PGPBA 2011-13
ANALYSING CONSUMER PERCEPTION OF BAJAJ ALLIANZ LIFE INSURANCE
BY :
POULAMI MITRASANKHADIP CHATTERJEE
AVIK CHAKRABORTY
INTRODUCTION
The Life Insurance sector in India is primarily dominated by The Life Insurance Corporation of India. But Bajaj Allianz has made its
presence felt in the recent past .
Bajaj Allianz Life Insurance Company Limited is a union between Allianz AG, the world’s largest insurance companies and Bajaj Auto, one of the
biggest 2- & 3-wheeler manufacturers in the world.
Allianz AG is a leading insurance conglomerate globally and the largest asset manager in the world, managing assets worth over 996 Billion
Euros. Allianz AG has 115 years of financial experience in over 70 countries and Bajaj Auto is the most trusted name in the Indian market for over 55 years together are committed to offering financial solutions
that provide all the security one need for ones family and oneself
PURPOSE OF STUDY
Bajaj-Allianz Life Insurance Company is required to know the customers perception towards their product. Insurance industry is one of the fastest
growing sectors. Recently many private Multi National Life Insurance Companies have entered the Indian market. This has increased the
competition to a great extend. So the company has to know the present demand for Insurance so that they can adjust their market presence &
performance accordingly.
The study covers the people from different parts of Kolkata.
The study was conducted over a span of four weeks
SWOT ANALYSIS
Strengths Bajaj Allianz is the largest private player in the insurance industry in
India. Excellent services. Customization of Products as per customer’s needs. Brand Image. Business Experience. Strong Financial Base. Innovative products, Technology, organization culture and climate. The company has a large network of branches which is helpful to
customer for the payment.
SWOT ANALYSIS
Weaknesses Lot of competitors are in the market offer same product by the title
difference in the premium and offerings. Target only higher income group whereas other companies are trying
to catch middle-lower level people. Higher premiums as compared to the other companies Clients face problems to get insured due to large number of
formalities. High targets for financial advisors and for the sales department.
OpportunitiesHuge market is literally untapped. Out of estimated 320 million insurable markets only 20% of the population is insured.
In a conservative society of India where people are more inclined towards risk free investments such as Bank FD’s and savings rather than equity and high risk investments insurance offers the best of both worlds – The security with high returns. So there exists high potential for insurance company like BAJAJ ALLIANZ.
In the pension field where people want good life after their retirement.
Indian people are more emotional towards their children that’s why children plans are selling like hot cakes.
Health insurance and pension Schemes, an estimated market potential of approximately $15 billion.
SWOT ANALYSIS
SWOT ANALYSIS
Threats Weak perception of private players in the minds of Indian people due
to frequent financial scams. Large number of insurance players. Players like ICICI PRUDENTIAL and Birla sun life with low premium
for the similar plans. Entry of many other private companies with equally strong experience
and financial strength of foreign partners making the competition difficult and saturating the urban markets.
For the Insurance sector Government set the authority that is IRDA (Insurance Regulatory and Development Authority) which is undertaken to track record of all the companies and change rules day by day more rigid which is very difficult for the companies.
USERS91%
NON USERS9%
9% of the respondents did not have any life
insurance.91% had life
insurance.
72%
28%
MALE FEMALE
Among the respondents
28% were female & 72% were female
36%
24%
18%
12% 10%18-2525-3035-4545-55>55
SEGMENTATION
DEMOGRAPHICS
35%
56%
9%
Post Graduate Graduate Undergraduate
14%
54%
25%
7%
Business
Professional
Self Employed
Others
Among the respondents 56% were Graduates while 54% were Professionals.
30%
20%20%
30%
TAX BENEFIT
SAVINGS
RISK COVER
RETURN/YIELD
37%
33%
16%
14%
OWN FAMILY EMPLOYER INSURANCE
Purpose of 30% respondents was primarily obtaining
Return/Yield on the investment & another 30% bought insurance
mainly for Tax Benefit
The decision to buy Life Insurance was largely self-propelled, (37%) also a
substantial number of customers were influenced by their family
(33%)
PURPOSE & INFLUENCERS
BRAND IMAGE
RELIABIL
ITY
ETHICS &
TRANSP
ERANCY
SERVIC
E
PLAN FLEXIBIL
ITY
0
1
2
3
4
ADVERT-ISEMENT FRIENDS/
RELATIVES AGENTSOTHERS
0
5
10
15
20
25
3029
87
7
50% of the respondents got aware of insurance companies from
Advertisements
Most customers look at how reliable an Insurance Company is
before investing. The Brand Image also plays a major role. A company with Flexible Plans can also boast
of a good customer base.
ASPECTS - 1
REIMBURSEMENT DELAY HIDDEN CHARGES LONG VREIFICATION MISLEADING ADS POOR AGENTS0
0.5
1
1.5
2
2.5
3
3.5
The most dissatisfying factor about a life insurance company is its Misleading
Promotions & the Delays in Reimbursement
ASPECTS - 2
LIC BAJAJ ALLIANZ SBI LIFE HDFC STD LIFE TATA AIG ICICI PRUDENTIAL
Out of all the respondents 63% were customers of LIC while 35% were having Bajaj Allianz Life Insurance
POLICY HOLDERS
STRONGLY AGREEAGREE
NEUTRALDISAGREE
STRONGLY DISAGREE
0
5
10
15
20
25
CUSTOMER INTERCATION
ADVISORY
OFFICES
PREMIUM COLLECTION
Here we see that most respondents are mostly Neutral about the various aspects of Baja Allianz life insurance. Thus there is a scope for greater
awareness. The customer interaction sessions & advisory provided by Bajaj Allianz is appreciated. Even the Insurance plans of Bajaj Allianz are among
its strengths. On the other side the business offices are one of its weakness.
BAJAJ ALLIANZ: OWNER’S VIEWS
STRONGLY AGREE AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
0
5
10
15
20
25
WORKFORCE
PROMOTION
TECHNOLOGIES
PRODUCT KNOWLEDGE
While digging on the improvement areas for Bajaj Allianz it was observed that there is still a high degree of "Neutral" opinion. This points to the fact that people are less aware of the aspects in question. The general opinion
was that the workforce needs to be better and the agents need to have better product knowledge.
BAJAJ ALLIANZ: OWNER’S VIEWS
LIC
Bajaj Allianz
SBI Life
HDFC STD LIFE
TATA AIG
ICICI Prudential
0 1 2 3 4 5 6
When the respondents were asked to choose which one was the best Life Insurance company most agreed that LIC was the leader while Bajaj Allianz was the second best. So they are pretty ahead
of the other private players.
OVERALL PERCEPTION
PERCEPTION AMONG GROUPS
ACCORDING TO QUALIFICATION:
41%
31%
6%
6%
3%
13%LIC
BAJAJ ALLIANZ
SBI LIFE
HDFC STD LIFE
TATA AIG
ICICI PRUDENTIAL
49%
26%
8%
5%
5%8% LIC
BAJAJ ALLIANZ
SBI LIFE
HDFC STANDERED LIFE
TATA AIG
ICICI PRU-DENTIAL
POST GRADUATES GRADUATES
NOTE: 100% of the respondents who were undergraduates were insured only with LIC
CUSTOMER INTERACTION
PAYMENT REMINDERS
ADVISORY PROVIDED
INSURANCE PLANS
BUSINESS OFFICES
PROMPTNESS OF SERVICES
PRIMIUM COLLECTION
PROCESS
PAYMENT OPTIONS
0
1
2
3
4
5
6
7
8
9
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
PERCEPTION ABOUT VARIOUS ASPECTS OF BAJAJ ALLIANZ AMONG POST GRADUATES
PERCEPTION AMONG GROUPS
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
0
10
20
30
40
50
60
70
80
90
100
PAYMENT OPTIONS
PRIMIUM COLLECTION PROCESS
PROMPTNESS OF SERVICES
BUSINESS OFFICES
INSURANCE PLANS
ADVISORY PROVIDED
PAYMENT REMINDERS
CUSTOMER INTERACTION
PERCEPTION ABOUT VARIOUS ASPECTS OF BAJAJ ALLIANZ AMONG GRADUATES
PERCEPTION AMONG GROUPS
ACCORDING TO OCCUPATION:
53%
14%
26%
7%
Professional BusinessSelf Employed Others
PERCEPTION AMONG GROUPS
Among Businessmen Bajaj Allianz is almost equally preferred as LIC
LIC
BAJAJ ALLIANZ
SBI LIFE
HDFC STANDERED LIFE
TATA AIG
ICICI PRUDENTIAL
0 1 2 3 4 5 6
LIC
BAJAJ ALLIANZ
SBI LIFE
HDFC STANDERED LIFE
TATA AIG
ICICI PRUDENTIAL
0 1 2 3 4 5 6
Among Professionals Bajaj Allianz is second preference after LIC.Here its greatest competitor is SBI Life
PERCEPTION AMONG GROUPS
LIC
BAJAJ A
LLIANZ
SBI L
IFE
HDFC STANDERED LIF
E
TATA AIG
ICIC
I PRUDENTIA
L0
1
2
3
4
5
6
LIC
BAJAJ A
LLIANZ
SBI L
IFE
HDFC STANDERED LIF
E
TATA AIG
ICIC
I PRUDENTIA
L0
1
2
3
4
5
6
7
>55 45-55
LIC
BAJAJ A
LLIANZ
SBI L
IFE
HDFC STANDERED LIF
E
TATA AIG
ICIC
I PRUDENTIA
L0
1
2
3
4
5
6
LIC
BAJAJ A
LLIANZ
SBI L
IFE
HDFC STANDERED LIF
E
TATA AIG
ICIC
I PRUDENTIA
L0
1
2
3
4
5
6
35-45 25-30
PERCEPTION AMONG VARIOUS AGE GROUPS
HYPOTHESIS TESTING
• While buying a Life Insurance the following factors are not considered:
1. Tax Benefit2. Savings3. Risk Cover4. Return on Investment
To conclude where Bajaj Allianz can focus to enhance their market share, a test was conducted where the following NULL HYPOTHESIS was considered:
On conducting the Chi-Square Test on the acquired data the NULL HYPOTHESIS was rejected. Hence it was concluded that the above four
factors are of prime importance form the Customer’s point of view. Thus Bajaj Allianz has to primarily focus on these factors while coming up with
new plans & promotions
Chi-Square calculated was 7.19 & Chi-Square tabulated was 7.81 at d.o.f = 3
CONCLUSION• Bajaj Allianz Life Insurance Company is the second largest insurance company in India. • The study reveals that the company has achieved this position because of its efficient market operation & the ethics and transparency policies adopted by it. • The company should concentrate more on advertisement, technology up gradation & also improve the efficiency of its workforce & has to have better offices. • The Marketing Communication of Bajaj Allianz has to focus on creating knowledge of the company and its products.• The study also reveals that misleading advertisements, hidden charges etc are some of the aspects with whichCustomers do not prefer.• So Bajaj Allianz has to work on these areas to maintain its position & grow further.
THANK YOU!!THANK YOU