bajaj allianz

Bajaj Allianz life Insurance Co. Ltd.

A

Summer Project Report

On

“A STUDY ON POTENTIAL OF LIFE INSURANCE INDUSTRY IN GULBARGA MARKET”

Submitted to

SDM COLLEGE OF BUSINESS MANAGEMENT

In the partial fulfillment of the requirement for the award of

“MASTER IN BUSINESS ADMINISTRATOR”

Submitted By:

DAYANAND R RATHOD

Reg. No. 09769

Under the Guidance of

Internal guide External Guide

Mr. Prakash H S Mr. Sangamesh

SDM COLLEGE OF BUSINESS MANAGEMENT, POST GRADUATE CENTRE FOR MANAGEMENT STUDIES &

RESEARCH, MANGALORE -575 003


ACKNOWLEDGEMENT To be graceful is the greatest of all virtues in life.

All accomplishment requires efforts and assistance of many people, thus I express my sincere gratitude to all those who have helped me in the successful completion of my project.

First of all I am very great full to our principal Dr. DEVRAJ K, for his support and encouragement.

I would like to thank my internal guide Mr. PRAKASH H S, for project guidance.

I Sincere thanks to Mr. SANGAMESH SHETTAR Divisional manager of Bajaj Allianz life insurance who support & guidance in the course of training.

I would like to thank my family and friends for helping and motivating me throughout the completion of the project.

DAYANAND R RATHOD


TABLE OF CONTENTES

Sr. NO CONTENTES PAGE NO

1. INTRODUCTION Objectives of study Limitation Research methodology Data collection

2. COMPANY PROFILE

3. SURVEY Data interpretation, editing and coding Graph analysis

4. FINDING AND SUGGESTION

5. CONCLUSION

6. REFERENCES

7. QUESTIONNIARE

INTRODUCTION


The service industry is one of the fastest growing sectors in India today.

The upcoming sectors which are really showing the graph towards

upwards are - Telecom, Banking, and Insurance. These sectors really

have a lot of responsibility towards the economy.

Amongst the above-mentioned areas insurance is one sector, which took

a lot of time in positioning itself. The insurance business of non-life

companies was not much in problems but the major problem was with

life insurance. Life Insurance Corporation of India had monopoly for

more than 45 years, but the picture then was completely different.

Previously people felt that “Insurance is only for classes not for

masses” but now the picture is vice-versa.

The story of insurance is probably as old as the story of mankind. The

same instinct that prompts modern businessmen today to secure

themselves against loss and disaster existed in primitive men also. They

too sought to avert the evil consequences of fire and flood and loss of

life and were willing to make some sort of sacrifice in order to achieve

security. Though the concept of insurance is largely a development of

the recent past, particularly after the industrial era – past few centuries –

yet its beginnings date back almost 6000 years.

The year 1818 Oriental Life Insurance Company started by Life

Insurance in its modern form came to India from England in Europeans


in Calcutta was the first life insurance company on Indian Soil. All the

insurance companies established during that period were brought up

with the purpose of looking after the needs of European community and

these companies were not insuring Indian natives. However, later with

the efforts of eminent people like Babu Muttylal Seal, the foreign life

insurance companies started insuring Indian lives. But Indian lives were

being treated as sub-standard lives and heavy extra premiums were

being charged on them. Bombay Mutual Life Assurance Society

heralded the birth of first Indian life insurance company in the year

1870, and covered Indian lives at normal rates. Starting as Indian

enterprise with highly patriotic motives, insurance companies came into

existence to carry the message of insurance and social security through

insurance to various sectors of society. Bharat Insurance Company

(1896) was also one of such companies inspired by nationalism. The

Swadeshi movement of 1905-1907 gave rise to more insurance

companies. The United India in Madras, National Indian and National

Insurance in Calcutta and the Co-operative Assurance at Lahore were

established in 1906. In 1907, Hindustan Co-operative Insurance

Company took its birth in one of the rooms of the Jorasanko, house of

the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile,

General Assurance and Swadeshi Life (later Bombay Life) were some of

the companies established during the same period. Prior to 1912 India

had no legislation to regulate insurance business. In the year 1912, the


Life Insurance Companies Act, and the Provident Fund Act were passed.

The Life Insurance Companies Act 1912 made it necessary that the

premium rate tables and periodical valuations of companies should be

certified by an actuary. But the Act discriminated between foreign and

Indian companies on many accounts, putting the Indian companies at a

disadvantage.

The formation of IRDA, entrance of private life insurance companies

into India with one foreign partner, compulsory training of Insurance

agents etc. developments started to take place. And this was the time

when these companies started searching for proper channel partners who

can help the organization in expanding its network and business in India.

Channel partners are those who are going to be into direct selling of

company’s products i.e. the insurance policies. They are the link

between the customers and the management or company. These channel

partners are people with different profiles. They are selected on some

grounds like their network of people, their problem handling ability,

convincing power and lot many things.

The main idea behind company’s Questionnaire Survey is to find out

and analyze the proper profile that can be recruited by company as a

channel partner. Company has been focusing on some of the profile that

can be very beneficial for the company. For example Chartered


Accountants, Tax Consultants, Postal agents, Bank’s Daily Collection

Agents etc. the main idea behind targeting the above profile is strong

client network which is really very important for an insurance company.

The project title is “Potential of Life Insurance Industry in Gulbarga

Market”. This shows the scope for private insurance companies have

great opportunities to cover the market and can insure the customer.

With the initiation of the deregulation in the Indian insurance market,

the monopoly of big public sector companies in life insurance market

has been broken. New private players have entered the market and with

their innovative approaches and better use of distribution channels and

technology, they are eating in to the shares of established public sector

companies in Indian Insurance Market. Since the deregulation has been

put in to place, the market share of LIC has come down to 71.4% in life

insurance market while the private players have captured around 17%

market in the general insurance segment. This report includes the key

private players in the insurance market such as ICICI Prudential, Kotak

Life Insurance Bajaj Allianz, Birla Sun life, and TATA AIG. It also

includes the leading competitors in the life insurance and general

insurance segments along with their market shares.

OBJECTIVES OF STUDY


The main of the present study of is accomplishing the following

objective.

Proper understanding and analysis of life insurance industry.

To know about brand awareness of Bajaj Allianz Life

Insurance and customer’s preference about Bajaj Allianz Life

Insurance.

Conduct market survey on a sample selected from the entire

population and derived opinion on that research.

According the market survey come to know about how much

potential of insurance market in our city.

And base on analysis of the result thus obtained make a

report on that research.

Along with it I will be gaining the thorough knowledge of

insurance sector. This will give me in more confidence in

marketing products given to me.

LIMITATION


Some of the difficulties and limitations faced by me during

my training are as follows:

Lack of awareness among the people

Perception of the people towards Insurance sector

Insurance does not give good returns

Lack of awareness about the earning opportunity in the Insurance

sector

Increased competition

RESEARCH METHODOLOGY


Research always starts with a question or a problem. Its purpose is to

question through the application of the scientific method. It is a

systematic and intensive study directed towards a more complete

knowledge of the subject studied. Marketing research is the function

which links the consumer, customer and public to the marketer through

information- information used to identify and define marketing

opportunities and problems generate, refine, and evaluate marketing

actions, monitor marketing actions, monitor marketing performance and

improve understanding of market as a process.

Marketing research specifies the information required to address these

issues, designs, and the method for collecting information, manage and

implemented the data collection process, analyses the results and

communicate the findings and their implication.

I have prepared our project as descriptive type, as the objective of the

study demands the answers of the question related to find the potentiality

of life insurance in Gulbarga: How much potential is there in Gulbarga?

DATA COLLECTION


PRIMARY SOURCES:

For my project, I decided on primary data collection method

for observing working of company and approaching customers

directly in the field, tele-calling, cold calling, campaigning and

through references to know their interest in business with company

in my project and also make questionnaire for creating database of

business class people is Gulbarga city for company.

SECONDARY SOURCES:

I decided on Secondary data collection method was used by

referring to various websites, books, magazines, journals and daily

newspapers for collecting information regarding project under study.

COMPANY PROFILE


Since you will be paying premiums for years to come, you don't want your insurance company to disappear before you or your family receives the benefit. It is worth asking how long the company has been in business, how many life insurance policies they manage and their credit rating. In most cases, you will get a better deal from the smaller life insurance companies, but you just need to be more careful to research them and make sure they are stable. Bajaj Allianz is sure to one such life insurance company Bajaj Allianz life insurance Company limited is a joint venture between two companies. Bajaj Auto and Allianz AG.

Allianz Group's Indian life insurance joint venture has changed its name to Bajaj Allianz Life insurance from Allianz Bajaj life insurance (Bombay), Aug 4, 2004

Allianz AG

World’s largest insurance company by revenue –Rs520353cr (euro96.9billion)

Worldwide 2nd by gross written premiums-Rs477930cr (euro 89 billion)

3rd largest assets under management (AUM) and largest amongst insurance companies

11th largest corporation in the world 50% of globe business from life insurance, close to 60 million lives

insured globally Established in 1890, 120 years of insurance expertise More than 70 countries,173750 employees worldwide Insurance to almost half of the fortune 500 companies

Bajaj auto


One of the largest 2 and 3 wheeler manufacturers in the world 21 million + vehicles on the road across the globe Managing fund of over Rs5200cr Bajaj auto finance one of the largest companies in India Rs8934cr turnover and profits after tax of 932cr in 2007-08

Bajaj allianz life insurance The fastest growing private life insurance company in India, with a

growth rate of 380% Have sold over 650000 policies to satisfied customers Is back by a network of 400 offices spanning the country Ranked second among private life insurance companies in India Assets under management Rs936 cr Shareholder capital base of Rs267cr Product tailored to suit your needs Decentralized organization structure for faster response Wide reach to serve you better-a national wide network of 400

branches Specialized departments for banc assurance, corporate agency and

group business Well networked customer care centers (CCCs) with state of art IT

systems Highest standard of customer service and simplified claims process

in the industry Website to provide all assistance and information on products and

services, online Buying and online renewals. Toll-free number to answer all your queries, accessible from

anywhere in the country and a strong tele-marketing and direct marking team Swift and easy claim settlement process Accelerated growth


Vision

To be the first choice insurer for customers. To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value

Mission

As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.

The Bajaj Allianz Difference

Business strategy aligned to clients' needs and trends in Indian and

Global economy / industry Internationally experienced core team, majority with

local background Fast, decentralized decision making Long-term commitment to market and clients

Underwriting Our underwriting philosophy focuses on:

Understanding the customer's needs Underwriting what we understand Meeting the customer's requirements Ensuring optimal coverage at lowest cost

Claims Philosophy


The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims processing. We pride ourselves on a friendly and open approach. We are focused towards providing you a hassle free and speedy claims processing. Our claims philosophy is to:

Be flexible and settle fast Ensure no claim file to be seen by more than 3 people Check processes regularly against the global Allianz OPEX

(Operational Excellence)methodology

Sold over 1 million since inception.

Customer Orientation:

At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All our efforts are directed towards understanding the culture, social environment and individual insurance requirements - so that we can cater to all your varied needs.

Experience and Expert Servicing Team

We are driven by a team of experienced people who understand Indian risks and are supported by the necessary international expertise required to analyze and assess them.

Superior Technology

In order to ensure speedy and accurate processing of your needs, we have established world class technology, with renowned insurance software, which networks all our offices and intermediaries

Using the Web, policies can be issued from any office across the country for retail products


Unique, user friendly software developed to make the process of issue of policies and claims settlement simpler (e.g. online insurance of marine policy certificate)

Unique Forms of Risk Cover

Special PA cover for Amarnath Yatris Housing loan cover for people, who are suddenly

unemployed Film insurance Event management cover Sports & Entertainment Insurance Package

Risk Management – Our Expertise

Our service methodology is tried, tested and Proven the world over and involves:

Risk identification: Inspections Risk analysis: Portfolio review and gap analysis Risk retention Risk Transfer: To an insurer as well as reinsurer (as

required) Creation of need based products Ongoing dialogue and proactively

COMPANY PRODUCTS


“Insurance is a contract between two parties whereby one party called insurer undertakes the risk in exchange for a fixed amount of money on the happening of a certain event.”

1.CASH GAIN

People needs for insurance protection will vary at different stages of life. Sometimes, they may need to release a part of their savings from insurance commitments and utilize it for other pressing needs. The Bajaj Allianz Cash gain is ideal for those who want to reap and enjoy the benefits of their life insurance policy at regular intervals during their lifetime.

Bajaj Allianz Cash gain is a specially designed plan that offers a host of additional benefits you may choose to develop a sound financial portfolio for your family. Among the many unique benefits, the most significant is the Family Income Benefit (FIB) that sustains the family by compensating the loss of regular income due to death or permanent disability.

Available as:

Bajaj Allianz Cash gain Economy: The basic package Bajaj Allianz Cash gain Gold: With double protection Bajaj Allianz Cash gain Diamond: With triple

protection Bajaj Allianz Cash gain Platinum: With quadruple

protection

A Uniform Life Cover


Besides giving you regular Cash Benefits, this plan takes care of your life insurance needs also. On death during the term of policy, the following would be paid irrespective of the Cash Benefits already paid:

Bajaj Allianz Cash gain Economy: Sum Assured + Bonuses

Bajaj Allianz Cash gain Gold: Double Sum Assured + Bonuses

Bajaj Allianz Cash gain Diamond: Triple Sum Assured + Bonuses

Bajaj Allianz Cash gain Platinum: Quadruple Sum Assured + Bonuses

Choice of Terms

Keeping your convenience in mind, we offer you the widest range of terms: 15, 20, 25 and 30 years.

Additional Protection for you and your family

You have the option to add the following additional benefits, providing total protection against uncertainties.

Family Income Benefit (FIB) - The Ultimate Protection - For Your Loved Ones

You can select the unique Family Income Benefit from Bajaj Allianz that ensures total financial protection for your loved ones. In case of death or accidental total permanent disability, a guaranteed monthly income of 1% of the sum assured (12% per annum) is paid till the end of the policy term or at least for a period of 10 years, whichever is higher. Moreover, all future premiums are waived.

Comprehensive Accident Protection


This benefit provides comprehensive cover in case of an accident. It comprises of:

Accidental Death Benefit

Accidents are always sudden and sometimes fatal. You can't lessen the emotional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental Death Benefit gives the loved ones something to start with after the permanent loss of income by paying an amount equal to the Sum Assured..

Accidental Permanent Total/Partial Disability Benefit Accidents are unpredictable, and so are the consequences. They may lead to a disability - partial or total. This Benefit provides a financial cushion against such misfortunes. You will get 50% of the Sum Assured in case of partial disability and 100% in case of total disability. (Subject to a maximum of Rs. 25,00,000/- for partial and Rs. 50,00,000/- for total disability under all policies with Bajaj Allianz taken together).

Waiver of Premium Benefit

An accident may lead to permanent total disability, limiting one’s ability to earn. Bajaj Allianz Waiver of Premium benefit is a helping hand when one needs it most. It waives off all future premiums while keeping the valuable life insurance cover alive, thus enabling you to live up to your commitments.

Critical Illness Benefit (CI)

Some illnesses are critical. They not only alter one’s life's pattern but also result in a financial drain. Bajaj Allianz Critical Illness Benefit softens the impact on the family by paying out the Critical Illness Benefit under benefits continue (excluding Hospital Cash Benefit). We cover 11 critical illnesses. You have the flexibility of


choosing Critical Illness cover up to the basic Sum Assured selected by you (Minimum Rs.50, 000). r the plan immediately, while other policy

Hospital Cash Benefit (HC)

The worry of settling hospital bills (room charges) adds to the trauma ofHospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden and helps recovery with peace of mind.

Flexibility in Coverage

At Bajaj Allianz, we believe in offering benefits and not just products. We realize that you are unique and your needs for insurance vary with time. We therefore offer you the flexibility of inclusion of coverage or exclusion of coverage at each policy anniversary, subject to conditions relating to such inclusions and exclusion.

You have the flexibility to change your package and move to a package that provides lower protection at each policy anniversary (premiums would be adjusted accordingly). “Comprehensive Accident Protection” can be included and excluded at each policy anniversary. Family Income Benefit, Critical Illness Benefit and HospitalCash Benefit can be taken at inception only. FIB, CI & HC can be reduced or excluded subsequently at any policy anniversary. Once reduced or excluded, they cannot be increased or included subsequently.

Increase in risk coverage

Every added responsibility in your life calls for increase in your risk cover. We provide you the option to increase coverage up to 50% of the basic Sum Assured on each of the following happy moments in life.


Marriage The birth of first child The birth of second child

This additional coverage is not subject to underwriting. The option should be exercised within 90 days of the occurrence of the said event.

2.SAVE CARE ECONOMY

As the breadwinner of the family you shoulder several responsibilities. Your spouse's welfare, your children's education, buying a house or a c-a ry ou has a lot to think about, everyday. Bajaj Allianz, believe that the security and growth of your hard earned money should not add to these.

Which is why Bajaj Allianz has created the “Bajaj Allianz Save Care Economy - Single Premium”-the 10-year Single Premium version of our popular product “Save Care Economy”? It is an ideal plan for a one-time lump sum investment that provides for savings with high risk-cover.

The "Bajaj Allianz Save Care Economy - SP", is a Single Premium investment plan for 10 years that also participates in the profits of the company. The highlights of this plan are:

Minimum Guaranteed Return up to 3.54% (depending on age at entry).The Minimum Guaranteed Amount (Sum Assured) would grow further by way of compounded annual bonuses.A high risk-cover of up to 142% (depending on age at entry) of the sum invested from the beginning of the policy term as a financial safety net to provide for unpredictable adversities.Eligible for Tax Benefits under Section 88 and Section 10 (10 D) of the Income Tax Act.At Maturity you will receive the Sum Assured (Minimum Guaranteed Amount) along with the accrued bonuses.


Death Benefit: In case of death during the term of the plan, the nominee will be paid the Sum Assured (Minimum Guaranteed Amount) plus accrued bonuses. In case of death of a minor (below age 7), the death benefit will be the surrender value or Single Premium whichever is higher.

3.INVESTGAIN

It takes only a moment to make promises and a lifetime to keep them. Keeping promises made to your loved ones is not just a responsibility, but a commitment that you have to live up to. When you promise to see your family through thick and thin you need to make sure that you have planned for all the eventualities that may befall on them. You need to be prepared that even if there ever is an instance that you are not there with them you have saved enough to see them through their entire life. We understand this need, which is why we have developed Bajaj Allianz’s Invest Gain, the plan that helps you in saying "My family, May you always be happy!” Available as:

Bajaj Allianz Invest gain Economy: The basic package Bajaj Allianz Invest gain Gold: With double protection Bajaj Allianz Invest gain Diamond: With triple protection Bajaj Allianz Invest gain Platinum: With quadruple

protection All these packages participate in the profits of the company by way of bonuses, and therefore, grow with time

Family income benefit

You can select the unique Family Income Benefit from Bajaj Allianz that ensures total financial protection for your loved ones. In case of death or accidental total permanent disability, a guaranteed monthly income of 1% of the sum assured (12% per annum) is paid till the end of the policy term or at least for a period of 10 years, whichever


is higher. Moreover, all future premiums are waived. Popular Products: Endowment Assurance (Participating) and Money Back (Participating). More than 80% of the life insurance business is from these products.

4. UNIT INSURANCE POLICY LINKED

The thumb rule for buying insurance is that your insurance needs are minimal in your early earning years, increase with added responsibilities (Marriage, children, loans etc.) and taper off by the time you retire. It is difficult to find a single insurance plan that can take care of all your changing requirements in life – additional protection, more money to invest, sudden requirement of cash or a steady post-retirement income.

With Bajaj Allianz Unit Gain, you can invest in one life insurance plan that can take care of all your changing requirements throughout your life. This plan has been designed to provide you with maximum flexibility, so that you do not have to worry about your changing needs.

Bajaj Allianz Unit Gain offers the unique option of combining the protection of life insurance with the attractive prospects of investing in securities. You can choose the investment funds you want to invest your money, providing you with an opportunity to have a direct stake in the performance of the financial markets. You also benefit from attractive tax advantages and can protect your loved ones against unfortunate events.

Unit Gain Plus: A Unit Linked Plan


Bajaj Allianz Unit Gain Plus offers the unique option of combining th protection of life insurance with the attractive prospects of investing in securities. Customers have the choice of 6 investment funds with flexible investment management; they can change funds at any time. Customers also benefit from attractive tax advantages and unmatched flexibility -to match their changing needs. And the advantage of low fund management & fund administration costs.

Unit Gain Plus SP : A Single Premium Unit Linked Plan

This plan enables the customers to protect their loved ones, while making their money grow faster with the advantage of low fund management & fund administration costs. It provides the customers the option of allocating 98% of the single premium to purchase units in any/all of the 6 funds available with company

Unit Gain : A Unit Linked Plan

This amazingly flexible unit linked life insurance plan provides the customers the opportunity to participate in market linked returns while enjoying the valuable benefits of life insurance

Unit Gain SP : A Single Premium Unit Linked Plan

This plan enables the customers to protect their loved ones, while making their money grow faster. It provides them the option of allocating 100% of the Single Premium to purchase units in any/all of the 6 funds available with company.


Lifelong Gain Plan : Unit Linked Whole Life Plan

This is the perfect plan to take care of ongoing and future family expenses like debts, expenses on children, living expenses, etc. It can also take care of unforeseen expenses like accidents, illnesses, hospitalization, etc. and provides customers family with a safety net. It provides whole life protection with only 10 or 15 years of contributions. Guaranteed Survival Benefits @3% are available under this policy.Guaranteed Survival Benefits that pays 3% of the Sum Assured every year after the premium payments are over

SUITABILITY

This policy is a long-term market linked total protection plan. The plans offer protections for life at the same time allows the policyholder to get market linked returns. It is a single product combining the benefits of both an investment product and insurance plan. This apart, the product offers a lot of flexibility.

DIFFERENT FUNDS

EQUITY INDEX

The investment objective of this fund is to provide capital appreciation through investment in equities. The plan is expected to match the returns given by NIFTY Index of the National Stock Exchange. This fund will invest at least 85% in equities and maximum 15% in debt and cash.

EQUITY PLUS FUND

The investment objective of this fund is to provide capital appreciation through investment in selected equity stocks that have the potential for


high capital appreciation. The fund will invest at least 85% in equities and maximum 15% in debt and cash.

DEBT PLUS FUND

The objective of this fund is to provide accumulation of income through investment in high quality fixed income securities like G-securities and corporate debt rates AA and above. This fund is invested fully in debt instrument and money market instrument.

BALANCE PLUS FUND

This fund is a fund of funds. The objective of this fund is to provide a balanced investment between long-term capital appreciation and current income through investment in the units of our equity and debt funds. The balanced fund will invest 30% to 50% in the equity index fund and 50% to 70% debt fund.

CASH PLUS FUND

The investment objective of this plan is to have a fund that guarantees invested capital through investments in liquid money market and short term instruments like commercial papers, certificate of deposits, money market mutual funds, bank F.D’s etc. The price of unit in this fund is guaranteed not to go down. 100% of this fund will be invested in money market instruments. The price of the units in this fund is guaranteed never to go down.


FOCUSED SALES NETWORK

Bajaj Allianz Life Insurance Company

Branches

Satellite Satellite

Satellite

Banc assurance

Standard chartered bank

Syndicate Bank

Centurion Bank

Cosmos Bank

Group and Alternate Channel

Group EmployeeBenefit

Corporate Agency

Franchisee

Brokers

Agency channel


The overall premium target is broken down as follows by distribution channel:

FP + SP ANNUAL(crores)

AGENCY 1,827

BANCASSURANCE 650

ALTERNATE CHANNELS 523

RENEWALS 500

TOTAL 3500

AGENCY CHANNEL:

Currently the company has some 300 offices made up of 98 branches and about 239 satellite offices.

The company will continue with the same hub and spoke structure, but will increase the number of branches to 150 and satellites to 400.

Jankalyan SahakariBank

Jijamata Sahakari CoopBank


The number of STMs a branch or a satellite can have will be between 2 and 8.

Underwriting and processing of business will continue at the branch level.

The branches will continue to support the banc assurance and alternate channels for underwriting and processing of business, as well as offer the office infrastructure for the other channels staff to operate from.

BANCASSURANCE:

The company has some 6 bank tie ups these will be managed by the bank assurance team. Following are the banks with which the company has tied up:1. Syndicate bank.2. Centurion bank.3. Standard chartered bank.4. indusland ind bank.

ALTERANATE CHANNELS:

The focus will be corporate agency, franchise, brokers, worksite marketing, NRI business, HNI business, group business and rural social business

CEO


ORGANISATION STRUCTURE OF SALES AGENCYs

CFO

HOD SALES

ZONAL MANAGER

REGIONAL MANAGER

SENIOR BRANCH MANAGER

BRANCH MANAGER


BANK-ASSURANCE/ALTERNATE CHANNEL

CEO

CFO

HOD SALES

AREA MANAGER

DEPUTY MANAGER

FINANCIAL SERVICE\PLANNING CONSULTANTS


FINANCIAL HIGHLIGHTS YEAR 2008-2009

Particulars 2008-09Rs. Million

2007-08Rs.Million

2006-07Rs. Million

2005-06(11 Months)*Rs. Million

Gross Written Premium 18,560.7 8,798 5,998 3,420

Net Written Premium 8,792.9 4,864 3,808 1241

Net Earned Premium 7,709.2 6,306 5,541 198

Net Incurred Claims (4,263.3) (2,542) (2,072) (227)

Net Commissions 1119.4 564 355 228

Management Expenses (5,455.9) (1184) (889) (670)

Underwriting Results 609.4 32 (54) (371)

Income from Investments 988.8 485 407 143

Others 38.6 44 (8) (5)

Profit Before Tax 1269.6 1018 771 (733)

Provision for Tax (198.7) (501) (95) 77


Profit After Tax (998.7) 717 346 (216)

Claim's Ratio 71% 87% 70% 130%

Commission Ratio -13% -11% -10% -130%

Management Expenses Ratio 60% 42% 43% 376%

Combined Ratio 120% 118% 102% 376%

Return on Equity 64% 40% 24% -16%

Shareholder's Equity 5,824.1 4,380 3,095 1097

Assets Under Management 8835.5 6,486 6,709 3,688

Number of Employees 1324 780 506 241

GROWTH OF BAJAJ ALLIANZ LIFE INSURANCE CO

Fiscal year No of policies sold in FY GWP in FY

2005-2006 (6months)

41376 Rs 9cr

2006-2007 515965 Rs99cr

2007-2008 486443 Rs421cr

2008-2009 388189 Rs6002cr

Policies sold in Rs

Assets under management Rs1236 cr Shareholder capital base of Rs667cr Product tailored to suit your needs Decentralized organization structure for faster

response Wide reach to serve you better-a national wide

network of 400 branches Specialized departments for banc assurance,

corporate agency and group business Well networked customer care centers (CCCs) with

state of art IT systems


Highest standard of customer service and simplified claims process in the industry

Website to provide all assistance and information on products and services, online buying and online renewals.

Toll-free number to answer all your queries, accessible from anywhere in the country and a strong tele-marketing and direct marking team

Swift and easy claim settlement process

LIFE TRACK OF BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD

Objectives of the Company for the Year 2007-08:

To be one of the top 3 private life insurers in terms of gross premium and achieve a premium target of more than Rs 750 crs.

To be one of the top 2 companies in terms of profitability. To be more customer focused and reduce complexity.

The Company’s Major Achievements In The Last Financial Year Are:

Number 2 amongst the private insurers in terms of new business premium, up to February 2005.

Gross premium achieved over Rs 1000crs GWP 300 + offices, 2700 + STM’s and 45000 + ICs 190 MDRTs , 9COTs


6 banc assurance tie-ups Intermediaries including franchisees and corporate agents over

400. A full basket of products approved.

The Company’s Objectives For The Year 2008-09

To be one of the top 2 private life insurers in terms of premium and profitability

Achieve a minimum premium target of Rs 3500 crs(with less than 30% single premium)each office to look at growing the business from 2007-08levels by 350% to 400%

Improve customer service at all levels. Conduct business in an ethical manner.

THE KEY INITIATIVES THE COMPANY PLANS TO TAKE IN THIS QUARTER INCLUDE THE FOLLOWING:

Increase branch numbers to 100 and satellite offices to 300.

Increase STM strength to3500 and IC strength to 50000

Products for filing and approval women’s plan, health, tactful and revised ULIP

Metro city strategy- increase number of branches in metro cities.

Target 5 banks/coop banks for tie ups. Increase franchisee and corporate agents tie up. Group and broker team to be strengthened. Tactful team to be setup. NRI and HNI teams to be set up to focus on these

areas.


Online system to incorporate renewals, switches and withdrawals.

Finalization of accounts for 2007-2008 Recruitment of training head and trainers for

branches

THE VARIOUS RESPONSIBILITIES AND THE WORK CARRIED OUT IN THE GULBARGA BRANCH OFFICE

Gulbarga is the area of office. There are different channels namely banc assurance,

retail banking, agent and agency managers headed by respective managers

Primary responsibility of all the channels is to meet the targets set by the head office

Policy logins are done here Underwriting and medical checkups are done here After the preliminary verification policies are sent to

head office for issuance Training is also held for the newly appointed

employees Certificate for selling insurance is given once

employees clear the IRDA exam.

HIERARCHY OF BAJAJ ALLIANZ LIFE INSURANCE

LIMITED

(Gulbarga Branch)

Branch manager


DATA INTERPRETATION OF THE SURVEY

GRAPH ANALYSIS

Q.1 which age group does you belongs to?

AGE No Of Members

18-25 11

Assistant BM Branch Operations In charge (BOE)

Operation Executive

Operations

Sales manager

Assistant SM

Life advisor


26-30 22

31-45 44

46 & above 23

Q 2} Gender 1) male ____) female____

Gender No of member Male 66Female 34

18-25 26-30 31-45 46 & Above0

5

10

15

20

25

30

35

40

45

11

22

44

23

Age Wise Clasification

Years

No.

of

Cu

stom

ers


Q 3} How many members do you have in your family?

Family member No of member

2-4 40

5-8 48

8 & above 12

MALE FEMALE0

10

20

30

40

50

60

7066

34

Gender wise clasification

Years

No.

of

Cu

stom

ers


Q 4} what is your annual income?

Income No of members

40k-70k 17

70k-1lakh 41

1lakh-3lakh 28

3lakh & above 14

2 to 4 5 to 8 8 to aboce0

5

10

15

20

25

30

35

40

45

5040

48

12

Members

No of members

No.

of

Cu

stom

ers


Insurable Member Uninsurable member42% 58%

40 k to 70k 70k to 1 Lake

1 Lake to 3 Lakes

3 Lake to Above

0

5

10

15

20

25

30

35

40

45

17

41

28

14

Income Wise Classification

Income (P.A)

No.

of

Cu

stom

ers


Only 42%people having insurance in Gulbarga so it is potential for insurance company to capture to all that market

Having insurance No of members Self 40Spouse 28Children 21

YES42%

NO58%

NO OF MEMBER HAVING INSURANCE


Parents 18All 11

Among that 42% people who having insurance, they have insurance

40% for self 28%for spouse 21% for children and 18% for their parents

and 11% for all family member.

Different policy bought by customers

Self Spouse Children Parents All0

5

10

15

20

25

30

35

40

40

28

2118

11No.

of C

usto

mer

s


Under insurable persons Fully insurable persons82% 18%

Term Plan

En-dow-ment

Whole life

Money Back

Re-tire-ment

Child Plan

Unit Link Plan

0

5

10

15

20

25

30

35 LICICICIBirla SunlifeSBIHDFCBajaj Al-lianceTATA AIGKotak MahindraING VyasyaMax NewyorkMet LifeDifferent Plans

No.

of

Cu

stom

ers


Only 42 % people having life insurance but among them 82% people are underinsurance and only 18% people are fully insured according to them income

Insurance plan Market share Term plan 39%Money back plan 14%

Fully Insured 18%

Under Insured82%

Potential of life insurance


Endowment plan 15%Child plan 8%Unit link plan 24%

FINDING AND SUGGESTION

Endownment Plan15%

Moneyback Plan14%

Term Plan39%

Unitlink plan24% Child Plan

8%

Market share of diffrent Insurance plan


According the survey only 42% people are insured in Gulbarga so

reaming other part is potential for insurance sector.

Among that 42% people who having insurance, they have

insurance 40% for self 28%for spouse 21% for children and 18%

for their parents and 11% for all family member, also its very help

full for insurance sector so they should take necessary step for

capture this potential.

Only 42% people having insurance in Gulbarga in that 42% there

are 82 % people are under insured and other 18% people are fully

insured according to their income so that is also plus point for

insurance sector to capture the market.

CONCLUSION


All the insurance company must advertise more in the market because not all people know more about life Insurance policy.

Most number of people wants Guaranteed Returns so company must focus on this for the customer investment.

REFERENCE


In order to obtain more information regarding the present study

and to substantiate it with theoretical proof, the following

references were made: -

Insurance chronicle, January 2006 Special issue “Insurance

Industry 2006”.

BOOKS

Insurance chronicle –ICFAI publications Outlook money – magazine

Websites visited:

www.bajajallianz.com www.google.com www.moneycontrol.com www.outlookmoney.com

QUESTIONNAIRE

http://www.outlookmoney.com/

http://www.moneycontrol.com/

http://www.google.com/

http://www.bajajallianz.com/


I am Dayanand R Rathod pursuing MBA from SDM College of business management post graduate centre management studies & research Mangalore. As a part of the curriculum I am doing research on “POTENTIAL OF LIFE INSURANCE INDUSTRY” kindly help me in the same by filling the questionnaire. Your response would be kept strictly confidential and would be used only for academic research.

1} Name ______________________________

2} which age does you belong to?

1) 18-25 2)26 to 30 3) 31 to 45 4) 46 to above

3} Gender 1) male ____) female____

4} how many members do you have in your family?

1) 2-4 2) 5-8 3) 8 to above

5} what is your family annual income?

1) 40k-70k 2) 70-1lakh 3) 1lakh-3lakh 4) 3 to above

6} Occupation

1) Service 2) business 3) professional 4) other

7} Do you have a life insurance?

Yes_______ No_______

If yes,

Which is it?


Company’s name

Term plan

Endowment

Whole life

Money back

Retirement

Child plan

Unit link plan

LICICICI prudential Birla sun life SBI life HDFC standard life Bajaj Allianz TATA AIGKotak Mahindra ING vysya Max new York life Met life Reliance Shri ram Sahara

Documents

bajaj allianz