ALP Report - Measuring Brand Building

Blocks (ICICI Lombard)

Leap_ALP_Group_6
Sponsor – Preeti Das
Anand Aluru
Bichayan Chakrabarti
Harivansh Mehta
Neelam Garg
Prashant Puri

© 2010 Birlasoft® Inc. All rights reserved.

1Birlasoft® is a registered trademark of Birlasoft® Inc.
Company Confidential
 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
8.
1.
2.

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 •To study branding strategy of “ICICI Lombard” and identify appropriate
Project Charter
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. Problemis appropriateness of brand strategy
to be successful in this highly competitive environment
§Scope
•Non-life, general, Health insurance – Individual & Family
3 •Including sudden illness, surgery, accidents, hospitalization due to
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 Health Insurance in India #
Industry background
•New and lucrative growth avenue
- India
•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)
•Premiumis expected to grow at a compound annual growth rate (CAGR)
of over 25% for the period spanning from2009-10 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
# According to a latest researchreach in rural
report "Boom areas
ing Health Insurance in India" by research firmRNCOS released in Dec,

•Weak retail distribution model 2010

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 5
Study sample : ICICI Lombard

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Market leader in Health Insurance in India
 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 Golden Peacock InnovationAward, Master BrandAward
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 ICICI Lombard Financial Snapshot

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Best of financial performance amongst competition
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 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

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 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 & Closed

Preeti

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

Neelam, Harivansh
3. Understanding of ICICI 10 Days 20-Dec-2010 7-Jan-2011 Bichayan, Digant, Discussed with
Lombard org with sponsor Prashant, Neelam Preeti

4. Questionnaire Design 10 Days 28-Dec-2011 12-Jan-2011 Digant, Prashant, Closed

Bichayan, Anand A,
Harivansh
5. Conduct Survey 29 Days 08-Mar-2011 18-Apr-2011 Neelam, Harivansh, Closed
Prashant, Anand,
Bichayan
6 Analyze Results 10 Days 03-May-2011 14-May-2011 Neelam, Harivansh, Closed
Prashant, Anand,
Bichayan
7. Report Consolidation 13 Days 16-May-2011 31-May-2011 Neelam, Anand A, Closed
Harivansh, Bichayan,
Prashant
8. Final Presentation & 5 Days 27-May-2011 02-Jun-2011 Bichayan, Neelam, Sharing with ICICI
Reporting Prashant, Anand & following legal
Harivansh validation

9 6 months duration and 110 PDs of effort for 5 member team

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 ICICI Lombard Brand proposition

Divided into 3 main categories

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

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#CII, Websites and ICRAref
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 Brand’s delivery effectiveness

Survey finding

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 Recall and differentiating factor

Brand Recall of the ICICI Brand as a

provider of Health Insurance services
Our survey findings indicate that the ICICI Brand is
well recognized and has High recall factor.

Associate ICICI Lombard as novelty brand in

The 38% of survey respondents indicates that it the Health Insurance space
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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 Delivery vis-à-vis promise

Does the ICICI Lombard Brand Deliver on

Over 36% of survey respondents agree that that the
promised Value 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 Do you Trust the ICICI Lombard Brand for
and felt confident in investing on its offered services.
Health Insurance 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-MaRSSurvey of best
medical Insurers in India 2011.
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 Reference

I would recommend the ICICI Lombard

Over 60% survey respondents indicated that they
services to others 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.

Does online access of ICICI Lombard

services help in enhancing you brand

Being the first company to offer online insurance experience

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 .

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 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

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 Competitive positioning

Survey finding

© 2010 Birlasoft® Inc. All rights reserved.

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 Competitive Landscape – Research Findings

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

•Growth Potential
•Healthcare Insurance poised to grow at CAGR of 25% for next 4-5 years
•ICICI Lombard well placed both in fiscal performance and CSAT

•Challenge being perceived as high premium player

•Threats
•Industry seeing too many players entering.
•Cost of picking business going up making huge stress on profitability

•Further liberalization expected to bring direct FDI and pressure on fiscal health.

•Consolidation of players also expected

•Opportunities
•ICICI Lombard brand perceived very well by cross section of demography

•The spend pie expected to grow since penetration levels very low compared to western economies

•Rural segment with irregular premium models can bring larger audience in – micro insurance industry

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No clear brand affection by survey respondents
 Market Survey on Brand – Performance
PolicyIssuance P
rod
uctE
nqu
iry
762
7
62
At score of 760
760 7
60 ICCI Lombard leading its competitors on
758 At score of 760 7
58 product enquiries
ICCI Lombard is running neck to neck 7
56
756 with Star Health 7
54
754 7
52
752 7
50
750 7
48
7
46

*HT Market survey Mar,2011 top five

748
Reliance NewIndia TataAig StarHealth ICICI 7
44
Gen Assurance &Allied Lombard Relia
nce NewIndia T
ataA
IG N ational ICICI
Insurance Gen Assura
nce Insura nce Lombard
Insurance

R
ene
w a
l
760
T
ranspa
rency
760
755 755
At score of 755 750
750 ICCI Lombard lags behind TATA AIG
on policy renewals 745
At score of 748
745 740 ICCI Lombard lags behind TATA AIG and Star Health on
735
policy contract transparency
740
730
735 725
NewIndia B ajaj N ational ICICI TataAIG RelianceGen National ICICI TataAIG StarHealth
Assurance Allianz Insurance Lombard Insurance Insurance Lombard &Allied

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

© 2010 Birlasoft® Inc. All rights reserved.

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 Key Findings and SWOT
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
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
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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
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
 Recommendation
§ Divide the branding initiative in 3 distinct categories
1. 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

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 Project feedback

© 2010 Birlasoft® Inc. All rights reserved.

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 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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 Annexure

© 2010 Birlasoft® Inc. All rights reserved.

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 Health insurance Product Portfolio

•
CHI-(Comprehensive Health
Insurance) •
Critical Care
§ No co-pay & No sub limits •

§ Floater Options to cover all members of § Covers 9 Major Critical Illness+ PA

the family (Death and PTD)
§ Convalescence Benefit of 10,000 § No survival clause. Payment on diagnosis
§ Cashless at 4000+ hospitals with growing § Policy Tenure of 1, 3 yrs and 5 yrs
network § Sum Assured of 3, 6 lacs and 12 lacs
§ 30 day pre & 60 day post hospitalisation
expenses covered
Health Advantage Plus – no health Personal Accident
§
check upto 45 §Covers Accidental
§Tax Benefit in 80D Death & Permanent
§CHI coverage +OPD (Out Patient) Coverage Total Disability
§Dental coverage §Covers claims arising
§Diagnostic coverage even without out of terrorism or
Hospitalisation acts of terrorism
§Pre existing diseases covered after 2 §Sum Insured options
consecutive renewals. 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.

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 Survey Sample Demography

§ Total Started Survey: 45

§ Total Completed Survey: 42  (87.5%)

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

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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?

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 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.

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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?

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 Competitive Landscape – Review

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