24668489 bajaj allianz ppt

8/8/2019 24668489 Bajaj Allianz Ppt

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A REPORTONAnalysis of insurance sector and competitiveness with the special

reference to Bajaj Allianz Life Insurance Company Ltd.Submitted By

AJAY SINGH RATHORE(3003)

MBA II

JODHPUR INSTITUTE OF MANAGEMENTCompany Guide: DesignationMr. Sanjay Khandewal Sr. Divisional Branch Manager

Mr. KedarUpadhyay Area Training Manager

Mr. Dhiraj Khichi Branch Training Manger

Faculty Guide:Dr. Abha Purohit Ass. Professor(JIM)

Date of Submission: 18th July 2009


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Future is always uncertain and full of risk. It is not certain that what

is going to happen tomorrow. Therefore a man is always worried

about security of property and life. Insurance is a means of

meeting out loss caused by future risks and uncertainties.

Insurance is a contract between two parties whereby one party called

insurer undertakes in exchange for a fixed sum called premiums, to pay

the other party called insured a fixed amount of money on the happening

of a certain event.

According to Patterson Insurance is an agreement between two

parties under which one party undertakes specified future risk of another

party and compensates the loss from that risk on payment of some

consideration known as premium payable by the later.

What Is Insurance ?

Meaning & Definitions.


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Insurance provides:

Protection to investor.Accumulation of savings.

Channeling these savings into sectors needing huge

long term investment

Insurance business is divided into four

classes:

Fire InsuranceMiscellaneous Insurance

Life Insurance

Marine Insurance


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ABRIEFHISTORY OF THE INSURANCE SECTOR

1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insaurance Comapany

1850 Non life insurance debuts with triton insurance company.1870 Bombay mutual life assurance society is the first Indian owned life insurer

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. LIC Act, 1956, with a

capital contribution of Rs. 5 Crore from the Government of India.

1993 Malhotra committee was constituted under the chairmanship of former RBI chief R. N.

Malhotra to draw a blue print for insurance sector reforms.

1994 Malhotra committee recommended reentry of private players.

1999 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India.

2000 IRDA started giving license to private insurers. ICICI Prudential,HDFC were first private

players to sell insurance Policies.

2001 Royal Sundaram was the first non-life private player to sell an insurance policy.

2002 Bank allowed to sell insurance plans as TPAs enter the scene, insurers start setting

non-life claims in the cashless mode.


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In 1999, the Insurance Regulatory and Development Authority (IRDA) was

constituted as an autonomous body to regulate and develop the insuranceindustry. The IRDA was incorporated as a statutory body in April, 2000.The key objectives of the IRDA include promotion of competition so as toenhance customer satisfaction through increased consumer choice andlower premiums, while ensuring the financial security of the insurancemarket. The

Role of IRDA:

Protecting the interests of policyholders.

Establishing guidelines for the operations of insurers, and brokers.

Specifying the code of conduct, qualifications, and training for insurance intermediaries and agents.

Promoting efficiency in the conduct of insurance business.

Regulating the investment of funds by insurance companies.

Specifying the percentage of business to be written by insurers in

rural sectors.

Handling disputes between insurers and insurance intermediaries.


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Bajaj Allianz Life Insurance Company Limited

Bajaj Life Insurance Company Ltd. Is one of Indias leading private

companies, which offers a range of individual and insurance solution? It is a

joint venture between Allianz se Limited and Bajaj auto. Bajaj auto l.t.d. is

Indias leading automobile company. Bajaj Auto Ltd. is the largest exporter of

two and three wheelers. With Kawasaki Heavy Industries of Japan, Bajaj

manufactures state-of-the-art range of two-wheelers. The brand, Pulsar is

continually dominating the Indian motorcycle market in the premium segment.Its Discover DTSi is also a successful bike on Indian roads.

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


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Bajaj Allianz Life Insurance

Bajaj Allianz Life Insurance Company Limited is one of the private

insurance companies in India. Bajaj Allianz Life Insurance is a union

between Allianz SE, one of the largest Insurance Company and Bajaj

Finserv. (recently demerged from Bajaj Auto.). Bajaj Auto Limited is 74%

shared holder in the company with the remaining 26% being held by AllianzSE.

On 2001, the Bajaj Allianz Life Insurance was given the IRDA (Insurance

Regulatory and Development Authority) certification of Registration for

conducting the Life Insurance business (which also included the Health

Insurance business) in the country. Bajaj Allianz India is headquartered inPune. The company has its offices in 200 towns all over India.

Allianz SE is a leading insurance conglomerate globally and one of the

largest asset managers in the world, managing assets worth over a Trillion

(Over INR. 55, 00,000 Crores). Allianz SE has over 115 years of financial

experience and is present in over 70 countries around the world.


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S.NO 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

1 104 15.11.2000 Max New York Life Insurance Co. Ltd.

2 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.3 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

4 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

5 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

6 111 30.03.2001 SBI Life Insurance Company Limited .

7 114 02.08.2001 ING Vysya Life Insurance Company Private Limited

8 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

9 117 06.08.2001 Metlife India Insurance Company Ltd.

10 133 04.09.2007 Future Generali India Life Insurance Company Limited

11 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

12 121 03.01.2002 Reliance Life Insurance Company Limited.

13 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

14 127 06.02.2004 Sahara India Insurance Company Ltd.

15 128 17.11.2005 Shriram Life Insurance Company Ltd.

16 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.

17 133 04.09.2007 Future Generali India Life Insurance Company Limited

18 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

19 136 08.05.2008 Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

20 138 27.06.2008 Aegon Religare Life Insurance Company Ltd.

21 140 27.06.2008 DLF Pramerica Life Insurance Company Ltd.22 142 Star Union Dai-ichi Life Insurance Co. Ltd.,

Existing Life Insurance Company


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MARKET SHARE OF DIFFERENT PRIVATE PLAYERS:


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y Marketing mix.

y The importance of relationship.

y Positioning..y Segmentation.

y Branding.

y Insuring service quality.

y Effective pricing.

y Customer satisfaction research

y The following factors influence the market anddemand of product-

y Government policies.

y Growth in population.

y Changing age profile.

y Income wise distribution of the population.

y Level of insurance awareness.

y The pricing of the policies.

y The economic climate of the country.

In the competitive market, insurance companies are being forced to adopt a strictly

professional approach in marketing. The insurance companies face the challenge ofchanging the uninspiring public image of the industry. Some of the important marketing

elements are-

Effective marketing strategies

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 strategyis 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.


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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 ofmarket 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 firms sustainable competitive advantage.

Cost leadership

Product differentiation

Market segmentation


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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

Cost leadership

Product differentiation

Market segmentation

A more detailed schemes uses the categories:

Prospector

Analyzer

Defender

Vertical integration

Diversification

Intensification


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ULIPs and its Features:

Unit linked insurance plans (ULIPs) are insurance plans that combine the benefit of

investment with insurance. They give the investor an option to put a part of their premium in

various investment portfolios and derive the benefits depending upon the performance of thefunds chosen by them. ULIPs were launched at an opportune time when stock markets had just

taken off. Being market- linked, they were major beneficiaries of the secular rise in stock

markets. ULIPs have gained high acceptance due to the attractive features they offer. These

include:

1. Flexibility

1. Flexibility to choose Sum Assured.

2. Flexibility to choose premium amount.

3. Option to change level of Premium even after the plan has started (Top up facility).

4. Flexibility to change asset allocation by switching between funds.

2. Transparency

1. Changes in the plan & net amount invested are known to the customer.

2. Convenience of tracking ones investment performance on a daily basis.

3. Liquidity

1. Option to withdraw money after few years (comfort required in case of exigency).

2. Low minimum tenure.

3. Partial / Systematic withdrawal allowed

4. Fund Options

1. A choice of funds (ranging from equity, debt, cash or a combination).

2. Option to choose fund mix based on desired asset allocation.


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Stages in Policy Issuance1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At thisstage, the application form is received by COPS, but it is pending for issuance

due to further clarifications required from the customer.

2) Login

A proposal which is complete i.e., duly filled with all necessary documents

attached to it & accepted by the Branch ops, is called a Login

3) Reject

An Application gets rejected at the Branch Ops level due to necessary details not

filled in the form or necessary documents not submitted is a Reject. It is then sent

back to the Advisor for completion.

4) Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status

When a customer refuses to take a policy post login but before Issuance is calleda Decline

6) Cancellation

When the cheque given by the customer bounces, it amounts to cancellation of

the policy.


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Agency business model

In India insurance is sold through mainly four channels.

Through branch

Through agencyThrough financial institution

Through banks

Functions of agency manager:

a person who governs a group of insurance advisors is known as agencymanager. Success of an agency manager depends on the success of

their advisors. work of agency manager is to control the advisors in an

efficient way. Agency manager is like a creature of two wings. He has to

recruit advisors as well as to give sales to the insurance company.

To recruit advisors.

Make them aware of different insurance products.

To give them training session.

To motivate them for efficient work.

To get maximum and efficient work from their advisors.


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Conclusion

Insurance companies are recruiting their advisors mainly through personal reference,

through advertisement, and through walk in interviews. None of the company is recruiting

their advisors through placement agencies.Those advisors who are recruited through personal references need more training

session and company has to put effort to make them active. Most of the companies are

giving training session to advisors to make them active. Companies are also providing

higher channel position and increasing incentives to make them active.

Most of the insurance companies have started recruiting agency manager and high

posted people from professional colleges to improve efficiency of the insurance company.

Insurance companies have forgotten their traditional products. Companies are totallyconcentrating on selling ULIP products. Now insurance companies are selling their

products as an investment product not as life insurance products.

Insurance companies are using their products mostly based on customer needs and

demands. Insurance companies are not doing enough market researches to know the

potential of the market.

Most of the insurance companies are differentiating themselves from the competitors by

providing better service quality, better pricing of the product, advertisement and

promotional activities.

Sales managers of most of the companies think that providing better service quality is the

best tool to compete in the market. Better service quality may be in the form-

yIssuing policy in time.

yProviding claims in time.

yMaking customers aware about their status of policy.


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BIBLIOGRAPHY

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

KotlerP.,(1999)Marketing Management Analysis, Planning, Implementation and

Control, New Delhi, PrenticeHall of India

Business today

Web sites

www.bajajallianzlifeinsurance.com

www.freepress.iin

www.licindia.comwww.irda.org

www.lifeinsure.com


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24668489 bajaj allianz ppt

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