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EFU INSURANCE
Mustufa NasirOmer NaushadAamir Mohsin
Mursul Rehman
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Company Background
Eastern Federal Union Insurance (EFU) was incorporated in1932 with its operations starting in CalcuttaLater in 1947 the company moved its operations to Pakistan,becoming the local pioneer in the insurance industryDuring Zulfiqar Bhuttos regime Life Assurance wasnationalized therefore the company started to operate inGeneral Insurance onlyIn 1972 the company was renamed to EFU General InsuranceLimitedIn 1992 EFU once again entered in Life Assurance after theapproval of the governmentListed in Karachi Stock Exchange and Lahore Stock Exchange.At present EFU General Insurance has 1236 employees
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Accolades for EFU
1) 1992: Launch of EFU Life2) 1993: A Billion Rupee Company3) 2000: Pakistans First Specialized Health Insurer joint
venture with Allianz AG of Germany, worlds largest insurancecompany
4) 2005: A Billion Rupee Branches SITE and Central Divisionsbecame billion rupee branches
5) 2008: Euromoney Award- Euromoney, an internationalfinancial journal adjudged EFU as Pakistans best insurancecompany
6) 2009: "Brands of the year Award, hat-trick" & "Brands ICON of Pakistan"
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Vision and Mission
VisionTo continue our journey to be better than the best.
MissionTo provide services beyond expectation with a will to go anextra mile. In the process, continue to upgrade technology,human resource and reinsurance protection.
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Industry
There are a total of 30 companies operating in the GeneralInsurance industryAs at 30th September 2012 total business underwritten in the
industry was of Rs. 34,884,602EFU General Limiteds contribution was of Rs. 9,578,340 The companys market share stood at 27.5% It also had the highest Earning Per Share of 10.54 and the
greatest number of Total Assets in the industry.
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Competition and Market Growth
EFU Gen. Ltd is the leader in the industry and competeswith another 29 companiesIts major competitors are:
1. Adamjee Insurance market share 20%2. Jubilee General Insurance market share 14.2%3. IGI Insurance market share 4.4%
The market growth in the General insurance sector hasbeen very low because it is contingent to the growth of other industries. 2-5% growth in the industry.
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Recruitment of Sales force
InterviewKey Traits:
PRDue to the changing situation, the market is
STAGNANT
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The Sales Force
What are development agents?Total 500 development agents in EFU
Approx. 125 in Karachi
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CLIENT CODE
The DEVELOPMENT agents can bringbusiness from all over Pakistan, there is noterritory system
A CLIENT CODE is issued by the head officeDEVELOPMENT AGENTS can only visit theorganization once they have the client code
for it.No other agent can then approach the buiness
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Once operational, then many otherinsurances pour in
ReinsuranceIncluding, installation insuranceFire or theft insurance
Machinery break down insuranceEmployees (life insurance)Vehicles insurance
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Further, our sales people bring relevantinformation from a potential client
Our underwriting department reviews itthoroughly in terms of profitability for EFUThen if it fulfills the criteria, the company isapproached for a possible dealing
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The quotations from both the sides areexchanged, if there is a agreement on thebasic elementsThen, the top management of EFU sits withthe upper management of the potential clientThis is done for confidence buildingmeasures.In the end, the head office of EFU gives a lastreview before a final agreement.
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Thus
ONE WINDOW OPERATION
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How to attract new
businesses
Through REFERENCES!
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Quit over's from other companies are now
hiredThe new employees bring business of othercompany with them
This gives the hiring company advantage interms of customer knowledge
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3 months probation period
In House training center3 months training and field work under assistanceCompetency of the sales person is assessed in this
periodCandidates who are able to demonstrate key traitsof successful sales agent are hired permanentlyInsurance based training programsNon-Insurance based training programs
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Ratios to Determine Success ofAgent
Value of Business brought inLoss Ratio
Future profitabilityExpense Ratio
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EFU is at RISK
They have to en sure the safety measures inthe company are satisfactory
Fire Prevention system and emergency exitsare in placeThe level of dangerous activity being carriedoutTraining of staff to deal with emergencysituation
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Market Development Hierarchy
Executive Vice presidentVice PresidentAssistant Vice PresidentSenior ManagerManagerDeputy ManagerChief Development OfficerSenior Development OfficerDevelopment Officer
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OBJECTIVES OF MARKETING &
DEVELOPMENT
DEPARTMENT
Open new branches in new territories in order to expandPunjab and Sindh and then in other provinces.Focus on encouragement and reward for best results.Appraisal performance on merit.Performance will be evaluated on regular intervals of
each marketer.Bank enlistment and limits arrangements mattersReinsurance arrangements of the CompanyCo-insurance arrangements of the Company, if any
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OBJECTIVES OF HUMAN RESOURCE
DEPARTMENT
To ensure that adequate and suitablyexperienced is recruited and provided, so thatthe Companys objectives can be achieve S moreefficiently & effectively.To ensure those policies that support humanresource department.To monitor performance and absenteeism, tolowering cost, to increase profitability, efficientlyand effectiveness of manpower.
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The staffing function
Recognition of need of manpower for theCompanyDefining job specification for fulfilling the need.Establishment of the recruitment criteria.Recruitment process
Training & Development functionsJob OrientationEmployee TrainingEmployee DevelopmentCareer Development
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MOTIVATION FUNCTIONS Outstanding performance incrementsThe best employee of the year award
Job rotationHigh SalaryMedical Allowance
Payment of Utility bills, mobile phones,laptops
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Being a company with the largest marketshare, EFU doesnt always need to approachits corporate clients at their door steps.
Rather businesses find the need to insurethemselves and so when they look into theinsurance industry, they find EFU as a reliablepartner.
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HOWEVER!
Insurance market is stagnantCompanies are fighting to get businesses for
the competitors
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They try to achieve first mover ADVANTAGEExisting customers are hesitant to switch overbecause of their long term relationship, usually of 15 to 20 yearsSales rep also contribute to the relationship asthey deal with a specific company for years
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Conclusion
Give authority to the sales forceMake the process simpler
Disintegration of the sales departmentPriority for nurturing huntersInfluenced hiring
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