Submitted in Partial Fulillment ! t"e re#uirement ! $AC%ELORS OF $USINESS ADMINISTRATION &$$A'
A MAR(ETING RESEARC% ANAL)SIS
Trainin* Su+er,i-!r. SU$MITTED $). &SR. SALES MANAGER' Enr!lment N!. SESSION /001/0 0 AC(NO2LEDGMENT This project work, which is my major step in the filed of professionalism, has been successfully accomplished only because of timely support of my well wisher. I would like to pay my sincere regards and thanks to those, who directed me at every step in my project work. First of all, I would like to express my thanks to my college for giving me such a wonderful opportunity to widen the horion of my knowledge. I pay my gratitude towards, my sales manager at !viva "ife Insurance through which I got real #usiness experience. I extend my thanks to my project $uide for her scholarly guidance, constant supervision and encouragement. It is due to her personal interest and initiative that the project work is published in the present form. .
% PREFACE &omeone has greatly said that practical knowledge is far better than classroom teaching. 'uring this project I fully realied this and come to know about the present real world of insurance. &ince it include all the activities involved in selling insurance products directly to financial customers. I am pleased to know about the customer(s wants and various activities in the real world of insurance product. The &ubject of my study is A MAR(ETING RESEARC% ANAL)SIS OF AVIVA LIFE INSURANCE.
) CONTENTS C"a+ter 3 4 Intr!du5ti!n 3160 %.%*verview of industry as a whole ) %.) +rofile of the organisation %) %., +roblems of the organisation ,) %.- .ompetion information ,- %./ &.0.*.T !nalysis of the organasation -0
C"a+ter / 4 Ob7e5ti,e and Met"!d!l!*8 63169 ).% &ignificance -) ).) *bjectives -, )., &cope of the study -/ ).- 1ethodology -2 C"a+ter : 4 C!n5e+tual Di-5u--i!n ;01;: C"a+ter 6 4 Data Anal8-i- ;61<= C"a+ter ; 4 Findin*- and Re5!mmendati!n- << Anne>ure- $ibli!*ra+"8 , C%APTER 1 3 INTRODUCTION % INTRODUCTION 3.3 OVERVIE2 OF T%E INDUSTR) 4 INSURANCE INDUSTR) The insurance sector in India has come a full circle from being an open competitive market to nationaliation and back to a liberalied market again. Tracing the mends in the Indian insurance sector reveals the ,20 degree turn witnessed over a period of almost two centuries. 0ith such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of %/3)0 per cent annually. Together with banking services, it adds about 4 per cent to the country(s $'+ .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. 5early 607 of Indian populations are without "ife insurance cover and the 8ealth insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation 91alhotra .ommittee: was constituted by the government in %;;, to examine the various aspects of the industry. The key element of the reform process was +articipation of overseas insurance companies with )27 capital. .reating a more efficient and competitive financial system suitable for the re<uirements of the economy was the main idea behind this reform. &ince then the insurance industry has gone through many sea changes .The competition "I. started facing from these companies were threatening to the existence of "I.. &ince the liberaliation of the industry the insurance industry has never looked back and today stand as the one of the most competitive and ) exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techni<ues and the IT tools has increased the scope of the industry in the longer run. A $RIEF %ISTOR) The origin of insurance is very old .The time when we were not even born= man has sought some sort of protection from the unpredictable calamities of the nature. The basic urge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. The business of life insurance in India in its existing form started in India in the year %6%6 with the establishment of the *riental "ife Insurance .ompany in .alcutta. &ome of the important milestones in the life insurance business in India are> %;%)> The Indian "ife !ssurance .ompanies !ct enacted as the first statute to regulate the life insurance business. %;)6> The Indian Insurance .ompanies !ct enacted to enable the government to collect statistical information about both life and non3life insurance businesses. %;,6> ?arlier legislation consolidated and amended to by the Insurance !ct with the objective of protecting the interests of the insuring public. %;/2> )-/ Indian and foreign insurers and provident societies taken over by the central government and nationalied. "I. formed by an !ct of +arliament, , vi. "I. !ct, %;/2, with a capital contribution of @s. / crore from the $overnment of India. The $eneral insurance business in India, on the other hand, can trace its roots to the Triton Insurance .ompany "td., the first general insurance company established in the year %6/0 in .alcutta by the #ritish. &ome of the important milestones in the general insurance business in India are> %;04> The Indian 1ercantile Insurance "td. set up, the first company to transact all classes of general insurance business. %;/4> $eneral Insurance .ouncil, a wing of the Insurance !ssociation of India, frames a code of conduct for ensuring fair conduct and sound business practices. %;26> The Insurance !ct amended to regulate investments and set minimum solvency margins and the Tariff !dvisory .ommittee set up. %;4)> The $eneral Insurance #usiness A5ationalisationB !ct, %;4) nationalised the general insurance business in India with effect from % st Canuary %;4,. %04 insurers amalgamated and grouped into four companies vi. %. 5ational Insurance .ompany "td. ). *riental Insurance .ompany "td. ,. 5ew India !ssurance .ompany "td. -. Dnited India Insurance .ompany "td. $I. incorporated as a company. INSURANCE SECTOR REFORMS - In %;;,, 1alhotra .ommittee, headed by former Finance &ecretary and @#I $overnor @.5. 1alhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The 1alhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at 9creating a more efficient and competitive financial system suitable for the re<uirements of the economy keeping in mind the structural changes currently underway and recognising that insurance is an important part of the overall financial system where it was necessary to address the need for similar reformsE: / In %;;-, the committee submitted the report and some of the key recommendations included> iB &tructure $overnment stake in the insurance .ompanies to be brought down to /07 $overnment should take over the holdings of $I. and its subsidiaries so that these subsidiaries can act as independent corporations !ll the insurance companies should be given greater freedom to operate iiB .ompetition +rivate .ompanies with a minimum paid up capital of @s.%bn should be allowed to enter the industry. 5o .ompany should deal in both "ife and $eneral Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. +ostal "ife Insurance should be allowed to operate in the rural market. *nly one &tate "evel "ife Insurance .ompany should be allowed to operate in each state. iiiB @egulatory #ody The Insurance !ct should be changed. 2 !n Insurance @egulatory body should be set up. .ontroller of Insurance A.urrently a part from the Finance 1inistryB should be made independent. ivB Investments 1andatory Investments of "I. "ife Fund in government securities to be reduced from 4/7 to /07 $I. and its subsidiaries are not to hold more than /7 in any company AThere current holdings to be brought down to this level over a period of timeB vB .ustomer &ervice "I. should pay interest on delays in payments beyond ,0 days. Insurance companies must be encouraged to set up unit linked pension plans. .omputeriation of operations and updating of technology to be carried out in the insurance industry. The committee emphasied that in order to improve the customer services and increase the coverage of the insurance industry, it should be opened up to competition. #ut at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. 4 8ence, it was decided to allow competition in a limited way by stipulating the minimum capital re<uirement of @s.%00 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body. 6 T"e In-uran5e Re*ulat!r8 and De,el!+ment Aut"!rit8 @eforms in the Insurance sector were initiated with the passage of the I@'! #ill in +arliament in 'ecember %;;;. The I@'! since its incorporation as a statutory body in !pril )000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the I@'!(s online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. &ince being set up as an independent statutory body the I@'! has put in a framework of globally compatible regulations. In the private sector %) life insurance and 2 general insurance companies have been registered. IMPACT OF LI$ERALI?ATION The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market "I.. &ince the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service <uality of the insurance. !s a result "I. down the years have seen the declining phase in its career. ; The market share was distributed among the private players. Though "I. still holds the 4/7 of the insurance sector but the upcoming natures of these private players are enough to give more competition to "I. in the near future. "I. market share has decreased from ;/7 A)00)30,B to 6% 7A )00-30/B. The following companies has the rest of the market share of the insurance industry. CURRENT SCENARIO OF T%E INDUSTR) INSURANCE MAR(ET IN INDIA India with about )00 million middle class household shows a huge untapped potential for players in the insurance industry. &aturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Innovative products and aggressive distribution have become the say of the day. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. "ife insurance industry is waiting for a big growth as many Indian and foreign companies are waiting in the line for the green signal to start their operations. The Indian consumer should be ready now because the market is going to give them an array of products, different in price, features and benefits. 8ow the customer is going to make his choice will determine the future of the industry. 3. CUSTOMER SERVICE .onsumers remain the most important centre of the insurance sector. !fter the entry of the foreign players the industry is seeing a lot of competition and thus %0 improvement of the customer service in the industry. .omputerisation of operations and updating of technology has become imperative in the current scenario. Foreign players are bringing in international best practices in service through use of latest technologies. The one time monopoly of the "I. and its agents are now going through a through revision and training programmes to catch up with the other private players. Though lot is being done for the increased customer service and adding technology to it but there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels. /. DISTRI$UTION C%ANNELS Till date insurance agents still remain the main source through which insurance products are sold. The concept is very well established in the country like India but still the increasing use of other sources is imperative. It therefore makes sense to look at well3balanced, alternative channels of distribution. "I. has already well established and have an extensive distribution channel and presence. 5ew players may find it expensive and time consuming to bring up a distribution network to such standards. Therefore they are looking to the diverse areas of distribution channel to have an advantage. !t present the distribution channels that are available in the market are> 'irect selling .orporate agents $roup selling #rokers and cooperative societies %% #anc assurance #!5.!&D@!5.? 3 India has an extensive bank network established over the years. 0hat Insurance companies have to do is to just take advantage of the customersF long3standing trust and relationships with banks. This is a mutually beneficial situation as banks can also expand their range of products on offer to customers, while the insurance company will also earn profits from the exposure. !nother advantage is that banks, with their network in rural areas, help to fulfill rural and social obligations stipulated by the Insurance @egulatory and 'evelopment !uthority AI@'!B recently. Insurance companies should see banc assurance as a tool for increasing their market penetration in India. It is also good for the one who sees banc assurance in terms of reduced price, high <uality product and delivery at doorsteps. ?verybody is a winner here. The creation of banc assurance operations has made an important impact on the financial services industry at large. This is though a new concept but it has gained a lot of importance in the industry at present and has a great future. :. PRODUCT INNOVATION There has been a plethora of new and innovative products offered by the new players. .ustomers have tremendous choice from a large variety of products from pure term AriskB insurance to unit3linked investment products. .ustomers are offered unbundled products with a variety of benefits as riders from which they can choose. 1ore customers are buying products and services based on their true needs and not just traditional money3back policies, which is not considered very appropriate for long3term protection and savings. There is lots of saving and investment plans in the market. 8owever, there are still some key new products yet to be introduced 3 e.g. health products. 6. RURAL MAR(ETING %) @ural India seems to have an appetite for mobile phones, computers, and cars and to add to it we have insurance. In India with the private players having entered into the insurance industry, the expected explosion in job opportunities may not actually happen but for them the catchments area is the opportunities in the rural India. In India the insurance business can be said to be Ga marathon, not a sprintG. This is because of the nature of the business being long term. 0ith merely two years of the industry being opened, not surprisingly, the new comers are making losses. The public sector companies, notably the "I., have gained in strength, thanks to the deepening of the market conse<uent to the awareness created by the new companies. 8owever this does not deterred the private sector, which knows know that the race is a marathon, not a sprint. 8owever it seems that they if not anything, are only increasing their spending, though only out of the capital. Today, there are %6 insurance companies in India excluding the +&D(s, with %) in the life insurance business and the rest in non3life .!s insurance companies go more and more rural in search of business, there will be opportunities in the rural sector. ! research conducted exhibited that the rural consumers are willing to dole out anything between @s ,,/00 and @s ),;00 as premium each year. In the insurance the awareness level for life insurance is the highest in rural India, but the consumers are also aware about motor, accidents and cattle insurance. In a study conducted by 1!@T the results showed that nearly one third said that they had purchased some kind of insurance with the maximum penetration skewed in favor of life insurance. The study also pointed out the private companies have huge task to play in creating awareness and credibility among the rural populace. The perceived benefits of buying a life policy range from security of income bulk return in future, daughterFs marriage, childrenFs education and good return on savings, in that order, the study adds. @egulatory and 'evelopment !uthority AI@'!B have set stiff rural targets for insurance companies. For the life sector, in the first year, / per cent of the total policies written should come from the rural sector. This will go up to %/ per cent %, in five years. &imilarly, for the non3life sector, two per cent of the total gross premium income should come from the rural sector going up to / per cent in five years, according to the regulation. !ll these moves will make the investment the rural area a big start. ;. INFORMATION TEC%NOLOG) AND INSURANCE In the insurance industry today, there is a clear trend away from selling a broad range of products to a large volume of customers in a one Hsie3fits3all manners. Instead of focusing on their different products lines as silos Ai.e., life, property and casualty etcB insurers are looking for ways to offer highly targeted insurance products that are tailored to the individuals customers with the highest propensity to buy them. There is a evolutionary change in the technology that has revolutionied the entire insurance sector. Insurance industry is a data3rich industry, and thus, there is dire need to use the data for trend analysis and personaliation. 0ith increased competition among insurers, service has become a key issue. 1oreover, customers are getting increasingly sophisticated and tech3savvy. +eople today don(t want to accept the current value propositions, they want personalied interactions and they look for more and more features and add ones and better service The insurance companies today must meet the need of the hour for more and more personalied approach for handling the customer. Today managing the customer intelligently is very critical for the insurer especially in the very competitive environment. .ompanies need to apply different set of rules and treatment strategies to different customer segments. 8owever, to personalie interactions, insurers are re<uired to capture customer information in an integrated system. %- 0ith the explosion of 0ebsite and greater access to direct product or policy information, there is a need to developing better techni<ues to give customers a truly personalied experience. +ersonaliation helps organiations to reach their customers with more impact and to generate new revenue through cross selling and up selling activities. To ensure that the customers are receiving personalied information, many organiations are incorporating knowledge database3 repositories of content that typically include a search engine and lets the customers locate the all document and information related to their <ueries of re<uest for services. .ustomers can hereby use the knowledge database to mange their products or the company information and invoices, claim records, and histories of the service in<uiry. These products also may be able to learn from the customer(s previous knowledge database and to use their information when determining the relevance to the customers search re<uest. The insurance sector remains a very competitive market and those companies that are able to best utilie their data and provide their customer with the most personalied options will have the distinct competitive advantage. The insurers that come up to the top will be those who leverage the appropriate technology solutions effectively in order to foster customer loyalty, attract new customers and improve operational efficiency by providing common information across their lines of business. =. MERGERS AND A@UISITIONS This is an era of mergers and ac<uisitions. +rivate companies including 15.(s are amalgamating the world over to get more competitive edge. .urrently, the general insurance industry has been opened up. The <uestion here is that for over two years, eight private companies have operated and has the sie of the cake expanded. The insurers are doing enough to raise the level of risk awareness or are they merely content to compete in the markets organied and established. %/ 8owever sooner or later the private sector players will have to put in place strategies aimed not at winning the existing accounts of the public players but at diversifying markets penetration as a whole. The private players in the future would have to turn their attention to working in the unorganied and under served markets. 0hat is likely to happen is that the private players would continue to skim the profitable segments of the already organied business in the urban areasI The time has already come for the government of India to evaluate the performance of private companies( vis3J3vis their declared objective of opening up the industry. 8owever it is high time for the government to realie that importance of merging the public sector general insurance companies into single entity. The resent scenario calls for a better performance from part of each of the public sector insurance companies against each other= or in other words a competition to be the best. The result what we see is the undercutting of premium to retain or wrest business and <uoting an uneconomical rate of premium. 0hile this allows one of the +ublic &ectors .ompany to win a business form another in this manner. The others suffer a loss and the resultant effect is a cannibaliation with a fall in the average premium of the public sector itself. This at many times brings advantage to the private players who grab the business because of the unethical competition among the public players. The purpose of having four companies all subsidiaries of $eneral Insurance .orporation of India A$I.BH 5ational Insurance .ompany, 5ew India !ssurance .ompany, *riental Insurance .ompany, !nd The Dnited India Insurance .ompany= at the time of nationaliation was to have competition among themselves Hin service and products at the same price. The service provided by them was also e<ually good or bad depending on the experience of the customers. %2 5ow with real competition coming in with most of the global insurance players setting footprints here, it is felt that the time for merger has come and to enjoy the benefits if the sie. It is to be sated that sie does matter in insurance business. !ll over the world(s mergers and ac<uisitions in the risk3underwriting sector is common. The benefits if the four insurance companies merge will be enormous. The merged entity will enjoy higher underwriting and risk retention capacity= increase in reinsurance premium, reduction in reinsurance outflow, healthy solvency margins, setting right the asset Hliability mismatch and reduction in cost. The insurance market thus becomes a gambling place. 8ad the public sector companies made into a single entity, perhaps the total premium of the four public sector companies in the year )00,30- would have gone up but )/ percent. #ut the public sector alone is forced to underwrite the loss making motor third party liability AT+"B insurance. The public insurance companies insured a loss of @s %;-, crore on this portfolio on just one year A0,30-B. The cumulative loss under this portfolio is astronomical. The loss of profitable business in view of undeserved competition among the public sector companies is hampering the subsidiation of social insurance including the motor T+". It is thus clear that it is good for the public sector companies to merge immediately when they are still strong, lest a merger becomes inevitable later after the independent public sector companies fail one after another. This does not bid well for the public sector, nor fort he insuring public and not for the economic development either. For a progress me re<uire merger of strong public sector companies. ?lse it would render public sector companies weak and destroy them. NAME OF T%E PLA)ER MAR(ET S%ARE &A' "I. 6)., I.I.I +@D'?5TI!" /.2, %4 #I@"! &D5 "IF? )./2 #!C! !""I!5K ).0, &#I "IF? %.60 8'F. &T!5'!@' %.,2 T!T! !I$ %.); 8'F. &"I. 0.;0 !LIL! 0.4; *1 M*T!M 1!8I5'@! 0./% I5$ LN!&! 0.,4 !1+ &!51!@ 0.)2 1?T"IF? 0.)% POTENTIAL OF INSURANCE INDUSTR) IN INDIA . *nly *5? out of FIL? insurable population in India have insurance coverage. In terms of Insurance premium per capita and premium per $'+, India ranks as one of the lowest in the world. "ife insurance premium constitutes only ;7 of domestic savings. #y )0%0, hundred million elderly look to planning for old age pension and annuities. %6 1ore than ,)/ million labor forces have no social security. 0ith an annual growth rate of %/3)07 and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market A)00-30/B is estimated at @s. -/0 billion AD&O%0 billionB. !ccording to government sources, the insurance and banking servicesF contribution to the countryFs gross domestic product A$'+B is 47 out of which the gross premium collection forms a significant part. The funds available with the state3owned "ife Insurance .orporation A"I.B for investments are 67 of $'+. Till date, only )07 of the total insurable population of India is covered under various life insurance schemes, the penetration rates of health and other non3life insurances in India is also well below the international level. These facts indicate the of immense growth potential of the insurance sector. The year %;;; saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the passage of the Insurance @egulatory and 'evelopment !uthority AI@'!B #ill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Though, the existing rule says that a foreign partner can hold )27 e<uity in an insurance company, a proposal to increase this limit to -;7 is pending with the government. &ince opening up of the insurance sector in %;;;, foreign investments of @s. 6.4 billion have poured into the Indian market and )% private companies have been granted licenses. Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving %; device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The life insurance industry in India grew by an impressive ,27, with premium income from new business at @s. )/,.-, billion during the fiscal year )00-3)00/, braving stiff competition from private insurers. Though the total volume of "I.Fs business increased in the last fiscal year A)00-3)00/B compared to the previous one, its market share came down from 64.0- to 46.047. The %- private insurers increased their market share from about %,7 to about ))7 in a yearFs time. The figures for the first two months of the fiscal year )00/302 also speak of the growing share of the private insurers. The share of "I. for this period has further come down to 4/ percent, while the private players have grabbed over )- percent. There are presently %) general insurance companies with four public sector companies and eight private insurers. !ccording to estimates, private insurance companies collectively have a %07 share of the non3life insurance market. )0 3./ PROFILE OF T%E ORGANISATIONB AVIVA LIFE INSURNACE CO. LTD. !viva is DM(s largest and the world(s fifth largest insurance $roup. It is one of the leading providers of life and pensions products to ?urope and has substantial businesses elsewhere around the world. 0ith a history dating back to %2;2, !viva has a ,/ million3customer base worldwide. It has more than P,,) billion of assets under management. In India, !viva has a long history dating back to %6,-. !t the time of nationalisation it was the largest foreign insurer in India in terms of the compensation paid by the $overnment of India. !viva was also the first foreign insurance company in India to set up its representative office in %;;/. In India, !viva has a joint venture with 'abur, one of IndiaFs oldest, and largest $roup of companies. ! professionally managed company, 'abur is the countryFs leading producer of traditional healthcare products. In accordance with the government regulations !viva holds a )2 per cent stake in the joint venture and the 'abur group holds the balance 4- per cent share. 0ith a strong sales force of over %),000 Financial +lanning !dvisers AF+!sB, !viva has initiated an innovative and differentiated sales approach to the business. Through the 9Financial 8ealth .heck: AF8.B !viva(s sales force has been able to establish its credibility in the market. The F8. is a free service administered by the F+!s for a need3based analysis of the customer(s long3term savings and insurance needs. 'epending on the life stage and earnings of the customer, the F8. assesses and recommends the right insurance product for them. !viva pioneered the concept of #ancassurance in India, and has leveraged its global expertise in #ancassurance successfully in India. .urrently, !viva has )% #ancassurance tie3ups with !#5 !mro #ank, !merican ?xpress #ank, .anara #ank, .enturion #ank of +unjab, The "akshmi Lilas #ank "td. and +unjab Q &ind #ank, %/ .o3operative #anks in $ujarat, @ajasthan, Cammu Q Mashmir, #ihar, 0est #engal and 1aharashtra and one regional #ank in &ikkim. 0hen !viva entered the market, most companies were offering traditional life products. !viva started by offering the more modern Dnit "inked and Dnitised 0ith +rofit products to the customers, creating a uni<ue differentiation. !viva(s products have been designed in a manner to provide customers flexibility, transparency and value for money. It has been among the first companies to introduce the more modern Dnit "inked +roducts in the market. Its products include> whole life A"ife "ongB, endowment A"ife &aver, ?asy "ife +lusB, and child policy ANoung !chieverB single premium A"ife #ond and "ife #ond +lusB, +ension A+ension +lusB, Term A"ife &hieldB, fixed term protection plan AFreedom "ife +lanB and a tax efficient investment plan with limited premium payment term A"ife#ond/B. !viva products are modern and contemporary unitised products that offer uni<ue customer benefits like flexibility to chose cover levels, indexation and partial withdrawals. !viva(s Fund management operation is one of its key differentiators. *perating from 1umbai, !viva has an experienced team of fund managers and the range of fund options includes Dnitised 0ith3+rofits Fund and four Dnit "inked funds> 3 +rotector Fund, &ecure Fund, #alanced Fund and $rowth Fund. !viva has %%) #ranches in India Aincluding rural branchesB supporting its distribution network. Through its #ancassurance partner locations, !viva products are available in ,46 towns and cities across India. !viva is also keen to reach out to the underprivileged that have not had access to insurance so far. Through its association with #asix Aa micro financial institutionB )) and other 5$*s, it has been able to reach the weaker sections of the society and provide life insurance to them. For three consecutive years in )00/, )002 and )004, !viva has had relatively high scores on the parameters of .redibility, @espect, Fairness, +ride and .amaraderie in the survey administered by $row Talent .ompany "td. along with $reat +laces to 0orkR Institute, Inc. and #usiness 0orld magaine. ), 2%O IS AVIVA DA$UR ! professionally managed company, it is the countryFs leading producer of Founded in %66-, 'abur is one of IndiaFs oldest and largest group of companies with consolidated annual turnover in excess of @s %,6;; crores. Traditional healthcare products. AVIVA !viva is DM(s largest and the world(s fifth largest insurance $roup. It is one of the leading providers of life and pensions products to ?urope and has substantial businesses elsewhere around the world. 0ith a history dating back to %2;2, !viva has a ,/ million3customer base worldwide. It has more than P,,) billion of assets under management. VISION !viva 3 where exceeding expectations through innovative solutions is GtheG way of life This is the compelling vision that !viva India has created through the active contribution of its employees. These lines not only define the way we live and work but also serve as a reminder to deliver the best to our customers, shareholders, colleagues, partners Q employees at all times. ?mbedded in this vision are the core values of Integrity, .ustomer centricity, +assion for winning, Innovation and ?mpowered team that we have collectively defined and committed to working towards. )- PARTNERS !viva is committed to helping our customers get FMal par .ontrolF and make the most out of their lives. It is the constant endeavour to ensure that our customers have easy access to !viva products and services at all times. !viva has pioneered bancassurance in the country through its tie3ups with )) leading private and nationalised #anks in the country. !viva also focuses on bancassurance worldwide and has a proven track record of successful bancassurance relationships. It has -0 major partnerships with leading banks across the globe. !viva is a leading bancassurer in countries such as France, Italy, &pain, !ustralia and 5ew Kealand. )/ A$N AMRO $anC !#5 !1@* is a prominent international bank with ?uropean roots and a clear focus on consumer and commercial banking gaining a competitive edge on the chosen markets and client segments. !#5 !1@* #ank AIndiaB ventured into the Indian market in %;)0 primarily to finance the diamond trading business and evolved by mid %;;0(s into a fastest growing retail bank and a well3respected wholesale bank. The #ank is recognied as one of the most successful consumer banking outfits in the county, known for its innovation and aggression. !#5 India consumer banking pioneered the distribution of third party financial products like mutual funds, bonds and life insurance. !vivaFs relationship with !#5 India commenced in Cune )00) under which the bank introduces its customers to !viva for insurance and provides access to its affluent customer base across the country through its operations in )% branches at %- locations. American Express Bank !merican ?xpress .ompany is a diversified worldwide travel and financial services company founded in %6/0. It is the world(s largest single card issuer, based on purchase volume generated of nearly // million cards worldwide. +resent in India since %;)%, !merican ?xpress provides high <uality travel related and financial services in India. !viva "ife Insurance entered into a strategic alliance with !merican ?xpress for distribution of "ife Insurance in Cune )00) to offer top3of the line saving3cum3 protection plans to !mex bank and card customers. )2 !viva offers tailor3made investment solutions to the high net worth clients of the 0ealth 1anagement channel. The retail card segment is being tapped through outbound calling to the !mex cardholders. The !merican ?xpress Inbound call center also pitches !viva products to its callers. The Lakshmi Vilas Bank Ltd The "akshmi Lilas #ank "td, based out of Marur, is among the top private banks in India. It has ))% branches with a customer base of %.) million, across %0 states. .urrently !viva products are sold across )0- branches of "L#. Canara Bank .anara #ank is one of the largest retail banks in India with ),/%, branches spread across )/ &tates and - Dnion Territories. The customer base of .anara #ank exceeds )4 million. 0ith a net profit of I5@ %%%0 .rores, deposits of over I5@ ;2,;06 .rores, -4,6; employees for the year ending 1ar )00/, .anara #ank is truly a #ank to be reckoned with for the sheer magnitude of coverage it offers its clients. .anara #ank has tied up with !viva as a .orporate !gent for its "ife Insurance +roducts. !viva products are currently offered in %0,0 .anara #ank branches in %0, .ities. Punjab & Sind Bank +unjab Q &ind #ank was established in the year %;06. #ased on the principles of social commitment to the people, help the farmers, and the weaker sections of the society to raise their standard of living and play a significant role in the development of the country. ?ven after ;2 years of its inception, +unjab Q &ind #ank stands committed to honor the high ideals of its founding fathers. +unjab and &indh #ank has a network of 4/; branches and %,) extension counters all )4 over the country with close to ;,42/ employees. -) per cent of its branches are in the rural and semi urban areas. In line with spirit of liberalisation the #ank has laid special emphasis on International banking, 8ire purchase, "easing, Tele3banking and .redit card facilities. The bank has also started their @ural 'evelopment 'ivision, 8igh Tech !gricultural #ranches, &pecialised "ocker #ranches, Industrial Finance and &&I branches, besides 8ousing Finance #ranch for the convenience of its customers. Centuri!n $anC ! Pun7ab .enturion #ank of +unjab is a new generation private sector bank offering a wide spectrum of retail and corporate banking products and services. It holds leadership positions in retail two3wheeler loans and commercial vehicle loans. It has been among the earliest banks to offer a technology3enabled customer interface that provides easy access and superior customer service. @#I has approved the merger between .enturion #ank and #ank of +unjab effective from *ctober %st, )00/. The merged entity, named .enturion #ank of +unjab, has a strong nationwide franchise of )-% branches and extension counters and ,6; !T1s. 0ith strengths in the retail, &1? and agriculture businesses the bank is well poised to capture the opportunities that exist in the Indian market. The combined bank(s ,,/00 employees will continue to provide support and an enhanced banking experience to our customers, as part of a bigger, stronger bank. 9!viva(s key strength is its fund management capabilities with an experience of ,0 years in money management. )6 EQUITY The much3awaited correction finally materialised in the <uarter ended Cune )002. The #&? &ensex, which peaked at %)2%) levels on %0th 1ay )002, has corrected to around %0000 levels. !fter three years of sustained #ull @un, the recent correction has been a timely reminder that the markets, in the short term, may see downsides too. .ompared to the rise in the market, the downtrend has not been very large though it has been <uicker than expectations. ?ven post this )07 or so correction from its peak, the &ensex is up %).;7 year to date. This much3needed correction has weeded out some of the euphoria and the focus on value is back. 'oes this correction reflect any change in the key fundamentals of IndiaI 0e do not think so. The three3year rally was in the first place due to appreciation of India(s sustainable growth story. The second reason was an improvement in the global li<uidity as investor(s appetite for risk iChansieased. The India growth story remains intact and the $'+ growth in the last few <uarters is an evidence of this. 0e expect $'+ to grow by over 47 on a sustainable basis and hence India would continue to be an attractive investment destination. The major reason for the correction has been li<uidity moving out of the markets. This has been caused by fall in the commodity prices from their peak, rising global interest rates and high crude prices causing worries about inflation and a global meltdown. 0ith the tightening of global li<uidity and reduced risk appetite of investors, there have been outflows from emerging markets including India. &econdly, valuations in India were among the highest in emerging markets and hence witnessed a greater compression. *ne of the major fears globally is that of a slowing economy in the D& and .hina. India is highly resilient to global meltdowns as private consumption accounts for 2)7 of our $'+ and exports account for only %)7 of $'+. 0ith a favourable demographic profile3 iChansieasing working population and improved disposable income in the hands of the consumer, this resilience will only improve. This coupled with superior growth and demographics will drive ); flows back to India in the long term. In the short term, the markets could continue to witness volatility as the direction would be determined by global li<uidity, progress of monsoons and the <uarterly results for Cune )002. 0e believe, for the long3term investor, this correction would provide a good opportunity to participate in the India growth story. 8owever, expectations of returns from e<uity should be moderate with stock returns tracking earnings growth. FIXED INCOME Is virtuous cycle turning viciousI Inflation has touched one year high of /.--7, and I5@ has touched ) year low of -2.0-. !ligning with these movements, yield on benchmark %0 year $overnment #ond also went up to a four year high of 6.%07. The latest balance of payments numbers for )00/302 show an overall balance of O%/ bn, helped by a less3than3expected deficit on the current account AO%0.2 bnB. This was essentially due to strong invisibles Aprivate remittance and net software exportsB providing cover for a trade deficit, which was itself moderated by a strong )67 y3o3y growth in exports. 5et inflows on the capital account stood at O)-.4 bn with O/.4 bn coming from net F'I and O%)./ bn being accounted for by portfolio inflows. Though headline inflation recently has picked up with prices of food and non food articles in the Sprimary goods( category rising, the government has taken short3term measures in the form of liberaliing imports of wheat and sugar and banning exports of pulses in order to ease the supply situation. .ore inflation, that is, excluding the more volatile primary and fuel categories, has picked up a bit in comparison to last year. 8owever it is expected to remain in a manageable range. @#I seems committed to containing inflation and would thus act accordingly. @ecently, @#I chose to iChansiease rates to manage inflationary expectations and in response to various central banks hiking rates globally. This has led to a few banks raising lending rates in addition to getting reflected in the money and bond markets. $'+ growth for )00/302 came in at a better than expected 6.-7, propped up by improved agriculture ,0 performance. For )002304 also, despite inflationary pressures, the $'+ is expected to grow at over 47. $oing forward, monetary tightness will weigh on the interest rate outlook and it is expected to remain firm. ,% 3.: PRO$LEMS OF AVIVA LIFE INSURNACE &ince !viva "ife Insurance is a private player in the insurance industry, it has not yet reached break3even. 8ence, it has high cost due to which its premiums are high as compared to "I.. It has to create credibility in the public. It has to compete with the wide range of products that its competitors offer. It has to focus towards rural segment also which has a great scope of growth. It has to decide on the strategies to be adopted which will help to counter competition. It has to increase its no. of branches and also enhance its network of agents so that it can compete with "I.. It has to focus on providing effective training to its agents so that the customer base can be increased and moreover customer satisfaction can be ensured. ,) 3.6 COMPETITORS INFORMATION #ajaj !llian #irla &un "ife Insurance 8'F. &tandard "ife Insurance I.I.I +rudential I5$ Lysya Motak 1ahindra "I. 1et"ife India Insurance &#I "ife Insurance &hriram "ife Insurance Tata !I$ "ife Insurance $AJAJ ALLIAN?
#ajaj !llian is a joint venture between !llian !$ one of the world(s largest insurance companies, and #ajaj !uto, one of the biggest ) and , wheeler manufacturers in the world. #ajaj !llian is into both life insurance and general insurance. ,, !llian $roup is one of the world(s leading insurers and financial services providers. Founded in %6;0 in #erlin, !llian is now present in over 40 countries with almost %4-,000 employees. #ajaj group is the largest manufacturer of two3 wheelers and three3wheelers in India and one of the largest in the world. Today, #ajaj !llian is one of India(s leading and fastest growing insurance companies. .urrently, it has presence in more than //0 locations with over 20,000 Insurance .onsultants. $IRLA SUN LIFE INSURANCE #irla &un "ife Insurance .ompany "imited is a joint venture between !ditya #irla $roup and &un "ife Financial of .anada. !ditya #irla $roup is an Indian multinational conglomerate with presence in India, Thailand, Indonesia, 1alaysia, +hilippines, ?gypt, .anada, !ustralia and .hina. &un "ife !ssurance, &un "ife Financial(s primary insurance business, is one of the leading insurance companies of the world and ranks amongst the largest international financial services ,-rganiations in the world. The $roup has presence in several countries such as .anada, Dnited &tates, +hilippines, Capan, Indonesia, India and #ermuda. ,- ICICI PRUDENTIAL LIFE INSURANCE I.I.I +rudential "ife Insurance .ompany is a joint venture between I.I.I #ank, a premier financial powerhouse and +rudential plc, a leading international financial services group head<uartered in the Dnited Mingdom. I.I.I was established in %;// to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. +rudential plc was established in %6-6 and is presently the largest life insurance company in the DM. I.I.I +rudential is curently the 5o. % private life insurer in the country. For the financial year ended 1arch ,%, )00/, the company garnered @s %/6- crore of new business premium for a total sum assured of @s %,,460 crore and wrote nearly 2%/,000 policies. ING V)S)A LIFE INSURANCE I5$ Lysya "ife Insurance .ompany "imited is a joint venture between Lysya #ank and I5$ $roup of 8olland, the worldFs -th largest financial services group, with presence across /0 countries, and a heritage of over %/0 years. ,/ I5$ Lysya "ife Insurance .ompany +rivate "imited entered the private life insurance industry in India in &eptember )00%. 0ith in a short span of time I5$ Lysya "ife Insurance has registered an impressive growth. The company currently has over %0,000 active advisors working from 4/ branches Ain ,0 citiesB across the country and over ),00 employees. (OTA( MA%INDRA OLD MUTUAL LIFE INSURANCE LIMITED Motak 1ahindra *ld 1utual "ife Insurance "td. is a joint venture between Motak 1ahindra #ank "td.AM1#"B, and *ld 1utual plc. Motak 1ahindra is one of IndiaFs leading financial institutions and offers a range of financial services such as commercial banking, stock broking, mutual funds, life insurance, and investment banking. *ld 1utual was established more than %/0 years ago and offers a diverse range of financial services in &outh !frica, the Dnited &tates and the Dnited Mingdom. The company is listed on the "ondon &tock ?xchange with a market capitaliation and has its head<uarters in "ondon. LIFE INSURANCE CORPORATION OF INDIA &LIC' "ife Insurance .orporation of India A"I.B is an autonomous body authoried to run the life insurance business in India with its 8ead *ffice at 1umbai. It has been established by an act of the +arliament and started functioning from %T;T%;/2. ,2 "I. is the biggest insurance player in the country. *ut of the total premium of @s ,422 crore generated by the insurance industry through group business in the year )00/302, "I. alone accounted for @s ,0/% crore. In the financial year )00/302, "I. has grown at ,0.267. In respect of number of lives insured, "I. has shown a growth of over %/)7. In respect of number of schemes, "I. has a growth of )7. "I.Fs market share in number of individuals covered and number of policies stands at 447 and 6%7, respectively. METLIFE INDIA INSURANCE
1et"ife India Insurance .o. +vt "td is a joint venture between 1et"ife $roup and its Indian partners. The Indian partners include CQM #ank, 'hanalakshmi #ank, Marnataka #ank, Marvy .onsultants, $eojit &ecurities, 0ay)0ealth, and 1ini 1uthoothu. 1et "ife $roup has presence in !merica and !sia and has an experience of over %,4 years in providing financial services. The 1et"ife companies are the number one life insurer in the D.&. with approximately D& O).6 trillion of life insurance in force. 1et"ife serves 66 of the top one hundred F*@TD5? /00 companies. 1et"ife entered Indian insurance sector in )00%. RELIANCE LIFE INSURANCE
@eliance "ife Insurance .ompany "imited is a part of @eliance .apital "td. of the @eliance 3 !nil 'hirubhai !mbani $roup. The company ac<uired %00 per cent ,4 shareholding in !1+ &anmar "ife Insurance .ompany in !ugust )00/. Taking over !1+ &anmar "ife provided @eliance "ife Insurance a readymade infrastructure and a portfolio. !1+ &anmar "ife Insurance was a joint venture between !1+, !ustralia and the &anmar $roup. 8ead<uartered in .hennai, !1+ &anmar had over ;0 offices across the country, ;,000 agents, and more than ;00 employees. S$I LIFE INSURANCE &#I "ife Insurance is a joint venture between the &tate #ank of India and .ardif &! of France. &#I "ife Insurance is registered with an authorised capital of @s /00 crore and a paid up capital of @s ,/0 crores. &tate #ank of India is the largest banking franchise in India. !long with its 4 !ssociate #anks, &#I $roup has a network of over %-,000 branches across the country, the largest in the world. .ardif is a wholly owned subsidiary of #5+ +aribas, which is The ?uro KoneFs leading #ank. #5+ is one of the oldest foreign banks with a presence in India dating back to %620. S%RIRAM LIFE INSURANCE &hriram "ife Insurance .ompany "td is a joint venture between the .hennai3 based &hriram $roup and the &outh !frican insurance major &anlam. ,6 The company launched its operations in India in 'ecember )00/. &hriram "ife has set a target of achieving a premium income of @s %%0 crore during the first year of operations. 0hile focussing largely on the strong network of over 2/,000 agents and distribution network of more than //0 branches, &hriram "ife is also contemplating bancassurance alliances with couple of banks. TATA AIG LIFE INSURANCE
Tata !I$ "ife Insurance .ompany "imited is a joint venture between Tata $roup and !merican International $roup, Inc. A!I$B. Tata $roup is one of the oldest and leading business groups of India. Tata $roup has had a long association with IndiaFs insurance sector having been the largest insurance company in India prior to the nationalisation of insurance. The "ate &ir 'orab Tata, was the founder .hairman of 5ew India !ssurance .o. "td., a group company incorporated way back in %;%;. !merican International $roup, Inc is the leading D.&. based international insurance and financial services organiation and the largest underwriter of commercial and industrial insurance in the Dnited &tates. !I$ has one of the most extensive life insurance networks in the world. ,; 3.; S.2.O.T ANAL)SIS OF AVIVA LIFE INSURANCE STRENGT%S +remiums are increasing and so are commissions. The variety of products is increasing. Transparency in working is followed. Fund charges are less i.e. 0.67 &tronger financial base. ?mployee centric organiation. 2EA(NESS &trong competitors like "I., I.I.I +ru, #irla &un "ife etc. +remium is priced high as compared top the market leader. Infrastructure cost is high. "ess expenditure on promotion. +roducts not customied for lower segment. -0 OPPORTUNITIES The ability to cross sell financial services barely being tapped. Technology is improving to the point that paperless transactions are available. The clientFs increasing need for an Ginsurance consultantG can open new ways to service the client and generate income. T%REATS $overnment regulations on issues like health care, mold and terrorism can <uickly change the direction of insurance. The increasing expenses and lower profit margins. Intense competition from "I.. -% C%APTER 4 / O$JECTIVE D MET%ODOLOG) -) /.3 Si*nii5an5e %. @isk and Insurance ). $lobal insurance ,. +enetration of insurance sector at world level as well as in India -. &aving habits of Indian people /. "iberaliation of Indian Insurance &ector 2. @ole of the Insurance @egulatory !uthority of India 4. +erformance of private players in insurance sector 6. ! comparitive stidies on private and public sector of insurance companies ;. +erformance evalustion of non3ife insurers Apublic and private %0. ?valustion of $eneral Insurance &ector in India %%. Drban and @ural penetration of Insurance sector in India %). @ole of Insurance &ector In terms of infrastructure development in India -, /./ Ob7e5ti,e- ! t"e Stud8 The summer internship program was carried with two prime objectives in mind. The entire program was divided into two parts> a.B The marketing for !viva "ife Insurance. b.B ! survey conducted on the people of 'elhi. The marketing of +roducts of !viva "ife Insurance is the second most important responsibility next to the recruitment of agent advisors in the organisation. If the manager is able to properly market the products of the organisation either directly or indirectly, half of his job is done. 'uring my internship program, i was involved in marketing and selling the produts of !viva "ife Insurance with my &ales 1anager and the !ssociate +artner. This enabled me to get a first hand experience and learning of this important function, which will be very helpful my future. The survey was conducted on the people of 'elhi. The main objective behind the survey was to find out the factors which motivate the peple to choose !viva "ife Insurance. -- /.: S5!+e ! t"e Stud8 To understand the... %. +hilosophy of customer orientation ). Firms to uncover customer needs first ,. .oordinate all their activities to satistfy those needs -. 1arketing research is vital to maintaining and improving a company(s overall competitiveness. /. Dnderstanding the external environment helps to intelligently plan for the future 2. 1any firms continually collect and evaluate environmental information to identify future market oppurtunities and threats. 4. 5ature of its product 6. 0ays to promote their product ;. 0ill identify whether the marketing mix is effective enough to maximise the benifits to the firm from available oppurtunities. %0. 1any successful products launches were preceded by extensive marketing research. -/ COLLECTION TOOLS UD?&TI*55!I@? ! <uestionnaire is a structured techni<ue for data collection consisting of a series of <uestion, written or verbal, to which a respondent replies , is interpret as <uestionnaire. 1*'? *F '!T! .*""?.TI*5 The data has been collected through filling up of the <uestionnaire from different various segments of the society and interviewing them about their various options of investments. SAMPLE SI?E
Research Undertaken Primary Research Secondary Research Indepth Interview Questionnaires for employees Internet browsing Reference Books -2 C"a+ter1: C!n5e+tual Di-5u--i!n -4 The survey was conducted on the people of 'elhi. The main objective behind the survey was to find out the factors which motivate the peple to choose !viva "ife Insurance and also to find out how the organisation can help their customers. The survey was carried out on as sample sie of %00 people. It was a <uestionnaire3 based survey in which I personally sat with each and every sample and discussed the various <uestion. This practice though time consuming help me in bringing out the best results as I could not get the most intriguing answers and also people felt more comfortable in giving genuine feed back and suggestion. The survey was carried for over a period of one month and each was an enriching experience as each day the people had some enriching experience to share. 'uring this period, I covered every segment of the society, i.e i tried to cover some young age people, some middle age and also those who were nearer to their retirements. The survey also gave me an oppurtunities to interact with a good number of people. I also coducted my survey with some of the agent and advisors of !viva "ife Insurance. They revealed some interesting facts about the motivational needs and expectstions of the agent advisors. 1ore than 207 of the advisors who work with !viva "ife Insurance currently have their own business or other job and the primary reason why they have joined !viva "ife Insurance is extra money. The gragh below shows the various factors which motivates the agent advisord> -6 Fi* 3.3 The two most successful producys of !viva "ife Insurance are 0hole "ife +lan and "ife 1aker +lan, the former being the risk cover plan and the latter being the investment plan. *n asking to the existing customers of !viva "ife Insurance, there was a miwed response where 207 of the people feel that products are good enough while the remaining -07 say that the produnct range are not enough. Pr!du5t Ran*e ! A,i,a Lie In-uran5e Fi* 3. / -;
C%APTER 4 6 DATA ANAL)SIS /0 COMPARISION AND ANAL)SIS 3. C!m+ari-i!n ! t"e di-tributi!n ! !55u+ati!n ! t"e re-+!ndent-. Fi*3.: Anal8-i- %6 respondents belonged to the employee in the private sector, 2) belong to the employee in the private sector, %- are self employed and 2 are in the other category. The average score received was calculated by adding the score given by each respondent divided by the total number of respondent. !lso it was noted that in case of "I. there were total of %, respondents who give rating of / or less than / but the same in case of !viva "ife Insurance were only ,.
INTERPRETATION In the above figure all the respondents marked more than one option given in the <uestionnaire advertisements in print media, television, radio etc, and %% responses went in favor of word of mouth communication through friends and relatives. *f the total respondents of !viva "ife Insurance, ,- responses went in favor of advertisements, )2 went in favour of '&!s, and only - went in favor of friends and relatives. 0 5 10 15 20 25 30 35 Advt. Frends DSAs HDFC SLIC Advt. Frends DSAs /, 6. C!m+ari-i!n ! in5enti,e -5"eme- 8igh satisfied &atisfied 1oderate Dnsatisfied 8ighly unsatisfied LIC )- 4 ; - ) !viva "ife Insurance )2 %0 2 - 2 Table3. Fi* 3. ; /- INTERPRETATION *f the total respondents of "I. Aas shown in figure -.%0B, )6 responded that they are very much satisfied with the incentive schemes associated with their policies, 4 were only satisfied with the incentive scheme, ; were moderate with regards to the incentive scheme and 2 people were either unsatisfied or highly unsatisfied with the incentive schemes. 8owever, of the total respondents of the !viva "ife Insurance, )- were highly satisfied with the incentive scheme associated with their life policy while only 2 people were highly unsatisfied with regards to the same. // ;. Are 8!u intere-ted in +r!du5t- !ered b8 t"e A,i,a Lie In-uran5eF Nes 2%7 5o ))7 0ill think %47 Fi* 3. = INTERPRETATION The good thing is that at least the corporates were <uite eager to find out what !viva "ife Insurance has to offer whereas the major ,; 7 of the corporates were not even interested in the products as they are <uite satisfied by the "I. and they are not in breaking their long relationship with them. The private players will have to play a long battle in order to ensure that they are serious player in the market. #asically corporates think that its too early to invest in private companies as they have just entered the scene and they are unsure of the security they will have about their investment 61% 22% 17% Yes No Will tin! /2 =. Are 8!u -ati-ied Eit" 8!ur +re-ent in-urerF N?& ;/7 5o /7 "5% 5% 0% 20% #0% 60% $0% 100% Yes No Yes No Fi*3.< INTERPRETATION 8ere is where the challenge is. Inevitably most of the players are very satisfied with their present insurer which makes it more tough for the private players to attract the corporates. The remaining / 7 are also not very dissatisfied by the services but they are just open to new avenues and are looking forward that private companies come with good offers so that they may shift to them. Thus private players will have to be very proactive and in this regard since "I. is the leader and !viva "ife Insurance is lagging behind its competitors in terms of competition. /4 <. 2"ere E!uld 8!u liCe t! in-ure i *i,en 5"an5eF "I. 3 20 I.I.I 3 %0 !viva "ife Insurance 3 %/ T!T! !I$ 3 ; &#I 3 6 M*T!M 1!8I5'@! 3 ) Fi* 3.G INTERPRETATION Thus we see that the companies are comfortable in having business with govt. owned companies as they feel its safe Q secure to have business with them which is followed by !viva "ife Insurance and then followed by I.I.I Q T!T! !I$ as 60 $ " 10 15 2 0 20 #0 60 L I C S % I & A & A
A I ' I C I C I H D F C
S L I C ( ) & A ( * A H I N D + A
/6 the name T!T! is associated with it which commands huge premium in the market . G. 2"at i- +e!+leH- main 5!n5ern E"ile taCin* a in-uran5e +!li58F &ecurity 407 @eturns %07 Tax rebate )07 Fi* 3. 9 INTERPRETATION +eople invest in insurance mainly because of security concern. TAX REBATE 20% SAVINGS 70% SECURITY 10% TAX REBATE SAVINGS SECURITY /; Fi* 3. 30 INTERPRETATION 8ere we found that -07people are very highly satisfied ,,07 of people are highly satisfied,%%7 are moderate ,%07 of people are low satisfied,;7 are very low satisfied. 20 30. Are 8!u -ati-ied Eit" in-enti,e a--!5iated Ei8" 8!ur +!li58F Fi* 3. 33 Inter+retati!n ,07 people are highly satisfied,-07 satisfied,%/7are moderate,/7 are unsatisfied and %07are highly unsatisfied. 2% 33. 2"at !t"er +lan- !r le>ibilit8 8!u e>+e5t r!m in-uran5e 5!m+anie-F Fi* 3. 3/ Inter+retati!n /07people are satisfied with investment pattern, ,07 are satisfied with more returned and only )07 people expect complimentary gifts. 2) 3/. R!le ! uni!n in t"e !r*aniIati!n. Fi* 3.3: There is hardly any presence of union in the organiation. This industry deals with software productions. !s a result most of the employees are either engineer or post graduate software specialist. The workers performing operational level to decision making are all well educated employees. &o for the welfare of the <uality of work life and other activities related to the welfare of the workers, they are not take into such consideration. #asically this is an industry related to special kind of production. It is not like that of automobile or any other heavy production industry where there is working class like labor. In those industry union exit because the <uality of work life is something different. Their heavy work relating to manual function is present. &o I don(t think there is any need arise for the presence of union. &o, an industry like this has no union. It is one of the important parts of my study of any kind of software industry, where there is no union. From this kind of research I can infer that in recruitment and selection process which is done by the #harti !xa "ife Insurance like this Asoftware industryB, but not by employee(s association. 2, 3:. C"an*e- !55urred in Re5ruitment and Sele5ti!n Pr!5edure In his <uestion I was looking for any sort of changes at list during the preceding two years. ?very year there are some changes take place in recruitment and selection process for better result and production. It is such an industry where in every moment some innovation takes place. &o the !viva "ife Insurance needs some new skills to achieve the re<uired fulfillment. For the last couple of years the !viva "ife Insurance is focusing more on campus interview to give more chances to the fresher. This resembles that the !viva "ife Insurance recruitment policy, the !viva(s needs for greater committed employee and also motive behind concentrating more on fresher, as it is the belief from !viva(s perspective to be working smartly with full enthusiasm. They are also updated with the current concepts, which are re<uired in software industry. The !viva "ife Insurance is dealing in making, developing and maintaining the software packages. The companies target audience is foreign market. 1ost of the customers come from abroad. For these very reason employees has to conduct project in foreign countries. That(s why freshers are targeted to fill up the vacancies. It is also experienced, as the !viva "ife Insurance is dealing with creating software packages, developing and maintaining the software, so it the obvious need for the !viva "ife Insurance is to effectively deal with the foreign market . 1ost of the !viva(s customers are from abroad. For this the employees has to conduct project in the foreign countries, which makes way for the freshers to upgrade their career growth opportunity <uiet wide open. 2- Fi* 3.36 36 Sati-a5ti!n le,el ! 5u-t!mer- Fi* 3.3; Inter+retati!n !ll the customersare satisfied with the services offered by !viva "ife Insurance are 407. They say !viva "ife Insurance is good in customer reletionships. 2/ 3;. 2ell deined +!li58 Fi* 3.3= INTERPRETATION !ccording to a survey of %00 customers, /2 of them were agree on having a well defined policy in the organiation,)- were disagree and the rest )0 were not sure or cant say. 22 C"a+ter 4 ; FINDINGS AND RECOMMENDATIONS 24 FINDINGS It is still finded that people are not aware of services provided or rendered by !viva "ife Insurance, it is because lack of proper proportional activities or adverrtisement. Television is most impoetant source for advertisement, but not the only and reliable source. !viva "ife Insurance also follows the same strategy. .ustomers are very much aware of the type of products ornfinancial advice given to them. #ut still it has been noticed that people do not know the exact brnrfits of the products. #ut however these are very less in number. !viva "ife Insurance are very good in meeting with new people. They do it by conopies, having, references with their existing customers. !viva "ife Insurance is very tranparent with their products and the customers. 26 RECOMMENDATIONS 1ore emphasis should be on promotional activities. +lenty of advertisement should be done through T.L, 5ewspaper and @adio as these media(s are having maximum recall value. Total financial planning and advice should be given to every customer. 1ore business opportunity seminars should be conducted to make people aware of the offer given. The company should <uite fre<uently send their agent to the customer so that they should be aware of the latest offer. The company should attempt to open more and more of its branches in the country so as to promote their product publicity. 2; ANNEJURE 40 Sam+le @ue-ti!nnaire @.3 D! 8!u "a,e an8 lie in-uran5e +!li5ie-F Nes V W 5o V W If Ne 3 5ame of the .ompany XXXXXXXXXXXXXXXX 5ame of the plan XXXXXXXXXXXXXXXXX !nnual !mount of premium . Term of plan XXXXXXXXXXXXXXXXX
!re you satisfied with present insurerI !B N?& #B 5* . @./ 2"i5" are t"e main i--ue- t"at 8!u taCe int! 5!n-iderati!n E"ile +ur5"a-in* an8 lie in-uran5e +!li58F aB &ecurity V W bB @eturns V W cB Tax saving V W dB *thers please specifyXXXXXXXXX @.: Are 8!u aEare ! Unit LinCed In-uran5e Plan- !ered b8 ,ari!u- 5!m+anie- in IndiaF !BI.I.I V W #B M*T!M 1!8I5'@! V W .B T!T! !I$ V W 'B #!C!C !""I!5K V W ?B "I. V W FB #I@"! &D5"IF? V W 4% $B !LIL! "IF? I5&D@!5.? V W 4) @.6 D! 8!u "a,e a lie in-uran5e +!li58 r!m A,i,a Lie In-uran5eF aB Nes V W bB 5o V W @.; I 8e-K E"i5" +!li58 "a,e 8!u taCenF XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX @.= D!e- t"i- +!li58 -ati-8 8!ur inan5ial need-F &Plea-e rate !n t"e -5ale ! 3 t! 30 Eit" !ne bein* lea-t -ati-iedB
@.< Plea-e e>+re-- 8!ur !+ini!n !r t"e +remium- +aid !r t"e ab!,e +!li58F aB Lery high V W bB 8igh V W cB 1oderate V W dB "ow V W eB Lery "ow V W @.G %!E d! 8!u 5!me t! Cn!E ab!ut t"i- +!li58F A+lease tickB. aB !dvertisements V W bB Friends and relatives V W cB 'irect selling agents V W. dB *thers Aplease specifyBXXXXXXXXXXXXXXXXXXXXX. @.9 Are t"ere an8 in5enti,e- &ta> beneit- !r $!nu-e-' a--!5iated Eit" t"i- +!li58F &Plea-e *i,e a++r!+riate detail- ab!ut it'. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 4, 30. Are 8!u -ati-ied Eit" t"e in5enti,e- a--!5iated Eit" 8!ur +!li58F aB 8ighly satisfied V W. bB &atisfied V W cB 1oderate V W dB Dnsatisfied V W eB 8ighly Dnsatisfied V W. @.33 I 8!u are *i,en a 5"!i5eK E"i5" !ne 8!u taCe. !B I.I.I #B *1 M*T!M 1!8I5'@! .B T!T! !I$ 'B !viva "ife Insurance ?B "I. FB &#I @3/ 2"at !t"er +lan- !r le>ibilit8 8!u e>+e5t r!m In-uran5e 5!m+anie-F
!B 1ore returns V W #B .omplementary gifts V W .B Investment +attern V W @3: 2"i5" 5!m+an8 Eill 8!u +reer E"ile taCiin* an in-uran5e +!li58F "I. 3 V W I.I.I 3 V W !LIL! "IF? I5&D@!5.? 3 V W T!T! !I$ 3 V W &#I 3 V W M*T!M 1!8I5'@! 3 V W @36 Are 8!u -ati-ied Eit" 8!ur +re-ent in-urerF N?& V W 5o V W 4- $I$LIOGRAP%)