PRESENTED BY:PANKAJ AGARWALAMRITA SATWANIRANJAY KR SINGHUJJAL KR CHANDRAMILAN KR PANDEY

PRESENTED BY:PANKAJ AGARWALAMRITA SATWANIRANJAY KR SINGHUJJAL KR CHANDRAMILAN KR PANDEY

INTRODUCTION

The TATA group

• The TATA group is India's best-known industrial group in the private sector with a turnover of around US $ 10.4 billion (equivalent to 2.4% of India's GDP). It is India's most respected private business group. With 219000 employees across 94 major companies, it is also India's largest employer in the private sector.

• Founded by Jamshedji Tata in the 1860s, the Tata group's early years were inspired by the spirit of nationalism. The Tata group pioneered several firsts in Indian industry: India's first private sector steel mill, first private sector power utility, first luxury hotel chain and first international airline, amongst others. In more recent times, the Tata group's pioneering spirit continues to be showcased by companies like Tata Consultancy Services (TCS), today Asia's largest software and services company, and Tata Engineering, the first car maker in a developing country to design and produce a car from the ground up.

INTRODUCTION TO AIG INC

• American International Group, Inc. (AIG) is the world's leading international insurance and financial services organization, with operations in approximately 130 countries and jurisdiction. AIG member companies serve commercial, institutional and individual customers through the most extensive world wide property-casualty and life insurance networks of any insurer.

• In the United States, AIG is the largest underwriter of commercial and industrial insurance and is one of the top three life insurers. AIG's global businesses also include financial services, retirement savings and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making.

• AIG's growing global consumer finance business is led in the United States by American General Finance. AIG also has one of the largest U.S. retirement savings businesses through AIG Sun America and AIG VALIC, and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed in the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

INTRODUCTION TO TATA AIG

• The non-life insurance arm, Tata AIG General Insurance Company, which started its operation in India on Jan 22, 2001, offers the complete range of insurance for automobile, home personal, accident, travel, energy, marine, property and casualty, as well as several specialized financial lines.

• OUR VISION To be the fastest growing Life Insurance Company in India, measured by annualized premium growth, procuring persistent business, delivering first class customer service, adding shareholder value by 2007.

TATA AIG-HISTORY

• Joint venture company, formed by the Tata Group and American International Group, Inc. (AIG).

• The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent.

• started its operations in India on January 22, 2001, provides insurance solutions to individuals and corporates.

• offers a complete range of products including insurance for automobile, home, personal accident, travel, energy, marine, property and casualty as well as several specialized financial lines.

• Each product offering is backed by expertise and an unparalleled claims service.

• The Company's products are available through various channels of distribution like agents, brokers, banks and direct channels like Tele Marketing, Digital Marketing, worksite management etc.

BUSINESS MODEL

Tata AIG''s agency system is based on a two-tier model. The first tier agents and the second tier form the business

associates or agents who are promoted to the next level based on performance. These associates also get to recruit new agents and manage them.

since market penetration is possible , individual agents account for half the company''s total premium, with the other half coming from other distribution channels like banks, corporate agents and brokers.

The company''s average premium per policy is over Rs15,000. A substantial 55 per cent of the total premium comes from unit-linked policies, with traditional policies bringing in the rest.

BUSINESS MODEL

• private life insurer to have adopted the zonal business model unlike, the centralised model followed by other companies.

• According to Neetasha Joshi, senior vice president and South zone business head, most of the decisions barring those relating to claims have been delegated to the zonal offices. "This in turn has resulted in faster turnaround time and increase in business."

• Detailing the features of the company''s InvestAssure Gold, Roy said, the policy offers full life cover till the age of 100 years and offers flexible premium payment options.

• A 0.25 per cent of units under the regular premium account are also offered as assured loyalty benefits at the end of every five years.

• In addition the policy allows policyholders to increase the sum assured through top ups and offers a choice of five fund options.

5 CORE VALUES

INTEGRITY

UNDERSTANDING

EXCELLENCEUNITY

RESPONSIBILITY

FIRE MARINE MOTOR ENGINEERING HEALTH OTHERS T O T A L

% Contri bution

Rs. in Crores

% All India Contri bution

% Contri bution

Rs. in Crores

% All

India Contri bution

% Contri bution

Rs. in Crores

% All

India Contri bution

% Contri bution

Rs. in Crores

% All

India Contri bution

% Contri bution

Rs. in Crores

% All

India Contri bution

% Contri bution

Rs. in Crores

% All

India Contri bution

Bajaj 18.96 55 13.22 2.75 8 9.63 59.31 172 46.36 6.21 18 14.06 3.79 11 13.25 8.96 26 11.65 290

Tata-AIG

14.48 32 7.69 11.76 26 31.32 34.84 77 20.75 13.57 30 24.44 14.93 33 30.76 10.40 23 10.17 221

ICICI-Limite

d

61.39 132 31.73 41.8 9 10.84 1.39 3 .81 10.61 23 17.97 65.12 14 16.87 15.81 34 15.04 218

IFCO-TOKIO

48.59 104 25 8.41 18 21.69 12.49 26 7 13.08 28 21.88 4.67 10 12.05 13.08 28 12.38 214

Reliance

29.73 55 13.22 4.86 9 10.84 4.32 8 2.16 8165 16 12.5 2.70 5 6.02 49.72 92 40.70 185

Royal Sundaram

20.87 38 9.13 7.14 13 15.66 46.70 85 22.91 7.14 13 10.16 5.49 10 12.05 12.63 23 10.17 182

Total 416 83 371 128

TATA-AIG TOWARDS THE NO. 1 POSITION IN INDIAPrivate insurance companies portfolio premium (2002-2003)

COMPANY PROFILE

• Tata AIG Life Insurance Headquarters Address• 5th & 6th Floor Peninsula Towers Peninsula Corporate Park Ganpatrao Kadam Marg

Mumbai, Maharashtra 400 013 India Phone: 91 22 5651 6000Fax: 91 22 5655 0711

• Headquarters• Bombay Area, India• Industry• Insurance• Type Public Company• Status Operating Subsidiary• Company Size 1001-5000 employees• Founded 2001• Website http://www.tata-aig-life

SEGMENTS OF AIG

GENERAL INSURANC

E

LIFE INSURANC

E

FINANCIAL SERVICES

ASSET MANAGEM

ENT

OBJECTIVE

To contribute to make TATA – AIG (Life & Non Life) to become number 1 Insurance Companies in India by offering all India services through our proposed 50 offices and all India. Computer Network “ Medilife Intelligence Net".

Michael Porter’s Five Forces Analysis

Buyer/Customer Power

Rivalry among Competitors

Threat of Substitutes

productsBarriers to

entry

Suppliers Power

BUYER / CUSTOMER POWER

Widening product range

Large corporate

clients

Sale of bank assurance

Price sensitive buyers

Multiple distribution

channels

Suppliers Power

Limited actuaries in the market

Reinsurance

concentration

Cession to the national

insurer

Dependence on IT

providers

RIVALRY AMONG COMPETITORS

Industry concentration in life and non life

Regulation restricts

competition

Low penetration of insurance

BARRIERS TO ENTRY

FDI CeilingCapital

requirements

Elaborate distribution requirement

s

‘lock in ‘ of buyers

THREAT OF SUBSTITUTE PRODUCTS

Government pension scheme

Tax saving instruments

Emerging substitutes

Dependence on children in

rural India

COMPETITION

THE 2 BIGGEST COMPETITORS ARE

LICLIFE INSURANCE CORPORATION

BIRLA SUNLIFE A BIRLA GROUP

INTERNAL STRUCTURE

VISION AND PURPOSE

Our Vision : • To be India's most preferred General Insurance Company.

Our Purpose : • To create unmatched value for our customers, employees,

business partners and shareholders by delivering remarkable service that is consistent, fair and transparent.

MISSION

• To be the most preferred Insurer for the Brokers in India • To be the First Port of Call and the Final Destination for the

Brokers

BUSINESS SECTORS

• The TATA Group operates business in seven key industry sectors. The chart below illustrates how, in percentage terms, TATA companies in each of these sectors contribute to the overall makeup of the group. The table follows the group's sector wise financial performance.

• •

PRODUCTS INDIVIDUAL MOTOR

Auto Secure Private Car

Two Wheeler Commercial

Vehicle

HOMEFire Cover

Pre-Packaged Coverages

Supreme Cover Privilege

ACCIDENT &HEALTHAccident Guard Secured Future

Plan Hospital Care Maharaksha Healthcare +

Criticare

TRAVELTravel Guard

Student Guard Asia Travel Guard Domestic Travel

Guard

DETAILS OF MOTOR AND HOME INSURANCE

Motor Insurance

• Whether it's bad roads or unprecedented rainfall, your fleet of cars is always at a potential risk that may

• arise from factors other than the ones from the road.• Our Autosecure policy caters specifically to such potential risks, offering various degrees of coverage,

depending upon specific requirements.• There are various features, such as a combined three-in-one auto, home and personal cover.• Or a three-month warranty on mechanical work and a six-month warranty on paint and body work,

which are some of the other unique features on offer.

Home Insurance• If home is where heart is, is yours protected? Truth of the matter is, that the structure that protects

usthrough various hazards of nature, itself stands at risks from various onslaughts on numerous occasions.

• Tata AIG General's HomeSecure policies protect not only your home but also your happiness through• customized solutions. • So whether it's owned or rented, ensure the safety of your prized possessions withTata AIG General's

Home Insurance Plans

PRODUCTS

SMALL BUSINESS• Society Policy • Office Policy • Package Policy • Educational Institutes Insurance • Hotel & Restaurant Insurance • Shop Insurance

PRODUCTS CORPORATEAccident and

HealthGroup Personal

Accident Group Multi

Guard Voluntary

Employee Benefits

TravelBusiness Travel

Accident Small Business Travel Accident

Marine Cargo Marine Open

Policy Marine Specific

Policy Marine Sales

Turnover Policy

LiabilityFinancial LinesCasualty Lines

Trade Credit Insurance

EnergyContractor's All Risks /

Erection All RisksBoiler & Machinery

Chemical Utilities

Oil & Petroleum

PropertyStandard Property

Insurance Coverages

Business Guard Shakti Office

Commercial Risk Management

Corporate Fleet Corporate Risk

Solutions Group

PRODUCT DETAILS

KALYAN YOJNA

Welfare well being plan for 5

years

Term life insurance

KARUNA YOJNA

Mercy plan for 15 years

Life insurance (savings element)

JANA SURAKSHA YOJNA

Mass protection plan for 15 years

Life insurance (savings element)

SOME INNOVATIVE PRODUCTS• Golden NRI Policies• Womb to Heaven Policies• Pyara Beta, Pyara Beti Policies-• 8 months of pregnancy- Before birth- 5% sum Assured• 1st year = 10% sum Assured• 2nd year = 20% sum assured• 3rd year = 30% sum assured + Medical treatment• 4th year = 40% sum assured• 5th year = 50 % sum assured• 5 years – 18 years = Medical + Education • 18 years – 35 years = Medical + Education + Marriage • No marriage , No job ( Life pension)

SOME INNOVATIVE PRODUCTS

• Group Insurance – Hawkers, Nurses, Doctors, I.T. professionals• Tour –Well insurance (Free Tours like free medical check up )• Job Guarantee Insurance policies• Medical Insurance – Hybrid Products, cosmetics surgery, Dentistry,

surgical treatment – medilife low premium. • Pharma Sector• I.T. Sector• Bio-Tech Sector• Research Sector• BPO Insurance• Key Men Insurance• Business Profit Guarantee Policies

Tata AIG Life InvestAssure II

Tata AIG Life InvestAssure II(InvestAssure II) is a unique, flexible insurance plan which combines the security of a life insurance policy with the opportunity to exploit the upside of market returns by investing in different kinds of securities through multiple fund options. You can direct the investments by creating your own investment fund portfolio from a range of options to suit your needs and preferences.

Key features include

• Policy terms of 15, 20, 25 or 30 years. • No penalty for surrendering the policy any time after the 6th year. • The Sum Assured is a multiple of the Annualised Premium payable. The

multiple varies according to age at entry and policy term. You have a choice of premium multiples to choose from.

• Any premium not deducted for coverage and charges may be invested in a wide range of investment vehicles, including: an Equity Fund, Income Fund, Aggressive Growth Fund, Stable Growth Fund, a Short Term Fixed Income Fund and Select Equity Fund.

• InvestAssure II also offers the flexibility to switch between funds, premium top-ups, partial withdrawal, premium holiday, policy reinstatement, and multiple premium payment modes.

Tax Benefits, Riders and Age Eligibility

• Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Any sum received under this plan is exempt from tax under section 10(10D) of the Income Tax Act, 1961.*

• Attach Accident, Waiver of premium, Payor Benefit (for juvenile policy) and Critical Illness riders to this policy at a

nominal extra cost for added protection.

Tata AIG Life InvestAssure Care

An inspiration that translates into a host of innovative product solutions for you. Tata AIG Life introduces Tata AIG Life InvestAssure Care(InvestAssure Care), a unique investment linked insurance plan with an in-built Critical Illness benefit for the first 5 years of the policy. Given a choice, most people would like to increase the earning potential of their insurance premium by deciding their own investment and risk limits.

InvestAssure Care, a unique, flexible insurance plan combines the security of a life insurance policy with the opportunity to exploit the upside of market returns (however, with increased investment volatility) by providing an option to invest in different kinds of securities through a choice of five fund options.

What's more, you can direct the investments by creating your own investment fund portfolio from a range of options to suit your needs and preferences.

BENIFITS

• Provides security to your family in case of your unfortunate demise. • Gives you the flexibility to choose your funds based on your risk profile. • Gives you Return of Premium guarantee on maturity incase you opt for

Capital Guarantee Fund • Enables you to enjoy market-linked returns with a potential for higher

growth. • Provides Critical Illness cover for the first five years of the policy.

Key features include:

• Initial Sum Assured: You have an option to choose either the sum assured or premium you are willing to pay.

• Top-Up: Single Premium top up is allowed anytime during the period. Minimum Single top-Up Premium is Rs. 5000/- and will be allowed a maximum of four times in a policy year.

• Top-Up Sum Assured: You have an option to choose an additional sum assured equal to 1.25 or 5 times Single Top-Up Premium, subject to underwriting.

• Critical Illness (CI) Benefit: InvestAssure Care offers inbuilt Critical Illness (Lumpsum) benefit equal to 50% of the basic Sum Assured for issue ages 18-45 years. This benefit is an integral part of the product and is mandatory. This benefit is applicable for the first 5 years of policy term. This Critical Illness covers the following Critical Illnesses and Surgeries: (a) Cancer (b) Stroke (c) Heart Attack (d) Coronary Bypass Graft Surgery (e) Kidney Failure (f) Major Organ Transplant like Heart, Lung, Liver, Kidney or Pancreas or Bone Marrow Transplant.

• Choice of Five Fund Options: Growth Maximizer Fund, Growth Enabler Fund, Short Term Fixed Income Fund,Capital Guarantee Fund and Select Equity Fund

Term of Policy Minimum Age at Issue

Maximum Age at Issue

Minimum Annual

Premium

15 years 30 days 45 years Rs.12,000

20 years 30 days 45 years Rs.12,000

ELIGIBILITY

TAX BENIFITS

• Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Any sum received under this plan is exempt from tax under section 10(10D) of the Income Tax Act, 1961

PRODUCTS & POLICIES SOLD BY TATA AIG

• Rural and Social Policies Sold • Policies sold by TBF through the partner-agent model between March 02 and Nov 03 10680

• Policies through CRIGS Dec 03 to June 05 5900

• Policies sold through other individual agents Dec 03 to Jun 05 17535

Policies by Product March 02 - June 05Social Products • Kalyan Yojana (With and average annual premium of US$ 2.5) 12300

• Karuna Yojana (With and average annual premium of US$ 7.5) 16400

• Jana Suraksha Yojana (With and average annual premium of US$16) 4900

• Rural Products 15 • Total Policies sold from March 02 to June 05 34100

TRAINING

• launched a training academy for the employees of its corporate agencies.

• offer a Certified Insurance Consultant Programme (CICP).

TATA AIG OFFERS TWO PLATFORMS

• Traditional Fund & Unit-Linked Fund. Tata AIG Life is the only Insurance Company in India that offers both, Traditional & Unit Linked Schemes for Gratuity as well as Superannuation Schemes.

• The Traditional Fund offers a steady and more disciplined growth, whereas the Unit Linked Funds are market linked with options to invest up to 60% in equity funds. Tata AIG Life offers a transparent mechanism of Unit Linked Fund Management with five types of funds – Bond, Growth, Balanced, Equity and Short Term Fixed Income Fund.

• An employer can select any combination between Traditional and Unit Linked plans - with or without exposure to equity funds. To help clients capitalize on market variances, Tata AIG Life also offers the option of switching between Unit Linked plans.

PARTNERSHIP

• Tata-AIG has NGO partnerships with over 50 NGOs. Over 40% of its 35 000 social sector policies were sold through the partner-agent model. In this model, the NGO/MFI partner performs the sales and servicing functions, primarily for its current microfinance clients.

• The two other models, the business associate model and the CRIG model, account for the remaining 60% of the new business

INVESTING PLANS

LIFE INSURANCE SEGMENT

HEALTH SEGMENT

McKinsey 7-S Framework

Hard Ss

Soft Ss

HARD Ss

StructureStrategySystems

SOFT Ss

Staff SkillsStyleShared -Values

McKinsey 7-S framework exemplifies…….

Seven areas of an organisation- must work in harmony

Elements- interlinked and affected by one another

Growth- managing the interaction between all the 7 factors

HARD Ss

StructureStrategySystems

SOFT Ss

Staff SkillsStyleShared -Values

A.G.M A.G.M

A.G.M A.G.M

G.M G.M

G.M G.M

M.D

Z.

M Z.

M

Z.M

Z.M

S.O

S.O

S.O

S.P

S.P

S.P

S.O

S.P

S.O

S.P

Abbreviations M.D -Managing Director G.M - General Manager A.G.M - Assistant General Manager Z.M - Zonal Manager S.O - Sales Officer S.P - Sales Person

Application of the Framework – Structure

Z.M

Application of the Framework – Structure contd…

• Invisible AspectTwo-way constant communicationDelegation of responsibilities

Role clarity in the reporting system No internal competition Economies of scale achieved

Application of the Framework - Strategy

TATA - AIG

Soft Ss Begin…Application of the Framework - Staff

• Requirements:

ComputerLiteracy

Dedication

The role of HRD starts from here…

Application of the Framework - Skills

Core Competence

Implementation of best

practices …..That’s also the shared value

Application of the Framework –Style

Distributed &

Exercised

Components:

-building networks

-co-ordination for competitiveness(bureaucracy away and autonomy to the managers) -technology for effectiveness

LeadershipInspirational

Ownership

Transformational

BCG (Boston Consulting Group) Matrix

• Provides a framework for senior management in allocating resources across business units in a diversified firm by– Balancing cash flows among business units, and– Balancing stages in the product life-cycle (PLC)

BCG Product Portfolio Matrix Dimensions

Relative Market Share (Log Scale)

Product Sales Growth Rate

BCG Matrix (cont’d)

• The horizontal axis is the Relative Market Share shown in a log scale

• Vertical line is usually set as 1.0 Relative Market Share

• An SBU to the left of this line means it is the market leader in the industry or segment in which it operates

• Conversely, an SBU to the right of this line (1.o RMS) means it is not the leader

BCG Matrix (cont’d)

The vertical axis is the growth rate• 5 levels may be used: product, product lines, market

segment, SBU and business growth rate• Horizontal line is usually set as 10% Growth Rate• SBUs above the set value (10% line) represents high

growth rates• Conversely, SBUs below this value depicts slower

growth rate

Matrix Quadrants

High Low

High

Low

Product Sales Growth Rate

Relative Market Share

Key Assumptions of BCG Matrix

• Stable cost/price relationship– Not valid if the firm is pricing on projected lower

average unit costs in the future• Market leader influences the average costs• Profit margin is a function of market share

– This ignores profitable niches

Strategic Perspectives of Products in Different Quadrants

Four different strategic perspectives• Investment• Earnings• Cash-flow, and • Strategy Implications

Question Marks (Problem Children)

• Investment—heavy initial capacity expenditures and high R&D costs

• Earnings—negative to low• Cash-flow—negative (net cash user)• Strategy Implications

– If possible to dominate segment, go after share. If not, redefine the business or withdraw

Stars

• Investment—continue to invest for capacity expansion

• Earnings—Low to high earnings• Cash-flow—Negative (net cash user)• Strategy Implications

– Continue to increase market share—even at the expense of short-term earnings

Cows

• Investment—Capacity maintenance• Earnings—High • Cash-flow—Positive (net cash contributor)• Strategy Implications

– Maintain market share and cost leadership until further investment becomes marginal

Dogs

• Investment– Gradually reduce capacity

• Earnings—High to low• Cash-flow

– Positive (net cash contributor) if deliberately reducing capacity

• Strategy Implications– Plan an orderly withdrawal to maximize cash

flow

Example of a BCG Matrix for a Fastener Supplier in South East

AsiaHigh Low

High

Low

Product Sales Growth Rate

Relative Market Share

Anchoring Systems

Powder Actuated Tools

Cable Tray Systems

Electric Power Tools

Concrete Lifting Systems

Note that the Anchoring System SBU is forecasted to move to new position

BCG Matrix(Three Paths to Success)

• Continuously generate cash cows and use the cash throw-up by the cash cows to invest in the question marks that are not self-sustaining

• Stars need a lot of reinvestments and as the market matures, stars will degenerate into cash cows and the process will be repeated.

• As for dogs, segment the markets and nurse the dogs to health or manage for cash

GE(General Electric)/McKinsey Multi-Factor Matrix

• Originally developed by GE’s planners drawing on McKinsey’s approaches

• Market attractiveness is based on as many relevant factors as are appropriate in a given context

• Business-position assessment also made on a many factors– SBU needs to be rated on each factor

GE Multifactor Portfolio Matrix (Cont’d)

Invest/Grow

Selectivity/earnings

Harvest /Divest

Industry AttractivenessBu

sine

ss S

tren

gths

High

High

Medium

Medium

Low

Low

GE Multifactor Portfolio MatrixIndustry Attractiveness

Busi

ness

Str

eng t

hs

High

High

Medium

Medium

Low

Low

Invest/Grow

Selectivity/earnings

Harvest /Divest

Protect Position

Invest to Build

Build selectively

Build selectively

Selectively manage for earnings

Limited expansion or harvest

Protect & refocus

Divest

Manage for earnings

ANSOFF MATRIX

• The Ansoff Matrix was first published in the Harvard Business Review in 1957, and has given generations of marketers and small business leaders a quick and simple way to develop a strategic approach to growth.

• Sometimes called the Product/Market Expansion Grid, it shows four growth options for business formed by matching up existing and new products and services with existing and new markets

THE CORPORATE ANSOFF MATRIX

• Looking at it from a business perspective, staying with your existing product in your existing market is a low risk option: You know the product works, and the market holds few surprises for you.

However, you expose yourself to a whole new level of risk either moving into a new market with an existing product, or developing a new product for an existing market. The market may turn out to have radically different needs and dynamics than you thought, or the new product may just not work or sell.

And by moving two quadrants and targeting a new market with a new product, you increase your risk to yet another level!

OUTCOME

• If the company introduces new policies to enter into new market , i.e. target new market, then it can know its result by placing itself into this ANSOFF MATRIX.

• The company can know and find that whether its new policies are accepted by the market or not.

• And finally the company can increase its level of new opportunities.

VALUE

DIFFERENCE AFTER MERGER WITH TATA

TATA AIG’s SPEED

MARKETING STRATEGY

• 1) Doctors• 2) Call Center + Insurance Gallery• 3) SMS campaigns• 4) Help lines• 5) E- Commerce• 6) Network Marketing• 7) E- Insurance Port folio (Individuals) – Insurance Department

B.P.O. (Companies).• 8) Wealth Port folio – Finance aggregation• 9) Portal Services• 10) Crystal claims services (Unsettled claims +consumer court

services)

INSURANCE STRATEGY

• Insurance Aggregation.• Total service + Insurance.• Create Wealth – protecting wealth is incidental. • Innovative Products. • 15 Domain based products. • Group Policies.• Money Back General Insurance.• Universal Polices.• Insurance Research.

TATA AIG MAINTAINING LONG SUSTAINABLE RELATIONSHIP WITH BROKING HOUSES BY

• Creating general awareness and importance of this newly developed channel across the company

• Arming them with knowledge of products offered by our company • Explaining them our processes, practices and underwriting guidelines • Supporting them in placing business with us • Acting as a single point of contact for their queries with respect to

remuneration, policy issuance and products • Recognizing and rewarding the top brokers on All India Basis at regular

intervals.

EXTERNAL RELATIONSHIPS

• Lobbying

• Much of the development activity in India is influenced by the opinions of donors and other development agencies. Lobbying such agencies thus has created good PR for the programme and has opened doors by creating favourable disposition of potential partners towards Tata-AIG. With respect to parastatal development agencies, Tata-AIG has lobbied the Small Industries Development Bank of India (SIDBI), which funds several MFIs.

• Lobbying with SIDBI helped open doors with several potential partners in Andhra Pradesh.

• There were multiple reasons for obtaining additional funding aside from the obvious one of reducing the need for in-house funding.

• The DfID grant acted as a catalyst in the development of the micro-agent distributional model.

• The prestige associated with a grant from an international development agency improved the status of the microinsurance project within Tata-AIG.

• In addition, many NGOs reacted favourably to collaborating with Tata-AIG once DfID was involved.

Obtaining Additional Funding

OUT SOURCING FRONT END PROCESSES

• In the micro-agent model used by Tata-AIG, the front-end processes—mostly selling and servicing the product—are done by partly by an NGO and partly by a micro-agent.

• For example, the NGO might be responsible for aggregating premiums from several agents and depositing them in Tata-AIG’s accounts.

• The outsourcing of these front-end processes helped to keep costs down.

SALES PROMOTION

CONTRIBUTION

Insurance +E-Commerce : • 1. Risk Management + Profit Guarantee Policies +Globalization

+Modernization• 2. Marine = Risk Management + Export Management +

Logistics• 3. Motor = 80% Databank (Insurance Rating) + Life + Health• 4. Engineering = Infrastructure Insurance• 5. Health = Non- TPA Hybrid Products• 6. Others = Agriculture- Agriculture Profit

GRAPH OF AIG WHEN COMPARED TO OTHERS

PROFIT ALLOCATION AND DISTRIBUTION

• Tata-AIG is private company and all profits generated by the company go to its owners (shareholders).

• The exception to this is with endowment policies where regulations require that 90% of profits must be returned to policyholders

REINSURANCE

• The sum assured of micro insurance has been deemed too small to present any systemic risk to Tata-AIG and hence no reinsurance has been sought on the micro insurance portfolio.

• Tata-AIG typically seeks reinsurance on products with sums assured from Rs 1 million ($22 222) and upwards.

• The products sold by the rural and social team represent less than 0.1% of the total possible liabilities of Tata-AIG.

WHY SELECT AIG?• AIG Life is present in 24 states and 156 cities across the country.• It covers over 22 life insurance products and has over 250 product

combinations.• Over the next 12-18 months, the company plans to add 100 offices

and raise its employee strength to 9,000.• Tata AIG Life has been voted No 1 in customer satisfaction*

among life insurance companies in India.• well capitalised and fresh infusion of funds for the proposed

expansions will not be a problem.• $85-billion revolving credit being extended by the Federal

Reserve to the American International Group (AIG) to pull it out of a crisis.

WHY TATA AIG?

• Tata AIG Life is the one of the most trusted Life Insurance Companies in India. Since its inception in 2001, it has grown by leaps and bounds. Today, Tata AIG Life is present in 24 states and 156 cities across the country. It covers over 22 life insurance products and has over 250 product combinations. It is hardly surprising that Tata AIG Life has been voted No 1 in customer satisfaction* among life insurance companies in India.

• Reposes faith in foreign partner’s commitment on capital infusion.

• Over the next 12-18 months, the company plans to add 100 offices and raise its employee strength to 9,000.

S.W.O.T Matrix

Internal Analysis

Strengths Weaknesses

External Analysis

Opportunities Threats

STRENGTHS AND WEAKNESSANALYSIS

1) Resources capability that your organization has (i.e. human resource, technological, infrastructural, financial etc.)2) Managerial quality, enabling smoothened & efficient flow of activities in your organization3) Depth of Market knowledge and understanding by your organization4) Your Product/Service quality as against that of your competitors5) Benefits that you organization have due to years of experience in the business6) Quality of your organization's culture, helping in motivating your employees

OPPORTUNITY AND THREAT ANALYSIS

1) Market potentiality or scope available for your organization to grow in terms of market share of your offerings, scope for total market expansion.

2) New technological findings, which can enhance competitiveness of your organization against competitors

3) Government policies, rules and regulations affecting your business line.

4).Demographic changes, which can effect market potentiality.

5).Competitors' quality of product/service, brand strength, financial position etc.

ORGANISATIONAL STRUCTURE

INSIDE SAYINGS OF TATA AIG

SOME ANIMATIONS

TATA AIG MAINTAINING LONG SUSTAINABLE RELATIONSHIP WITH

BROKING HOUSES • Creating general awareness and importance of this newly developed

channel across the company • Arming them with knowledge of products offered by our company • Explaining them our processes, practices and underwriting guidelines • Supporting them in placing business with us • Acting as a single point of contact for their queries with respect to

remuneration, policy issuance and products • Recognizing and rewarding the top brokers on All India Basis at regular

intervals.

PIONEERS IN THE NEW ARENA

• Tata AIG General to its credit, has been associated with a number of firsts in the insurance industry such as:

• • The first ever 24x7 Toll Free Helpline Number 1-600-119966.• • The first to introduce a mobile claim service.• • The first to introduce claims registration and policy renewals via SMS.

CAREERS

•Tata AIG offers exciting opportunities to learn, contribute and build careers. As a leading name in the fast-paced insurance industry, we are constantly growing and are always in search of bright talent across all levels. The Company's philosophy is strongly oriented to developing talent through larger and more enriching assignments. We recognize potential and consistent performance and our dynamic corporate culture can be summed up as “Work hard, play hard”. This unique culture:

• gives you room to achieve, to grow and to seek new opportunities. • believes opportunities will come from client needs. All we need to do is be alert as

people first and professionals later. • seeks to be the most innovative, the most tenacious in opening new markets and the

most creative in developing new products and offering state-of-the-art services to clients, brokers and agents around the world.

• takes on e-commerce and technology as high priority, with intensified resources devoted to “the new economy” and internet-based technology.

FINANCIAL ANALYSIS

INCOME & EXPENSES

• Revenue • Premium Income March 02 to Nov 03 $26 000 • Premium Income Nov 03 to Jun 05 $96 000 • Total premium Income March 02 to June 05 $122 000

• Expenses • Rural and Social Channel expenses from March 02 to Nov 03

$234 000

SHARES AT BSE AND NSE

INCOME AND EXPENDITURE

AIG Financials (In

Millions) 2006[9] 2007[9] 2008[9] 2009Q1[10]

Total Revenue 113,387 110,064 11,104 20,458

Total Expenses 91,700 101,121 119,865 26,826

Net Income 14,048 6,200 -99,289 -5,133

Business and Financial Metrics[edit]

TOP INSURANCE COMPANIES

Innovation by tata aig

• Real innovation, be it in thoughts, processes, approaches or strategies, has emerged as the key driver of economic growth in every segment of the financial sector.

• "It is the mantra for success," says Ian Watts, the managing director of Tata AIG Life, part of the private-sector brigade that is redefining the rules of the game in India's insurance business.

• For the second year in succession Tata AIG has achieved 100 per cent year-on-year growth, in no small measure due to the emphasis it has placed on weaving innovation into the fabric of the organization.

TATA AIG TIES UP WITH GE COUNTRYWIDE

• Tata AIG General Insurance Company entered into a strategic tie-up with GE Countrywide Consumer Financial Services Ltd under which the latter would offer a range of the former's general insurance products to its customers.

• Dalip Verma, managing director, Tata AIG and Vishal Pandit, president and CEO, GE Countrywide told that the insurance products would be available first in 18 cities on a pilot basis which would be extended to 60 cities in the next 12 months

NOTE ON AIG AND ITS WORLDWIDE OPERATIONS

• Business Operations in 130 countries across the following lines of business – 2007 revenues were at $110 billion

– General insurance that includes Accident & Health of which Travel Insurance forms a major part – Life Insurance and Retirement Services – Financial Services that include Aircraft Leasing ,Consumer Finance, Credit Cards, Real estate ,

Private Banking, – Asset Management & Private Equity

• Tata AIG General Insurance (that includes Travel) operations of Tata AIG come under the AIU (American International Underwriters) division of AIG which have the following financial highlights.

– $17.8 billion in revenue for 9 months 2008 which is estimated to touch $22 billion for the full year 2008

– $1.07 billion in underwriting profit for the first 9 months(ending August ’08)( We have made profits even after the issues surrounded AIG last year)

– Identifiable assets were at $48.7 billion in 2007. Out of this Cash reserves were at $6 billion and Investments were at $23billion.The cash reserves of this division alone is bigger than the Size of the entire General insurance market in India!!!

– Employs 21,000 people across 80 countries – All individual insurance companies in various countries including India fulfill all statutory

regulations of the respective countries

THANK YOU!