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