Page 119 - MEDICAL AND HEALTH INSURANCE

MEDICAL AND HEALTH INSURANCE

This statistic is exhibited in the following figure, which shows an increasing trend of growth

which premium generated on PMI business.

Even though these figures do not include the premiums collected by life insurance
companies, they are reflective of the industry trend in respect of MHI business.

7.5.1 DESCRIBE THE MARKETING STRATEGY

In its marketing strategy, an insurer may pursue a certain market segment by

developing products, which may appeal to that market. Identifying the right segment

is crucial, in that, if there are too many existing competitors then it would take extra

effort to dislodge them with more intensive marketing activities and higher cost of
sales required. If the chosen segment is the Group segment, as there is still great

potential for growth especially if the premium is paid by the employer as part of an

employee benefit scheme, then the marketing strategy would involve identifying the
target group, geographical area, occupation, and so on.

Apart from the market segmentation, other factors must also be considered, such as

the growing population of the country, the increasing medical inflation, the affluent
society, and the growth of the provider industry, which will also impact the PMI

provider's marketing strategy.

7.6 DETERMINE THE PRIVATE MEDICAL INSURANCE PROVIDERS

7.6.1 DISCUSS THE TYPES OF ORGANIZATIONS THAT UNDERWRITE AND ADMINISTER

PMI:

a. Commercial insurers

Not applicable in Malaysia because there are no commercial insurers. Commercial

insurance is generally coverage for businesses to protect against losses through

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