health insurance to the base of the pyramid

7/29/2019 HEALTH INSURANCE TO THE BASE OF THE PYRAMID

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HEALTH INSURANCE

TO THE BASE OF THEPYRAMID

Rural Marketing


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Health Insurance in India

6% of GDP is spent on health

Govt. share 2% and rest 4% by individuals

During 1980s general health insurance schemeswere launched, mainly service rich and uppermiddle class population

In 1999 insurance sector expanded to privatesectors so as to reduce cost of health cover andincreasing service quality

Regulatory body: IRDA 14 private players, 5 public sector undertaking

and 3 specialized companies


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Market

Indian health industry revenue INR 51,250m in

2008

Growth rate 37% between 2002-08

5% of population was covered under

insurance schemes

Majority of rural population and informal sector

were not covered


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Anand and Kheda

Vidyanagar- Student population- 40,000

Institutions- NDDB, AMUL, IRMA, AAU, SP

University

Vithal Udyognagar- ELECON, Several Mid

size engineering firms

Nadiad industries unorganised workers


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Health Facilities at Anand and

Kheda

Several trust Hospitals - Emery, Jakariya,Santram, MahaGujarat specialized services -

mostly it caters to the need of respective

communities Private Hospitals- provide specialized

services - affordability issue - affluent

members of society

Government Hospitals Subcentres, PHC,CHC shortage of specialists health

services substandard


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Shree Krishna Hospital

One of the largest and best equipped hospital

in Gujarat

Started in 1981 with 136 beds

New hospital with 550 beds constructed in

1990

Modern Health care facilities: ICU, trauma care

center, CT scan and host of other facilities


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Krupa Health Insurance

Scheme

Created in 2003

Aimed at providing modern health facilities and

BoP population

It was with the intention to use the

infrastructure better


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Continued

Annual or Lifetime membership

Insurance coverage varies from Rs 5000 to Rs100000

Premium varied depending on coverage andage of subscriber

Out patient services: free registration anddiscount on diagnostic & pharmacy services

In-patient services

Discount for students and others


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Total Members

2004-05 2005-06 2006-07 2007-08 2008-09

11611

14944

20121

32299

42994

Total members


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Profile of members

62%

30%

8%

KAS member profile

Villagers Students Employees


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93%

6% 1%

Members

Sum insured Rs 5000 Sum insured Rs 10000 Others


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Distribution of KAS members

K membership 10.24

Population% 0.33

41286 people/PHC

40 to 60 km

K membership 6.79

Population% 0.42

38462 people/PHC

20to 40 km

K membership 82%

Population% 1.93

47336 people/PHC


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KAS members

Out-patients 13 % KAS members

In-patients 14 % KAS members

Majority of out patients- came from radius of

15 km

Travel and other incidental expenses (patients

and attendants) low enrollment from distant

places


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Product Characteristics

Unsought Product

Target Customer: BOP population


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4 As of Marketing

Appropriateness

Accessibility

Affordability

Awareness


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Issues

Long term viability of scheme

Mainly dependent on donors contributions

Increase in administrative expenses over the

years

How to the make the scheme self sustainable


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Particulars 2006-07 2007-08 2008-09

Receipts

Subscription fees 2224749 3416710 4528681

Grants from donors 30100 101000 279118

Others 34791 28392 19000

Total receipts 2289640 3546102 4826799

Payments

Claims expenses 2296797 3507840 4977769

Promotional expenses 55600 58900 66000

Administrative & otherexpenses

234400 291907 475739

Total payments 2586797 3858647 5519508

Deficit in INR -297157 -312545 -692709

Deficit in % -11.49% -8.10% -12.55%

Per member subscription fee

110.57 105.78 105.33

Per member claims fee 114.15 108.61 115.78

Per member claim fees if donor

share is borne by members

115.65 111.73 122.27


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Particulars Age Group

3-18 19-45 46-60 61-70 71-75 Total

No. of persons withSuminsured Rs 5000 14044 19590 4492 1624 281 40031

Premium per Annum per

person in Rs80 90 135 250 350

3997390

Weighted Average premium per member: Rs 99.85 for sum insured Rs 5000

No of persons with Sum

insured Rs 10000393 1348 466 122 13 2342

Premium per Annum per

person in Rs155.00 178 265 490 96 485377

Weighted Average premium per member: Rs 207.24 for sum insured Rs 10000


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Way ahead

Increase in subscription fees for members with

sum insured up to Rs 5000

Increase in subscription of members with sum

insured Rs 10000 with in age group of 19-45years

Increasing subscription from industry and

institution employees Differential rates of premium for different

income categories


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Continued

Discounts can be offered to members from

distant areas

Discontinuation schemes like life time

membership and food grain subscription

Promotional expenses on advertising can be

cut down and more focus should on direct

selling

health insurance to the base of the pyramid

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