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Business blues? Get into the pink of health (insurance)!

Read to know about the health insurance business.

Bienu M Vaghela

18 Sep 2008

High interest rates across all categories may have hit your loan business. After consumers, it is the people who deal in loans that are worst hit. Business is down and the upbeat mood among potential consumers is waning.

Till now, the business that was on a consistent growth path is witnessing a slowdown. It is looking increasingly difficult to reach projected growth numbers.

This may be your story too...

The time has come to do some serious re-thinking. The answer could lie in looking at alternate revenue from the same pool of customers.

As a direct sales associate (DSA), your entire business may be dependent on loan products and given the current scenario, you need to diversify your revenue streams.

The need is for innovation that can leverage your existing customer base.     

The key is diversification. Major companies and conglomerates have done it and made it. There is no earthly reason why you shouldn't do it, is there?

So...what type of business will go along with my loan business? It is a legitimate question.

Considering your strength of having a large customer base for your loan products, venturing into non life insurance business should augur well for you.

Do you know why? Apart from the fact that it is a booming sector, if you look at the non-life sector, particularly into health insurance, it is on top of everybody's agenda/priority list.

Let us look at some facts before zeroing on health insurance. According to the National Sample Survey Organization (NSSO):

    * 40% of the population either borrows money or sell assets to cover their medical expenses
    * 87% of those above 60 do not have health insurance (data source: Helpage India)
    * 5 million people died due to non communicable diseases in 2005 (diabetes, cancer, heart attack etc.) which may rise to 60 million by 2015.

Fact: A thirty-year old male can insure his health for just Rs. 3 per day per lakh!

The good part in this business is that you never lose your customer. Once your customer takes a health policy from you, every year he/she has to renew it from the same insurance company to get superior benefits and every year it is treated as a new policy. Hence, once a customer, always a customer. And you can earn not only by selling policies but also earn commission every year on the renewal in the range of 12% - 17.5% which is quite substantial.

In your existing loan business, maintaining relationships is an on-going process but it is slightly difficult - not many people need to take loans repeatedly or often. But if you are selling health insurance, you are constantly in touch with your customers to renew their policies. While in the loan segment you have to be constantly in search of new prospects, in the health insurance business you not only have the pleasure of servicing your existing customers but also can add new customers to your business. You can service consumer queries on the myriad insurance plans using our insurance comparators (health, life, critical illness et al).  Alternatively, you can ask any specific query on our Ask Apnainsurance link at www.apnapaisa.com/insurance.