Visakhapatnam Center

Redy100 m 100

SUMMER INTERNSHIP PROGRAMME-2008

FINAL SUBMITION REPORT

“A STUDY OF STRATEGY AND FUNCTIONING OF FIELD FORCES INBAJAJ ALLIANZ”

Submitted to:- Submitted by:-Mrs.Shefali jain (C.H) Parminder

singhMrs Nupur tiwari (f.guide) (7NBBO054)Mr.Nitin verma (R.manager)Mr.Hemant Sahu (C.guide) SUBMISSION DATE:-28/06/2008

ACKNOWLEDGEMENT

“No man is indispensable but there are certain mortal without whom the quality work suffers their guidance becomes important in acquiring quality results”.

I am grateful my CH Mrs. Shefali Jain who has given more guidance about SIP

I am grateful to my faculty guide MRS NUPUR TIWARI who has given me this opportunity to prepare this project and provided her valuable guidance. I am also grateful to my company relationship manager Mr. Nitin Verma and company guide Mr. Hemant Sahu who has provided all the necessary information required to prepare this report.

I am also grateful to my parents and friends who inspired me to put my best efforts.

TABLE OF CONTENTS

Sr.No CONTENTS PAGE

1. ACKNOWLEDGEMENT

2. INTRODUCTION

3. SECTOR PROFILE

4. COMPANY PROFILE

5. OBJECTIVES OF STUDY

6. RESEARCH METHODOLOGY

7. DATA ANALYSIS & INTERPRETATION

8. OBSERVATIONS & FINDING

9. PROBLEMS IN THE EXECUTIVE

TRAINING

10. LEARNING THE EXECUTIVE TRAINING

SUGGESTIONS

INTRODUCTION

INTRODUCTION

A marketing strategy is a process that can allow an organization to concentrate its

(always limited) resources on the greatest opportunities to increase sales and

achieve a sustainable competitive advantage.

Marketing strategy as a key part of the general corporate strategy marketing

strategy is most effective when it is an integral component of corporate strategy,

defining how the organization will engage customers, prospects and competitors in

the market arena for success. It is partially derived from broader corporate

strategies, corporate missions, and corporate goals. They should flow from the

firm's mission statement. They are also influenced by a range of micro

environmental factors.

Marketing strategy and sectarian tactics and actions

A marketing strategy also serves as the foundation of a marketing plan. A

marketing plan contains a set of specific actions required to successfully

implement a marketing strategy. For example: "Use a low cost product to attract

consumers. Once our organization, via our low cost product, has established a

relationship with consumers, our organization will sell additional, higher-margin

products and services that enhance the consumer's interaction with the low-cost

product or service."

A strategy consists of well thought out series of tactics. While it is possible to

write a tactical marketing plan without a sound, well-considered strategy, it is not

recommended. Without a sound marketing strategy, a marketing plan has no

foundation. Marketing strategies serve as the fundamental underpinning of

marketing plans designed to fill market needs and reach marketing objectives[3]. It

is important that these objectives have measurable results.

A good marketing strategy should integrate an organization's marketing goals,

policies, and action sequences (tactics) into a cohesive whole. Many companies

cascade a strategy throughout an organization, by creating strategy tactics that then

become strategy goals for the next level or group. Each group is expected to take

that strategy goal and develop a set of tactics to achieve that goal. This is why it is

important to make each strategy goal measurable.

Marketing strategies are dynamic and interactive. They are partially planned and

partially unplanned. See strategy dynamics.

Types of marketing strategies

Every marketing strategy is unique, but if we abstract from the individualizing

details, each can be reduced into a generic marketing strategy. There are a number

of ways of categorizing these generic strategies. A brief description of the most

common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based

on their market share or dominance of an industry. Typically there are three types

of market dominance strategies:

Leader

Challenger

Follower

Porter generic strategies - strategy on the dimensions of strategic scope and

strategic strength. Strategic scope refers to the market penetration while strategic

strength refers to the firm’s sustainable competitive advantage.

Cost leadership

Product differentiation

Market segmentation

Innovation strategies - This deals with the firm's rate of the new product

development and business model innovation. It asks whether the company is on

the cutting edge of technology and business innovation. There are three types:

Pioneers

Close followers

Late followers

Growth strategies - In this scheme we ask the question, “How should the firm

grow?”. There are a number of different ways of answering that question, but the

most common gives four answers:

Horizontal integration

Vertical integration

Diversification

Intensification

A more detailed schemes uses the categories:

Prospector

Analyzer

Defender

Reactor

INSURANCE NEED

Why is insurance necessary? The question contains the answer within itself. After

all, life is fraught with tensions and apprehensions regarding the future and what it

holds for the individual. Despite all the planning and preparation one might make,

no one can accurately guarantee or predict how or when death might result and the

circumstances that might ensue in its aftermath.

We are not saying that life and existence are constantly fraught with danger and

uncertainty. But then it is essential that you plan for the future. The chances for a

fatality or an injury to occur to the average individual may not be particularly high

but then no one can really afford to completely disregard his or her future and

what it holds.

People generally regard insurance as a scheme when and where you have to lose a

lot to gain a little. Nevertheless, insurance is still the most reliable tool an

individual can use to plan for his future.

And just why is it necessary to plan for the future with Insurance?

An Overview

Insurance business is divided into four classes:

1) Life Insurance business

2) Fire

3) Marine

4) Miscellaneous Insurance.

Life Insurers transact life insurance business; the rest is transacted by General

Insurers. No composites are permitted as per law.

The business of Insurance essentially means defraying risks attached to any

activity over time (including life) and sharing the risks between various entities,

both persons and organisations. Insurance companies (ICs) are important players

in financial markets as they collect and invest large amounts of premium.

Insurance products are multi purpose and offer the following benefits:

1. Protection to the investors

2. Accumulate savings

3. CHANNELISE SAVINGS INTO SECTORS NEEDING HUGE LONG TERM

INVESTMENTS. 

ICS RECEIVE, WITHOUT MUCH DEFAULT, A STEADY CASH STREAM

OF PREMIUM OR CONTRIBUTIONS TO PENSION PLANS. VARIOUS

ACTUARY STUDIES AND MODELS ENABLE THEM TO PREDICT,

RELATIVELY ACCURATELY, THEIR EXPECTED CASH OUTFLOWS.

LIABILITIES OF ICS BEING LONG-TERM OR CONTINGENT IN NATURE,

LIQUIDITY IS EXCELLENT AND THEIR INVESTMENTS ARE ALSO

LONG-TERM IN NATURE. SINCE THEY OFFER MORE THAN THE

RETURN ON SAVINGS IN THE SHAPE OF LIFE-COVER TO THE

INVESTORS, THE RATE OF RETURN GUARANTEED IN THEIR

INSURANCE POLICIES IS RELATIVELY LOW. CONSEQUENTLY, THE

NEED TO SEEK HIGH RATES OF RETURNS ON THEIR INVESTMENTS IS

ALSO LOW. THE RISK-RETURN TRADE OFF IS HEAVILY TILTED IN

FAVOR OF RISK. AS A COMBINED RESULT OF ALL THIS,

INVESTMENTS OF INSURANCE COMPANIES HAVE BEEN LARGELY IN

BONDS FLOATED BY GOI, PSUS, STATE GOVERNMENTS, LOCAL

BODIES, CORPORATE BODIES AND MORTGAGES OF LONG TERM

NATURE. THE LAST PLACE WHERE INSURANCE COMPANIES ARE

EXPECTED TO BE OVER-ACTIVE IS BOURSES. LATELY ICS HAVE

VENTURED INTO PENSION SCHEMES AND MUTUAL FUNDS ALSO.

HOWEVER, LIFE INSURANCE CONSTITUTES THE MAJOR SHARE OF

INSURANCE BUSINESS. LIFE INSURANCE DEPENDS UPON THE LAWS

OF MORTALITY AND THERE LIES THE DIFFERENCE BETWEEN LIFE

AND GENERAL INSURANCE BUSINESSES. LIFE HAS TO EXTINGUISH

SOONER OR LATER AND THE CLAIM IN RESPECT OF LIFE IS CERTAIN.

IN CASE OF GENERAL INSURANCE, HOWEVER, THERE MAY NEVER BE

A CLAIM AND THE AMOUNT CAN NEVER BE ASCERTAINED IN

ADVANCE. HENCE, LIFE INSURANCE INCLUDES, BESIDES COVERING

THE RISK OF EARLY HAPPENING OF AN EVENT, AN ELEMENT OF

SAVINGS ALSO FOR THE BENEFICIARIES. PENSION BUSINESS ALSO

DERIVES FROM LIFE INSURANCE IN AS MUCH AS THE PENSION

OUTGO AGAIN DEPENDS UPON THE LAWS OF MORTALITY. THE

FORAYS MADE BY INSURANCE COMPANIES IN THIS AREA ARE,

THEREFORE, NATURAL COROLLARY OF THEIR BUSINESS.

SECTOR PROFILE

INSURANCE IN INDIA1

Insurance in India started without any regulations in the nineteenth century. It was

a typical story of a colonial era: a few British insurance companies dominating the

market serving mostly large urban centers. After the independence, the Life

Insurance Company was nationalized in 1956, and then the general insurance

business was nationalized in 1972. Only in 1999 private insurance companies were

allowed back into the business of insurance with a maximum of 26 per cent of

foreign holding (World Bank Economic Review 2000). The entry of the State

Bank of India with its proposal of bank assurance brings a new dynamics in the

game. On July 14, 2000 Insurance Regulatory and Development Authority bill

was passed to protect the interest of the policyholders from private and foreign

players. The following companies are entitled to do insurance business in India.

The private insurance joint ventures have collected the premium of Rs.1019.09

crore with the investment of just Rs.3, 000 crore in three years of liberalization.

The private insurance players have significantly improving their market share

when compared to 50 years Old Corporation (i.e.LIC). As per the figures compiled

by IRDA, the Life Insurance Industry recorded a total premium underwritten of

Rs. 10,707.96 crore for the period under review. Of this, private players

contributed to Rs.1, 019.09 crore, accounting for 10 percent. Life Insurance

Corporation of India (LIC), the public sector giant, continued to lead with a

premium collection of Rs.9,688.87 crore, translating into a market share of 90 per

cent. In terms of number of policies and schemes sold, private sector accounted for

only 3.77per cent as compared to 96.23 per cent share of LIC (The Economic

Times, 21 March, 2004).

1 http://www.allconferences.com/conferences/20060509074525/

The ICICI Prudential topped among the private players in terms of premium

collection. It recorded a premium of Rs. 364.9 crore and a market share of 25 per

cent, followed by Birla Sun Life with a premium under- written Rs.170 crore and a

market share of 15 percent, HDFC Standard with 132.7 crore and Max New York

Life with Rs.76.8 crore with a market share of approximately 15 per cent each.

Unlike their counterpart in the life insurance business, private non-life insurance

companies have not yet started addressing the retail market. All is set to change in

the coming years. Like in the banking sector, non-life insurance companies will

soon have no choice but to focus on individual buyers.

In case of private non-life insurance players, that their market share rose to 14.13

per cent, recording a growth of 70.75 per cent on an annual basis, while the market

share of public sector stood at 85.87 per cent, registering a marginal growth of

6.34 per cent. The overall market has recorded a growth of 12.32 per cent by the

end of January 2004. Among the private non-life insurance players, ICICI

Lombard topped the list with a premium collection of Rs.403.62 crore in one year

period with a market share of 3.05 per cent and with an annual 131.6 per cent,

followed by Bajaj Allianz with a premium of Rs.385.02 crore and 2.91 per cent

market share and Tata AIG with 300.49 crore premium and 2.27 per cent market

share with an annual growth rate of 62.60 per cent.

Among the public sector players, New India garnered a market share of 24.38 per

cent, Rs.3,229.49 crore premium and an annual growth rate of 0.38 per cent,

followed by National with a market share of 21.43 per cent, Rs.2,839.11 crore

premium and an annual growth rate of 19.88 per cent, United India with a market

share of 19.47 per cent (Rs.2,578.83 crore premium) and Oriental with a market

share of 18.25 per cent, Rs.2,417.17 crore premium and an annual growth rate of

1.86 per cent. It is significant to note that HDFC Chubb and Cholamandalam have

registered annual growth rates of 4030.26 per cent and 1101.20 per cent

respectively, whereas New India has registered it as 0.38 per cent. If this trend

continues, private insurer would dominate the public sector like New India

Insurance Corporation. It is obviously reflect the insurance sector has facing the

challenges with foreign counter parties as well as private counter parties and lot

more opportunities are prevailing to penetrate the insurance business among the

uncovered people and area of India. Further, it leads to economic development of

the country. In this regard, it assumes greater significance to conduct debate

among the inter- disciplinary persons.

BRIEF HISTORY OF INSURANCE

SECTOR IN INDIA2

The insurance sector in India has come a full circle from being an open

competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree

turn witnessed over a period of almost 190 years.

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, viz.

2 http://business.mapsofindia.com/insurance/brief-history-of-insurance-sector.html

LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of

India.

The General insurance business in India, on the other hand, can trace its roots to

the Triton Insurance Company Ltd., the first general insurance company

established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact

all classes of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized

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

107 insurers amalgamated and grouped into four companies viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC

incorporated as a company.

INSURANCE MARKET IN INDIA3

NON-LIFE INSURANCE MARKETIn December 2000, the GIC subsidiaries were restructured as independent

insurance companies. At the same time, GIC was converted into a national re-

insurer. In July 2002, Parliamant passed a bill, delinking the four subsidiaries from

GIC.

Presently there are 12 general insurance companies with 4 public sector companies

and 8 private insurers. Although the public sector companies still dominate the

general insurance business, the private players are slowly gaining a foothold.

According to estimates, private insurance companies have a 10 percent share of

the market, up from 4 percent in 2001. In the first half of 2002, the private

companies booked premiums worth Rs 6.34 billion. Most of the new entrants

reported losses in the first year of their operation in 2001.

With a large capital outlay and long gestation periods, infrastructure projects are

fraught with a multitude of risks throughout the development, construction and

operation stages. These include risks associated with project implementaion,

including geological risks, maintenance, commercial and political risks. Without

covering these risks the financial institutions are not willing to commit funds to

the sector, especially because the financing of most private projects is on a limited

or non- recourse basis.

Insurance companies not only provide risk cover to infrastructure projects, they

also contribute long-term funds. In fact, insurance companies are an ideal source

of long term debt and equity for infrastructure projects. With long term liability,

they get a good asset- liability match by investing their funds in such projects. 3 http://www.indiacore.com/insurance2.html

IRDA regulations require insurance companies to invest not less than 15 percent

of their funds in infrastructure and social sectors. International Insurance

companies also invest their funds in such projects.

Insurance costs constitute roughly around 1.2- 2 percent of the total project costs.

Under the existing norms, insurance premium payments are treated as part of the

fixed costs. Consequently they are treated as pass-through costs for tariff

calculations.

Premium rates of most general insurance policies come under the purview of the

government appointed Tariff Advisory Commitee. For Projects costing up to Rs 1

Billion, the Tariff Advisory Committee sets the premium rates, for Projects

between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the

committee's guidelines; and projects above Rs 15 billion are subjected to re-

insurance pricing. It is the last segment that has a number of additional products

and competitive pricing.

Insurance, like project finance, is extended by a consortium. Normally one insurer

takes the lead, shouldering about 40-50 per cent of the risk and receiving a

proportionate percentage of the premium. The other companies share the

remaining risk and premium. The policies are renewed usually on an annual basis

through the invitation of bids.

Of late, with IPP projects fizzling out, the insurance companies are turning once

again to old hands such as NTPC, NHPC and BSES for business.

RE-INSURANCE BUSINESSInsurance companies retain only a part of the risk (less than 10 per cent) assumed

by them, which can be safely borne from their own funds. The balance risk is re-

insured with other insurers. In effect, therefore, re-insurance is insurer's insurance.

It forms the backbone of the insurance business. It helps to provide a better spread

of risk in the international market, allows primary insurers to accept risks beyond

their capacity, settle accumulated losses arising from catastrophic events and still

maintain their financial stability.

While GIC's subsidiaries look after general insurance, GIC itself has been the

major reinsurer. Currently, all insurance companies have to give 20 per cent of

their reinsurance business to GIC. The aim is to ensure that GIC's role as the

national reinsurer remains unhindered. However, GIC reinsures the amount further

with international companies such as Swissre (Switzerland), Munichre (Germany),

and Royale (UK). Reinsurance premiums have seen an exorbitant increase in

recent years, following the rise in threat perceptions globally.

LIFE INSURANCE MARKETThe Life Insurance market in India is an underdeveloped market that was only

tapped by the state owned LIC till the entry of private insurers. The penetration of

life insurance products was 19 percent of the total 400 million of the insurable

population. The state owned LIC sold insurance as a tax instrument, not as a

product giving protection. Most customers were under- insured with no flexibility

or transparency in the products. With the entry of the private insurers the rules of

the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9

percent of the market in terms of premium income. The new business premiums of

the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year.

Meanwhile, state owned LIC's new premium business has fallen.

Innovative products, smart marketing and aggressive distribution. That's the triple

whammy combination that has enabled fledgling private insurance companies to

sign up Indian customers faster than anyone ever expected. Indians, who have

always seen life insurance as a tax saving device, are now suddenly turning to the

private sector and snapping up the new innovative products on offer.

The growing popularity of the private insurers shows in other ways. They are

coining money in new niches that they have introduced. The state owned

companies still dominate segments like endowments and money back policies. But

in the annuity or pension products business, the private insurers have already

wrested over 33 percent of the market. And in the popular unit-linked insurance

schemes they have a virtual monopoly, with over 90 percent of the customers.

The private insurers also seem to be scoring big in other ways- they are persuading

people to take out bigger policies. For instance, the average size of a life insurance

policy before privatisation was around Rs 50,000. That has risen to about Rs

80,000. But the private insurers are ahead in this game and the average size of

their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry

average.

Buoyed by their quicker than expected success, nearly all private insurers are fast-

forwarding the second phase of their expansion plans. No doubt the aggressive

stance of private insurers is already paying rich dividends. But a rejuvenated LIC

is also trying to fight back to woo new customers.

COMPARISON OF TERM INSURANCE PREMIUMS (Rs./ Year)

PREMIUM STRUCTURE OF ENDOWMENT PLANS(RS. /YEAR)

MINIMUM REQUIRED COMPOUND BONUS RATE (IN %)

WHOLE LIFE INSURANCE PREMIUMS (RS./ YEAR)

EQUITY SHARE CAPITAL OF LIFE INSURANCE

COMPANIES

Name of the insurer 2003-04 2004-05

Foreign

Promoter

Indian

Promoter

 

Life Insurers

HDFC Standard Life Insurance Co. Ltd. 255.50 320.00 47.52 272.48

ICICI-Prudential Life Insurance Co. Ltd. 675.00 925.00 240.50 684.50

Max New York Life Insurance Co. Ltd. 346.08 466.08 121.18 344.90

Kotak Mahindra Old Mutual Life Insurance Co. Ltd. 151.26 211.76 55.06 26.00

Birla Sun Life Insurance Co. Ltd. 290.00 350.00 91.00 26.00

TATA-AIG Life Insurance Co. Ltd. 231.00 321.00 83.46 237.54

SBI Life Insurance Co. Ltd. 175.00 350.00 91.00 259.00

ING Vysya Life Insurance Co. Ltd. 245.00 325.00 84.50 26.00

Metlife India Insurance Co. Ltd. 160.00 235.00 61.10 173.90

Bajaj Allianz Life Insurance Co. Ltd. 150.07 150.07 39.02 111.05

AMP Sanmar 160.00 217.10 56.45 160.65

AVIVA 242.80 319.80 83.15 236.65

Sahara India 157.00 157.00 0.00 157.00

Sub Total 3238.71 4347.81 1053.93 3293.88

Life Insurance Corporation of India 5.00 5.00 5.00

Total (Life) 3243.71 4352.81 1053.93 3298.88

INVESTMENTS OF LIFE INSURERS IN LIFE FUND

(Rs. In Crore)

  2005 2004

PUBLIC SECTOR  

LIC (A) 361428.87 304436.88

PRIVATE SECTOR  

HDFC STD LIFE 480.77 305.43

MNYL 436.37 241.85

ICICIPRU 970.63 658.45

BSLI 170.06 140.38

TATA AIG 392.76 220.65

KOTAK LIFE 200.67 133.43

SBI LIFE 960.89 367.84

BAJAJ ALLIANZ 382.28 221.91

METLIFE 157.18 120.18

AMP SANMAR 110.71 98.69

ING VYSYA 241.22 75.28

AVIVA 144.95 144.65

SAHARA LIFE 142.48 143.29

TOTAL (B) 4790.98 2872.03

TOTAL (A+B) 366219.85 307308.91

INVESTMENTS OF LIFE INSURERS IN PENSIONS FUNDS

(Rs. In Crore)

  2005 2004

PUBLIC SECTOR  

LIC (A) 11462.03 9244.06

PRIVATE SECTOR  

HDFC STD LIFE 151.91 101.68

MNYL 14.03 2.11

ICICIPRU 166.64 127.59

BSLI 0.06 0.00

TATA AIG 76.78 39.79

KOTAK LIFE 13.36 7.54

SBI LIFE 78.97 15.41

BAJAJ ALLIANZ 9.28 3.81

METLIFE 0.21 0.00

AMP SANMAR 50.45 9.83

ING VYSYA 0.00 0.00

AVIVA 0.00 0.00

SAHARA LIFE 0.06 0.00

TOTAL (B) 561.75 307.77

TOTAL (A+B) 12033.78 9551.83

INVESTMENTS OF LIFE INSURERS IN GROUP INSURANCE

(Rs. In Crore)

  2005 2004

PUBLIC SECTOR  

LIC (A) 42639.42 34068.32

PRIVATE SECTOR  

HDFC STD LIFE 0.00 0.00

MNYL 7.25 1.35

ICICIPRU 0.00 0.00

BSLI 0.00 0.00

TATA AIG 14.70 0.00

KOTAK LIFE 2.05 0.90

SBI LIFE 10.77 2.92

BAJAJ ALLIANZ 1.27 0.95

METLIFE 2.52 0.44

AMP SANMAR 0.00 0.00

ING VYSYA 0.00 0.00

AVIVA 2.85 0.57

SAHARA LIFE 0.02 0.00

TOTAL (B) 41.43 7.15

TOTAL (A+B) 42680.85 34075.47

INVESTMENTS OF LIFE INSURERS IN UNIT LINKED PLANS

(Rs. In Crore)

  2005 2004

PUBLIC SECTOR  

LIC (A) 2758.67 209.87

PRIVATE SECTOR  

HDFC STD LIFE 290.67 60.91

MNYL 20.44 0.00

ICICIPRU 2337.16 780.07

BSLI 1125.72 474.62

TATA AIG 80.81 12.75

KOTAK LIFE 308.33 53.54

SBI LIFE 3.54 0.00

BAJAJ ALLIANZ 369.24 28.61

METLIFE 1.74 0.00

AMP SANMAR 21.40 0.00

ING VYSYA 78.61 20.81

AVIVA 131.13 47.13

SAHARA LIFE 0.00 0.00

TOTAL (B) 4768.77 1478.43

TOTAL (A+B) 7527.45 1688.31

COMPANY PROFILE

BAJAJ ALLIANZ LIFE INSURANCE

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading

conglomerates- , Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in

the world and Allianz AG, one of the world's largest insurance companies.

Bajaj Allianz Life Insurance

Is the fastest growing private life insurance company in India.

Currently has over 3,00,000 satisfied customers

We have customer care centers in 155 cities with 28000 Insurance

Consultant providing the finest customer service.

One of India's leading private life insurance companies

Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001

to conduct General Insurance business (including Health Insurance business) in

India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj

Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.

Bajaj Allianz today has a network of 42 offices spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.

ALLIANZ GROUP

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. At the top of the international group is the holding company,

Allianz AG, with its head office in Munich.

Allianz Group provides its more than 60 million customers worldwide with a

comprehensive range of services in the areas of

Property and Casualty Insurance,

Life and Health Insurance,

Asset Management and Banking.

ALLIANZ AG- A GLOBAL FINANeCIAL POWERHOUSE

Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr.

3rd largest Assets Under Management (AUM) & largest amongst Insurance

cos. - AUM of Rs.51,96,959 cr.

12th largest corporation in the world

49.8 % of global business from Life Insurance

Established in 1890, 110 yrs of Insurance expertise

70 countries, 173,750 employees worldwide

BAJAJ GROUP

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the

largest manufacturer of two-wheelers and three-wheelers in India and one of the

largest in the world.

A household name in India, Bajaj Auto has a strong brand image & brand loyalty

synonymous with quality & customer focus.

A STRONG INDIAN BRAND- HAMARA BAJAJ

One of the largest 2 & 3 wheeler manufacturer in the world

21 million+ vehicles on the roads across the globe

Managing funds of over Rs 4000 cr.

Bajaj Auto finance one of the largest auto finance cos. in India

Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03

It has joined hands with Allianz to provide the Indian consumers with a

distinct option in terms of life insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the

following to offer -

Financial strength and stability to support the Insurance Business.

A strong brand-equity.

A good market reputation as a world class organization.

An extensive distribution network.

Adequate experience of running a large organization.

PRODUCTS

Allianz AG with over 110 years of experience in over 70 countries and Bajaj

Auto, trusted for over 55 years in the Indian market, together are committed to

offering you financial solutions that provide all the security you need for your

family and yourself.

Bajaj Allianz brings to you several innovative products, the details of which you

can browse in this section.

INDIVIDUAL PRODUCTS

UNITGAINA Unit Linked Plan

RISK CAREPure Term Plan

TERM CARETerm Plan with Return-of-Premium

INVESTGAINAn Endowment Plan

LIFETIME CAREWhole Life Plan

CHILDGAINChildren's Policy

LOAN PROTECTORA Mortgage Reducing Term Insurance Plan

CASHGAINMoney Back Plan

KEYMAN INSURANCEA Promising Business Opportunity

SWARNA VISHRANTIRetirement Plan

UNITGAIN PLUSUnit Link plan with higher allocation

LIFELONG GAIN PLAN A lifetime of security for your family

RIDERS UNITGAIN PLUSWhile the basic life insurance

MAHILAGAIN RIDER The unique plan that takes care of you and your loved ones.

UNITGAIN EASY PENSION A Plan that enables you retire with laughter     lines.... not worry lines

SWARNA RAKSHA-ROCA plan that provids you with regular income... for life.

HEALTHCAREThis is a three-year health insurance plan, with life insurance benefit.

UG PREMIERUpfront Allocation of 105% of single premium on day 1

GROUP PLANS

GROUP CREDIT SHIELD

GROUP TERM LIFE

GROUP TERM LIFE SCHEME

GROUP SUPERANNUATION SCHEME

GROUP GRATUITY CARE SCHEME

Insurance For NRI

All Indians have an underlying need to feel secure, to care for the loved ones and

to provide for old age. The need is felt more when you are away from your

Homeland. But being away from India doesn't mean you have to compromise on

the safety and security of your loved ones.

In fact, you can now easily steer your savings from overseas to conveniently meet

your family's needs - now and in the future.

Bajaj Allianz understand your need. The need to do something fruitful for your

loved ones.. The urge to let them know that you care. That's why Bajaj Allianz

introduced the NRI Insurance services. Now, you can invest your hard earned

money in India and in the bargain ensure your family's future.

InvestGain - 'With Profits Endowment Plan'.

CashGain - 'With Profits Money Back Plan'.

ChildGain - 'With Profits Money Back Plan' for children.

Lifetime Care - 'With Profits Whole of Life Plan'.

Swarna Vishranti - 'With Profits Differed Annuity Plan'.

UnitGain - 'Unit Linked Whole of Life Plan'.

OBJECTIVES OF THE

STUDY

OBJECTIVES OF THE STUDY

To study the sales Strategy of field force of Bajaj Allianz Life Insurance.

To study the process of selling of Insurance Policies by Adivsors.

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem.

Research methodology constitutes of research methods, selection criterion of

research methods, used in context of research study and explanation of using of a

particular method or technique so that research results are capable of being

evaluated either by researcher himself or by others. Why a research study has been

undertaken, how the research problem has been formulated, why data have been

collected and what particular technique of analyzing data has been used and a best

of similar other question are usually answered when we talk of Research

methodology concerning a research problem or study. The main aim of research is

to find out the truth which is hidden and which has not been discovered as yet.

AREA OF STUDY

The area of the study related with getting correct information of life insurance

policies of different peoples in the region of Bhopal.

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population.

It refers to the techniques or the procedure the researcher would adopt in selecting

items for the sample. Sample design may as well be drawn from the population to

be included in the sample i.e. the size of the sample. Sample design is determined

before data are collected.

During my study I have taken 50 insurance care consultants as the size of

sample.

TOOLS USED

To know the response, I have used the questionnaire method. If one wish to find

what insurance care consultants think or know, the logical procedure is to ask

them. This has led marketing researchers to use the questionnaire technique for

collecting data more than any other method.

In this method questionnaire were distributed to the respondents and they were

asked to answer the questions in the questionnaire. The questionnaire were

structured non disguised questionnaire because the question which the

questionnaire contained, were arranged in a specific order besides every question

asked were logical for the study, no question can be termed as irrelevant.

The questionnaire was non-disguised because the questionnaire was constructed so

that the objective is clear to the respondent. The respondents were aware of the

objective. They knew why they were asked to fill the questionnaire.

With the help of following techniques, which are using by Bajaj Allianz I analyse

that the how techniques of sales promotion are useful.

DATA COLLECTION

PRIMARY DATA SOURCES Through interaction with insurance care consultant

Through questionnaires filled from the insurance care consultant.

SECONDARY DATA SOURCES:

Through internet, various official sites of the companies.

Through pamphlets and brochures of the companies.

Journals & Magazine

LIMITATIONS OF THE STUDY

Following limitations were faced during the study:

1. While designing the questionnaire it was kept in mind to gather more and

more information from each target person. For the neither present nor

descriptive questions could have served the purpose. Therefore the

questionnaire contained in the open-ended questions.

2. The study was conducted in Bajaj Allianz in Bhopal city, which has 127 to

170 insurance care consultants only. The sample size was of 50 insurance

care consultants only so that accuracy of data so collected could be absurd

covered by circulation of questionnaire.

3. The accuracy of indications given by the respondents may not be consider

adequate as whether the language used in the questionnaire is understood

by the respondent cannot be taken for granted.

4. The study is based on the information gathered from the insurance care

consultants. Therefore in such case it is possible that the information

supplied might be biased because the insurance care consultant might have

shown partiality towards their insurance policies.

5. Since the survey was limited to 50 insurance care consultants it is rather

difficult to give a precise conclusion but I have tried to the best of my

capability to give the conclusion on a comprehensive manner.

DATA ANALYSIS

&

INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

(Based on survey conducted for 50 insurance care consultants)

Q.1 Which technique of sales promotion you prefer?

Options Response in %

Display 40%

Door to Door Demo 14%

Exhibition 16%

Catalogue 20%

Price Off 10%

Interpretation:

According to the study 40% insurance care consultants prefer display

technique,20% insurance care consultants prefer catalogues, 16% to the exhibition,

14% to the door to door demo and 10% insurance care consultants prefer price off

technique.

Q.2 which technique is giving good response from customers?

Options Response in %

Display 18%

Door to Door Demo 36%

Exhibition 18%

Catalogue 16%

Price Off 12%

Interpretation:

According to the study 36% insurance care consultants say door to door demo

techniques giving good response, 18% insurance care consultants say to the

display & exhibition, 16% to the catalogues & 12% say to the price off technique.

Q.3 Which technique is economically beneficial?

Options Response in %

Display 10%

Door to Door Demo 22%

Exhibition 10%

Catalogue 46%

Price Off 12%

Interpretation:

According to the 46% insurance care consultants, catalogue technique is

economically beneficial. 22% to the door-to-door demo and 12% insurance care

consultants prefer price off technique.10% to the exhibition & display technique.

Q.4 Which technique requires less time in sales promotion?

Options Response in %

Display 22%

Door to Door Demo 38%

Exhibition 10%

Catalogue 16%

Price Off 14%

Interpretation:

According to the study 38% insurance care consultants say display technique

requires less time in sales promotion. 22% to the display technique, 16% insurance

care consultants vote to the catalogues, 14% insurance care consultants vote to the

10% to the exhibition.

Q5 Which technique is easily manageable?

Options Response in %

Display 18%

Door to Door Demo 30%

Exhibition 10%

Catalogue 34%

Price Off 8%

Interpretation:

According to the study 34% insurance care consultants say that the catalogues is

easily manageable, 30% to the door to door demo,18% insurance care consultants

prefer display technique 10% to the exhibition, and 8% insurance care consultants

say to the price off technique.

Q.6 Which technique requires less knowledge to execute?

Options Response in %

Display 14%

Door to Door Demo 12%

Exhibition 12%

Catalogue 22%

Price Off 40%

Interpretation:

According to the study 40% insurance care consultants vote to the price off

technique is require less knowledge to execute.22% insurance care consultants

prefer catalogues, 14% to the display and 12% to the exhibition & door to door.

Q.7 Which technique requires more knowledge to execute?

Options Response in %

Display 20%

Door to Door Demo 42%

Exhibition 24%

Catalogue 10%

Price Off 4%

Interpretation:

According to the study 42% insurance care consultants vote to the door-to-door

technique that it requires more knowledge to execute than others. 24% to the

exhibition, 20% to the display technique, 10% insurance care consultants give vote

to the catalogues and 4% insurance care consultants prefer price off technique.

Q.8 Price off are necessary for sales promotion?

Options Responses in %

Yes 46%

No 40%

Can’t say 14%

Interpretation:

According to the study 46% insurance care consultants say yes that the price off

are necessary for sales promotion. 40% say no and 14% say can’t say.

Q.9 Do you think that sales promotion program that is presently undertaken by

Bajaj Allianz. are satisfactory?

Options Responses in %

Yes 34%

No 46%

Can’t say 20%

Interpretation :

According to the study 46% insurance care consultants say No that the sales

promotion program that is presently undertaken by Bajaj Allianz are satisfactorily

36% say Yes and 20% say can’t say.

Q.10 Should Bajaj Allianz take up new sales promotion program?

Options Responses in %

Yes 72%

No 22%

Can’t say 6%

Interpretation :

According to the study 72% insurance care consultants say yes installment offers

are 22% say no and 6% say can’t say.

OBSERVATIONS

&

FINDINGS

OBSERVATIONS & FINDINGS

This sales promotion process was very much satisfying for me not only

practically and academically but it also helped me in developing my

communication skill and enriched my knowledge also.

I have come to know about the importance of marketing especially with

regard to Sales Promotion on the most renowned organization like Bajaj

Allianz. Especially because of emergence of many competitor with

excellence in services & competitive product. The base of this chapter

conclusion is on the data analysis or what we say findings.

I have finding from the insurance care consultants of the Bajaj Allianz. and

their insurance policies on my topic.

When the insurance care consultant is asked why they are dealing in this

particular insurance policies (product) they mostly stressed on company’s

image. They also said that all income and age group of customers are

attracted towards their product but buyers are mainly from higher and

middle-income group.

Insurance care consultants said that their sale is very much increased in the

last years because of an excellent performance of the product. Insurance

care consultants said that the customer are very much satisfied after getting

insurance policies because of its features related with risks of life and also

because of quality of service provide by their company is very good.

SUGGESTIONS

SUGGESTIONS

Here are some suggestions, which may help to strengthen the firm further

Many of the insurance care consultants of the Bajaj Allianz. Has the lack of

good communication skills and training. So training should be easy.

Bajaj Allianz. Should use new techniques of sales promotion.

Customer services should be more comfortable than others.

People must be made aware of the benefits of the policies of Bajaj Allianz.

The company should give personal attention to each customer.

Proper assistance should be provided to the customer at the time of claim

settlement.

All the details about the company should be given to the customers.

Regular advertisement of the company should be given TV and Newspaper.

The company must try to find new markets especially in the rural areas.

The company should do frequent analysis of the competitors.

BIBLIOGRAPHY

Books

Kothari C.R., (1999) Research Methodology, Wishwa Prakashan

Kotler P. and Armstrong G., (2005) Principles of Marketing New Delhi,

Prentice Hall of India

Kotler P., (1999)Marketing Management Analysis, Planning,

Implementation and Control, New Delhi, Prentice Hall of India

Saxena Rajan, (1999) Marketing Management, Tata McGraw Hill

Websites:

www.bajajallianz.com

www.quickmba.com

www.indiainfoline.com

QUESTIONNAIRE

Name : _____________________________________

Address : _____________________________________

Q.1 To which technique of sales promotion you prefer?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.2 which technique is giving good response from customers?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.3 Which technique is economically beneficial?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.4 Which technique requires less time in sales promotion?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.5 Which technique is easily manageable?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.6 Which technique requires less knowledge to execute?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.7 Which technique requires more knowledge to execute?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.8 Price off and installment offers are necessary for sales promotion?

A) Yes B) No

C) Can’t say

Q.9 Do you think that sales promotion program that is presently undertaken by

Bajaj Allianz. are satisfactory?

A) Yes B) No

C) Can’t say

Q.10 Should Bajaj Allianz. take up new sales promotion program?

A) Yes B) No

C) Can’t say