PART-A 1. INDUSTRY PROFILE Introduction to Insurance sector: Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice that’s perhaps, was how insurance made its beginning. Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its members as well as help survivors by making some payments. As European civilization progressed, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, medieval guilds took it upon themselves to protect their member traders from loss on account of fire, shipwrecks and the like. Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom for members held captive by pirates. Burial expenses and support in times of sickness and poverty were other services offered. Essentially, all these revolved around the concept of insurance or risk coverage. That's how old these concepts are, really. In 1347, in Genoa, European maritime nations entered
Transcript
PART-A
1. INDUSTRY PROFILE
Introduction to Insurance sector:
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the
caravan trade by giving loans that had to be later repaid with interest when the goods arrived
safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice
that’s perhaps, was how insurance made its beginning. Life insurance had its origins in
ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its
members as well as help survivors by making some payments.
As European civilization progressed, its social institutions and welfare practices also got
more and more refined. With the discovery of new lands, sea routes and the consequent
growth in trade, medieval guilds took it upon themselves to protect their member traders from
loss on account of fire, shipwrecks and the like.
Since most of the trade took place by sea, there was also the fear of pirates. So these guilds
even offered ransom for members held captive by pirates. Burial expenses and support in
times of sickness and poverty were other services offered. Essentially, all these revolved
around the concept of insurance or risk coverage. That's how old these concepts are, really. In
1347, in Genoa, European maritime nations entered into the earliest known insurance contract
and decided to accept marine insurance as a practice.
The first step...
Insurance as we know it today owes its existence to 17th century England. In fact, it began
taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London,
where merchants, ship-owners and underwriters met to discuss and transact business. By the
end of the 18th century, Lloyd's had brewed enough business to become one of the first
modern insurance companies.
Enter companies...
The first stock companies to get into the business of insurance were chartered in England in
1720. The year 1735 saw the birth of the first insurance company in the American colonies in
Charleston, SC.
In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation
in America for the benefit of ministers and their dependents.
However, it was after 1840 that life insurance really took off in a big way. The trigger:
reducing opposition from religious groups
The growing years...
The 19th century saw huge developments in the field of insurance, with newer products being
devised to meet the growing needs of urbanization and industrialization.
In 1835, the infamous New York fire drew people's attention to the need to provide for
sudden and large losses. Two years later, Massachusetts became the first state to require
companies by law to maintain such reserves. The great Chicago fire of 1871 further
emphasized how fires can cause huge losses in densely populated modern cities. The practice
of reinsurance, wherein the risks are spread among several companies, was devised
specifically for such situations.
There were more offshoots of the process of industrialization. In 1897, the British
government passed the Workmen's Compensation Act, which made it mandatory for a
company to insure its employees against industrial accidents. With the advent of the
automobile, public liability insurance, which first made its appearance in the 1880s, gained
importance and acceptance?
In the 19th century, many societies were founded to insure the life and health of their
members, while fraternal orders provided low-cost, members-only insurance. Even today,
such fraternal orders continue to provide insurance coverage to members as do most labor
organizations. Many employers sponsor group insurance policies for their employees,
providing not just life insurance, but sickness and accident benefits and old-age pensions.
Employees contribute a certain percentage of the premium for these policies.
In India...
Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of
Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda.
The term suggests that a form of "community insurance" was prevalent around 1000 BC and
practiced by the Aryans.
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Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in
1870. Other companies like Oriental, Bharat and Empire of India were also set up in the
1870-90s. It was during the swadeshi movement in the early 20th century that insurance
witnessed a big boom in India with several more companies being set up. As these companies
grew, the government began to exercise control on them. The Insurance Act was passed in
1912, followed by a detailed and amended Insurance Act of 1938 that looked into
investments, expenditure and management of these companies' funds.
By the mid-1950s, there were around 170 insurance companies and 80 provident fund
societies in the country's life insurance scene. However, in the absence of regulatory systems,
scams and irregularities were almost a way of life at most of these companies. As a result, the
government decided to nationalize the life insurance business in India. The life insurance
corporation of India was set up in 1956 to take over around 250 life companies.
For years thereafter, insurance remained a monopoly of the public sector. It was only after
seven years of deliberation and debate - after the RN Malhotra Committee report of 1994
became the first serious document calling for the re-opening up of the insurance sector to
private players -- that the sector was finally opened up to private players in 2001.The
INSURANCE REGULATORY & DEVELOPMENT AUTHORITY, an autonomous
insurance regulator set up in 2000, has extensive powers to oversee the insurance business
and regulate in a manner that will safeguard the interests of the insured.
INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.
A brief history of the Insurance sector
The business of life insurance in India in its existing form started in India in the year
1818: With the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India
are:
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1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,1956, with a
capital contribution of Rs. 5 crore from the Government of India. The General insurance
business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd.,
the first general insurance company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India
are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973. 107 insurers amalgamated
and grouped into four companies viz.
The National Insurance Company Ltd.
The New India Assurance Company Ltd.
The Insurance Company Ltd. And
The United India Insurance Company Ltd.
GIC incorporated as a company.
Insurance sector reforms
In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.
N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future
direction. The Malhotra committee was set up with the objective of complementing the
reforms initiated in the financial sector.
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The reforms were aimed at “creating a more efficient and competitive financial system
suitable for the requirements of the economy keeping in mind the structural changes currently
underway and recognizing that insurance is an important part of the overall financial system
where it was necessary to address the need for similar reforms…”
In 1994, the committee submitted the report and some of the key recommendations included;
1.) Structure
Government stake in the insurance Companies to be brought down to 50%.
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
All the insurance companies should be given greater freedom to operate.
2.) Competition
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to
enter the industry.
No Company should deal in both Life and General Insurance through a single entity.
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
Postal Life Insurance should be allowed to operate in the rural market.
Only one State Level Life Insurance Company should be allowed to operate in each
state.
3.) Regulatory Body
The Insurance Act should be changed.
An Insurance Regulatory body should be set up.
Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.
4.) Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from
75% to 50%.
GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time).
5.) Customer Service
LIC should pay interest on delays in payments beyond 30 days.
Insurance companies must be encouraged to set up unit linked pension plans.
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Computerization of operations and updating of technology to be carried out in the
insurance industry.
The committee emphasized that in order to improve the customer services and increase the
coverage of the insurance industry should be opened up to competition. But at the same time,
the committee felt the need to exercise caution as any failure on the part of new players could
ruin the public confidence in the industry. Hence, it was decided to allow competition in a
limited way by stipulating the minimum Capital requirement of Rs.100 crores. The
committee felt the need to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act as independent companies with economic
motives. For this purpose, it had proposed setting up an independent regulatory body.
The Insurance Regulatory and Development Authority
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in April
2000 has fastidiously stuck to its schedule of framing regulations and registering the private
sector insurance companies. The other decisions taken simultaneously to provide the
supporting systems to the insurance sector and in particular the life insurance companies were
the launch of the IRDA’s online service for issue and renewal of licenses to agents. The
approval of institutions for imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in place to sell their products,
which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. Total number of life insurers under the Authority has gone
up to 21, while total number of general insurers registered with IRDA has reached 20.
Insurance Sector
4.47 Reforms in the insurance sector commenced with the enactment of the Insurance
Regulatory and Development Authority Act 1999, which facilitated the entry of private
insurance companies into the Indian insurance market. The Insurance Regulatory and
Development Authority (IRDA) was set up on April 19, 2000 to protect the interest of the
holders of insurance policies, and to regulate, promote and ensure orderly growth of the
insurance industry.
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2. COMPANY PROFILE
a) BACKGROUND AND INCEPTION OF THE COMPANY
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates-
Allianz AG, one of the world's largest insurance companies, and Bajaj Auto Limited, one of
the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz Life Corporation
limited was incorporated on 12th March 2001. The company received the Insurance
Regulatory and Development Authority (IRDA) certificate of Registration (R3) No. 116 on
3rd August 2001 to conduct Life Insurance Business in India. Bajaj Allianz Shareholder
Capital base stands at Rs.500 crore with Bajaj Auto Limited and Allianz AG of Germany
holding 74% and 26% stake respectively. It is the 2nd largest private player in Insurance
industry in India with a market share of 13.2% amongst the private companies as on 25th Feb,
2009.
Bajaj Auto Limited
Bajaj Auto Ltd, the flagship company of the Rs. 8000 Crore Bajaj Group is the largest
manufacturer of two wheelers and three wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image & brand loyalty
synonymous with quality and customer focus. With over 15,000 employees, the company is a
Rs. 4000 crore auto giant. AAA rated by Crisil.
Bajaj Auto has been in operation for over 55 years. It has joined hands with Allianz to
provide the Indian consumers with a distinct option in terms of life insurance products.
As a promoter of Bajaj Allianz Life Corporation Ltd., Bajaj Auto has the following to offer –
Financial strength and stability to support the insurance business.
A strong Brand equity.
A good market reputation as a world class organization.
An extensive distribution network.
Adequate experience of running a large organization.
A 10 million strong base of customers using Bajaj products.
Advanced Information Technology in extensive use.
Experience in the financial services industry through Bajaj Auto Finance Ltd.
Allianz AG
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Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000
employees. At the top of the international group is the holding company, Allianz AG, with its
head office in Munich.
Allianz AG is the business of General (Property and Casualty) Insurance; Life and Health
Insurance and Asset Management and has been in operation for over 110 years. Allianz is one
of the largest global composite insurers with operation in over 70 countries. Further, the
group provides Risk Management and Loss Prevention Services. Allianz has insured most of
the world’s largest infrastructure projects (including Hong Kong Airport and channel tunnel
between UK and France), further Allianz insures the majority of Fortune 500 companies,
besides being a large industry insurer, and Allianz has a substantial portfolio in the
commercial and personal lines sector, using a wide variety of innovative distribution
channels.
Allianz Ag – A Global Financial Powerhouse
Worldwide second by Gross Written Premiums (GWR) – Rs. 4, 46,654 cr.
3rd largest Asset under Management (AUM) & and largest amongst insurance cos.
AUM of Rs. 51, 96,959 cr.
12th largest corporation in the world.
49.8% of global business from life insurance.
Established in 1890, 110 years of insurance expertise.
b) NATURE OF THE BUSINESS CARRIED
Bajaj Allianz Life Insurance as the name suggests is into the Insurance sector. Bajaj Allianz
Life Insurance Company Limited engages in life insurance business in India. The company
offers unit linked regular and single premium plans; pension plans; traditional products,
including endowment and money back products; and term plans. It also provides non
employer employee and employer employee group insurance products; women insurance;
micro insurance; and wealth insurance products.
c) VISION, MISSION AND VALUES
VISION:
1) To be the first choice insurer for customers.
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2) To be the preferred employer for staff in Insurance industry.
3) To be the number one insurer for creating shareholder value
4) To aspire to be a world class organization.
5) To encourage organizational transparency.
6) To value integrity.
MISSION:
We aim to be the top new life insurance company in the market. This does not just mean
being the largest or the most productive company in the market, rather it is a combination of
several things like-
1) Customer service of the highest order.
2) Value for money for customers.
3) Professionalism in carrying out business.
4) Innovative products to cater to different needs of different customers.
5) Use of technology to improve service standards.
6) Increasing market share.
VALUES
Security: Providing long term financial security to our policy holders will be our constant
endeavor. We will be do this by offering life insurance and pension products.
Trust: We appreciate the trust placed by our policy holders in us. Hence, we will aim to
manage their investments very carefully and live up to this trust.
Innovation: Recognizing the different needs of our customers, we will be offering a range of
innovative products to meet these needs.
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d) PRODUCTS/SERVICE PROFILE
Product of the company
Traditional Plans:
1. Life Time Care: Is a whole life plan, where it helps you financially at the time when your
regular income ends. That is it provides survival benefits at the age of 80. The plan also has
additional benefits like Waiver of Premium, Accidental Death Cover & Disability Cover and
Critical Illness Cover & Hospital Cash Cover.
2. Super Saver: Is a regular premium endowment plan, which enables the policyholder to
save an amount regularly for the future. The plan also has an extra benefit of Guaranteed
Additions to the sum assured, at the end of each policy year.
3. Save Care Economy SP: A 10year single premium endowment plan which provides
savings with high risk cover. This plan also participates in the company’s profits. It is a high
risk but has easy liquidity and high returns.
Money Back Plan: A money back plan which guarantees 5 easy payouts giving up to 125%
plus (+) bonuses. Also 4 times a life cover. The additional benefits offered are
• Family Income Benefit
• Accidental Death Benefit and Disability Benefit.
• Critical Illness Benefit and Hospital Cash Benefit.
Term Plans
1. Term Care: Is a term Assurance plan which provides life cover and return of premiums
paid at the time of maturity. It has the option of single premium payment. It is the only pure
Term Plan which provides Hospital Cash Benefit.
2. New Risk Care: Is a plan with regular/single premium payment options. This plan comes
with a lowest cost for a Life Insurance cover. With regular premium plan you get additional
rider benefits. Also accidental death benefit and accidental permanent total/partial disability
benefit. Besides that you can also avail of critical illness benefit and hospital cash benefit.
3. Protector: Is a mortgage reducing term assurance plan. At a low premium amount you can
secure your family from the burden of paying the Home Loan in your absence. You get an
option of both Regular Premium payment and single premium payment. Also there is an
option of Joint life availability, where the co-applicant can be also covered in the plan.
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Unit Linked Plans (Regular premium & Single Premium)
A) Regular Premium
1. New Unit Gain: Is an investment plan where you get value for your funds invested.
2. New Gain Super: Is a flexible unit linked plan with partial & full withdrawals after 3
years. It offers additional benefits like UL Accidental Death Benefit and UL Disability
Benefit, UL Critical Illness Benefit and UL Hospital Cash Benefit and 4 funds to choose from
& flexibility to pay top-up any time.
3. New Unit Gain Plus: This plan gives you 5 investment funds to choose from. With the
option of 3 free switches every year. Also partial or full withdrawal after 3 years. It plan
offers flexibility to meet ones changing lifestyle and insurance needs. It offers guaranteed life
cover.
4. Unit Gain plus Gold: A unique investment plan with the combination of protection and
prospects of earning attractive returns. It has a high allocation up to 85%. You have a choice
of 7 funds to invest in & also a guaranteed life cover. Additional benefit riders are also
available with this plan.
5. New Family Gain-R: It is Life Insurance Plan that can take care of all the changing
requirements of the family. It has maximum flexibility, so that you are provided for all the
changing needs you may have.
6. Young Care: This investment plan is a Gift of a lifetime to a loved one. It offers a
guaranteed Sum Assured and continued pay premium on your behalf, in case of your
unfortunate death.
7. Young Care Plus: It offers the same benefit as the above plan but in addition offers a
critical illness benefit.
B) Single Premium
1. New Unit Gain Premier SP: It is a unique insurance cum investment plan as it starts
investing 105% of the single premium paid from day one, thereby ensuring that you get more.
It has a guaranteed life cover and flexible withdrawal option u/s 10 (10) D.
2. New Unit Gain plus SP: Is a single premium plan that gives you 98% allocation with
guaranteed life cover. Minimum premium is Rs. 10,000 only. A choice of 5 investment funds
to choose from. And 3 free switches every year. Partial & full withdrawals after 3 years.
Pension (Annuity & Retirement)
A) Annuity
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Pension Guaranteed: Is a plan that assures a regular income after your retirement for life.
B) Retirement
1. New Unit Gain Easy Pension plus RP: A unit linked pension plan without life cover. It
has regular premium payment mode. An option to take a tax-free lump sum up to 33% of
Sum Assured. You can invest in any 6 funds. With 3 free switches every year. Also open
market option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other
life insurer.
2. New Unit Gain Easy Pension plus SP: A unit linked pension plan without life cover. It
has single premium payment mode. An option to take a tax-free lump sum up to 33% of Sum
Assured. You can invest in any 6 funds. With 3 free switches every year. Also open market
option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life
insurer.
3. Swarna Vishranti: Is a plan with an option to take a tax-free lump sum up to 33% of Sum
Assured + Accrued Bonuses. Open Market option: Purchase immediate annuity from Bajaj
Allianz Life Insurance or any other Life Insurance Company. And also additional benefits
can be availed of.
4. Future Secure: It is a plan which secures your future.
5. Future Income Generator: It helps you maintain the same lifestyle you lead now ,after
your retirement. The saving today becomes your wealth and support to help secure your
future. The plan is about wealth creation, smart savings and peace of mind along with a
corpus, which secures your life, post retirement.
Women Insurance Plans
1. Housewives: Housewives need to safeguard their financial independence. There are
additional benefits like the Mahila Gain feature which offers benefits like.
• Critical Illness Benefits.
• Reconstructive Surgery Benefits for Breast(s) due to Breast Cancer.
• Congenital Disability Benefits.
• Complications of Pregnancy Benefits.
2. Working Women: This plan helps the working women to protect them self, their family
and plan for their future. The insurance, investment, pension and health products have been
specially customized to suite to every specific need of a woman.
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Children Plans
Child Gain: Is a plan where it creates funds for critical stages in your Childs life like
education, marriage or even to start a business. It has the benefit of low premium rates.
Health Plans
1. Health care: Is a plan with 6- in-1 Health Insurance that offers:
• Life Cover
• Hospital Cash benefit
• Surgical benefit
• Post Hospitalization Benefit
• Critical Illness Cover
• Accidental Permanent Total / Partial Disability (APT/PD)
2. Family Care First: It is a plan for the whole family. This unique hospitalization plan gives
you health cover for your entire family. You can secure your family with one plan.
3. Care First: A Medical Insurance plan till the age of 65years. And you can renew the
policy every 3 years. The premium rate is level and guaranteed for the length of each policy
term of 3 years with extra benefits like day care treatment and pre and post hospitalization
treatment
Micro Insurance Plans
1. Alp Nivesh Yojana: An endowment plan with Life cover and Maturity benefit equal to
sum assured + vested bonus.
2. Saral Suraksha Yojana: A Term Insurance policy with return of premium on maturity.
3. Jana Vikas Yojana: A single premium plan with maturity benefit of 125% of the single
premium payable on survival till the end of the policy term.
e) AREA OF OPERATION
Bajaj Allianz today has a country wide network connected through the latest technology for
quick communication and response in over 200 towns spread across the length and
breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the
offices are interconnected with the Head Office at Pune. During the year, company
continued to increase its focus on service quality. The company aims to provide consistent
and high quality service across the country through, all channels of delivery - branches, call
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centers, internet and the customer portal. Towards this end, periodic service audits conducted
across all regional offices and at the call centers provide useful insights into customer
requirements and expectations helping the company improve its processes. The company has
implemented a Quality Initiative across its offices which regularly measures the effectiveness
of its processes, reduces leakage and contributes to increasing revenues, managing costs and
improving service quality. The company has also launched a completely revamped website
with a big focus on customer education and knowledge. The company has continued to
strengthen its presence in the virtual world, both for creating awareness and facilitating self-
service. Your company continues to explore strategic outsourcing partnerships with a focus
on handling volumes and reaping economies of scale. The combination of outsourcing
partnerships and technology implemented by the company is assisting in improvement of
service turnaround times.
f) OWNERSHIP PATTERN
BAJAJ Allianz Life Insurance Company is a joint venture between two leading
conglomerates, Bajaj Auto Limited, one of largest manufactures of motorcycles and scooters
in the world, and Allianz AG of Germany one of the largest insurance companies. Bajaj
Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company
received the Insurance Regulatory and Development Authority (IRDA) certificate of
Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in India.
Bajaj Allianz Shareholder Capital Base stands at Rs. 500 crore with Bajaj Auto Limited and
Allianz AG of Germany holding 74% and 26% stake respectively. It is the largest private
player in the Insurance Industry in India with a market share of around 34% amongst the
private companies and second to LIC. The total market share of Bajaj Allianz as of 31 st
March 2006 is at 12%.
g) COMPETITORS INFORMATION
ICICI PRUDENTIAL: ICICI prudential insurance is a joint venture of ICICI bank and
prudential plc. a leading financial service group in the UK. Total capital stands for Rs. 37.72
billion, with ICICI Bank holding a stake of 74% and Prudential plc. Holding 26%. ICICI
begin their operations in December 2000 after receiving approval from IRDA. Now ICICI
prudential is having over 1000 offices, over 270000 advisors and 21bancassurance partners.
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ICICI Prudential was the first life insurer in India to receive a National Insurer Financial
Strength rating of AAA from Fitch ratings. ICICI prudential is working on the base of five
core values-
Integrity
Customer first
Boundary less
Ownership
Passion
Key features:
Understanding the needs of customers and offering them superior products and
service.
Leveraging technology to service customers quickly, efficiently and conveniently.
Developing and implementing superior risk management and investment strategies to
offer sustainable and stable returns to policyholders.
Providing an enabling environment to foster growth and learning for employees.
HDFC standard life insurance: HDFC Standard Life Insurance Company Ltd. is one of
India's leading private insurance companies. It is a joint venture of Housing Development
Finance Corporation Limited, India's leading housing finance institution and a Group
Company of the Standard Life in UK. HDFC as on March 31, 2007 holds 81.9 per cent of
equity venture. Gross premium income of the HDFC for the year ending March 31, 2007 was
Rs. 2, 856 crores and new business premium income was Rs. 1,624 crores. The company has
covered over 8, 77,000 lives year ending March 31, 2007. HDFC standard is having 1000
advisors in 11 towns.
Key features:
Creating corporate agents through HDFC bank in India.
Creating agents to provide total financial consultancy.
Introducing low cost group schemes for companies and NGOs.
Reliance life insurance: Reliance Life Insurance Company Limited is a part of Reliance
Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of
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India’s leading private sector financial services companies, and ranks among the top 3 private
sector financial services and banking companies, in terms of net worth. Reliance Capital has
interests in asset management and mutual funds, stock broking, life and general insurance,
proprietary investments, private equity and other activities in financial services. Reliance
Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the
Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934.
Aviva life insurance: Aviva is UK’s largest and the world’s fifth largest insurance Group. It
is one of the leading providers of life and pensions products to Europe and has substantial
businesses elsewhere around the world. Aviva has a joint venture of Dabur, one of India's
oldest, and largest Group of companies. And country's leading producer of traditional
healthcare products. In accordance with the government regulations Aviva holds a 26 per cent
stake in the joint venture and the Dabur group holds the balance 74 per cent share. Aviva
has 193 Branches in India (including rural branches) supporting its distribution network.
Through its Banc assurance partner locations, Aviva products are available in more
than 2,795 locations across India. Aviva has a sales force of over 30000 financial planning
advisors.
Key features:
Through the “Financial Health Check” (FHC) Aviva’s sales force has been able to
establish its credibility in the market. The FHC is a free service administered by the
FPAs for a need-based analysis of the customer’s long-term savings and insurance
needs. Depending on the life stage and earnings of the customer, the FHC assesses
and recommends the right insurance product for them.
Introduced the concept of Banc assurance in India.
Products to provide customers flexibility, transparency and value for money.
Differentiation in fund management operations.
MetLife insurance: MetLife India Insurance Company Limited is an affiliate of MetLife,
Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc. and
The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private
investors. MetLife is one of the fastest growing life insurance companies in the country. It
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offers a range of innovative products to individuals and group customers at more than 600
locations through its bank partners and company-owned offices. MetLife has more than
32,000 Financial Advisors. It has approximately 70 million customers all over world.
MetLife is working on the base of six core values-
Innovation
Long term relationship
Customer centered and result focused vision
Creating high performance organization
Working with integrity, fairness and financial prudence
Partnering with internal and external customers
Max New York life insurance: Max New York Life Insurance Company Ltd. is a joint
venture between New York Life, a Fortune 100 company and Max India Limited, one of
India's leading multi-business corporations The Company's paid up capital is Rs. 907.4 crore.
Max New York life is working on the base of six core values-
Excellence,
Honesty,
Knowledge,
Caring,
Integrity
The Company practices a lot of importance on its selection process of insurance advisors
which comprises four stages - screening, psychometric test, career seminar and final
interview. 337 agent advisors have qualified for the Million Dollar Round Table (MDRT)
membership in 2007 and Max New York Life has moved up to 21st rank in MDRT global
list.
Key features:
17
Max New York Life has adopted prudent financial practices to ensure safety of
policyholder's funds.
Investing significantly in its training programme and each agent is trained for 152
hours as opposed to the mandatory 100 hours stipulated by the IRDA before
beginning to sell in the marketplace.
Using a five-pronged strategy to pursue alternative channels of distribution which
include the franchisee model, rural business, direct sales force involving group
insurance and telemarketing opportunities, banc assurance and corporate alliances.
Bharti Axa life insurance: Bharti Axa life insurance is a joint venture between Bharti, one
of India’s leading business groups with interests in telecom, agri business and retail, and Axa
world leader in financial protection and wealth management. The joint venture company has
a 74% stake from Bharti and 26% stake of Axa. The company started its operations in
December 2006. Now company is having over 5200 employees across over 12 states in the
country. Company is working on the base of five core values-
Professionalism
Innovation
Team Spirit
Pragmatism
Integrity
Key features:
Using multi-distribution, multi product platform techniques.
Adapting AXA's best practices as a sound platform for profitable growth.
Leveraging Bharti's local knowledge, infrastructure and customer base.
Delivering high levels of shareholder return.
Building long term value with business partners by enhancing the proposition to
their customers.
Retaining the best talent in India.
Tata AIG life insurance: Tata AIG Life Insurance Company Limited (Tata AIG Life) is a
joint venture company of the Tata Group and American International Group, Inc. (AIG). The
Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26
18
percent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG
Life Insurance Company started to operate its business in India on April 1, 2001. Tata AIG is
having 3000 advisors all over India.
Key features:
Establishing direct mailers; call-centers in 60 centers.
Creating awareness workshops in housing societies.
15-day trial period with refund, premium payment through credit card.
ING Vysya life insurance: ING Vysya Life Insurance Company Limited a part of the ING
group the world’s largest financial services provider entered in the private life insurance
industry in India in September 2001.ING Vysya Life is currently present in 246 cities and has
a network of over 300 branches, staffed by 7,000 employees and over 51,000 advisors,
serving over 5.5 lakh customers. ING Vysya Life has a diversified distribution channels,.
While Tied Agency remains the strongest channel, the Alternate Channels business within
ING Vysya Life is one of the fastest growing distribution channels. ING Vysya Life has
strengthened its position as the unparalleled leader in the life insurance industry in
cooperative banks tie ups. The company currently has tie ups with 130 cooperative banks
across the country. The Alternate Channels division has Banc assurance, ING Vysya Bank,
Corporate Agents and SMINCE. ING Vysya is working on the base of five core values-
Professionalism
Entrepreneurial
Trustworthy
Approachable
Birla sun life insurance: Birla Sun Life Insurance Company Limited (BSLI) is a joint
venture between the Aditya Birla Group and the Sun Life Financial Services of Canada. It
started operations in March 2001 after receiving its registration license from IRDA in January
2001. Company is having more than 45 branches across India.
Key features:
19
Focus on unit linked insurance products supported with protection products to
maintain leadership in product innovation.
Use of multi distribution channels- Direct Sales Force, Alternate Channels and
offering convenient channels of purchase to customers.
Web-enabled IT systems for superior customer services and issuing policies on the
internet.
High degree of transparency in all business practices and procedures.
Working on operational Business Continuity Plan.
AEGON Religare Life
AEGON, an international life insurance, pension and investment company, Religare, one of
India’s leading integrated financial services groups and Bennett, Coleman & company,
India’s largest media house, have come together to launch AEGON Religare Life Insurance
Company Limited. This venture is dedicated to build a firm future, both for customers and
employees and will continue to balance a local approach with the power of an expanding
global operation.
We launched our pan-India multi-channel operations in July, 2008 with over 30 branches
spread across India. Our business philosophy is to help people plan their life better. We
provide high quality advice to our customers and offer superior customer service.
Canara HSBC OBC Life
The shareholding pattern of the Joint Venture is as follows - Canara Bank holds 51% equity,
HSBC Insurance (Asia Pacific) Holdings Ltd 26% and Oriental Bank of Commerce 23%. The
Venture has an initial paid up capital of INR 325 crores which will further increase in line
with our expansion plans.
20
The Company commenced business 16th of June, 2008 after receiving requisite approvals
from the Insurance Regulatory Development Authority (IRDA). Canara HSBC Life has
access to 4100 bank branches all over India.
h) INFRASTRUCTURAL FACILITIES
BAJAJ ALLIANZ is providing good infrastructural facilities which are required for
employees to perform their work in a better way. During the year, the Company has invested
in additional infrastructure capacity and human capital, in terms of offices, technology, staff,
financial consultants, in order to be well positioned to increase the growth momentum in the
year ahead. The company stepped up the recruitment program in the latter part of the year in
preparation for the next year.
BAJAJ ALLIANZ providing medical card (BALIC medical card) to the employee, in which
employee can take medical facility up to 5 lakhs. Employee can use this facility for their
family also. BAJAJ ALLIANZ providing online attendance system for their employee.
It also provide online official id to their employee.
i) ACHIEVEMENT/AWARDS:
Bajaj Allianz Life Insurance has been awarded the SKOCH Financial Inclusion
Award 2011 for its execution of financial inclusion initiatives through life insurance
across India. Financial inclusion is the delivery of financial services at affordable
costs to low income segments of society.
The award recognizes Bajaj Allianz's micro-insurance product catering to rural
markets, Sarve/Swayam Shakti Suraksha (SSS). A flexible and simple plan, SSS
offers rural customers insurance protection against unforeseen events and an
opportunity to save systematically
Bajaj Allianz has received “iAAA rating, from ICRA Limited, an associate of
Moody’s Investors Services, for Claims Paying Ability. This rating indicates highest
claims paying ability and a fundamentally strong position.
Bajaj Allianz General Insurance has received the prestigious “Business Leader in
General Insurance”, awarded by NDTV Profit Business Leadership Awards 2008. The
company was one of the top three finalists for the year 2007 and 2008 in the General
Insurance Company of the Year award by Asia Insurance Review.
21
j) WORK FLOW MODEL (END TO END)
The work flow model of the organization is represented by a flow chart.
Dealers/ salesmen / surveyor obtain contact information about prospective customer
Rejection
Rejection Rejection
Rejection Rejection
22
Client Policy document
CUW (central under
RPC (regional process center)
Operation Sales manager
Sales promoter (Bank) / sales officer (Aviva)
Branch operation
K) FUTURE GROWTH AND PROSPECTUS
Bajaj Allianz, in the present scenario is growing at an aggressive pace. The company does a
lot of survey & analysis in the market to discover customer’s need and expectation and tries
to improvise on its existing market linked plans along with insurance policies.
Bajaj Allianz Life Insurance, one of the leading private insurance companies in India,
is eyeing to double its market share to 10 per cent in the health insurance segment
over the next three years. Presently, the company's market share in health insurance,
among all the life insurers, is around 5%, which it plans to increase it to 10% in a
three-year period. The company launched the latest insurance policy, in order to
strengthen the Indian insurance industry's focus on women.
Bajaj Allianz Life Insurance has already launched one product this quarter (Q1 FY
11) in the traditional category -Invest plus Premier- and has lined-up a few more for
in Q2.
According to Bajaj Allianz Life Insurance CEO, Kamesh Goyal, “In Q2, we plan to
launch a few products--our plans will be finalized by June 30"
Many of the products of Bajaj Allianz in the pipeline, company have filed for a few
with IRDA and were awaiting its approval.
Currently the company has maintained the no. 2nd position in the general insurance
industry and the next plan of company is to maintain the same position in the life
insurance sector also. Currently company has the market share of 4% in life insurance
23
and the main focus of the company is to strengthen their position in the next
upcoming year by launching some more value added product.
3) MCKINSEY 7-S MODEL
The 7-s model with reference to BAJAJ ALLIANZ life insurance:
The 7s model are a frame work for analyzing organizations and their effectiveness. It looks
at seven key elements that make the organization successful, or not; a structure; a system,
skills, staff, shared values.
Consultants at McKinseys and company developed by 7s models in the late 1970s to help
managers address the difficulties of the organization change. The model shows that
organizational immune system and the many inter connected variables involved make change
24
complex, and that an effective change effort must address many of these issues
simultaneously.
The 7s model is a tool for managerial analysis and action that provides structure with which
to consider a company as whole, so that the organizational problems may be diagnosed and a
strategy may be developed and implemented.
The seven diagrams illustrates the multiplicity interconnectedness of elements that
organization’s ability to change. The theory helped to managers thinking about how
company could be improved. It says that it is not just a matter of devising a new strategy and
following it through. Nor is it a matter of setting a new system and letting them generate
improvements?
To be effective, your organization must have degree of fit or internal alignment among all the
7s. Each S must be consistent with the reinforcement of the other ‘S’. All ‘S’ are interrelated
so a change in one has a ripple effect on all others. It is impossible to make progress on one
without making progress on all. Thus, to improve the organization you have to master
system thinking and pay attention to all of the seven elements at the same time. There is no
starting point or implied hierarchy different factors may drive the business in any one
organization.
STRUCTURE
The structure defines former relationship and the use of people in the organization. In
today’s complex and ever changing environment, successful organization may take
temporary structural change to cope with specific strategic tasks without abandoning basic
structural division throughout the organization.
Organizational structure with results from the organizing process is the basic frame work
within which the decision making behavior of an executive takes place. It is an establishment
pattern of relationship among the components of the organization.
In the BAJAJ ALLIANZ each and every department is empowered with the officer, clerk
and sub staff. The authority is delegated to officer/manager to extract work from the staff.
The each department consists of members based on its requirements. Thus it is having an
effective work on the various activities efficiently and effectively.
The board of directors, chair, and managing director (CMD)
Top management is responsible for all the organizational activities and also they are
responsible for decision making and performance taken by each department.
25
Middle level management is concerned about their respective departmental activities.
The departmental managers communicate with their respective department activity to
the top level management regularly or weekly. Marketing department, HR
department, finance department constitute this level of management. Each of these
departments is headed by respective director and they are responsible for their
departmental activities.
The lower level management consists of assistant manager of each department. They
will communicate and report their performance and activity to the middle level
manager.
ORGANIZATION STRUCTURE:
CEO/M.D
TRAINING
HUMAN
RESOURCE
INVESTMENT
MARKETING
FINANCE & CLIENT SERVICING
IT
REGIONAL
MANAGER
(EAST)
REGIONAL MANAGER (WEST)
REGIONAL MANAGER (NORTH)
REGIONAL MANAGER (SOUTH)
AVP CORPORATE
AGENTS
DISTRICT
MANAGER
TERITORY
MANAGER
AREA
SALES
MANAGER
26
ADVISOR
ADVISOR
ADVISOR
ORGANISATIONAL UNIT OF BAJAJ ALLIANZ LIFE INSURANCE AT
BANGALORE CITY
BRANCH
CO-
ORDINATOR
COMMERCIAL EXECUTIVE
ASSISTANT SALES
MANAGER
TERRITORY MANAGER
SECURITY
NON- STAFF
HR DEPARTMENT CHART
HR Manager
BRANCH
27
HR Executive
Trainers’
Department Profile
3.3.1 HUMAN RESOURCE DEPARTMENT
Human Resource Department
The success of an organization depends upon the quality of its work force. HR department is
responsible for the recruitment and selection of employees based on ability, skills and
qualification. The HR department is also responsible of certain activities concerned with the
employees.
Objectives of Human Resource Department:
To maintain a healthy relationship and act as a mediator between the employer and
employees.
To recruit and select prospective candidate, arrange for an interview and fill vacancies
in the concerned department.
To take care of the activities done by the other departments.
Personnel department is responsible for all the good and bad works done by the
workers.
HR department has to maintain the good relationship with all the other departments.
Recruitment:
It handles the recruitment and the appointment of the required staff for various
department of an organization.
Appointment:
The person so appointed or selected will be placed in the vacant post defining the
respective jobs to be done.
Admin. Staff
28
Induction:
Later the induction programme of the employees will be arranged for to introduce all
the department of company by the labor officer as well as the concerned department
head. Therefore, the employees can come in terms with the objectives of the
company and his participation in fulfillment of the company objectives considering
himself as an essential ingredient of the company.
Training:
This is also one of the important functions of the department, keeping in view to
update his/her knowledge and to increase his/her efficiency, so after sometime such
programme are arranged by this department and employees of the company are kept
in touch with the least ways of the morale booster and fondness towards the company
is injected in the blood of employees.
On the Job Training:
Employees are couched and instructed by training instructions, they learn the job by
personal observation and practice. It is learning by doing.
HR Policies & Procedures
The policies and procedures laid down here promote the philosophy of
the company with regard to standards of excellence, Terms of employment.
Employee development and employee services. The objective of this section is to
inform you of the polices related to Travel, compensation, Medi claim, and Transfers
etc. We recommend that you make yourself aware of the entitlements
Compensation Components
The compensation that is given in your appointment letter comprises of base
Salary, FCP (Flexible Compensation Plan), and Employers contribution to provident
Fund Fund and Employers contribution to Gratuity. Base salary is as per company
policy is not flexible amount since a lot of statutory and non-statutory benefits are
linked to the base salary.
Statutory Benefits
29
The Provident Fund and Gratuity are governed by Acts of Law and are mandatory.
Provident Fund
The Provident Fund is a one of the mandatory schemes established by the
government of India to provide social security to the service class. It is a scheme,
which is bearing on the employer and the staff member and provides security to the
staff member and / or his dependants on retirement, disability or death.
Gratuity
The Gratuity Fund is regulated by the gratuity fund Act, 1972. At present, the
following benefit is available. All Permanent staff members of the company,who have
completed five years continuous service, are eligible for payment of gratuity at the
time of retirement.
FINANCE DEPARTMENT CHART
Financial head
Fund Manager
Portfolio Manager
Staff
Financing and Accounting Department
Accounting Department: In this section accounts are maintained. Accounts are maintained
in traditional methods only. This is ledger.
The main functions are recording all the accounts including employees’ and workers’
salary and their PF etc.
It records all the payments of the company.
It records all the transactions of the company.
Accounting process:
Recording the transactions:
Classifying the transactions
Summarizing the transactions
30
Analyzing and interpreting the results.
3.3.2 Finance Department
Planning & MIS – monitoring of organization performance - sales, quality, Trends- on a
continuous basis. With insights into MIS, socio economic factors & competitor
behavioral patterns, we contribute to sales targets, strategic initiatives projected branches,
and projected work force the road ahead.
Internal Audit – Risk Management, Business Continuity Plan, Best Practices, policy manuals
are not mere words on paper adhere to them. We ensure ‘Practice what you preach.
Corporate planning and MIS provide feedback on business strategies.
The Accounts function includes preparation and maintenance of financial records, Funds
management, and expense processing and treasury operations. Compliance ensures that
every action is within the regulatory framework. This includes reviewing compliance
requirements and supporting the ethical framework of RIL. Internal audit provides
assurance to the management over the organizations’ control framework and includes
process risk management, information security assessment and business continuity
assessment.
3.3.3 MARKETING DEPARTMENT Marketing at Bajaj Allianz Life Insurance covers an array of activities- advertising,
branding, channel support, direct and alliance marketing and corporate communication.
The people in each of these sub-functions perform a unique job.
The advertising and branding section has schedules of advertising campaigns and
a detailed on what BALIC corporate identity stands for, why it’s important to be
consistent and guidelines that must be adhered to. This section also details the
branding across training, advisor and advertising collaterals with references.
Market development has lucid presentations about our products and how they
compare to those of competition. You will also find an update on the recent happenings in
the life and pensions sector. Channel marketing aims to streamline the design and
development of collaterals across distribution channels. You will find examples of
posters, flyers, banners, danglers sales toolset developed for tied agent, Bank assurance and
corporate agent’s, as well as for product lunches and campaigns.
Corporate communications handles media relations and is responsible for some of
the news regarding BALIC that you see in the press. You can check out the most recent clips
in the BALIC in the new section.
31
Customer Service & Operation
The operation department the work process between the customer and the company to
ensure consistent and quality service to the customer. To streamline the Operations, the
operation department interfaces between the claims and the agents, the branches and
underwriters, and manages work processes.
3.3.4 Information Technology Department
The IT function at BALIC is committed to enable business through the use of
technology. It is segmented into 4 groups to enable highest levels of delivery to the
customers: Life Asia Solutions Group - Web that provides real – time information to
customers and is responsible for customer relationship management, IT Architecture &
corporate Solutions Group is in charge of developing and maintaining a blueprint for the
IT architecture for the enterprises as a whole. This team works as an in house R&D
Solutions Group, exploring new technological initiatives and also caters to information needs
of corporate functions in the organization.
2. SKILLS
It is a more reputed insurance company, as it is providing financial solution of where to
invest, how to invest and number of products with having more benefits to investors. It has
reputed customers who are loyal to the organization. The service given to the customers are
accomplished as per their requirements. Financial services generally do mass supporting
services are rendered to all types (classes) of customers. More over the people feel their task
is in safe hands of the industry. The organization is having various capabilities over the
competitors. These skills are unique from the competitors of BAJAJ ALLIANZ.
In the class just we can assume how the corporate world is but it is completely
different when I started to go to the company. In the class just we will read,
learn and same thing we will write in the exam and we will get pass but when
we go for searching job really we will feel the heat of outside world, regarding
pressure for target achievement, competition for jobs etc…
During my stay in the organization I was exposed to the actual working of the
organization. I learnt how the different departments of an organization functions
and coordination for overall smooth function.
That was a wonderful experience to me in that company. I learnt so many things
there, what is the real corporate culture, How much we have to be smart, How
much talented we should, How we should achieve our target, what is our
responsibity. I could also analyze how McKinsey’s model contributes to
effective working of the organization. During this short period, by interacting
with my guide and other key persons, it enables me to know about the functions
of various departments. Their workflow, discuss and responsibilities of
respective heads.
43
I learn how the company motivates the employee to retain and make them work
effectively with full satisfaction towards achieving their individual goals which
indirectly can achieve the organizational goals.
Some of the findings during my 10 weeks stay in the organization are as follows:
Company has excellent infrastructure.
Corporate culture amongst the employees is excellent irrespective of their cadre
and their designation.
Excellent environment to work with committed employees.
Welfare facilities as well as infrastructural facilities given to the employees
helps in boosting up their morale.
The company has a lot of prospects to come up as a profit making organization.
Finally, excellent experience, which let me to compare theoretical learning to
my practical experience.
PART –B
CHAPTER -1
A. GENERAL INFORMATION
1.1 STATEMENT OF THE PROBLEM
To study the various marketing techniques, which are adapted to attract the customers
towards the Bajaj Allianz Life Insurance Corporation? In addition to know the various
competitive advantages enjoyed by the company.to know the market is potential of Bajaj
Allianz Life Insurance Corporation in Bangalore city as compared to other insurance players.
The comprehensive statement of the problem can be stated as “A Study on Brand
Awareness of Life Insurance and Changing Investment Pattern with Special Reference
to Bajaj Allianz Life Insurance Corporation”
1.2 OBJECTIVES OF THE STUDY
Research objective is the basis theme on which the survey is conducted and on which the
whole report depends.
Primary objective
To study about the “Brand Awareness of Life Insurance and changing investment
pattern"
44
Secondary objectives
To study the investment pattern of people in Life Insurance.
To observe the extent of the market.
To recognize the target groups.
To find out which type of insurance is preferred by the investors.
To study the factors responsible for the low investment in Life Insurance.
To study the different facilities of Life Insurance given by different companies.
To study the risk factor involved in Insurance.
To study which company is providing better services of Insurance with higher returns.
To study the behavior values and beliefs of customers.
1.3 Scope of the study
The study is conducted at Bajaj Allianz Life Insurance Corporation at Bangalore. The
study covers the various marketing techniques to know about the brand awareness and
changing investment patterns towards the life insurance industry. The data collected and
interpreted will be useful for the company Scope of study refers to the area selected for the
survey purpose. It includes businessman, employees, household and retired persons who are
interested in investment their money. Various findings, observations and valuable
suggestions, recommendations help the company to materialize its future plans.
1.4 Research Methodology
Research methodology is used to search answers of the research questions. An attempt has
been made to describe the nature of the people of Bangalore city by the study of the samples.
Methodology in common parlance refers to a search for knowledge. The advanced learner's
dictionary of current English lays down the meaning of research as "a careful investigation or
enquiry especially through search for new facts in any branch of knowledge"
Methodology is a way to systematically solve the research problem. It may be understood
as a science of studying how research is done scientifically. Learning more about the
consumer and about marketing is the heart of the research methodology. The research
methodology has many dimensions research methods to constitute a part of the research
45
methodology.
A. Sampling plan
After collecting entire data and deciding on the research approach and instruments, now I had
to decide on the sampling plan which was one of the important task, because from the bunch
of people I had to select only those people ,whom I can target from now onward. There are
three way of sorting the data.
B. Sampling unit
Who is to be surveyed? And now my task was to define the target population, which will be
sampled from the number of people. Population refers to the total items about which the
information is desired. Here in this project I have considered finite population that is we are
taking one single individual as single unit which is fixed to 50 respondents, each separately
by the single individual.
C. Sample size
Large sample give more reliable result than small sample, so for this reason I had taken
around 50 people with whom the survey was conducted to get an understanding of the
respondents satisfaction level towards the different insurance brands.
D. Analyze the collected information
Once the date is collected the next task is to analyze it. The raw data should be
classified into some purposeful usable categories. For example: tabulation, coding,
etc. Analysis work, after tabulation, is generally based on the computation of various
percentages, coefficients, etc. by applying various well defined statistical formulae
like frequency distribution, calculation of average and dispersions. Here in this report
it is found that the investment pattern of people in private insurance companies is not
satisfactory.
E. Report research findings:
46
Final report is prepared according to the work done. This phase will mark the elimination of
the marketing research effort. The report with the research finding is a formal written
document. Research findings and personal experience will be used to propose
recommendation to the Bajaj Allianz Life Insurance Corporation, which will help the
company to develop an effective strategy to compete against other competitors.
F. Data collection method
There are several ways of collecting the data which different considerably in context of
money, cost, time and other resources. In this project the data which was required gave
details about the behavior of people who make investments in insurance, mutual funds, IPO,
share market, etc.
1. PRIMARY DATA
The primary data are the first hand information gathered for research to solve the need by
surveying the sampling units and collections of feedback from them involves the primary
data with structured queries will be prepared for the customers. There will be survey within
the customers giving the questionnaire. The questionnaire were structured non disguised
questionnaire because the question which the questionnaire contained, were arranged in a
specific order besides every question asked were logical for the study, no question can be
termed as irrelevant.
Sources of primary data
Personal interview.
Questionnaires.
Personal Interview
This method was the most appropriate way of survey, because by personal interview I came
to know about how the respondents feel about the life insurance companies. The personal
interview is conducting mainly for collecting information for fulfill of the questionnaire.
Questionnaire
47
This method proved to be even better because it was not possible to interview every one and
it was less time consuming to fill up the questionnaire rather than answering the interviewer’s
questions. The questionnaire is to prepare to know the awareness level. The questionnaire is
fully focused for collecting the brand awareness information and finding the market potential
of Bajaj Allianz Life Insurance Corporation.
In this method questionnaire were distributed to the respondents and they were asked to
answer the questions in the questionnaire. The questionnaire were structured non disguised
questionnaire because the question which the questionnaire contained, were arranged in a
specific order besides every question asked were logical for the study, no question can be
termed as irrelevant.
2. SECONDARY DATA
The secondary data is collected from the company website and other websites, through listing
by personal observation. The secondary data are collected by some other people for their
work and it is already exist. The researcher started investigation by first examining the
secondary data to see whether the problem can be partly or fully solved by without collecting
primary data. Since the secondary data were not sufficient to solve the entire problem, so
primary data were collected to fill the gap.
SOURCES OF SECONDARY DATA:
Through internet, various official sites of the companies and other search engines.
Through pamphlets and brochures of the companies.
Journals & Magazine
G. Data collection instruments
Questionnaire was designed as a main instrument to conduct survey. A questionnaire
constraint of 15 set of questions presented to respondents for their answers. The questionnaire
was non-disguised because the questionnaire was constructed so that the objective is clear to
the respondent. The respondents were aware of the objective. They knew why they were
asked to fill the questionnaire. The questionnaire is used for the purpose of knowing the
brand awareness among Life Insurance Company and changing investment pattern of people
of Bangalore city.
Market survey
The result of surveys is used to describe and analyses the demand of the Bajaj Allianz life
48
insurance products. The survey is conducted in the Bangalore city only.
Field work
Field work is done in this project individually with no biasness. The field work comprises of
filling of questionnaire by different sector individuals. The framed questionnaire was
presented for approval to college internal guide and company external guide. The study
involved a fieldwork where the consumer contacted individually and were persuaded to
discharge the information through the questionnaire. The respondents were directly contacted
at their house or work place without prior appointment as per the convenience of the
researcher.
RESEARCH PROCESS ADOPTED:
Research Area : Bangalore
Sample Size : 50
1.5 LIMITATIONS OF THE STUDY
Following limitations were faced during the study:
1. While designing the questionnaire it was kept in mind to gather more and more
information from each target person. For the neither present nor descriptive questions
could have served the purpose. Therefore the questionnaire contained in the open-
ended questions.
2. The study was conducted in Bajaj Allianz in Bangalore city, which has 127 to 170
insurance care consultants only. The sample size was of 50 insurance care consultants
only so that accuracy of data so collected could be absurd covered by circulation of
questionnaire.
3. The accuracy of indications given by the respondents may not be consider adequate as
whether the language used in the questionnaire is understood by the respondent
cannot be taken for granted.
4. The study is based on the information gathered from the insurance care consultants.
Therefore in such case it is possible that the information supplied might be biased
because the insurance care consultant might have shown partiality towards their
insurance policies.
49
5. Since the survey was limited to 50 insurance care consultants it is rather difficult to
give a precise conclusion but I have tried to the best of my capability to give the
conclusion on a comprehensive manner.
6. Human behavior is too complex to determine. So the information disclosed by them
may not be very accurate.
7. It might be possible that the answers given by the respondents are full of biasness.
8. Some of the respondents were not willing to reply the questions.
9. A questionnaire is in English language, some respondents found it difficult to
understand it, even many refused.
CHAPTER-2
DATA ANALYSIS & INTERPRETATION
TABLE-1
Table showing the awareness about Life Insurance among respondents
Awareness No. of respondents Percentage
YES 49 98%
NO 1 2%
Total 50 100%
Analysis: The above table showing out of 50 respondents, 49 respondents are aware about life insurance only 1 is not aware about it.
50
Interpretation: - The above pie chart states that 98% of the total sample knows about life
insurance. Only 1% of the total sample does not know about Life Insurance.
From the above interpretations it is very clear that almost every body knows about Life
Insurance.
Table showing specific brand awareness about Bajaj Allianz Securities Ltd. among
respondents
Brand awareness No. of respondents Percentage
YES 43 86%
NO 7 14%
Total 50 100%
Analysis: The above tables showing out of 50 respondents, 43 respondents know about Bajaj
Allianz securities ltd., Only 7 respondents are not aware of it.
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CHART- 2
Interpretation: - The above pie chart states that 86% of the total sample knows about Bajaj
Allianz Life Insurance Corporation. Only14% of the total population does not knows about
Bajaj Allianz Life Insurance Corporation. From the above interpretation it is clear that
although Bajaj Allianz is a strong brand amongst the financial investors, people of Bangalore-
city do not know much about the company.
Table -3
Table showing how much amount respondents can invest per annum?
amount No. of respondents percentage
<10,000 19 38%
10,000-20,000 13 26%
20,000-30,000 10 20%
> 30,000 8 16%
Total 50 100%
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Analysis: The above table showing out of 50 respondents, 19 respondents are investing less than10000 per annum, 13 respondents are investing 10000-20000,10 respondents between 20000-30000 and 8 respondents are investing more than 30000 per annum.
Chart -3
Interpretation: - The above pie chart represents that 38% population is willing to invest less
than Rs. 10,000, 20% of the people want to invest 20,000-30,000, only 16% population is
willing to invest more than Rs. 30,000 per annum. while the people investing between Rs.
10,000 to Rs. 20,000 are 20% of total population surveyed.
Table - 4
Table showing for what duration respondents would like to hold the policy
Years No. of respondents Percentage
<5 years 11 22%
5-10 Years 26 52%
10-20 Years 8 18%
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>20 Years 5 8%
Total 50 100%
Analysis: the above table showing out of 50 respondents 11 respondents would like the
policy for till 5 years, 26 respondents would like to hold the policy for 5 to 10 years and
rest of 13 respondents would like to invest for more than 10 years.
Interpretation: - The above pie chart clearly shows that the people are more willing in the
investment policies having maturity period between 5-10 years.
Investment policies having long maturity periods are less preferred by the peoples.
Table - 5
Table showing which Insurance plan respondents would like to opt or opted?
Insurance plan No. of respondents Percentage Unit linked plans 31 62%Traditional plans 19 38%Total 50 100%
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Analysis: The above table showing that out of 50 respondents, 31 respondents would like to go for unit linked plan and rest of the respondents would like to go for traditional plan.
Interpretation: - The above chart states that 38 % of the people of the total sample size like
to invest or they have already invested their money in traditional plan of the Life Insurance
while 62% of the people like to invest or they have already invested their money in Unit
linked plan, which is the modern plan of the Life insurance.
So, it is clear from the above interpretation that traditional plans are still popular
among the masses although the modern unit linked plans are available in the market.
Table -6Table showing which company specific insurance plan respondents would like to invest
the money?
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Company name No. of respondents Percentage
LIC 31 62%
Bajaj Allianz 6 12%
HDFC 3 6%
ICICI Prudential 5 10%
Others 5 10%
Total 50 100%
Analysis : The above table showing that out of 50 respondents 31 respondents have a faith on LIC, 6 respondents would like to invest in Bajaj Allianz and rest want to invest their money in other insurance company.
Interpretation: - The above pie chart states that 62% of the population wants to invest their
money in L1C when there is any option of investing in life insurance. 12 % of the total
sample wants to invest their money in Bajaj Allianz, 10% in ICICI Prudential, 6% in HDFC
and the remaining 10% in other than these brands.
56
From the above interpretations it is clear that L1C is the strongest brand in comparison to the
other private insurance company’s brand. It is also because L1C is the oldest company when
we talk about Life Insurance.
Table - 7Table showing from whom respondents would like to buy or bought insurance plan?Channels No. of respondents Percentage Direct from the company 3 6%Any consultant 2 4%Any agent 45 90%Total 50 100%
Analysis: the above table showing that out of 50 respondents, 45 respondents would like to buy or already bought from agents.
Interpretation: - The above pie chart states that 90% of the total sample sizes take the
insurance polices from the insurance agents. 6% of the total people take the insurance
policies direct from the company and only 4% of the total sample takes the insurance policies
from the financial consultants.
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So, here we can say that the mass prefer to take life insurance policies from agents in
other words the business of the life insurance is completely dependent on the agents.
Table-8
Table showing type of information respondents would like to know while taking any
insurance plan.
Information type No. of respondents Percentage
About the company 7 14%
About plan 3 6%
About returns 7 14%
About initial investment 4 8%
All the above 29 58%
Total 50 100%
Analysis: The above table showing that out of 50 respondents, 29 respondents would like to know all information like about the company, about plan, about returns, about initial investment before taking any insurance plan.
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Interpretation: - The above pie chart states that 6% of the total sample size wants to know
about the plan while taking any insurance plan 14 % of the total sample is concerned about
the returns while investing in life insurance. 14% of the total sample wants to know about the
company, 6% of the total sample wants to know about plan, 58% of the total sample wants to
know about all information while investing the money in life insurance while taking any
insurance plan. From the above interpretation it is clear that most of the people are concerned
about all the information while taking any life insurance policy. The major information they
want to know while taking any life insurance policy is the information about the company &
then about the returns.
Table -9
Table showing where the respondents would like to invest the money?
Analysis : The above table showing that out of 50 respondents 23 respondents would like to invest the money in Fixed deposits, 3 respondents in share market, 7 in mutual fund, 15 respondents in insurance and 3 respondents in other market.
59
Interpretation: - The above pie chart states that 46% of people invest their money in Fixed
Deposits, 30% of people invest in Insurance, 14% of people invest in Mutual Funds, 6% of
people invest in Share Market, 6% of people in other than these options.
So it is very clear from the above interpretation that people still like to invest their money in
Fixed Deposits although other better options available in the financial investment market.
Table -10
Table showing respondent’s opinion for the best/ safest market.
Analysis: The above table showing that out of 50 respondents, 15 respondents ranked fixed deposit as the best/ safest market, 18 respondents opinion is about insurance.
Interpretation: - The above interpretation shows that 30% population believes that investing
money in Fixed Deposits is best/safest 36% of the people believe that insurance is the
best/safest. While total 6% (2%+4%} of the people believe that Mutual Funds & Share
Market is the best/safest option for investing their money. So from the above interpretation it
is clear that people think that investing their money in Fixed Deposit is the safest option
available. It is also true that is the oldest option available in the investment market. A mind
set is their in the minds of people that no other option is safest or best in terms of investing
their money.
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Table -11
Table showing the respondents expectations when they think about
investment in financial product?
Area of consideration No. of respondents Percentage Low Risk, Low Profits 3 6%Low Risk, High Profits 36 72%High Risk, Low Profits 0 0%High Risk, High Profits 11 22%Total 50 100% Analysis: The above table showing that out of %0 respondents 36 respondents taking consideration as a low risk, high profit, no respondents would like to invest in the high risk, low profit financial product.
Interpretation: - drawn from the above pie chart states that 72% of the people expect low
risk and high profit when they think about investing their money in financial product. While
22 % of the people expect high risk and high profit when they think about investing their
money in any financial product. Only 6% of the people expect low risk and low profit form
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their financial product & obviously none would like high risk and low Profits combination.
So it is very clear from the above interpretations that very less number of people
wants to take risk when it comes to investing the money. They also want to make high profits
without taking high risks.
Table -12Table showing the attribute attracts the most respondents while taking an insurance plan?
Analysis: The above table showing that out of 50 respondents, 15 respondents taking insurance for tax planning, 13 respondents as an investment planning, 11 respondents for children education, 4 & 5 respondents respectively as risk cover & retirement planning.
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Interpretation:-There are so many reasons to take an investment plan. Most of people like to
take an investment plan to take tax benefit and some of them due to uncertainty and risk
factor in life. A large sample of population prefers an insurance plan for their investment
purpose. These are near about 26% of total population. Near about 10% people likes to take a
plan for retirement solution and 22% for their children’s education.
Table -13Table showing the additional benefit a respondents want from the policy
Additional benefits No. of respondents Percentage Accidental 19 38%Critical Illness 11 22%Start of Life 12 24%Family Income Benefit 8 16%Total 50 100%
Analysis: The above table showing that out of 50 respondents, 19 respondents wants accident as an additional benefit from the policy, 11 respondents considering critical illness as additional benefit and rest of the respondents considering other parameter like start of life, family income benefits.
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Interpretation: - The above pie chart shows that 38% of total population likes to take a plan
to get accidental benefit. After that they want other benefits near about in the same ratio i. e.
critical illness, start of life and family income benefit with 22%, 19% and 21% respectively.
Table -14
Table showing the respondents awareness of the risk cover and other benefits that are
offered in Life Insurance
General awareness No. of respondents Percentage
Yes 35 70%
No 15 30%
Total 50 100%
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Analysis: The above table showing that out of 50 respondents, 35 respondents are aware of the risk cover and other benefits offered by a life insurance company, rest of the respondents are not aware of the benefits offered by the company.
Interpretation: - The above pie chart shows that 70 % of the total population is aware about
the benefits given by the company and rest of the population is not aware about it.
So, the company should try to make aware the people aware about the benefits of the plan to
make a good will among the population.
Table -15
Table showing the satisfaction with the service that is offered by the Insurance
Company.
66
Level of satisfaction No. of respondents percentage
YES 24 48%
NO 26 52%
TOTAL 100%
Analysis: The above table showing that out of 50 respondents, 26 respondents are not satisfied by the service which is offered by an insurance company, rest of the respondents are satisfied the service.
Interpretation: - The above pie chart shows that only 48% of the population is satisfied by
the services offered by the company. A large segment of population is not satisfied by the
services offered by the company.
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So, company should make efforts to improve after sales services so
that they can make a grip over the peoples.
Table -16
Table showing the importance of insurance in the lives of respondents
Importance of insurance No.of respondents percentage
Safety 35 70%
Investment 6 12%
Tax- savings 8 16%
Others 1 2%
Total 50 100%
Analysis: the above table showing out of 50 respondents, 35 respondents taking insurance
policy for safety, 6 respondents for investment purpose, 8 respondents for tax savings and 1
respondents for other purpose.
12%
16% 2%
70%
SAFETY
INVESTMENT
TAX-SAVING
OTHERS
Interpretation: When asked about the importance of insurance in their lives, 70% of people
were in favor of safety i.e. they have taken insurance for safety purpose.
Table-17
Table showing the respondent satisfaction towards the service offered by Bajaj Allianz life
insurance
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Satisfaction level No. of respondents percentage
Excellent 5 10%
Good 24 48%
Average 10 20%
Poor 6 12%
Can’t say 5 10%
Total 50 100%
Analysis: the above table showing that out of 50 respondents, 5 respondents ranked the
service excellent, 24 respondents as good, 10 as average, 6 as poor, 5 respondents can’t say
anything about the service offered by Bajaj Allianz company.
Interpretation: 10% of the respondents are fully satisfied, 48% of the respondents are satisfied
with the services offered by the company.
Table - 18
Table showing that respondents opinion about Bajaj Allianz
as a trustworthy company.69
Opinion No. of respondents Percentage
Trustworthy 45 90%
Non Trustworthy 5 10%
Total 50 100%
Analysis: the above table showing that out of 50 respondents, 45 respondents trusts on Bajaj
Allianz insurance company.
Interpretation: 90% of the respondents have a trust at Bajaj Allianz insurance company, 8%
of the respondents don’t have a trust at Bajaj Allianz insurance company.
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Table- 19
Table showing that the respondents opinion about using sales promotional activity
Publicity No. of respondents Percentage
Yes 28 56%
No 22 44%
Total 50 100%
Analysis: the above table showing that out of 50 respondents, 28 respondents suggested that
company has to use sales promotional activity.
Interpretation: The Company still needs a lot to be done as far as publicity is concerned. The
following chart depicts that 55% people says that the company needs more publicity
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Table – 20
Table showing that the respondents opinion about using suitable media by the company for
advertisement.
Media No. of respondents Percentage
Television 24 48%
Radio 10 20%
Newspaper 12 24%
MYNL representative 4 8%
Total 50 100%
Analysis: the above table showing that out of 50 respondents, 24 respondents suggested that
television as an effective media for advertisement.
Interpretation: The most preferred media chosen by most of the people is television as they more deeply come to know about the features of the product through it
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FINDINGS
The aim of the survey was to find out the "Brand Awareness of Life Insurance and Changing
Investment Pattern with special reference to Bajaj Allianz life insurance” All the due efforts
were made to find out the appropriate and confide results. Following are the various findings
of the research.
People still like to invest their money in fixed Deposits although other better options
are available in the financial investment market.
People think that investing their money in fixed Deposits is the safest option
available. It is also true that it is the oldest option available in the investment market.
A mind set is their in the minds of people that no other option is safest or best in
terms of investing their money.
Very less number of people wants to take risk when it comes to investing the money.
They also want to make high profits without taking high risks.
Almost everybody knows about Life Insurance.
Traditional plans are still popular among the masses although the modern units linked
plans are available in the market.
L1C is the strongest brand in comparison to the other private insurance company
brands. It is also because L1C is the oldest company when we talk about life
insurance.
Most of the people are concerned about the plan while taking any life insurance
policy. This is the major information they want to know while taking any life
insurance policy.
Although Bajaj Allianz is a leading life insurance company but still people of
Bangalore city do not know much about the company and its working.
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Most of the people prefer short-term investment.
Most people have regarded shares as the most risky investment.
Most of the people invest their money in banks and other government securities.
Very less number of people has invested in Life Insurance.
Very less number of people has shown willingness to invest in Life Insurance.
Unit linked plan of life insurance are subject to market risk.
A large slot of population doesn't have insurance policy which can be target
population for life insurance companies.
People have much faith in Govt. securities than in private companies & it is also
found that people while investing require expert advice.
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RECOMMENDATIONS
Making recommendations assumes considerable knowledge of the picture, including the
resources of the firm and all the alternative courses of action. A Communication system is
necessary to maintain the uniformity & balance in the flow of information within the fire.
Although is very early to suggest any thing to such a internationally famous company Bajaj
Allianz Life Insurance Company Ltd. in it's mature state of marketing, interactions and feed
backs from various outlets, segments of investor. I would like to suggest as under:
Consultant should disclose schemes provided by the company to each and every
investor.
Consultant should have good relationship with the investor.
In the case of tragedy the company should provide all facilities easily to the investor.
At least one glow sign board should be displayed in the main area of the market.
Company should promote good and heart felt slogans.
Company should sponsor important events like World Cup, Afro Asian games, IPL
and any event related to film awards and other local programs.
Many of the insurance care consultants of the Bajaj Allianz have the lack of good
communication skills and training. So training should be easy.
Bajaj Allianz. Should use new techniques of sales promotion.
Customer services should be more comfortable than others.
People must be made aware of the benefits of the policies of Bajaj Allianz.
The company should give personal attention to each customer.
Proper assistance should be provided to the customer at the time of claim settlement.
All the details about the company should be given to the customers.
Regular advertisement of the company should be given TV and Newspaper.
The company must try to find new markets especially in the rural areas.
The company should do frequent analysis of the competitors.
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CONCLUSION
Conclusion should be drawn with direct reference to the objective of the study. This project is
directed towards the effectiveness of knowing the fact about insurance sector. The overall
effectiveness depends upon the interaction with the persons.
As it has been discussed, insurance offer several benefits that are unmatched by
other investment options. Post liberalization, the industry has been growing at a rapid pace in
terms of its Assets under Management.
However, due to the low key investor awareness, the inflow under the industry is
yet to overtake the inflows in banks. Rising inflation, falling interest rates & a volatile equity
market make a deadly cocktail for the investor for whom insurance offer a route out of the
impasse.
But it is the skill of the managing risks that investment managers seeks to
implement in order to strive & generate superior returns than otherwise possible that makes
them a better option than many others.
Now a day, the insurance sector is growing rapidly & BAJAJ ALLIANZ is the
one who has beaten the no. 1 company in private insurance i.e. ICICI Prudential & very soon
it will over perform LIC. So persons are keen to become a part of it as an I.C. & further
people are investing huge amount in it.
Thus, BAJAJ ALLIANZ is gaining trust in the hearts of customers / investors.
