SUMMER TRAINING PROJECT REPORT

AVIVA LIFE INSURANCE INSURANCE CO. LTD.

Submitted in Partial Fulfillment of the requirement ofBACHELORS OF BUSINESS ADMINISTRATION (BBA)

A MARKETING RESEARCH ANALYSIS

Training Supervisor: SUBMITTED BY: (SR. SALES MANAGER) Enrolment No.

SESSION 200-20

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ACKNOWLEDGMENT

This project work, which is my major step in the filed of professionalism, has

been successfully accomplished only because of timely support of my well

wisher. I would like to pay my sincere regards and thanks to those, who directed

me at every step in my project work.

First of all, I would like to express my thanks to my college for giving me such a

wonderful opportunity to widen the horizon of my knowledge. I pay my gratitude

towards, my sales manager at Aviva Life Insurance through which I got real

Business experience.

I extend my thanks to my project Guide for her scholarly guidance, constant

supervision and encouragement. It is due to her personal interest and initiative

that the project work is published in the present form.

.

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PREFACE

Someone has greatly said that practical knowledge is far better than

classroom teaching. During this project I fully realized this and come to know

about the present real world of insurance. Since it include all the activities

involved in selling insurance products directly to financial customers. I am

pleased to know about the customer’s wants and various activities in the real

world of insurance product. The Subject of my study is A MARKETING

RESEARCH ANALYSIS OF AVIVA LIFE INSURANCE.

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CONTENTS

Chapter 1 – Introduction 1-40

1.1Overview of industry as a whole 21.2 Profile of the organisation 12 1.3 Problems of the organisation 32 1.4 Competion information 34 1.5 S.W.O.T Analysis of the organasation 40

Chapter 2 – Objective and Methodology 41-49

2.1 Significance 422.2 Objectives 43 2.3 Scope of the study 45 2.4 Methodology 46

Chapter 3 – Conceptual Discussion 50-53

Chapter 4 – Data Analysis 54-76

Chapter 5 – Findings and Recommendations 77

Annexures

Bibliography

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CHAPTER - 1

INTRODUCTION

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INTRODUCTION

1.1 OVERVIEW OF THE INDUSTRY – INSURANCE

INDUSTRY

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 mends in the Indian insurance sector reveals the 360 degree turn

witnessed over a period of almost two centuries.

With such a large population and the untapped market area of this population

Insurance happens to be a very big opportunity in India. Today it stands as a

business growing at the rate of 15-20 per cent annually. Together with banking

services, it adds about 7 per cent to the country’s GDP .In spite of all this growth

the statistics of the penetration of the insurance in the country is very poor. Nearly

80% of Indian populations are without Life insurance cover and the Health

insurance. This is an indicator that growth potential for the insurance sector is

immense in India. It was due to this immense growth that the regulations were

introduced in the insurance sector and in continuation “Malhotra Committee” was

constituted by the government in 1993 to examine the various aspects of the

industry. The key element of the reform process was Participation of overseas

insurance companies with 26% capital. Creating a more efficient and competitive

financial system suitable for the requirements of the economy was the main idea

behind this reform.

Since then the insurance industry has gone through many sea changes .The

competition LIC started facing from these companies were threatening to the

existence of LIC. Since the liberalization of the industry the insurance industry

has never looked back and today stand as the one of the most competitive and

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exploring industry in India. The entry of the private players and the increased use

of the new distribution are in the limelight today.

The use of new distribution techniques and the IT tools has increased the scope of

the industry in the longer run.

A BRIEF HISTORY

The origin of insurance is very old .The time when we were not even born; man

has sought some sort of protection from the unpredictable calamities of the nature.

The basic urge in man to secure himself against any form of risk and uncertainty

led to the origin of insurance.

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:

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,

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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 (Nationalisation) Act, 1972 nationalised

the general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz.

1. National Insurance Company Ltd. 2. Oriental Insurance Company Ltd.

3. New India Assurance Company Ltd. 4. United India Insurance Company Ltd.

GIC incorporated as a company.

INSURANCE SECTOR REFORMS

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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.

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 recognising that insurance is an

important part of the overall financial system where it was necessary to address

the need for similar reforms…”

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In 1994, the committee submitted the report and some of the key recommendations

included:

i) 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

ii) 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.

iii) Regulatory Body

The Insurance Act should be changed.

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An Insurance Regulatory body should be set up.

Controller of Insurance (Currently a part from the Finance Ministry)

should be made independent.

iv) 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)

v) 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.

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, it 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.

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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.

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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 was 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. In the private sector 12 life

insurance and 6 general insurance companies have been registered.

IMPACT OF LIBERALIZATION

The introduction of private players in the industry has added to the colors in the

dull industry. The initiatives taken by the private players are very competitive and

have given immense competition to the on time monopoly of the market LIC.

Since the advent of the private players in the market the industry has seen new

and innovative steps taken by the players in this sector. The new players have

improved the service quality of the insurance. As a result LIC down the years

have seen the declining phase in its career.

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The market share was distributed among the private players. Though LIC still

holds the 75% of the insurance sector but the upcoming natures of these private

players are enough to give more competition to LIC in the near future. LIC

market share has decreased from 95% (2002-03) to 81 %( 2004-05). The

following companies has the rest of the market share of the insurance industry.

CURRENT SCENARIO OF THE INDUSTRY

INSURANCE MARKET IN INDIA

India with about 200 million middle class household shows a huge untapped

potential for players in the insurance industry. Saturation of markets in many

developed economies has made the Indian market even more attractive for global

insurance majors. The insurance sector in India has come to a position of very

high potential and competitiveness in the market.

Innovative products and aggressive distribution have become the say of the day.

Indians, have always seen life insurance as a tax saving device, are now suddenly

turning to the private sector that are providing them new products and variety for

their choice.

Life insurance industry is waiting for a big growth as many Indian and foreign

companies are waiting in the line for the green signal to start their operations. The

Indian consumer should be ready now because the market is going to give them

an array of products, different in price, features and benefits. How the customer is

going to make his choice will determine the future of the industry.

1. CUSTOMER SERVICE

Consumers remain the most important centre of the insurance sector. After the

entry of the foreign players the industry is seeing a lot of competition and thus

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improvement of the customer service in the industry. Computerisation of

operations and updating of technology has become imperative in the current

scenario. Foreign players are bringing in international best practices in service

through use of latest technologies. The one time monopoly of the LIC and its

agents are now going through a through revision and training programmes to

catch up with the other private players. Though lot is being done for the increased

customer service and adding technology to it but there is a long way to go and

various customer surveys indicate that the standards are still below customer

expectation levels.

2. DISTRIBUTION CHANNELS

Till date insurance agents still remain the main source through which insurance

products are sold. The concept is very well established in the country like India

but still the increasing use of other sources is imperative. It therefore makes sense

to look at well-balanced, alternative channels of distribution.

LIC has already well established and have an extensive distribution channel and

presence. New players may find it expensive and time consuming to bring up a

distribution network to such standards. Therefore they are looking to the diverse

areas of distribution channel to have an advantage. At present the distribution

channels that are available in the market are:

Direct selling

Corporate agents

Group selling

Brokers and cooperative societies

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Banc assurance

BANCASURANCE - India has an extensive bank network established over the

years. What Insurance companies have to do is to just take advantage of the

customers' long-standing trust and relationships with banks. This is a mutually

beneficial situation as banks can also expand their range of products on offer to

customers, while the insurance company will also earn profits from the exposure.

Another advantage is that banks, with their network in rural areas, help to fulfill

rural and social obligations stipulated by the Insurance Regulatory and

Development Authority (IRDA) recently. Insurance companies should see banc

assurance as a tool for increasing their market penetration in India. It is also good

for the one who sees banc assurance in terms of reduced price, high quality

product and delivery at doorsteps. Everybody is a winner here. The creation of

banc assurance operations has made an important impact on the financial services

industry at large. This is though a new concept but it has gained a lot of

importance in the industry at present and has a great future.

3. PRODUCT INNOVATION

There has been a plethora of new and innovative products offered by the new

players. Customers have tremendous choice from a large variety of products from

pure term (risk) insurance to unit-linked investment products. Customers are

offered unbundled products with a variety of benefits as riders from which they

can choose. More customers are buying products and services based on their true

needs and not just traditional money-back policies, which is not considered very

appropriate for long-term protection and savings. There is lots of saving and

investment plans in the market. However, there are still some key new products

yet to be introduced - e.g. health products.

4. RURAL MARKETING

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Rural India seems to have an appetite for mobile phones, computers, and cars and

to add to it we have insurance. In India with the private players having entered

into the insurance industry, the expected explosion in job opportunities may not

actually happen but for them the catchments area is the opportunities in the rural

India. In India the insurance business can be said to be "a marathon, not a sprint".

This is because of the nature of the business being long term. With merely two

years of the industry being opened, not surprisingly, the new comers are making

losses. The public sector companies, notably the LIC, have gained in strength,

thanks to the deepening of the market consequent to the awareness created by the

new companies. However this does not deterred the private sector, which knows

know that the race is a marathon, not a sprint. However it seems that they if not

anything, are only increasing their spending, though only out of the capital.

Today, there are 18 insurance companies in India excluding the PSU’s, with 12 in

the life insurance business and the rest in non-life .As insurance companies go

more and more rural in search of business, there will be opportunities in the rural

sector. A research conducted exhibited that the rural consumers are willing to dole

out anything between Rs 3,500 and Rs 2,900 as premium each year. In the

insurance the awareness level for life insurance is the highest in rural India, but

the consumers are also aware about motor, accidents and cattle insurance. In a

study conducted by MART the results showed that nearly one third said that they

had purchased some kind of insurance with the maximum penetration skewed in

favor of life insurance. The study also pointed out the private companies have

huge task to play in creating awareness and credibility among the rural populace.

The perceived benefits of buying a life policy range from security of income bulk

return in future, daughter's marriage, children's education and good return on

savings, in that order, the study adds.

Regulatory and Development Authority (IRDA) have set stiff rural targets for

insurance companies. For the life sector, in the first year, 5 per cent of the total

policies written should come from the rural sector. This will go up to 15 per cent

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in five years. Similarly, for the non-life sector, two per cent of the total gross

premium income should come from the rural sector going up to 5 per cent in five

years, according to the regulation. All these moves will make the investment the

rural area a big start.

5. INFORMATION TECHNOLOGY AND INSURANCE

In the insurance industry today, there is a clear trend away from selling a broad

range of products to a large volume of customers in a one –size-fits-all manners.

Instead of focusing on their different products lines as silos (i.e., life, property and

casualty etc) insurers are looking for ways to offer highly targeted insurance

products that are tailored to the individuals customers with the highest propensity

to buy them.

There is a evolutionary change in the technology that has revolutionized the entire

insurance sector. Insurance industry is a data-rich industry, and thus, there is dire

need to use the data for trend analysis and personalization.

With increased competition among insurers, service has become a key issue.

Moreover, customers are getting increasingly sophisticated and tech-savvy. People

today don’t want to accept the current value propositions, they want personalized

interactions and they look for more and more features and add ones and better

service The insurance companies today must meet the need of the hour for more

and more personalized approach for handling the customer. Today managing the

customer intelligently is very critical for the insurer especially in the very

competitive environment. Companies need to apply different set of rules and

treatment strategies to different customer segments. However, to personalize

interactions, insurers are required to capture customer information in an integrated

system.

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With the explosion of Website and greater access to direct product or policy

information, there is a need to developing better techniques to give customers a

truly personalized experience. Personalization helps organizations to reach their

customers with more impact and to generate new revenue through cross selling

and up selling activities. To ensure that the customers are receiving personalized

information, many organizations are incorporating knowledge database-

repositories of content that typically include a search engine and lets the

customers locate the all document and information related to their queries of

request for services. Customers can hereby use the knowledge database to mange

their products or the company information and invoices, claim records, and

histories of the service inquiry. These products also may be able to learn from the

customer’s previous knowledge database and to use their information when

determining the relevance to the customers search request.

The insurance sector remains a very competitive market and those companies that

are able to best utilize their data and provide their customer with the most

personalized options will have the distinct competitive advantage. The insurers

that come up to the top will be those who leverage the appropriate technology

solutions effectively in order to foster customer loyalty, attract new customers and

improve operational efficiency by providing common information across their

lines of business.

6. MERGERS AND AQUISITIONS

This is an era of mergers and acquisitions. Private companies including MNC’s

are amalgamating the world over to get more competitive edge. Currently, the

general insurance industry has been opened up. The question here is that for over

two years, eight private companies have operated and has the size of the cake

expanded. The insurers are doing enough to raise the level of risk awareness or

are they merely content to compete in the markets organized and established.

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However sooner or later the private sector players will have to put in place

strategies aimed not at winning the existing accounts of the public players but at

diversifying markets penetration as a whole. The private players in the future

would have to turn their attention to working in the unorganized and under served

markets.

What is likely to happen is that the private players would continue to skim the

profitable segments of the already organized business in the urban areas? The

time has already come for the government of India to evaluate the performance of

private companies’ vis-à-vis their declared objective of opening up the industry.

However it is high time for the government to realize that importance of merging

the public sector general insurance companies into single entity. The resent

scenario calls for a better performance from part of each of the public sector

insurance companies against each other; or in other words a competition to be the

best. The result what we see is the undercutting of premium to retain or wrest

business and quoting an uneconomical rate of premium. While this allows one of

the Public Sectors Company to win a business form another in this manner. The

others suffer a loss and the resultant effect is a cannibalization with a fall in the

average premium of the public sector itself. This at many times brings advantage

to the private players who grab the business because of the

unethical competition among the public players.

The purpose of having four companies all subsidiaries of General Insurance

Corporation of India (GIC)– National Insurance Company, New India Assurance

Company, Oriental Insurance Company, And The United India Insurance

Company; at the time of nationalization was to have competition among

themselves –in service and products at the same price. The service provided by

them was also equally good or bad depending on the experience of the customers.

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Now with real competition coming in with most of the global insurance players

setting footprints here, it is felt that the time for merger has come and to enjoy the

benefits if the size. It is to be sated that size does matter in insurance business. All

over the world’s mergers and acquisitions in the risk-underwriting sector is

common. The benefits if the four insurance companies merge will be enormous.

The merged entity will enjoy higher underwriting and risk retention capacity;

increase in reinsurance premium, reduction in reinsurance outflow, healthy

solvency margins, setting right the asset –liability mismatch and reduction in cost.

The insurance market thus becomes a gambling place. Had the public sector

companies made into a single entity, perhaps the total premium of the four public

sector companies in the year 2003-04 would have gone up but 25 percent. But the

public sector alone is forced to underwrite the loss making motor third party

liability (TPL) insurance. The public insurance companies insured a loss of Rs

1943 crore on this portfolio on just one year (03-04). The cumulative loss under

this portfolio is astronomical. The loss of profitable business in view of

undeserved competition among the public sector companies is hampering the

subsidization of social insurance including the motor TPL.

It is thus clear that it is good for the public sector companies to merge

immediately when they are still strong, lest a merger becomes inevitable later

after the independent public sector companies fail one after another. This does not

bid well for the public sector, nor fort he insuring public and not for the economic

development either. For a progress me require merger of strong public sector

companies. Else it would render public sector companies weak and destroy them.

NAME OF THE PLAYER MARKET SHARE

(%)

LIC 82.3

ICICI PRUDENTIAL 5.63

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BIRLA SUN LIFE 2.56

BAJA ALLIANZ 2.03

SBI LIFE 1.80

HDFC STANDARD 1.36

TATA AIG 1.29

HDFC SLIC 0.90

AVIVA 0.79

OM KOTAK MAHINDRA 0.51

ING VYASA 0.37

AMP SANMAR 0.26

METLIFE 0.21

POTENTIAL OF INSURANCE INDUSTRY IN INDIA :

Only ONE out of FIVE insurable population in India have insurance coverage.

In terms of Insurance premium per capita and premium per GDP, India ranks

as one of the lowest in the world.

Life insurance premium constitutes only 9% of domestic savings.

By 2010, hundred million elderly look to planning for old age pension and

annuities.

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More than 325 million labor forces have no social security.

With an annual growth rate of 15-20% and the largest number of life insurance

policies in force, the potential of the Indian insurance industry is huge. Total value

of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10

billion). According to government sources, the insurance and banking services'

contribution to the country's gross domestic product (GDP) is 7% out of which the

gross premium collection forms a significant part. The funds available with the

state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP.

Till date, only 20% of the total insurable population of India is covered under

various life insurance schemes, the penetration rates of health and other non-life

insurances in India is also well below the international level. These facts indicate

the of immense growth potential of the insurance sector.

The year 1999 saw a revolution in the Indian insurance sector, as major structural

changes took place with the ending of government monopoly and the passage of

the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all

entry restrictions for private players and allowing foreign players to enter the

market with some limits on direct foreign ownership.

Though, the existing rule says that a foreign partner can hold 26% equity in an

insurance company, a proposal to increase this limit to 49% is pending with the

government. Since opening up of the insurance sector in 1999, foreign

investments of Rs. 8.7 billion have poured into the Indian market and 21 private

companies have been granted licenses.

Innovative products, smart marketing, and aggressive distribution have enabled

fledgling private insurance companies to sign up Indian customers faster than

anyone expected. Indians, who had always seen life insurance as a tax saving

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device, are now suddenly turning to the private sector and snapping up the new

innovative products on offer.

The life insurance industry in India grew by an impressive 36%, with premium

income from new business at Rs. 253.43 billion during the fiscal year 2004-2005,

braving stiff competition from private insurers. Though the total volume of LIC's

business increased in the last fiscal year (2004-2005) compared to the previous

one, its market share came down from 87.04 to 78.07%. The 14 private insurers

increased their market share from about 13% to about 22% in a year's time. The

figures for the first two months of the fiscal year 2005-06 also speak of the

growing share of the private insurers. The share of LIC for this period has further

come down to 75 percent, while the private players have grabbed over 24 percent.

There are presently 12 general insurance companies with four public sector

companies and eight private insurers. According to estimates, private insurance

companies collectively have a 10% share of the non-life insurance market.

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1.2 PROFILE OF THE ORGANISATION— AVIVA LIFE

INSURNACE CO. LTD.

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. With a history dating back to 1696, Aviva

has a 35 million-customer base worldwide. It has more than £332 billion of assets

under management.

In India, Aviva has a long history dating back to 1834. At the time of

nationalisation it was the largest foreign insurer in India in terms of the

compensation paid by the Government of India. Aviva was also the first foreign

insurance company in India to set up its representative office in 1995.

In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest

Group of companies. A professionally managed company, Dabur is the 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.

With a strong sales force of over 12,000 Financial Planning Advisers (FPAs),

Aviva has initiated an innovative and differentiated sales approach to the business.

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.

Aviva pioneered the concept of Bancassurance in India, and has leveraged its

global expertise in Bancassurance successfully in India. Currently, Aviva has

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Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara

Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab &

Sind Bank, 15 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir,

Bihar, West Bengal and Maharashtra and one regional Bank in Sikkim.

When Aviva entered the market, most companies were offering traditional life

products. Aviva started by offering the more modern Unit Linked and Unitised

With Profit products to the customers, creating a unique differentiation. Aviva’s

products have been designed in a manner to provide customers flexibility,

transparency and value for money. It has been among the first companies to

introduce the more modern Unit Linked

Products in the market. Its products include: whole life (Life Long), endowment

(Life Saver, Easy Life Plus), and child policy (Young Achiever) single premium

(Life Bond and Life Bond Plus), Pension (Pension Plus), Term (Life Shield), fixed

term protection plan (Freedom Life Plan) and a tax efficient investment plan with

limited premium payment term (LifeBond5). Aviva products are modern and

contemporary unitised products that offer unique customer benefits like flexibility

to chose cover levels, indexation and partial withdrawals.

Aviva’s Fund management operation is one of its key differentiators. Operating

from Mumbai, Aviva has an experienced team of fund managers and the range of

fund options includes Unitised With-Profits Fund and four Unit Linked funds: -

Protector Fund, Secure Fund, Balanced Fund and Growth Fund.

Aviva has 112 Branches in India (including rural branches) supporting its

distribution network. Through its Bancassurance partner locations, Aviva products

are available in 378 towns and cities across India.

Aviva is also keen to reach out to the underprivileged that have not had access to

insurance so far. Through its association with Basix (a micro financial institution)

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and other NGOs, it has been able to reach the weaker sections of the society and

provide life insurance to them.

For three consecutive years in 2005, 2006 and 2007, Aviva has had relatively high

scores on the parameters of Credibility, Respect, Fairness, Pride and Camaraderie

in the survey administered by Grow Talent Company Ltd. along with Great Places

to Work® Institute, Inc. and Business World magazine.

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WHO IS AVIVA

DABUR

A professionally managed company, it is the country's leading producer of

Founded in 1884, Dabur is one of India's oldest and largest group of companies

with consolidated annual turnover in excess of Rs 1,899 crores. Traditional

healthcare products.

AVIVA

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. With a history dating back to 1696, Aviva

has a 35 million-customer base worldwide. It has more than £332 billion of assets

under management.

VISION

Aviva - where exceeding expectations through innovative solutions is "the" way

of life This is the compelling vision that Aviva India has created through the

active contribution of its employees. These lines not only define the way we live

and work but also serve as a reminder to deliver the best to our customers,

shareholders, colleagues, partners & employees at all times.

Embedded in this vision are the core values of Integrity, Customer centricity,

Passion for winning, Innovation and Empowered team that we have collectively

defined and committed to working towards.

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PARTNERS

Aviva is committed to helping our customers get 'Kal par Control' and make the

most out of their lives. It is the constant endeavour to ensure that our customers

have easy access to Aviva products and services at all times.

Aviva has pioneered bancassurance in the country through its tie-ups with 22

leading private and nationalised Banks in the country. Aviva also focuses on

bancassurance worldwide and has a proven track record of successful

bancassurance relationships. It has 40 major partnerships with leading banks

across the globe. Aviva is a leading bancassurer in countries such as France, Italy,

Spain, Australia and New Zealand.

25

ABN AMRO Bank

ABN AMRO is a prominent international bank with European roots and a clear

focus on consumer and commercial banking gaining a competitive edge on the

chosen markets and client segments. ABN AMRO Bank (India) ventured into the

Indian market in 1920 primarily to finance the diamond trading business and

evolved by mid 1990’s into a fastest growing retail bank and a well-respected

wholesale bank.

The Bank is recognized as one of the most successful consumer banking outfits in

the county, known for its innovation and aggression. ABN India consumer

banking pioneered the distribution of third party financial products like mutual

funds, bonds and life insurance.

Aviva's relationship with ABN India commenced in June 2002 under which the

bank introduces its customers to Aviva for insurance and provides access to its

affluent customer base across the country through its operations in 21 branches at

14 locations.

American Express Bank

American Express Company is a diversified worldwide travel and financial

services company founded in 1850. It is the world’s largest single card issuer,

based on purchase volume generated of nearly 55 million cards worldwide.

Present in India since 1921, American Express provides high quality travel related

and financial services in India.

Aviva Life Insurance entered into a strategic alliance with American Express for

distribution of Life Insurance in June 2002 to offer top-of the line saving-cum-

protection plans to Amex bank and card customers.

26

Aviva offers tailor-made investment solutions to the high net worth clients of the

Wealth Management channel. The retail card segment is being tapped through

outbound calling to the Amex cardholders. The American Express Inbound call

center also pitches Aviva products to its callers.

The Lakshmi Vilas Bank Ltd

The Lakshmi Vilas Bank Ltd, based out of Karur, is among the top private banks

in India. It has 221 branches with a customer base of 1.2 million, across 10 states.

Currently Aviva products are sold across 204 branches of LVB.

Canara Bank

Canara Bank is one of the largest retail banks in India with 2,513 branches spread

across 25 States and 4 Union Territories. The customer base of Canara Bank

exceeds 27 million. With a net profit of INR 1110 Crores, deposits of over INR

96,908 Crores, 47389 employees for the year ending Mar 2005, Canara Bank is

truly a Bank to be reckoned with for the sheer magnitude of coverage it offers its

clients. Canara Bank has tied up with Aviva as a Corporate Agent for its Life

Insurance Products. Aviva products are currently offered in 1030 Canara Bank

branches in 103 Cities.

Punjab & Sind Bank

Punjab & Sind Bank was established in the year 1908. Based on the principles of

social commitment to the people, help the farmers, and the weaker sections of the

society to raise their standard of living and play a significant role in the

development of the country. Even after 96 years of its inception, Punjab & Sind

Bank stands committed to honor the high ideals of its founding fathers. Punjab

and Sindh Bank has a network of 759 branches and 132 extension counters all

27

over the country with close to 9,765 employees. 42 per cent of its branches are in

the rural and semi urban areas.

In line with spirit of liberalisation the Bank has laid special emphasis on

International banking, Hire purchase, Leasing, Tele-banking and Credit card

facilities. The bank has also started their Rural Development Division, High

Tech Agricultural Branches, Specialised Locker Branches, Industrial Finance and

SSI branches, besides Housing Finance Branch for the convenience of its

customers.

Centurion Bank of Punjab

Centurion Bank of Punjab is a new generation private sector bank offering a wide

spectrum of retail and corporate banking products and services. It holds leadership

positions in retail two-wheeler loans and commercial vehicle loans. It has been

among the earliest banks to offer a technology-enabled customer interface that

provides easy access and superior customer service.

RBI has approved the merger between Centurion Bank and Bank of Punjab

effective from October 1st, 2005. The merged entity, named Centurion Bank of

Punjab, has a strong nationwide franchise of 241 branches and extension counters

and 389 ATMs. With strengths in the retail, SME and agriculture businesses the

bank is well poised to capture the opportunities that exist in the Indian market.

The combined bank’s 3,500 employees will continue to provide support and an

enhanced banking experience to our customers, as part of a bigger, stronger bank.

“Aviva’s key strength is its fund management capabilities with an experience of

30 years in money management.”

28

EQUITY

The much-awaited correction finally materialised in the quarter ended June 2006.

The BSE Sensex, which peaked at 12612 levels on 10th May 2006, has corrected

to around 10000 levels. After three years of sustained Bull Run, the recent

correction has been a timely reminder that the markets, in the short term, may see

downsides too. Compared to the rise in the market, the downtrend has not been

very large though it has been quicker than expectations. Even post this 20% or so

correction from its peak, the Sensex is up 12.9% year to date. This much-needed

correction has weeded out some of the euphoria and the focus on value is back.

Does this correction reflect any change in the key fundamentals of India? We do

not think so. The three-year rally was in the first place due to appreciation of

India’s sustainable growth story. The second reason was an improvement in the

global liquidity as investor’s appetite for risk iJhansieased. The India growth story

remains intact and the GDP growth in the last few quarters is an evidence of this.

We expect GDP to grow by over 7% on a sustainable basis and hence India would

continue to be an attractive investment destination. The major reason for the

correction has been liquidity moving out of the markets. This has been caused by

fall in the commodity prices from their peak, rising global interest rates and high

crude prices causing worries about inflation and a global meltdown. With the

tightening of global liquidity and reduced risk appetite of investors, there have

been outflows from emerging markets including India. Secondly, valuations in

India were among the highest in emerging markets and hence witnessed a greater

compression. One of the major fears globally is that of a slowing economy in the

US and China. India is highly resilient to global meltdowns as private

consumption accounts for 62% of our GDP and exports account for only 12% of

GDP. With a favourable demographic profile- iJhansieasing working population

and improved disposable income in the hands of the consumer, this resilience will

only improve. This coupled with superior growth and demographics will drive

29

flows back to India in the long term. In the short term, the markets could continue

to witness volatility as the direction would be determined by global liquidity,

progress of monsoons and the quarterly results for June 2006. We believe, for the

long-term investor, this correction would provide a good opportunity to

participate in the India growth story. However, expectations of returns from equity

should be moderate with stock returns tracking earnings growth.

FIXED INCOME

Is virtuous cycle turning vicious? Inflation has touched one year high of 5.44%,

and INR has touched 2 year low of 46.04. Aligning with these movements, yield

on benchmark 10 year Government Bond also went up to a four year high of

8.10%. The latest balance of payments numbers for 2005-06 show an overall

balance of $15 bn, helped by a less-than-expected deficit on the current account

($10.6 bn). This was essentially due to strong invisibles (private remittance and

net software exports) providing cover for a trade deficit, which was itself

moderated by a strong 28% y-o-y growth in exports. Net inflows on the capital

account stood at $24.7 bn with $5.7 bn coming from net FDI and $12.5 bn being

accounted for by portfolio inflows. Though headline inflation recently has picked

up with prices of food and non food articles in the ‘primary goods’ category

rising, the government has taken short-term measures in the form of liberalizing

imports of wheat and sugar and banning exports of pulses in order to ease the

supply situation. Core inflation, that is, excluding the more volatile primary and

fuel categories, has picked up a bit in comparison to last year. However it is

expected to remain in a manageable range. RBI seems committed to containing

inflation and would thus act accordingly. Recently, RBI chose to iJhansiease rates

to manage inflationary expectations and in response to various central banks

hiking rates globally. This has led to a few banks raising lending rates in addition

to getting reflected in the money and bond markets. GDP growth for 2005-06

came in at a better than expected 8.4%, propped up by improved agriculture

30

performance. For 2006-07 also, despite inflationary pressures, the GDP is

expected to grow at over 7%. Going forward, monetary tightness will weigh on

the interest rate outlook and it is expected to remain firm.

31

1.3 PROBLEMS OF AVIVA LIFE INSURNACE

Since Aviva Life Insurance is a private player in the insurance industry, it

has not yet reached break-even. Hence, it has high cost due to which its

premiums are high as compared to LIC.

It has to create credibility in the public.

It has to compete with the wide range of products that its competitors

offer.

It has to focus towards rural segment also which has a great scope of

growth.

It has to decide on the strategies to be adopted which will help to counter

competition.

It has to increase its no. of branches and also enhance its network of

agents so that it can compete with LIC.

It has to focus on providing effective training to its agents so that the

customer base can be increased and moreover customer satisfaction can be

ensured.

32

1.4 COMPETITORS INFORMATION

Bajaj Allianz

Birla Sun Life Insurance

HDFC Standard Life Insurance

ICICI Prudential

ING Vysya

Kotak Mahindra

LIC

MetLife India Insurance

SBI Life Insurance

Shriram Life Insurance

Tata AIG Life Insurance

BAJAJ ALLIANZ

Bajaj Allianz is a joint venture between Allianz AG one of the world’s largest

insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler

manufacturers in the world. Bajaj Allianz is into both life insurance and general

insurance.

33

Allianz Group is one of the world’s leading insurers and financial services

providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries

with almost 174,000 employees. Bajaj group is the largest manufacturer of two-

wheelers and three-wheelers in India and one of the largest in the world.

Today, Bajaj Allianz is one of India’s leading and fastest growing insurance

companies. Currently, it has presence in more than 550 locations with over 60,000

Insurance Consultants.

BIRLA SUN LIFE INSURANCE

Birla Sun Life Insurance Company Limited is a joint venture between Aditya

Birla Group and Sun Life Financial of Canada. Aditya Birla Group is an Indian

multinational conglomerate with presence in India, Thailand, Indonesia, Malaysia,

Philippines, Egypt, Canada, Australia and China.

Sun Life Assurance, Sun Life Financial’s primary insurance business, is one of the

leading insurance companies of the world and ranks amongst the largest

international financial services 34rganizations in the world. The Group has

presence in several countries such as Canada, United States, Philippines, Japan,

Indonesia, India and Bermuda.

34

ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank,

a premier financial powerhouse and Prudential plc, a leading international

financial services group headquartered in the United Kingdom.

ICICI was established in 1955 to lend money for industrial development. Today, it

has diversified into retail banking and is the largest private bank in the

country. Prudential plc was established in 1848 and is presently the largest

life insurance company in the UK.

ICICI Prudential is curently the No. 1 private life insurer in the country. For the

financial year ended March 31, 2005, the company garnered Rs 1584 crore of

new business premium for a total sum assured of Rs 13,780 crore and wrote

nearly 615,000 policies.

ING VYSYA LIFE INSURANCE

ING Vysya Life Insurance Company Limited is a joint venture between Vysya

Bank and ING Group of Holland, the world's 4th largest financial services group,

with presence across 50 countries, and a heritage of over 150 years.

35

ING Vysya Life Insurance Company Private Limited entered the private life

insurance industry in India in September 2001. With in a short span of time

ING Vysya Life Insurance has registered an impressive growth. The company

currently has over 10,000 active advisors working from 75 branches (in 30

cities) across the country and over 2300 employees.

KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak

Mahindra Bank Ltd.(KMBL), and Old Mutual plc. Kotak Mahindra is one of

India's leading financial institutions and offers a range of financial services such

as commercial banking, stock broking, mutual funds, life insurance, and

investment banking.

Old Mutual was established more than 150 years ago and offers a diverse range of

financial services in South Africa, the United States and the United Kingdom. The

company is listed on the London Stock Exchange with a market capitalization and

has its headquarters in London.

LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) is an autonomous body authorized to

run the life insurance business in India with its Head Office at Mumbai. It has

been established by an act of the Parliament and started functioning from

1/9/1956.

36

LIC is the biggest insurance player in the country. Out of the total premium of Rs

3766 crore generated by the insurance industry through group business in the year

2005-06, LIC alone accounted for Rs 3051 crore.

In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of

lives insured, LIC has shown a growth of over 152%. In respect of number of

schemes, LIC has a growth of 2%. LIC's market share in number of individuals

covered and number of policies stands at 77% and 81%, respectively.

METLIFE INDIA INSURANCE

MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group

and its Indian partners. The Indian partners include J&K Bank, Dhanalakshmi

Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and

Mini Muthoothu.

Met Life Group has presence in America and Asia and has an experience of over

137 years in providing financial services. The MetLife companies are the number

one life insurer in the U.S. with approximately US $2.8 trillion of life insurance in

force. MetLife serves 88 of the top one hundred FORTUNE 500 companies.

MetLife entered Indian insurance sector in 2001.

RELIANCE LIFE INSURANCE

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the

Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent

37

shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking

over AMP Sanmar Life provided Reliance Life Insurance a readymade

infrastructure and a portfolio.

AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the

Sanmar Group. Headquartered in Chennai, AMP Sanmar had over 90 offices

across the country, 9,000 agents, and more than 900 employees.

SBI LIFE INSURANCE

SBI Life Insurance is a joint venture between the State Bank of India and Cardif

SA of France. SBI Life Insurance is registered with an authorised capital of Rs

500 crore and a paid up capital of Rs 350 crores.

State Bank of India is the largest banking franchise in India. Along with its 7

Associate Banks, SBI Group has a network of over 14,000 branches across the

country, the largest in the world.

Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's

leading Bank. BNP is one of the oldest foreign banks with a presence in India

dating back to 1860.

SHRIRAM LIFE INSURANCE

Shriram Life Insurance Company Ltd is a joint venture between the Chennai-

based Shriram Group and the South African insurance major Sanlam.

38

The company launched its operations in India in December 2005.

Shriram Life has set a target of achieving a premium income of Rs 110 crore

during the first year of operations. While focussing largely on the strong network

of over 65,000 agents and distribution network of more than 550 branches,

Shriram Life is also contemplating bancassurance alliances with couple of banks.

TATA AIG LIFE INSURANCE

Tata AIG Life Insurance Company Limited is a joint venture between Tata Group

and American International Group, Inc. (AIG). Tata Group is one of the oldest and

leading business groups of India. Tata Group has had a long association with

India's insurance sector having been the largest insurance company in India prior

to the nationalisation of insurance. The Late Sir Dorab Tata, was the founder

Chairman of New India Assurance Co. Ltd., a group company incorporated way

back in 1919.

American International Group, Inc is the leading U.S. based international

insurance and financial services organization and the largest underwriter of

commercial and industrial insurance in the United States. AIG has one of the most

extensive life insurance networks in the world.

39

1.5 S.W.O.T ANALYSIS OF AVIVA LIFE INSURANCE

STRENGTHS

Premiums are increasing and so are commissions.

The variety of products is increasing.

Transparency in working is followed.

Fund charges are less i.e. 0.8%

Stronger financial base.

Employee centric organization.

WEAKNESS

Strong competitors like LIC, ICICI Pru, Birla Sun Life etc.

Premium is priced high as compared top the market leader.

Infrastructure cost is high.

Less expenditure on promotion.

Products not customized for lower segment.

40

OPPORTUNITIES

The ability to cross sell financial services barely being tapped.

Technology is improving to the point that paperless transactions are available.

The client's increasing need for an "insurance consultant" can open new ways

to service the client and generate income.

THREATS

Government regulations on issues like health care, mold and terrorism can

quickly change the direction of insurance.

The increasing expenses and lower profit margins.

Intense competition from LIC.

41

CHAPTER – 2

OBJECTIVE & METHODOLOGY

42

2.1 Significance

1. Risk and Insurance

2. Global insurance

3. Penetration of insurance sector at world level as well as in India

4. Saving habits of Indian people

5. Liberalization of Indian Insurance Sector

6. Role of the Insurance Regulatory Authority of India

7. Performance of private players in insurance sector

8. A comparitive stidies on private and public sector of insurance

companies

9. Performance evalustion of non-ife insurers (public and private

10. Evalustion of General Insurance Sector in India

11. Urban and Rural penetration of Insurance sector in India

12. Role of Insurance Sector In terms of infrastructure development in

India

43

2.2 Objectives of the Study

The summer internship program was carried with two prime objectives in mind.

The entire program was divided into two parts:

a.) The marketing for Aviva Life Insurance.

b.) A survey conducted on the people of Delhi.

The marketing of Products of Aviva Life Insurance is the second most important

responsibility next to the recruitment of agent advisors in the organisation. If the

manager is able to properly market the products of the organisation either directly

or indirectly, half of his job is done. During my internship program, i was

involved in marketing and selling the produts of Aviva Life Insurance with my

Sales Manager and the Associate Partner. This enabled me to get a first hand

experience and learning of this important function, which will be very helpful my

future.

The survey was conducted on the people of Delhi. The main objective behind the

survey was to find out the factors which motivate the peple to choose Aviva Life

Insurance.

44

2.3 Scope of the Study

To understand the...

1. Philosophy of customer orientation

2. Firms to uncover customer needs first

3. Coordinate all their activities to satistfy those needs

4. Marketing research is vital to maintaining and improving a company’s

overall competitiveness.

5. Understanding the external environment helps to intelligently plan for the

future

6. Many firms continually collect and evaluate environmental information to

identify future market oppurtunities and threats.

7. Nature of its product

8. Ways to promote their product

9. Will identify whether the marketing mix is effective enough to maximise

the benifits to the firm from available oppurtunities.

10. Many successful products launches were preceded by extensive marketing

research.

45

COLLECTION TOOLS

QUESTIONNAIRE

A questionnaire is a structured technique for data collection consisting of a series

of question, written or verbal, to which a respondent replies , is interpret as

questionnaire.

MODE OF DATA COLLECTION

The data has been collected through filling up of the questionnaire from different

various segments of the society and interviewing them about their various options

of investments.

SAMPLE SIZE

Research Undertaken

PrimaryResearch

SecondaryResearch

Indepth Interview

Questionnaires for employees Internet 

browsing

Reference Books

46

Chapter-3

Conceptual Discussion

47

The survey was conducted on the people of Delhi. The main objective behind the

survey was to find out the factors which motivate the peple to choose Aviva Life

Insurance and also to find out how the organisation can help their customers. The

survey was carried out on as sample size of 100 people. It was a questionnaire-

based survey in which I personally sat with each and every sample and discussed

the various question.

This practice though time consuming help me in bringing out the best results as I

could not get the most intriguing answers and also people felt more comfortable

in giving genuine feed back and suggestion. The survey was carried for over a

period of one month and each was an enriching experience as each day the people

had some enriching experience to share. During this period, I covered every

segment of the society, i.e i tried to cover some young age people, some middle

age and also those who were nearer to their retirements. The survey also gave me

an oppurtunities to interact with a good number of people.

I also coducted my survey with some of the agent and advisors of Aviva Life

Insurance. They revealed some interesting facts about the motivational needs and

expectstions of the agent advisors. More than 60% of the advisors who work with

Aviva Life Insurance currently have their own business or other job and the

primary reason why they have joined Aviva Life Insurance is extra money.

The gragh below shows the various factors which motivates the agent advisord:

48

Fig 1.1

The two most successful producys of Aviva Life Insurance are Whole Life Plan

and Life Maker Plan, the former being the risk cover plan and the latter being the

investment plan. On asking to the existing customers of Aviva Life Insurance,

there was a miwed response where 60% of the people feel that products are good

enough while the remaining 40% say that the produnct range are not enough.

Product Range of Aviva Life Insurance

Fig 1. 2

49

CHAPTER – 4

DATA ANALYSIS

50

COMPARISION AND ANALYSIS

1. Comparision of the distribution of occupation of the

respondents.

Fig1.3

Analysis

18 respondents belonged to the employee in the private sector, 62 belong

to the employee in the private sector, 14 are self employed and 6 are in

the other category.

The average score received was calculated by adding the score given by

each respondent divided by the total number of respondent. Also it was

noted that in case of LIC there were total of 13 respondents who give

rating of 5 or less than 5 but the same in case of Aviva Life Insurance were

only 3.

51

2. Comparison of the effectiveness of means of communication

Advertising Trends DSAs

Aviva Life

Insurance

34 4 26

Table 1.4

52

3. Which marketing srategy would you prefer?

Fig 1. 4

INTERPRETATION

In the above figure all the respondents marked more than one option

given in the questionnaire advertisements in print media, television,

radio etc, and 11 responses went in favor of word of mouth

communication through friends and relatives. Of the total respondents of

Aviva Life Insurance, 34 responses went in favor of advertisements, 26

went in favour of DSAs, and only 4 went in favor of friends and

relatives.

0

5

10

15

20

25

30

35

Advt. Frends DSAs

HDFC SLIC

Advt. Frends DSAs

53

4. Comparision of incentive schemes

High

satisfied

Satisfied Moderate Unsatisfied Highly

unsatisfied

LIC 24 7 9 4 2

Aviva Life

Insurance

26 10 6 4 6

Table1.

Fig 1. 5

54

INTERPRETATION

Of the total respondents of LIC (as shown in figure 4.10), 28 responded

that they are very much satisfied with the incentive schemes associated

with their policies, 7 were only satisfied with the incentive scheme, 9

were moderate with regards to the incentive scheme and 6 people were

either unsatisfied or highly unsatisfied with the incentive schemes.

However, of the total respondents of the Aviva Life Insurance, 24 were

highly satisfied with the incentive scheme associated with their life

policy while only 6 people were highly unsatisfied with regards to the

same.

55

5. Are you interested in products offered by the Aviva Life Insurance?

Yes 61%

No 22%

Will think 17%

Fig 1. 6

INTERPRETATION

The good thing is that at least the corporates were quite eager to find out what

Aviva Life Insurance has to offer whereas the major 39 % of the corporates were

not even interested in the products as they are quite satisfied by the LIC and they

are not in breaking their long relationship with them. The private players will

have to play a long battle in order to ensure that they are serious player in the

market. Basically corporates think that its too early to invest in private companies

as they have just entered the scene and they are unsure of the security they will

have about their investment

61%22%

17%

Yes

No

Will think

56

6. Are you satisfied with your present insurer?

YES 95%

No 5%

95%

5%0%

20%40%60%80%

100%

Yes No

Yes

No

Fig1.7

INTERPRETATION

Here is where the challenge is. Inevitably most of the players are very satisfied

with their present insurer which makes it more tough for the private players to

attract the corporates. The remaining 5 % are also not very dissatisfied by the

services but they are just open to new avenues and are looking forward that

private companies come with good offers so that they may shift to them. Thus

private players will have to be very proactive and in this regard since LIC is the

leader and Aviva Life Insurance is lagging behind its competitors in terms of

competition.

57

7. Where would you like to insure if given chance?

LIC - 60

ICICI - 10

Aviva Life Insurance - 15

TATA AIG - 9

SBI - 8

KOTAK MAHINDRA - 2

Fig 1.8

INTERPRETATION

Thus we see that the companies are comfortable in having business with govt.

owned companies as they feel its safe & secure to have business with them which

is followed by Aviva Life Insurance and then followed by ICICI & TATA AIG as

60

8 9 10 152

0

20

40

60

LIC SB

I

TA

TA

AIG

ICIC

I

HD

FC

SL

IC

KO

TA

KM

AH

IND

RA

58

the name TATA is associated with it which commands huge premium in the

market .

8. What is people’s main concern while taking a insurance policy?

Security 70%

Returns 10%

Tax rebate 20%

Fig 1. 9

INTERPRETATION

People invest in insurance mainly because of security concern.

TAX REBATE

20%

SAVINGS70%

SECURITY10%

TAX REBATE

SAVINGS

SECURITY

59

Fig 1. 10

INTERPRETATION

Here we found that 40%people are very highly satisfied ,30% of people

are highly satisfied,11% are moderate ,10% of people are low

satisfied,9% are very low satisfied.

60

10. Are you satisfied with insentive associated wiyh your policy?

Fig 1. 11

Interpretation

30% people are highly satisfied,40% satisfied,15%are moderate,5% are

unsatisfied and 10%are highly unsatisfied.

61

11. What other plans or flexibility you expect from insurance

companies?

Fig 1. 12

Interpretation

50%people are satisfied with investment pattern, 30% are satisfied with

more returned and only 20% people expect complimentary gifts.

62

12. Role of union in the organization.

Fig 1.13

There is hardly any presence of union in the organization. This industry deals with

software productions. As a result most of the employees are either engineer or

post graduate software specialist. The workers performing operational level to

decision making are all well educated employees. So for the welfare of the quality

of work life and other activities related to the welfare of the workers, they are not

take into such consideration. Basically this is an industry related to special kind of

production. It is not like that of automobile or any other heavy production

industry where there is working class like labor. In those industry union exit

because the quality of work life is something different. Their heavy work relating

to manual function is present. So I don’t think there is any need arise for the

presence of union.

So, an industry like this has no union. It is one of the important parts of my study

of any kind of software industry, where there is no union. From this kind of

research I can infer that in recruitment and selection process which is done by the

Bharti Axa Life Insurance like this (software industry), but not by employee’s

association.

63

13. Changes occurred in Recruitment and Selection Procedure

In his question I was looking for any sort of changes at list during the preceding

two years. Every year there are some changes take place in recruitment and

selection process for better result and production. It is such an industry where in

every moment some innovation takes place. So the Aviva Life Insurance needs

some new skills to achieve the required fulfillment.

For the last couple of years the Aviva Life Insurance is focusing more on campus

interview to give more chances to the fresher. This resembles that the Aviva Life

Insurance recruitment policy, the Aviva’s needs for greater committed employee

and also motive behind concentrating more on fresher, as it is the belief from

Aviva’s perspective to be working smartly with full enthusiasm. They are also

updated with the current concepts, which are required in software industry.

The Aviva Life Insurance is dealing in making, developing and maintaining the

software packages. The companies target audience is foreign market. Most of the

customers come from abroad. For these very reason employees has to conduct

project in foreign countries. That’s why freshers are targeted to fill up the

vacancies. It is also experienced, as the Aviva Life Insurance is dealing with

creating software packages, developing and maintaining the software, so it the

obvious need for the Aviva Life Insurance is to effectively deal with the foreign

market . Most of the Aviva’s customers are from abroad. For this the employees

has to conduct project in the foreign countries, which makes way for the freshers

to upgrade their career growth opportunity quiet wide open.

64

Fig 1.14

14 Satisfaction level of customers

Fig 1.15

Interpretation

All the customersare satisfied with the services offered by Aviva Life Insurance

are 70%. They say Aviva Life Insurance is good in customer reletionships.

65

15. Well defined policy

Fig 1.16

INTERPRETATION

According to a survey of 100 customers, 56 of them were agree on having a well

defined policy in the organization,24 were disagree and the rest 20 were not sure

or cant say.

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Chapter – 5

FINDINGS AND

RECOMMENDATIONS

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FINDINGS

It is still finded that people are not aware of services provided or rendered

by Aviva Life Insurance, it is because lack of proper proportional activities

or adverrtisement. Television is most impoetant source for advertisement,

but not the only and reliable source. Aviva Life Insurance also follows the

same strategy.

Customers are very much aware of the type of products ornfinancial

advice given to them. But still it has been noticed that people do not know

the exact brnrfits of the products. But however these are very less in

number.

Aviva Life Insurance are very good in meeting with new people. They do

it by conopies, having, references with their existing customers.

Aviva Life Insurance is very tranparent with their products and the

customers.

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RECOMMENDATIONS

More emphasis should be on promotional activities.

Plenty of advertisement should be done through T.V, Newspaper and Radio as

these media’s are having maximum recall value.

Total financial planning and advice should be given to every customer.

More business opportunity seminars should be conducted to make people

aware of the offer given.

The company should quite frequently send their agent to the customer so that

they should be aware of the latest offer.

The company should attempt to open more and more of its branches in the

country so as to promote their product publicity.

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ANNEXURE

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Sample Questionnaire

Q.1 Do you have any life insurance policies?

Yes [ ] No [ ]

If Ye -

Name of the Company ________________

Name of the plan _________________ Annual

Amount of premium .

Term of plan _________________

Are you satisfied with present insurer?

A) YES B) NO .

Q.2 Which are the main issues that you take into consideration while

purchasing any life insurance policy?

a) Security [ ]

b) Returns [ ]

c) Tax saving [ ]

d) Others please specify_________

Q.3 Are you aware of Unit Linked Insurance Plans offered by various

companies in India?

A)ICICI [ ] B) KOTAK MAHINDRA [ ]

C) TATA AIG [ ] D) BAJAJ ALLIANZ [ ]

E) LIC [ ] F) BIRLA SUNLIFE [ ]

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G) AVIVA LIFE INSURANCE [ ]

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Q.4 Do you have a life insurance policy from Aviva Life Insurance?

a) Yes [ ] b) No [ ]

Q.5 If yes, which policy have you taken?

_________________________________________________

Q.6 Does this policy satisfy your financial needs? (Please rate on

the scale of 1 to 10 with one being least satisfied )

Q.7 Please express your opinion for the premiums paid for the above

policy?

a) Very high [ ] b) High [ ] c) Moderate [ ] d) Low [ ]

e) Very Low [ ]

Q.8 How do you come to know about this policy? (Please tick).

a) Advertisements [ ] b) Friends and relatives [ ]

c) Direct selling agents [ ].

d) Others (please specify)_____________________.

Q.9 Are there any incentives (tax benefits or Bonuses) associated

with this policy? (Please give appropriate details about it).

____________________________________________________________

__________________________________________________________

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10. Are you satisfied with the incentives associated with your policy?

a) Highly satisfied [ ]. b) Satisfied [ ] c) Moderate [ ]

d) Unsatisfied [ ] e) Highly Unsatisfied [ ].

Q.11 If you are given a choice, which one you take:

A) ICICI B) OM KOTAK MAHINDRA

C) TATA AIG D) Aviva Life Insurance

E) LIC F) SBI

Q12 What other plans or flexibility you expect from Insurance companies?

A) More returns [ ]

B) Complementary gifts [ ]

C) Investment Pattern [ ]

Q13 Which company will you prefer while takiing an insurance policy?

LIC - [ ]

ICICI - [ ]

AVIVA LIFE INSURANCE - [ ]

TATA AIG - [ ]

SBI - [ ]

KOTAK MAHINDRA - [ ]

Q14 Are you satisfied with your present insurer?

YES [ ]

No [ ]

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BIBLIOGRAPHY

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Magazines

Mehra, Puja, “India Today (27th MAY, 2009) – PAGE 43

Sinha, Prabhakar, “The Times Of India” (16thMAY, 2009) – PAGE 1

“Brunch”(16th July 2009)

Websites

http://www.avivaindia.com

http:// www.standardlife.com

http://www.sebi.com

http://www.nse..com

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