Page 34 - Insurance Times December 2019

MANAGING

HEALTH

INSURANCE

BUSINESS IN A

VUCA WORLD

Introduction
Abstract
In today's volatile, uncertain, complex and ambiguous
The article highlights some of the strategic challenges
faced by the health insurance industry and argue how (VUCA) world, it is important that employees at managerial
this could be related to the VUCA concept. In this article and key leadership positions understand the strategic
we discuss the different aspects of the VUCA world, thinking in insurance firms - right from scanning the
giving specific examples with reference to the health competitive environment, to aligning the mission of the
insurance industry. A framework is proposed to manage firm to meet stakeholder expectations. Today, insurance
the business in a VUCA environment with a focus on firms need to lead, formulate and execute strategies
managerial implication in terms of 'what you should do'. effectively to deliver business excellence and customer
delight.
The article also discusses how the 3-circle model can be
used by the insurance executives to manage the volatile,
The Indian health insurance market in India has grown over
uncertain, complex and ambiguous situations that they
might face regarding creating customer value. the last one decade in terms of premium collection as well
as number of lives enrolled. The market share of private
insurers has increased from 12% in 2012-2013 to over 21%
About the author in 2017-2018 (see Exhibit 1). However, the problem facing
the industry has been regarding the increase in claim ratio
Prof. (Dr.) Rohit Kumarh Aditya Duggirala and underwriting losses.
Assistant Professor Consultant
Strategic Management Area & & & & & Public Health and In 2017-18, public sector general insurers recorded highest
Indian Institute of Management Government claims ratio, followed by private sector general insurers and
Ranchi stand-alone health insurers with government business

34 The Insurance Times, December 2019