A PROJECT REPORT ONCOMPLETE STUDY OF CONSUMER BEHAVIOUR AND

MARKET ANALYSING OF HEALTH INSURANCE LEADS TO OPPORTUNITIES

SUBMITTED BY
ANKIT MISHRA
MMS - MARKETING
ROLL NO: 171112

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTER OF

MANAGEMENT STUDIES
BATCH- 2017-19
UNDER THE GUIDANCE OF
PROF. BIMAL EKKA

PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH NEW PANVEL,

NAVI MUMBAI - 410206
 DECLARATION

I, Ankit mishra hereby declare that this project titled “A study on performance of open ended
mutual funds” is solely completed by me in the academic year 2017-19 and the information
submitted herein is true and original to the best of my knowledge.
I also confirm that, the report is only prepared for my academic requirement not for any other
purpose. I also declare that all the information is from secondary source thereby acknowledged
in this project.

DATE:
PLACE: PANVEL ANKIT MISHRA
 CERTIFICATE OF APPROVAL
This is to certify that the project titled “A study on performance of open ended mutual funds” as
a part of curriculum of Masters Of Management Studies by MR. Ankit mishra, a student of Pillai
Institute Of management Studies And Research has been approved

Prof. Bimal ekka

Faculty Guide
 ACKNOWLEDGEMENT

I would like to thank the Mumbai University for having projects as a part of the MMS
curriculum.
It gives me great pleasure or satisfaction for the successful completion of this project. Every
successful piece of work has many invisible helping hands with their invaluable support and
inspiration. For the completion of my project report many people directly or indirectly assisted
me. I wish to express my heartfelt gratitude to the following individuals who have played a
crucial role in the making of this project.
At first, I would like to express my sincere thanks and deep gratitude to my esteemed Director
Sir Dr. Satish k. Nair and my guide Prof. Bimal Ekka for their kind initiative guidance and
valuable suggestion without which the completion of the report would not have been possible. I
also thank to my company guide Mr. Kamal Ahuja for guiding me throughout my project.
Finally, I would like to thank all my colleagues and family for their co-operation
2 BRIEF COMPANY PROFILE
2.1 ORGANIZATION HISTORY IN BRIEF
Cigna TTK is a health insurance firm established as a joint venture between the Cigna, the global
insurance player and TTK Group, an Indian conglomerate. Cigna TTK Health Insurance
Company Limited is a standalone health insurance company and was incorporated on 12 March
2012, under the Company’s Act of 1956.
Cigna TTK (Cigna TTK Health Insurance Company Limited) was formed as a Joint Venture
between Cigna Corporation in November, 2011. Cigna Corporation and TTK have 26% and 74%
of the joint venture as per the Indian regulations. The Company was granted IRDA approval in
November, 2013 paving the way for a formal launch of its services in India in February 2014.
Cigna TTK headquarter is in Mumbai.
Cigna TTK has been awarded the “Economic Times Best Promising Brands 2015” and, is
partnering the prominent Marathons - Airtel Delhi Half Marathon (ADHM) and Standard
Chartered Mumbai Marathon (SCMM) as the official health insurance partner.
Cigna is a global health services company which is listed on the NYSE (NYSE: CI) and is
headquarteredin Bloomfield, Connecticut, United States. The company has operations in 31
countries including United States, United Kingdom, China, Spain, Korea, Indonesia, New
Zealand, Taiwan, Turkey, Thailand and India.
TTK Group is an industry conglomerate based in Chennai, India. The company had different
business interests including medical devices (Dr. Scholl’s, Chitra heart valves), contraceptives
(Skore, Durex, and Kohinoor), consumer goods (Woodward’s gripe water) & kitchenware
(Prestige pressure cookers).
2.2 BRIEF DETAILS OF THE TOP MANAGEMENT

PRASUN SIKDAR

MANOJ NAIK

JYOTI PUNJA
1. PRASUN SIKDAR (Managing director & chief executive offer)
Prasun brings more than 22 years of leadership experience in financial services and deep
insurance knowledge to Cigna TTK. Before joining Cigna TTK, prasun was group president and
Global Head at yes bank, where he managed and grew key banc assurance and mutual fund
alliances and partnership. Prior this he was a Founding member and Senior General Manager –
Chief Sales & Distribution at ICICI Prudential Life Insurance. During his 17 years with ICICI
prudential Life Insurance, he worked across several portfolios including Operations &
Underwriting, Banc assurance, Agency, Alternate Distribution, Health Business and Sales
Strategy. Before ICICI Prudential Life, he has been associated with GE Capital (SBI Cards() and
Citicorp
2. MANJ NAIK (Chief Finance officer)
Manoj brings to Cigna TTK over 25+ years of experience primarily in financial Services GE
Capital & Fullerton Securities across India, Europe, and Taiwan – of this 13+ years have been as
a CFO. His diverse Treasury & retail Finance exposure Brings International best practices to
Cigna TTK. Manoj will spearhead Finance & treasury functions at Cigna TTK. Manoj is a
postgraduate in Management from the Indian Institute of Management, Bangalore. He has also
completed his accredited Coach Training Program (ACTP) with international coach Federation
(ICF)
 3. JYOTI PUNJA (Chief Customer Officer)
Jyoti punja is Cheif Customer Officer at Cigna TTK Health Insurance. She’s been associated
with reputed insurance companies for almost two decades and known the nuances that come in
the field. She field. She brings with her experience and in depth knowledge of the insurance
industry from her previous senior leadership positions in companies like LIC of India, Bharti
AXA and Birla Sun Life Insurance. To add to her knowledge. She holds dual bachelor’s degrees
in both Science and Law from Mumbai University.
2.3 SIZE OF THE ORGANIZATION
health insurance Cigna TTK Health Insurance, which has set a target to breakeven by 2019-20,
is expecting nearly a three-fold growth in total premium at Rs 400 crore this fiscal.
"We expect to continue with the triple digit growth trend in FY2016-17 as well," Cigna TTK
Insurance Managing Director and Chief Executive Officer Sandeep Patel told PTI here. Cigna
TTK Health Insurance's Private total premium stood at Rs 144 crore in FY2015-16, he
added.The company, which has a strong presence in the north, is planning to expand its presence
deeper across the country, especially in the tier II cities across the country, he said.We are
present in 41 cities across the country and have 15 branches. We are planning to expand to 10
more cities in this financial year, mostly deeper into the tier II cities," Patel said.
When asked about the company's presence in the North-East, Patel said, Cigna TTK Health
Insurance has some presence in the region, however, the insurer is working at deeper penetration
in the area.
The company, which has six products, has two products in the approval process and is
developing two more."We have 2 products in the pipeline, which awaiting regulatory approvals.
We are also working at two more products which are at developing stage," he added.
On US-based global health-service leader Cigna Corporation increasing its stake in Cigna TTK
Health Insurance (Cigna TTK), Patel said, the process has begun and the decision will be taken
during this fiscal.
"Our global partner, Cigna is committed to increasing its stake to 49 per cent from the current 26
per cent. The process has started and we are expecting the decision to be taken in this financial
year," he added.
Cigna TTK Health Insurance Company is a joint venture between the US-based global health
service leader, Cigna Corporation and Indian conglomerate TTK Group.
 2.4 VISION AND MISSION OF THE ORGANIZATION.
VISION

 We care about people.

 We act with integrity.
 We embrace diversity.
 We demonstrate courage.
 We are committed to excellence.

MISSION

 We will engage and help our customers.

 We will make it easier for our customers.
 We will serve our communities.
 We will “innovate and grow – both our business and ourselves.
 We will win as a team…with pride.
3 INDUSTRY ANALYSIS

3.1 PESTEL Analysis of The Insurance Industry

The insurance industry depends on legislation, changes in economic rates, and technological
advancements. Whenever we see shifts in the government, people become worried. They
wonder: What will happen to Insurance bills? Or the services they have access to now. Will it be
inaccessible shortly?
Health will always be a concern, no matter your age. People worry about exclusivity, new
diseases, less treatment, and how much access they can have. This PESTEL analysis of the
insurance industry provides a glimpse into how the system works, and how it could change in the
future.
  Political Factors: Government Subsidies
The Insurance industry is impacted by many factors including, insurance mandates, tax
legislation changes, and consumer protection. Government spending for Insurance can be
affected by tax policy changes. It can be a benefit, allowing for increased subsidies. Or it can be
a cause for concern. Governmental changes can affect the public and the Insurance services
they’re entitled to, especially with changing Insurance bills and plans.

 Economic Factors: Loss of Services

Insurance organizations will be affected by many economic factors, especially inflation,

unemployment, and interest rates Any. of these changes can change how the public is able to
spend their money, impacting policy spending. Companies who manufacture medical devices
won’t have many people able to pay their rate if the unemployment rate is increased. Likewise, if
less people are able to work, they won’t qualify for work benefits, including Insurance.

 Social Factors: Changes in Beliefs

Insurance relies on understanding the changes in demographics and public values. Certain
communities can share fears, beliefs, and cultural norms. If a Insurance professional or hospital
isn’t aware of these conditions while they treat that public, it can cause problems. Additionally,
medical professionals need to stay on their toes about new trends.
For example, the use of essential oils as a cure for various illnesses including cases of flu, fevers,
and even incurable conditions like autism, are on the rise. Understanding why people are turning
to these natural remedies can help Insurance professionals talk and discuss concerns or treatment
with these users. Another example is the new trend of eating detergent pods. Understanding why
kids are turning to such dangerous activities can help prepare clinics if they children need
assistance at their location. People are also becoming more health conscious. Some business
across the country must now post the calorie amount of each item on their menu, giving people
the option to choose what to eat based on these numbers.

The public, in general, is turning towards specific health diets including paleo and keto. Or
they’re making changes, like eating less f artificial sugars and processed chemicals. This is in
response to the growing threat of obesity in adults and children. Hospitals and health
professionals can benefit from following these shifting and progressive trends.
  Technological Factors:

The Insurance industry is seeing positive changes in treatments because of technological

advancements. Developments with medical devices allow patients to receive better care. For
example, hearing aid devices have the tools to enhance performance, providing crystal clear
sound, less background noise, and premium options for a better hearing experience.

We’re seeing changes in app developments, allowing patients to get care faster than ever before.
More businesses are using apps to connect doctors with patients right in their homes. And the
ability to ask questions about illnesses now include email and live-chat on websites. We’re
heading towards a positive direction for patient care thanks to our ever-evolving technology.

 Environmental Factors :
Environment may be internal or external. Internal environment is dealt with by internal
medicine. The external environment involves all that is external to the individual. The external
environment factors range from housing, water supply, family structure and occupation. In health
insurance the internal environment is covered quite fairly. The only clause is that of
hospitalization i.e. the insured need to be hospitalized for a minimum of twenty four hours.
However, there are few exceptions where day care surgeries are covered due to advancement in
medical technology

 Legal factors :
The Constitution of India has a federal structure i.e. it provides for distribution of powers
between the Union and the States. It enumerates the powers of the Parliament and State
Legislatures in three lists, namely Union list, State list and Concurrent list. As insurance is
included in the Union list, the parliament has the exclusive legislative empowerment to regulate
the insurance industry in India. Thus, the laws with reference to insurance are uniform
throughout the territories of India. 120 As we have seen earlier, the insurance industry (both life
and general) has gone through the complete cycle from being a free market, to nationalization
and then again opened for private players. The common thread connecting this cycle is the legal
framework, which has also undergone a sea change. However, The Insurance Act of 1938 along
with various amendments over the years continues till date to be the definitive piece of
legislation on insurance and controls both life insurance and general insurance.
 3.2 Porter’s Five Forces Analysis

 Existing Competitive Rivalry:

With 52 players in the arena, the competition has heated up with the consumer having multiple
choices to choose from. Though LIC of India has the majority of the market share and despite
any unlikely changes in the incumbent’s outreach, the private players are coming up with
innovative schemes to attract the customers.

 Threat of Substitutes:
Though there exist a limited number of competitors, the threat of substitution is substantial since
the insurance products are evenly matched in almost all aspects. It becomes easy for the
consumer to switch insurers if he does not continue to see value for his investments. This threat
is compounded by the fact that the regulator facilitates such a move called “porting
  Bargaining power of suppliers:
Physicians have large bargaining power over insurance companies. The physicians have such
power because collectively, they can effectively determine the options and success of various
insurance networks. For example, if one physician denies a particular insurance plan, that makes
that restricts the number of sick people which in turn decreases the number of companies buying
that insurance plan. The decisions of individual physicians compound in a manner such that the
desired plans are effectively chosen less by insurance companies and more by the consumers.
Suppliers largely react to consumer preferences. … "Health Insurance Industry" has a significant
impact, so an analyst should put more weight into it. "Health Insurance Industry" will have a
long-term positive impact on the this entity, which adds to its value. "Health Insurance
Industry" is an easily defendable qualitative factor, so competing institutions will have a difficult

time overcoming it.

 Bargaining power of Buyers/ Customers :

Hospital Beds For Nurse Pussy" has a significant impact, so an analyst should put more weight
into it. "Hospital Beds For Nurse Pussy"will have a long-term negative impact on this entity,
which subtracts from the entity's value. This statements will have a short-term negative impact
on this entity, which subtracts from its value
 Threat of New Competitors:
Licensing and regulations are strictly enforced by IRDA making it a not-so-easily-accessible
market for private players to enter. An organization with enough financial backing and a brand
name can establish itself but despite liberalization since 1991, very little has changed in this
industry with LIC of India being the most trusted and go-to brand.
 3.3 Porter’s Generic Strategies

Michael Porter (1998) developed a model of generic strategies which firms can use to gain
competitive advantage in their industries. The concept implies that there are distinct and
mutually exclusive ways for a business to attract customers and achieve competitive advantage.
Porter states that a business can enjoy a competitive advantage exclusively by one of the two
basic generic strategies: cost leadership or differentiation. These two approaches can be
combined with the market scope/focus in which the firm attempts to achieve competitive
advantage.
The resultant alternatives lead to four generic strategies depending on whether the firm is
seeking a competitive position in the overall industry (broad focus), or whether it will
concentrate its activities on one market segment only (narrow focus). The four strategic options
are: Cost Leadership-Broad Focus, Cost Leadership-Narrow Focus, Differentiation-Broad Focus,
and Differentiation-Narrow Focus
Cost Leadership Strategy In Cost Leadership strategy the business unit establishes a position
that has a significant cost advantage over all its competitors in the industry. Cost leadership
requires “aggressive construction of efficient scale facilities; vigorous pursuit of cost reductions
from experience, tight costs and overhead control, avoidance of marginal customer accounts and
cost minimization in areas such as research and development, service, sales force, advertising,
etc...”, Porter (1998). Low cost producers typically sell a standard or “no frills” product and
place a considerable emphasis on reaping scale or absolute cost advantages from all sources. 17
Risks of cost leadership include the following according to Hitt et al (1997): the low cost leaders
could become obsolete because of competitors’ technological innovation; due to too much
concentration on implementing cost leadership firms may fail to detect changes in customer
needs or competitors’ efforts to differentiate; and finally there is risk of imitation by competitors.
Another risk according to Porter (1998) is that inflation in costs may narrow the firm’s ability to
maintain enough of the price differential to offset the competitors’ brand images or other
approaches to differentiation.
Differentiation Strategy Differentiation Strategy also has two alternatives: Broad and Narrow
Focus. Differentiation Broad Focus seeks uniqueness and premium price in the overall market of
the industry, whereas Differentiation-Narrow Focus aims at uniqueness and premium price at one
market segment only. Risks of differentiation include the following according to Hitt et al
(1997): a firm may offer differentiated features that exceed the customer needs; when the
differentiation no longer provides value which the customers are willing to pay; imitation by
rivals and finally, learning can narrow customers’ perceptions of the value of the differentiated
products. Another risk by Porter (1998) is that the cost differential between the low cost
competitor and the differentiated firm becomes too great for differentiation to hold brand loyalty;
buyers will thus sacrifice some of the features, services or image possessed by the differentiated
firm for large cost savings.
4 COMPANY ANALYSIS(CIGNA TTK )

4.1 SWOT

STRENGHTS :
Cigna TTK gives best promising brands to their customers, because in their brand or products
they give extra features and by giving extra features they are building their brand loyalty towards
their customers. Due to this customers base is increasing year by year because they believe to
add value in someone’s life and they also do it and that customer make the brand aware in their
family and friends or in their natural markets. They have their sustainable business model. Cigna
TTK Claim settlement ratio is 96% .

WEAKNESS :
Competitive industry means lower market share in Insurance. As Cigna TTK is new in the
market so there is lack of awareness.
Cigna TTK is not in marketing as compare the other company do, they are to weak in
Advertisement due to that they can able to market properly.
Awareness about a company is low that have to increase.

OPPORTUNITIES:
As insurance industry is growing too fast this generate a numbers of opportunities to Cigna TTK
to grow fast as well. And growing population of India is an opportunity because it is said that
India will lead in population in 2030. As per the data, it said that only 5% of population has their
individual health insurance and we also know that diseases are increasing day by day. This is the
major factor which helps Cigna TTK to grow in future.

THREATS:
1.Rising unemployment and government interventions
2.Susceptible to price wars.
3.Exsisting giants in market.
4.New company in market.
7’s FRAMEWORK

1Strategy :
CignaTTK Health Insurance Company is looking to grow at a faster pace than the industry by
focusing on a “wellness” strategy and expanding through multiple channels.
The company is expecting new business premium of around Rs 60 crore this fiscal, Sandeep
Patel, Former-CEO and managing director of CignaTTK Health Insurance, told The Telegraph,
adding that it expects to grow (premium income) by around 200 per cent next year.

Patel is confident that though the pace may slow down from this level in the subsequent years,
CignaTTk will continue to beat the industry growth. A key element of the company’s growth
strategy is the wellness approach. Patel said that instead of merely providing sickness or injury
benefits, the focus of the joint venture was on continual care by giving individuals and families
advise on how to improve their health and lower their medical costs.
2 Structure : CEO - Mr. Prasun Sikdar

HEAD OF INDIA Mr. Gagandeep Singh

ZONAL HEAD - Mr. Deepak Guatrikar

HEAD OF HR MUMBAI REGION - Miss Swati Bangera

BUSSINESS CONCSULTING HEAD - Mr. Kamal Ahuja

AGENCY CONSULTING HEAD - Mr. Deepak Chaudhari

3 Systems :
Cigna TTK mobile application is the first-of-its kind mobile platform for distributors in the
health insurance industry. The unique feature of the mobile application is that it enables to
capture and track lead, generate quote and purchase policy, at the click of a button
The Mobile Application will operate on Android Smart phones and Tabs. The application is
integrated with Cigna TTK’s Core systems and Operational process, at the backend augmenting,
seamless issuance of policies. “The Mobile Application would enable our brokers and agents to
reach out to customers across wider geographies, even at locations where there is limited or no
access to internet. We are confident that this new powerful tool will be widely welcomed by our
distributors, with our customers enjoying the benefits of the enhanced services” said by Former-
CEO
 4 Shared Value:
They offer more than a job. They offer something essential to employees career development –
the opportunity to grow in a company that recognizes respects and values individual
contributions and differences. Cigna TTK will also strive to make a difference both to their
customers and their communities.
Explore everything that makes Cigna TTK a special place to work. They offer a results-driven
environment. They have a diverse and inclusive workforce. They demand integrity and respect in
all we do.
Getting the Basics Right
Their work focuses on Cigna TTK mission – To improve the health, well-being, and sense of
security of the people we serve.
All of their work at Cigna TTK aligns to what they value and how they win.
What They Value

 They care about people.

 They act with integrity.
 They embrace diversity.
 They demonstrate courage.
 They are committed to excellence.

How They Will Win

 Theywill engage and help their customers.

 They will make it easier for their customers.
 They will serve their communities.
 They will Innovate and grow – both their business and themselves.
 They will win as a team…with pride.
5 Skills:
They work to create a culture where high performance is the norm, and employee development
is central to both growth and success. ‘Healthy Careers…Healthy Returns’, is part of there total
rewards strategy and emphasizes attainment of specific skills, behaviours and work experiences
to help employees achieve a fulfilling career. Healthy Returns establishes a framework where
 managers are expected to differentiate pay and rewards based on the value and results each
employee delivers in supporting business objectives. Healthy Careers places additional emphasis
on the attainment of specific skills, behaviors and work experiences needed to help Cigna win in
the market.
There Strategy is designed to support your health, well-being and four areas or career
development.

6 Style:
Cigna TTK general leader style is people-oriented leadership, leaders are totally focused on
organizing, supporting, and developing the people on their teams. This is a participatory style and
tends to encourage good teamwork and creative collaboration.
7 Staff:
Cigna TTK is new in this industry and they are doing very well so their main focus is to expand the
business, for that in Mumbai they are planning to expand in Thane and Navi Mumbai so for that
there is lots of vacancy for sales man and branch manager, and they believe in customer services for
that the are electing people for relationship manager
4.3 VALUE CHAIN ANALYSIS

SALES AND MARKETING

CUSTOMER ACQUISITION PRODUCT/ BENEFIT DESIGN

ADMIINISTRATION

CLAIMS FRAUD AND RISK PAYMENT

MANAGEMENT MANAGEMENT PROCESSING

MEDICAL MANAGEMENT
BUILDING CASE/ DISEASE
PROVIDER COST PHARMA. COST
PROVIDER
MANAGEMENT MANAGEMENT MANAGEMENT
NETWORK

. .
INSURER SKILL BASED TPA skill based
4.4 BCG
BCG Matric of Cigna TTK

HIGH

M
A
R
K
E
T

G
R
O
W
T
H

LOW

HIGH MARKET SHARE LOW

ANAS OF MATRIX
1 https://en.wikipedia.org/wiki/Cigna_TTK
2 https://www.cignattkinsurance.in/management-team
3 https://m.economictimes.com/industry/banking/finance/banking/cigna-ttk-
health-eyes-rs-400-crore-premium-in-fy17/amp_articleshow/52278732.cms
5 http://pestleanalysis.com/pest-analysis-of-Insurance-industry/
6 http://shodhganga.inflibnet.ac.in/bitstream/10603/9222/13/13_chapter%204.pdf
7 https://simconblog.wordpress.com/2016/11/30/insurance-industry-analysis-2/
8 https://www.cigna.com/careers/india/why-join-cigna-ttk
9

The general objective of the study is to get practical and wide knowledge backboning regarding
sale, marketing communication, maintaining good corporate relation with colleague and
customers.