essentially a storage process), and being served by the server(s) at the front of the queue. The theory permits the derivation and calculation of several performance measures including the average waiting time in the queue or the system, the expected number waiting or receiving service and the probability of encountering the system in certain states, such as empty, full, having an available server or having to wait a certain time to be served.

Queuing theory is generally considered a branch of operations research because the results are often used when making business decisions about the resources needed to provide service. It is applicable in a wide variety of situations that may be encountered in business, commerce, industry, healthcare public service and engineering. Applications are frequently encountered in customer service situations as well as transport and telecommunication. Queuing theory is directly applicable to intelligent transportation systems, call centers, PABXs, networks, telecommunications, server queuing, and mainframe computer queuing of telecommunications terminals, advanced telecommunications systems, and traffic flow.

A queuing discipline determines the manner in which the exchange handles calls from customers. It defines the way they will be served, the order in which they are served, and the way in which resources are divided between the customers. Here are details of four queuing disciplines:

First in first out

This principle states that customers are served one at a time and that the customer that has been waiting the longest is served first.

Last in first out

This principle also serves customers one at a time; however the customer with the shortest waiting time will be served first.

Processor sharing

Customers are served equally. Network capacity is shared between customers and they all effectively experience the same delay


Customers with high priority are served first.

Queuing is handled by control processes within exchanges, which can be modeled using state equations Queuing systems use a particular form of state equations known as Markov chains which model the system in each state Incoming traffic to these systems is modeled via a Poisson distribution and is subject to Erlang's queuing theory assumptions viz.

ü Pure-chance traffic - Call arrivals and departures are random and independent events.

ü Statistical equilibrium - Probabilities within the system do not change

ü Full availability - All incoming traffic can be routed to any other customer within the network.

ü Congestion is cleared as soon as servers are free


ü APOLLO Munich Health Insurance was grown a lot through its aggressive marketing strategies and the growth rate as tremendous, through it is growing faster it has to work on certain things and maintain the standard.

ü This can be done through introducing more innovative products and recruiting good quality advisors because they are the pillars of the company and it is the most valuable value added services that the company is having.

ü Therefore, the best company can do is giving the customer something, which is little bit different and better than its competitor. The company should also be successful in expressing the extra features, which is given to the customer.

ü The customer should feel that whatever company is giving is something great, and no one could ever imagine about it. This feeling makes the customer feel that company is very much satisfying them. In addition, the extra feature given to satisfying is something great.


ü www.apollomunichinsurance.com/

ü www.apollomunichinsurance.com/health-insurance-plans.aspx

ü www.linkedin.com/.../apollo-munich-health-insurance-company-ltd

ü www.munichhealth.com/en/about/activities/asia_pacific.aspx

ü www.scribd.com

ü healthinsuranceindia.blogspot.com/

ü mumbai.quikr.com/Health-Insurance-Sites-by-Apollo-Munich-W0QQAdIdZ65965382

ü sites.google.com/site/apollomunichhealthinsurance/