leap-alp group 6 project report 2 jun v3.2

© 2010 Birlasoft®

Inc. All rights reserved.

Birlasoft®

is a registered trademark of Birlasoft®

Inc.

ALP Report - Measuring Brand Building Blocks (ICICI Lombard)

Leap_ALP_Group_6Sponsor – Preeti Das

Anand AluruBichayan Chakrabarti

Harivansh MehtaNeelam GargPrashant Puri

Company Confidential

2

Table of Contents

1. Project objective and background

2. Project design and methodology

3. ICICI Lombard Brand proposition

4. Delivery effectiveness of brand proposition w.r.t. key stakeholders

5. Findings and recommendation

6. Project Challenges

7. Team Learning


3

Project Charter Project Objective / Goal

•To study branding strategy of “ICICI Lombard” and identify appropriate framework to

fuel growth

Problem Definition

•Today insurance healthcare industry environment is characterized by commodity

pricing, increasingly unprofitable policies, and new entrants making the market

saturated, hence insurance company executives are under increased pressure, not

only to maintain existing client relationships, but also to grasp a bigger piece of their

consumers' wallets. One way insurance companies are tackling the challenge is by

attempting to extend their product lines to include a host of financial service offerings

and then reinventing their brands to support this extension. Problem is

appropriateness of brand strategy to be successful in this highly competitive

environment

Scope

•Non-life, general, Health insurance – Individual & Family

•Including sudden illness, surgery, accidents, hospitalization due to physical,

psychological, occupational, environmental, lifestyle, travel related


4

Health Insurance in India #

•New and lucrative growth avenue

•One of the fastest growing and second largest non-life insurance segment in the

country

•Record growth in the last two fiscals (2008-09 and 2009-10)

•Premium is expected to grow at a compound annual growth rate (CAGR) of over 25%

for the period spanning from 2009-10 to 2013-14

Indian health insurance market still remains largely underpenetrated

because of various shortcomings:

•Low awareness or need statement

•Life policy sells health as a rider

•Non-coverage of out-patient care & existing diseases

•Inefficient cost management

•Product reach in rural areas

•Weak retail distribution model

•Low regulatory influence, chances of fraud

Industry background - India

# According to a latest research report "Booming Health Insurance in India" by research firm RNCOS released in Dec, 2010


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Introduction – ICICI Lombard

74:26 joint venture between ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited

Received regulatory approvals to commence general insurance business in August 2001

Largest health insurer in India First one to be ISO 9001:2000 certified Highest brand recall First company to provide digitally signed documents

through an online interface Achieved financial breakeven in first full year of operations Achieved underwriting breakeven in second year of

operations

Customer and Brand Loyalty Award

2011

Golden Peacock Innovation Award,

2011

Master Brand Award

2010


7

ICICI Lombard Financial Snapshot

Best of financial performance amongst competition


8

Project design and methodology

Secondary data source for better understanding

Evolution of Insurance Healthcare Market in India

Market size and Competition Landscape

Challenges of Insurance Healthcare Market

ICICI Lombard Service Portfolio

ICICI Lombard Point of Parity (PoP) & Point of Differentiation (PoD)

Measure of Brand Building Blocks – Primary Data Source

Survey design & Methodology

Target Population: Existing and prospective customers, Customers using competitor products and Customers in tier 1 and tier 2 cities

Sample size

Surveyed population Size: 150

42 respondents who completed the survey using random sampling method. Survey responses were analyzed using various variables

like awareness, usage level & overall satisfaction

Data Collection Method: Separate structured questionnaires created and used during survey covering aspects of Brand Perception, Competitive

positioning and customer orientation. The questionnaire was conceived in such a way that the questions as well as the answers were standardized.

Project Report Compilation

SWOT analysis and recommendation


9

Plan and Status

Target Dates of Key Milestones

Phase Effort Start Date

End Date Responsibility

Status

1. Kick-off 1 Day 15-Nov-2010 25-Nov-2010 Prashant, Digant & Preeti

Closed

2. Literature Survey 8 Days 16-Dec-2010 26-Dec-2010 Prashant, Anand A, Neelam, Harivansh

Closed

3. Understanding of ICICI Lombard org with sponsor

10 Days 20-Dec-2010 7-Jan-2011 Bichayan, Digant, Prashant, Neelam

Discussed with Preeti

4. Questionnaire Design 10 Days 28-Dec-2011 12-Jan-2011 Digant, Prashant, Bichayan, Anand A, Harivansh

Closed

5. Conduct Survey 29 Days 08-Mar-2011 18-Apr-2011 Neelam, Harivansh, Prashant, Anand, Bichayan

Closed

6 Analyze Results 10 Days 03-May-2011 14-May-2011 Neelam, Harivansh, Prashant, Anand, Bichayan

Closed

7. Report Consolidation 13 Days 16-May-2011 31-May-2011 Neelam, Anand A, Harivansh, Bichayan, Prashant

Closed

8. Final Presentation & Reporting

5 Days 27-May-2011 02-Jun-2011 Bichayan, Neelam, Prashant, Anand & Harivansh

Sharing with ICICI following legal validation6 months duration and 110 PDs of effort for 5 member team


10

ICICI Lombard Brand proposition

1. Brand related

Innovative Product Design

Innovation in distribution

Aggressive sales closure

2. Customer Orientation

Simple and fast documentation

Lightning fast claims settlement

Instant online policy issuanceService focus on TAT

Highest security level offered through 128-bit encryption in case of online data exchange

3. Competitive positioning

IT enablement

High ICRAA ratings

Comprehensive product line

Willingness to insure One off transactional needs

Value for money – wrt higher premium

Divided into 3 main categories

#CII, Websites and ICRA ref

© 2010 Birlasoft®


Birlasoft®


Inc.

Brand’s delivery effectiveness

Survey finding


12

Recall and differentiating factor

Brand Recall of the ICICI Brand as a provider

of Health Insurance services

Associate ICICI Lombard as novelty brand in

the Health Insurance space

Our survey findings indicate that the ICICI Brand is well recognized and has

High recall factor.

The 38% of survey respondents indicates that it perceives the Health

Insurance services offered by ICICI Lombard of delivers novelty value and

fits into their desired requirements.

The Hindustan Times Survey on Health Insurance Providers India 2011 indicates ICICI

Lombard as the fastest in disbursement of claims


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Does the ICICI Lombard Brand Deliver on

promised Value

Delivery vis-à-vis promise

Do you Trust the ICICI Lombard Brand for

Health Insurance Services

Over 36% of survey respondents agree that that the ICICI Lombard Health

Insurance Brand always delivers on promised value.

44% of survey respondents feel the that the brand mostly delivers on promised

brand value.

However a minor none the less a significant 15% of the surveyed

respondents felt that ICICI Lombard services left them wanting on value

derived.

• A significant 44% of the surveyed respondents indicated that they trusted the

ICICI Lombard Brand and felt confident in investing on its offered services.

• 27% of the surveyed respondents indicated they were undecided or not

completely sure of their trust on ICICI Lombard brand to deliver on its

promise.

• 18% of the surveyed respondents indicated no trust at all.

This contradicts the overall high customer satisfaction score which ICICI

Lombard enjoys in terms of claims settlement among other Insurance Service

providers as per the Times-MaRS Survey of best medical Insurers in India 2011.


14

Reference

Does online access of ICICI Lombard services help in

enhancing you brand experience

I would recommend the ICICI Lombard services to

othersOver 60% survey respondents indicated that they would readily recommend ICICI Lombard

services to friends and family.

This is line with the previous finding of a good delivery on Value and trust on the ICICI Lombard

Brand indicated by the surveyed respondents.

Being the first company to offer online insurance healthcare services for its users in India.

Our Survey also indicates that 60% of the survey respondents acknowledge that online access

to ICICI Lombard services has helped enhance their opinion and experience of the ICICI

Lombard Health Insurance brand .

© 2010 Birlasoft®


Birlasoft®


Inc.

Customer orientation

Survey finding


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Customer Perception

Awareness and association:

Birlasoft survey suggests that around 41 % of the respondents are not aware and cannot

associate with ICICI Lombard insurance brand.

Opportunity: Company can concentrate to increase the awareness through major

promotional tool like television, hoardings and print media.

Reliability and Serviceability:

84% of respondents perceive ICICI brand as a reliable and durable brand. The company has

managed to built high levels of customer loyalty and advocacy in relatively short period of

time by speedy cashless hospitalization and disbursement of claims, dedicated personal for

both sales and customer service, Insurance portfolio analysis and risk advisory services.

ICICI Lombard was rated the best in the area of customer satisfaction by the HT-Mars

survey. Speedy disbursement of claims has been their USP


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Customer loyalty and association

Customer Connect and association:

Around 73% respondents have had positive and pleasant association with the company and its personal.

They feel that the relationship managers they interact with are courteous and helpful. The company in

general has customer interest in mind and cares about their opinion.

However as per the HT-Mars survey the health insurance companies do not exhibit high differentials from

each other on customer satisfaction . Overall satisfaction levels of customers are not very high. Company

needs to focus more on serving the customer to achieve distinction among its peers

Product Profile:

Around 79% respondents feel that the company has a product portfolio to suit all

customer segments.

The edge that ICICI has on its customers is its unique set of products like weather

insurance, travel insurance, Loan care etc

© 2010 Birlasoft®


Birlasoft®


Inc.

Competitive positioning

Survey finding


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Growth PotentialHealthcare Insurance poised to grow at CAGR of 25% for next 4-5 yearsICICI Lombard well placed both in fiscal performance and CSATChallenge being perceived as high premium player

Threats Industry seeing too many players entering.Cost of picking business going up making huge stress on profitabilityFurther liberalization expected to bring direct FDI and pressure on fiscal health.Consolidation of players also expected

OpportunitiesICICI Lombard brand perceived very well by cross section of demographyThe spend pie expected to grow since penetration levels very low compared to western economiesRural segment with irregular premium models can bring larger audience in – micro insurance industry

Competitive Landscape – Research Findings

None at all Largely No Response Trivial Mostly Some

2.7 3.83 4.57.1

1316.3

To what extent you are likely to use other brands in similar situation?

No clear brand affection by survey respondents


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Market Survey on Brand – Performance

748

750

752

754

756

758

760

762

Reliance Gen

Insurance

New India Assurance

Tata Aig Star Health & Allied

ICICI Lombard

Policy Issuance

744746748750752754756758760762

Reliance Gen

Insurance

New India Assurance

Tata AIG National Insurance

ICICI Lombard

Product Enquiry

735

740

745

750

755

760

New India Assurance

Bajaj Allianz

National Insurance

ICICI Lombard

Tata AIG

Renewal

725

730

735

740

745

750

755

760

Reliance Gen Insurance

National Insurance

ICICI Lombard

Tata AIG Star Health & Allied

Transparency

*HT

Mar

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urve

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ar,2

011

top

five

At score of 760

ICCI Lombard is running neck

to neck with Star Health

At score of 760

ICCI Lombard leading

its competitors on

product enquiries

At score of 755

ICCI Lombard lags

behind TATA AIG

on policy renewals

At score of 748

ICCI Lombard lags

behind TATA AIG and

Star Health on policy

contract transparency

Scoring out of 1000 from on a sample size: 2074 policy holders across different cities, socio economic groups

© 2010 Birlasoft®


Birlasoft®


Inc.

Recommendation


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Strength• Visible brand, aggressive marketer, city presence, novelty factor, speedy disbursement,

recognition–recall-trust factor

• All type of customer covered

• Trained staff and reliable work environment

• Customer oriented approach and system, quick follow up system for its prospects

• Strong parent brand - leverage ATMs as brand building model - acts as a brand terminal

Weaknesses • Expectation high in execution and also from ICICI

• Privately driven company and people relying on companies which are in

association or wholly governed by any govt. organization like National

Insurance

Opportunity • Overall CAGR of 25% for market

• Rural cover , innovative product for growth market, huge untapped market,

• Good reputation among the audience due to its high yearly returns and market share – can

build on this

• Govt priority to make healthcare mandatory for all – will increase market size

• weak competition – 2 viable challengers (Tata AIG, Star)

• Client cross sell Prudential and Lombard within ICICI

Threat • Commodity service – less chance to create differentiation

• Partner Lombard – low visibility in India

• Potential of high growth will attract biggies like Reliance, Tata and Bharti,

• High level of involvement of government in Healthcare sector (SBI may

enter)

• Other regulatory threats may come in near future following global trends

Key Findings and SWOT


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Recommendation

Divide the branding initiative in 3 distinct categories1. Market Building

Bring more and more individuals and income groups within insurance ambit by imparting financial/insurance literacy covering both rural and urban customer base

Incentivizing Indian households to transfer savings from physical assets to financial assets and taking the distribution network to rural areas

Utilizing ICICI brand to offer one stop investment and insurance solutions for greater penetration

2. Product branding Enhance Brand Value through product customization, product innovation Products and services customized for rural markets Products and services customized to cater to senior citizens Enhanced Health Insurance products to cover –Preventive care, OPD, Digonistics,

pre-existing illness etc..

3. CSR – Image building Spend some percentage of earning (~1%) to build healthcare facilities for terminal

diseases, child care, old age homes

Channel development Increase its focus on the retention of channel partners as well as improve channel

productivity Tightening the belt by leveraging technology and exploring alternate low-cost channels

ICICI Lombard needs to further enhance this by enabling mobile based solutions, direct sales targeted to the rural and semi urban market

From current regional TPA to effective use of TPA channel - both can get value of co-branding in a larger scale


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Recommendation contd.

Communication media usage

Rural, far reaching and low volume – social media, ATM, technology usage, tie up with microfinance companies

Company can concentrate to increase the awareness through major promotional tool like television, hoardings and print media –

currently competition is more visible

Customer orientation

Company needs to be more transparent in designing the contract wording and consciously keeping the customer sufficiently

informed about the coverage and exclusions in particular

Company needs to focus more on serving the customer to achieve distinction among its peers by focusing on streamlining their

cancellation and refund processes

© 2010 Birlasoft®


Birlasoft®


Inc.

Project feedback


26

Challenges

Understanding the objective of ALP and its context with LEAP, took some time

Limited knowledge of insurance domain within the team

Loosing a team leader that had an impact on the continuity and team restructuring

Time commitment from team members owing to conflicting priorities and bandwidth challenges

Co-ordination challenges as the team is spread across different centers

Clarity on ALP execution methodology


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Key Learning

Building of a cohesive team where team is committed to a project and to each other

Development of leadership competency by working with a group over a complex problem with no obvious solutions

Understand how individuals perform and behave in different roles helping in effective deligation and follow-ups

Opportunities for self-reflection as well as supportive feedback from peers and seniors committed to helping us develop

Learning to reflect on what is urgent and important to us, and when our assumptions are challenged

Learning about insurance domain

Learn and apply skills like team building, conflict management, problem solving, coaching and change management while working on real life problem

Application of principles of assertive behavior and negotiation skills

Expand inner and external circle of influence – team made of cross functional individuals

Establishment of effective and mutually respectful working relationships within team members

Competency development among individuals and teams in problem-solving and decision-making

Enhanced capacity to reflect on and learn from collective experiences of the team

Competence development in preparing and presenting team recommendations to executive management

Staying in focus despite constant interruptions

Improved team communication techniques

Listening techniques that gain respect & motivate employees

thinking beyond obvious

Utilize project management methodologies


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Health insurance Product Portfolio

CHI-(Comprehensive Health Insurance)

No co-pay & No sub limits Floater Options to cover all

members of the family Convalescence Benefit of 10,000 Cashless at 4000+ hospitals with

growing network 30 day pre & 60 day post

hospitalisation expenses covered

Critical Care

Covers 9 Major Critical Illness+ PA (Death and PTD)

No survival clause. Payment on diagnosis

Policy Tenure of 1, 3 yrs and 5 yrs Sum Assured of 3, 6 lacs and 12

lacs

Health Advantage Plus – no health check upto 45

Tax Benefit in 80D

CHI coverage +OPD (Out Patient) Coverage

Dental coverage

Diagnostic coverage even without Hospitalisation

Pre existing diseases covered after 2 consecutive renewals.

Personal Accident

Covers Accidental Death & Permanent Total

Disability

Covers claims arising out of terrorism or acts of

terrorism

Sum Insured options of 3,5, 10, and 20 lacs


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Introduction

As we understand “BRAND” is recognized as one of the most valuable assets by many

organizations today.

A brand plays important role in simplifying consumer’s decision making process and aligning

one with

appropriate choices in a limited time. Creating strong brands that can deliver on the promise

and

enhance the strength of brand over time is a management imperative. This give us an

opportunity to understand what you think about “ICICI Lombard” as a brand vis-à-vis peers

and industry

and identify ideas for future improvements.

This is an close ended survey having 35 questions and can be divided broadly into three aspects

Branding ,

Competitive Advantage &

Customer orientation. 29%

17%

54%

Questioner Component

Branding

Competitive Landscape

Customer Orientation


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20 - 2526 - 3031- 3536 - 4041 - 4546 - 50

1 3 5 7 9 11 13 15 17 1920 - 25 26 - 30 31- 35 36 - 40 41 - 45 46 - 50

Se-ries1

2 14 19 8 3 1

Survey participants AGE Group

Survey Sample Demography

Total Started Survey: 45 Total Completed

Survey: 42 (87.5%)

56%44%

Survey respondent ratio

Male Female

Graduate Post Graduate

Series1 18 30

2.5

7.5

12.5

17.5

22.5

27.5

32.5

Qualification ratio

Single Married

Series1 8 40

2.57.5

12.517.522.527.532.537.542.5

Marital Status


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Customer Orientation – Concerns

How frequently do you think of this brand?

To what extent do you think it is a reliable and durable brand?

To what extent do you think your are easily serviced by this brand?

To what extent do you think providers of this brand are courteous and helpful?

To what extent do you this this brand is efficient in terms of service, responsiveness and so

forth?

To what extent do you think it is easy, assessable and buy at any time brand?

To what extent does thinking of the brand bring back pleasant memories?

To what extent do you feel you grew up with the brand?

To what extent does this brand fully satisfy product needs?

To what extent do the makers of this brand care about your opinion?

To what extent do the makers of this brand have your interest in mind?

To what extent this brand provides you feeling of fun?

To what extent this brand provides you feeling of excitement?

To what extent this brand provides you feeling of security?

To what extent this brand provides you feeling of social approval?

To what extent this brand provides you feeling of self respect?

To what extent do you feel interested learning more about this brand?

To what extent do you feel this brand has products that I need?

To what extent do you think this brand is more than a product to me?


33

Customer Orientation – Review

On an Average – 18.5% People says it ‘Mostly” Customer Oriented.

On an Average – 3.77% People says it ‘Not at all” Customer Oriented.

Some Mostly None at all Trivial No Response Largely

Series1 16.55 18.5 3.77 6.11 3.93 2.21

1

3

5

7

9

11

13

15

17

19

Average Result on ICIC Lombard - Customer Orien-tation

On a

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sponse


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Branding – Concerns

To what extent have you heard of ICICI Lombard brand?

To what extent do you think this brand is stylish?

To what extent do you like the look, feel and other design aspects of this

brand?

To what extent do people you admire and respect use this brand?

To what extent do you like people who use this brand?

To what extent do you think it is a good value brand?

To what extent do you trust the makers of this brand?

To what extent do you think you are likely to recommend this brand to others?

To what extent this brand provides you feeling of warmth?

To what extent do you feel to visit the website of this brand?


35

Branding – Review

On an Average – 13% People says it ‘Mostly” recommended as a Brand.

On an Average – 2.7% People says it ‘Not at all” a Brand.

Some Mostly None at all Trivial No Response Largely

Series1 16.3 13 2.7 7.1 4.5 3.83

1

3

5

7

9

11

13

15

17

Average Result on ICIC Lombard - Branding aspects

On a

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Competitive Landscape – Aspects

To what extent you are likely to use other brands in similar situation?

To what extent this brand has special features?

To what extent do the makers of this brand understand your needs?

To what extent does this brand offer advantages that other brands cannot?

To what extent do you feel belonging to exclusive club with others using this brand?

To what extent you would be interested to buy other merchandise with this brand

name?


37

On an Average – 13% People says it has ‘Mostly” competitive landscape w.r.t to others products.

On an Average – 2.7% People says it ‘Not at all” having competitive features w.r.t to others products.

Competitive Landscape – Review

None at all Largely No Response Trivial Mostly Some

Series1 2.7 3.83 4.5 7.1 13 16.3

1

3

5

7

9

11

13

15

17

Average Result on ICIC Lombard -Competitive Landscape

On a

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leap-alp group 6 project report 2 jun v3.2

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