HEWSPECS'PIDS Baseline
Study
on Private
Health
Insurance
Page 38
Marketinq
Strictly speaking, only organized marketing strategies
the commercial for their insurance
indemnity plans,
firms including
and
HMOs have their health
planS, both as riders or as principal products. The commercial indemnity firms and HMOs adopted a free marketing scheme which involves various combinations of in-house sales staff, free agents and/or brokers. Twenty sample commercial indemnity firms and eight (8) HMOs had a sales force of 12,356 agents, brokers and in-house staff. Fifteen of these companies had a combination of two types of sales force; ten had only one type and three had all types of sales staff. It was also noted that ii of the companies do not have an in-house staff and relied solely on agents to market their various plans. There were much more agents/brokers (98 per cent) minimizing the administrative commission basis.
than
in-house expenditures
Table Composition By Category
A.
Comm. Dom. For. Life
B.
Category
Individual Agents C
sales as
might
be were
a way paid
of on
13 of
of
staff. This agents/brokers
Sales
Health
Force Insurance Brokers
SF
C
SF
In-house Staff C
i 2 7
169 180 4,447
3 2 2
i0 60 20
5 1 4
6 ....
7,361 -
1 1
18 15
5 1 1
9
123
12
SF
23 3 15
Indemnity Non-Life Non-Life
HMO Insurance-Based Hospital-Based Community-Based Total
C
16
Company
Free marketing _4_ a specific area __ branch offices W_rQ received _@•r approval _][4_..' insurance _¢i@s/brokers. _P_h o_f:Lce
SF
for done could
The latter not have
............ Th_ individual agents _@_ _anged from 15-30 per i_'•._mE_&In quota, the agents _•_ also a percentage _i!_i/|Ll%_e _._J'_l _=_;_, __u;_uoJ.ng __Ekoting
76
Sales Force
scheme also meant •that agents and brokers were of coverage since processing of application was assumed mainly marketing functions. Applications
and reviewed were usually company might
-
12,157
29 5 1
completeness at the head have both could deal a complets
at the branch office but processing office. In major cities like Cebu, a branch office and several
directly account
and brokers were cent of the total or brokers were of the premium.
not confined centralized. and claims
of
with the
compensated premium, also given
the head enrollees
office thus the in that area.
on a commission basis once their sales reached bonuses, the amount of
the sales force was composed in bulk by individual agents, most Indemnity. firms and HMOs marketed their insurance plans through direct sales presentation. This was supplemented by advertisements. A strategy done by a domestic non-life firm was the advertisement
_: