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1. INDUSTRY PROFILE
Introduction to Insurance sector:
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the
caravan trade by giving loans that had to be later repaid with interest when the goods arrived
safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice
that’s perhaps, was how insurance made its beginning. Life insurance had its origins in
ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its
members as well as help survivors by making some payments.
As European civilization progressed, its social institutions and welfare practices also got
more and more refined. With the discovery of new lands, sea routes and the consequent
growth in trade, medieval guilds took it upon themselves to protect their member traders from
loss on account of fire, shipwrecks and the like.
Since most of the trade took place by sea, there was also the fear of pirates. So these guilds
even offered ransom for members held captive by pirates. Burial expenses and support in
times of sickness and poverty were other services offered. Essentially, all these revolved
around the concept of insurance or risk coverage. That's how old these concepts are, really. In
1347, in Genoa, European maritime nations entered into the earliest known insurance contract
and decided to accept marine insurance as a practice.
Enter companies...
The first stock companies to get into the business of insurance were chartered in England in
1720. The year 1735 saw the birth of the first insurance company in the American colonies in
Charleston, SC.
In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation
in America for the benefit of ministers and their dependents.
However, it was after 1840 that life insurance really took off in a big way. The trigger:
reducing opposition from religious groups
In 1835, the infamous New York fire drew people's attention to the need to provide for
sudden and large losses. Two years later, Massachusetts became the first state to require
companies by law to maintain such reserves. The great Chicago fire of 1871 further
emphasized how fires can cause huge losses in densely populated modern cities. The practice
of reinsurance, wherein the risks are spread among several companies, was devised
specifically for such situations.
There were more offshoots of the process of industrialization. In 1897, the British
government passed the Workmen's Compensation Act, which made it mandatory for a
company to insure its employees against industrial accidents. With the advent of the
automobile, public liability insurance, which first made its appearance in the 1880s, gained
importance and acceptance?
In the 19th century, many societies were founded to insure the life and health of their
members, while fraternal orders provided low-cost, members-only insurance. Even today,
such fraternal orders continue to provide insurance coverage to members as do most labor
organizations. Many employers sponsor group insurance policies for their employees,
providing not just life insurance, but sickness and accident benefits and old-age pensions.
Employees contribute a certain percentage of the premium for these policies.
In India...
Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of
Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda.
The term suggests that a form of "community insurance" was prevalent around 1000 BC and
practiced by the Aryans.
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Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in
1870. Other companies like Oriental, Bharat and Empire of India were also set up in the
1870-90s. It was during the swadeshi movement in the early 20th century that insurance
witnessed a big boom in India with several more companies being set up. As these companies
grew, the government began to exercise control on them. The Insurance Act was passed in
1912, followed by a detailed and amended Insurance Act of 1938 that looked into
investments, expenditure and management of these companies' funds.
By the mid-1950s, there were around 170 insurance companies and 80 provident fund
societies in the country's life insurance scene. However, in the absence of regulatory systems,
scams and irregularities were almost a way of life at most of these companies. As a result, the
government decided to nationalize the life insurance business in India. The life insurance
corporation of India was set up in 1956 to take over around 250 life companies.
For years thereafter, insurance remained a monopoly of the public sector. It was only after
seven years of deliberation and debate - after the RN Malhotra Committee report of 1994
became the first serious document calling for the re-opening up of the insurance sector to
private players -- that the sector was finally opened up to private players in 2001.The
INSURANCE REGULATORY & DEVELOPMENT AUTHORITY, an autonomous
insurance regulator set up in 2000, has extensive powers to oversee the insurance business
and regulate in a manner that will safeguard the interests of the insured.
INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.
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1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,1956, with a
capital contribution of Rs. 5 crore from the Government of India. The General insurance
business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd.,
the first general insurance company established in the year 1850 in Calcutta by the British.
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The reforms were aimed at “creating a more efficient and competitive financial system
suitable for the requirements of the economy keeping in mind the structural changes currently
underway and recognizing that insurance is an important part of the overall financial system
where it was necessary to address the need for similar reforms…”
In 1994, the committee submitted the report and some of the key recommendations included;
1.) Structure
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
2.) Competition
No Company should deal in both Life and General Insurance through a single entity.
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
Only one State Level Life Insurance Company should be allowed to operate in each
state.
Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.
4.) Investments
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GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time).
5.) Customer Service
The committee emphasized that in order to improve the customer services and increase the
coverage of the insurance industry should be opened up to competition. But at the same time,
the committee felt the need to exercise caution as any failure on the part of new players could
ruin the public confidence in the industry. Hence, it was decided to allow competition in a
limited way by stipulating the minimum Capital requirement of Rs.100 crores. The
committee felt the need to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act as independent companies with economic
motives. For this purpose, it had proposed setting up an independent regulatory body.
Insurance Sector
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4.47 Reforms in the insurance sector commenced with the enactment of the Insurance
Regulatory and Development Authority Act 1999, which facilitated the entry of private
insurance companies into the Indian insurance market. The Insurance Regulatory and
Development Authority (IRDA) was set up on April 19, 2000 to protect the interest of the
holders of insurance policies, and to regulate, promote and ensure orderly growth of the
insurance industry.
2. COMPANY PROFILE
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Adequate experience of running a large organization.
A 10 million strong base of customers using Bajaj products.
Advanced Information Technology in extensive use.
Experience in the financial services industry through Bajaj Auto Finance Ltd.
Allianz AG
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000
employees. At the top of the international group is the holding company, Allianz AG, with its
head office in Munich.
Allianz AG is the business of General (Property and Casualty) Insurance; Life and Health
Insurance and Asset Management and has been in operation for over 110 years. Allianz is one
of the largest global composite insurers with operation in over 70 countries. Further, the
group provides Risk Management and Loss Prevention Services. Allianz has insured most of
the world’s largest infrastructure projects (including Hong Kong Airport and channel tunnel
between UK and France), further Allianz insures the majority of Fortune 500 companies,
besides being a large industry insurer, and Allianz has a substantial portfolio in the
commercial and personal lines sector, using a wide variety of innovative distribution
channels.
Allianz Ag – A Global Financial Powerhouse
3rd largest Asset under Management (AUM) & and largest amongst insurance cos.
AUM of Rs. 51, 96,959 cr.
VISION:
MISSION:
We aim to be the top new life insurance company in the market. This does not just mean
being the largest or the most productive company in the market, rather it is a combination of
several things like-
VALUES
Security: Providing long term financial security to our policy holders will be our constant
endeavor. We will be do this by offering life insurance and pension products.
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Trust: We appreciate the trust placed by our policy holders in us. Hence, we will aim to
manage their investments very carefully and live up to this trust.
Innovation: Recognizing the different needs of our customers, we will be offering a range of
innovative products to meet these needs.
d) PRODUCTS/SERVICE PROFILE
Product of the company
Traditional Plans:
1. Life Time Care: Is a whole life plan, where it helps you financially at the time when your
regular income ends. That is it provides survival benefits at the age of 80. The plan also has
additional benefits like Waiver of Premium, Accidental Death Cover & Disability Cover and
Critical Illness Cover & Hospital Cash Cover.
2. Super Saver: Is a regular premium endowment plan, which enables the policyholder to
save an amount regularly for the future. The plan also has an extra benefit of Guaranteed
Additions to the sum assured, at the end of each policy year.
3. Save Care Economy SP: A 10year single premium endowment plan which provides
savings with high risk cover. This plan also participates in the company’s profits. It is a high
risk but has easy liquidity and high returns.
Money Back Plan: A money back plan which guarantees 5 easy payouts giving up to 125%
plus (+) bonuses. Also 4 times a life cover. The additional benefits offered are
• Family Income Benefit
• Accidental Death Benefit and Disability Benefit.
• Critical Illness Benefit and Hospital Cash Benefit.
Term Plans
1. Term Care: Is a term Assurance plan which provides life cover and return of premiums
paid at the time of maturity. It has the option of single premium payment. It is the only pure
Term Plan which provides Hospital Cash Benefit.
2. New Risk Care: Is a plan with regular/single premium payment options. This plan comes
with a lowest cost for a Life Insurance cover. With regular premium plan you get additional
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rider benefits. Also accidental death benefit and accidental permanent total/partial disability
benefit. Besides that you can also avail of critical illness benefit and hospital cash benefit.
3. Protector: Is a mortgage reducing term assurance plan. At a low premium amount you can
secure your family from the burden of paying the Home Loan in your absence. You get an
option of both Regular Premium payment and single premium payment. Also there is an
option of Joint life availability, where the co-applicant can be also covered in the plan.
B) Retirement
1. New Unit Gain Easy Pension plus RP: A unit linked pension plan without life cover. It
has regular premium payment mode. An option to take a tax-free lump sum up to 33% of
Sum Assured. You can invest in any 6 funds. With 3 free switches every year. Also open
market option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other
life insurer.
2. New Unit Gain Easy Pension plus SP: A unit linked pension plan without life cover. It
has single premium payment mode. An option to take a tax-free lump sum up to 33% of Sum
Assured. You can invest in any 6 funds. With 3 free switches every year. Also open market
option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life
insurer.
3. Swarna Vishranti: Is a plan with an option to take a tax-free lump sum up to 33% of Sum
Assured + Accrued Bonuses. Open Market option: Purchase immediate annuity from Bajaj
Allianz Life Insurance or any other Life Insurance Company. And also additional benefits
can be availed of.
4. Future Secure: It is a plan which secures your future.
5. Future Income Generator: It helps you maintain the same lifestyle you lead now ,after
your retirement. The saving today becomes your wealth and support to help secure your
future. The plan is about wealth creation, smart savings and peace of mind along with a
corpus, which secures your life, post retirement.
Women Insurance Plans
1. Housewives: Housewives need to safeguard their financial independence. There are
additional benefits like the Mahila Gain feature which offers benefits like.
• Critical Illness Benefits.
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• Reconstructive Surgery Benefits for Breast(s) due to Breast Cancer.
• Congenital Disability Benefits.
• Complications of Pregnancy Benefits.
2. Working Women: This plan helps the working women to protect them self, their family
and plan for their future. The insurance, investment, pension and health products have been
specially customized to suite to every specific need of a woman.
Children Plans
Child Gain: Is a plan where it creates funds for critical stages in your Childs life like
education, marriage or even to start a business. It has the benefit of low premium rates.
Health Plans
1. Health care: Is a plan with 6- in-1 Health Insurance that offers:
• Life Cover
• Hospital Cash benefit
• Surgical benefit
• Post Hospitalization Benefit
• Critical Illness Cover
• Accidental Permanent Total / Partial Disability (APT/PD)
2. Family Care First: It is a plan for the whole family. This unique hospitalization plan gives
you health cover for your entire family. You can secure your family with one plan.
3. Care First: A Medical Insurance plan till the age of 65years. And you can renew the
policy every 3 years. The premium rate is level and guaranteed for the length of each policy
term of 3 years with extra benefits like day care treatment and pre and post hospitalization
treatment
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e) AREA OF OPERATION
Bajaj Allianz today has a country wide network connected through the latest technology for
quick communication and response in over 200 towns spread across the length and
breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the
offices are interconnected with the Head Office at Pune. During the year, company
continued to increase its focus on service quality. The company aims to provide consistent
and high quality service across the country through, all channels of delivery - branches, call
centers, internet and the customer portal. Towards this end, periodic service audits conducted
across all regional offices and at the call centers provide useful insights into customer
requirements and expectations helping the company improve its processes. The company has
implemented a Quality Initiative across its offices which regularly measures the effectiveness
of its processes, reduces leakage and contributes to increasing revenues, managing costs and
improving service quality. The company has also launched a completely revamped website
with a big focus on customer education and knowledge. The company has continued to
strengthen its presence in the virtual world, both for creating awareness and facilitating self-
service. Your company continues to explore strategic outsourcing partnerships with a focus
on handling volumes and reaping economies of scale. The combination of outsourcing
partnerships and technology implemented by the company is assisting in improvement of
service turnaround times.
f) OWNERSHIP PATTERN
BAJAJ Allianz Life Insurance Company is a joint venture between two leading
conglomerates, Bajaj Auto Limited, one of largest manufactures of motorcycles and scooters
in the world, and Allianz AG of Germany one of the largest insurance companies. Bajaj
Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company
received the Insurance Regulatory and Development Authority (IRDA) certificate of
Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in India.
Bajaj Allianz Shareholder Capital Base stands at Rs. 500 crore with Bajaj Auto Limited and
Allianz AG of Germany holding 74% and 26% stake respectively. It is the largest private
player in the Insurance Industry in India with a market share of around 34% amongst the
private companies and second to LIC. The total market share of Bajaj Allianz as of 31 st
March 2006 is at 12%.
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g) COMPETITORS INFORMATION
ICICI PRUDENTIAL: ICICI prudential insurance is a joint venture of ICICI bank and
prudential plc. a leading financial service group in the UK. Total capital stands for Rs. 37.72
billion, with ICICI Bank holding a stake of 74% and Prudential plc. Holding 26%. ICICI
begin their operations in December 2000 after receiving approval from IRDA. Now ICICI
prudential is having over 1000 offices, over 270000 advisors and 21bancassurance partners.
ICICI Prudential was the first life insurer in India to receive a National Insurer Financial
Strength rating of AAA from Fitch ratings. ICICI prudential is working on the base of five
core values-
• Integrity
• Customer first
• Boundary less
• Ownership
• Passion
Key features:
• Understanding the needs of customers and offering them superior products and
service.
• Leveraging technology to service customers quickly, efficiently and conveniently.
• Developing and implementing superior risk management and investment strategies to
offer sustainable and stable returns to policyholders.
• Providing an enabling environment to foster growth and learning for employees.
HDFC standard life insurance: HDFC Standard Life Insurance Company Ltd. is one of
India's leading private insurance companies. It is a joint venture of Housing Development
Finance Corporation Limited, India's leading housing finance institution and a Group
Company of the Standard Life in UK. HDFC as on March 31, 2007 holds 81.9 per cent of
equity venture. Gross premium income of the HDFC for the year ending March 31, 2007 was
Rs. 2, 856 crores and new business premium income was Rs. 1,624 crores. The company has
covered over 8, 77,000 lives year ending March 31, 2007. HDFC standard is having 1000
advisors in 11 towns.
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Key features:
Reliance life insurance: Reliance Life Insurance Company Limited is a part of Reliance
Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of
India’s leading private sector financial services companies, and ranks among the top 3 private
sector financial services and banking companies, in terms of net worth. Reliance Capital has
interests in asset management and mutual funds, stock broking, life and general insurance,
proprietary investments, private equity and other activities in financial services. Reliance
Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the
Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934.
Aviva life insurance: Aviva is UK’s largest and the world’s fifth largest insurance Group. It
is one of the leading providers of life and pensions products to Europe and has substantial
businesses elsewhere around the world. Aviva has a joint venture of Dabur, one of India's
oldest, and largest Group of companies. And country's leading producer of traditional
healthcare products. In accordance with the government regulations Aviva holds a 26 per cent
stake in the joint venture and the Dabur group holds the balance 74 per cent share. Aviva
has 193 Branches in India (including rural branches) supporting its distribution network.
Through its Banc assurance partner locations, Aviva products are available in more
than 2,795 locations across India. Aviva has a sales force of over 30000 financial planning
advisors.
Key features:
• Through the “Financial Health Check” (FHC) Aviva’s sales force has been able to
establish its credibility in the market. The FHC is a free service administered by the
FPAs for a need-based analysis of the customer’s long-term savings and insurance
needs. Depending on the life stage and earnings of the customer, the FHC assesses
and recommends the right insurance product for them.
• Introduced the concept of Banc assurance in India.
• Products to provide customers flexibility, transparency and value for money.
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• Differentiation in fund management operations.
• Innovation
• Long term relationship
• Customer centered and result focused vision
• Creating high performance organization
• Working with integrity, fairness and financial prudence
• Partnering with internal and external customers
Max New York life insurance: Max New York Life Insurance Company Ltd. is a joint
venture between New York Life, a Fortune 100 company and Max India Limited, one of
India's leading multi-business corporations The Company's paid up capital is Rs. 907.4 crore.
Max New York life is working on the base of six core values-
• Excellence,
• Honesty,
• Knowledge,
• Caring,
• Integrity
The Company practices a lot of importance on its selection process of insurance advisors
which comprises four stages - screening, psychometric test, career seminar and final
interview. 337 agent advisors have qualified for the Million Dollar Round Table (MDRT)
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membership in 2007 and Max New York Life has moved up to 21st rank in MDRT global
list.
Key features:
• Max New York Life has adopted prudent financial practices to ensure safety of
policyholder's funds.
• Investing significantly in its training programme and each agent is trained for 152
hours as opposed to the mandatory 100 hours stipulated by the IRDA before
beginning to sell in the marketplace.
• Using a five-pronged strategy to pursue alternative channels of distribution which
include the franchisee model, rural business, direct sales force involving group
insurance and telemarketing opportunities, banc assurance and corporate alliances.
Bharti Axa life insurance: Bharti Axa life insurance is a joint venture between Bharti, one
of India’s leading business groups with interests in telecom, agri business and retail, and Axa
world leader in financial protection and wealth management. The joint venture company has
a 74% stake from Bharti and 26% stake of Axa. The company started its operations in
December 2006. Now company is having over 5200 employees across over 12 states in the
country. Company is working on the base of five core values-
• Professionalism
• Innovation
• Team Spirit
• Pragmatism
• Integrity
Key features:
Tata AIG life insurance: Tata AIG Life Insurance Company Limited (Tata AIG Life) is a
joint venture company of 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. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG
Life Insurance Company started to operate its business in India on April 1, 2001. Tata AIG is
having 3000 advisors all over India.
Key features:
ING Vysya life insurance: ING Vysya Life Insurance Company Limited a part of the ING
group the world’s largest financial services provider entered in the private life insurance
industry in India in September 2001.ING Vysya Life is currently present in 246 cities and has
a network of over 300 branches, staffed by 7,000 employees and over 51,000 advisors,
serving over 5.5 lakh customers. ING Vysya Life has a diversified distribution channels,.
While Tied Agency remains the strongest channel, the Alternate Channels business within
ING Vysya Life is one of the fastest growing distribution channels. ING Vysya Life has
strengthened its position as the unparalleled leader in the life insurance industry in
cooperative banks tie ups. The company currently has tie ups with 130 cooperative banks
across the country. The Alternate Channels division has Banc assurance, ING Vysya Bank,
Corporate Agents and SMINCE. ING Vysya is working on the base of five core values-
• Professionalism
• Entrepreneurial
• Trustworthy
• Approachable
Birla sun life insurance: Birla Sun Life Insurance Company Limited (BSLI) is a joint
venture between the Aditya Birla Group and the Sun Life Financial Services of Canada. It
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started operations in March 2001 after receiving its registration license from IRDA in January
2001. Company is having more than 45 branches across India.
Key features:
AEGON, an international life insurance, pension and investment company, Religare, one of
India’s leading integrated financial services groups and Bennett, Coleman & company,
India’s largest media house, have come together to launch AEGON Religare Life Insurance
Company Limited. This venture is dedicated to build a firm future, both for customers and
employees and will continue to balance a local approach with the power of an expanding
global operation.
We launched our pan-India multi-channel operations in July, 2008 with over 30 branches
spread across India. Our business philosophy is to help people plan their life better. We
provide high quality advice to our customers and offer superior customer service.
The shareholding pattern of the Joint Venture is as follows - Canara Bank holds 51% equity,
HSBC Insurance (Asia Pacific) Holdings Ltd 26% and Oriental Bank of Commerce 23%. The
Venture has an initial paid up capital of INR 325 crores which will further increase in line
with our expansion plans.
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The Company commenced business 16th of June, 2008 after receiving requisite approvals
from the Insurance Regulatory Development Authority (IRDA). Canara HSBC Life has
access to 4100 bank branches all over India.
h) INFRASTRUCTURAL FACILITIES
BAJAJ ALLIANZ is providing good infrastructural facilities which are required for
employees to perform their work in a better way. During the year, the Company has invested
in additional infrastructure capacity and human capital, in terms of offices, technology, staff,
financial consultants, in order to be well positioned to increase the growth momentum in the
year ahead. The company stepped up the recruitment program in the latter part of the year in
preparation for the next year.
BAJAJ ALLIANZ providing medical card (BALIC medical card) to the employee, in which
employee can take medical facility up to 5 lakhs. Employee can use this facility for their
family also. BAJAJ ALLIANZ providing online attendance system for their employee.
It also provide online official id to their employee.
i) ACHIEVEMENT/AWARDS:
Bajaj Allianz Life Insurance has been awarded the SKOCH Financial Inclusion
Award 2011 for its execution of financial inclusion initiatives through life insurance
across India. Financial inclusion is the delivery of financial services at affordable
costs to low income segments of society.
Bajaj Allianz has received “iAAA rating, from ICRA Limited, an associate of
Moody’s Investors Services, for Claims Paying Ability. This rating indicates highest
claims paying ability and a fundamentally strong position.
Bajaj Allianz General Insurance has received the prestigious “Business Leader in
General Insurance”, awarded by NDTV Profit Business Leadership Awards 2008. The
company was one of the top three finalists for the year 2007 and 2008 in the General
Insurance Company of the Year award by Asia Insurance Review.
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j) WORK FLOW MODEL (END TO END)
The work flow model of the organization is represented by a flow chart.
Dealers/ salesmen / surveyor obtain contact information about prospective customer
Client Policy
document
Rejection
CUW (central
Rejection Rejection under
Sales promoter
(Bank) / sales
officer (Aviva)
Rejection Rejection
RPC (regional
process center)
Branch operation
Sales 22 Operation
manager
K) FUTURE GROWTH AND PROSPECTUS
Bajaj Allianz, in the present scenario is growing at an aggressive pace. The company does a
lot of survey & analysis in the market to discover customer’s need and expectation and tries
to improvise on its existing market linked plans along with insurance policies.
Bajaj Allianz Life Insurance, one of the leading private insurance companies in India,
is eyeing to double its market share to 10 per cent in the health insurance segment
over the next three years. Presently, the company's market share in health insurance,
among all the life insurers, is around 5%, which it plans to increase it to 10% in a
three-year period. The company launched the latest insurance policy, in order to
strengthen the Indian insurance industry's focus on women.
Bajaj Allianz Life Insurance has already launched one product this quarter (Q1 FY
11) in the traditional category -Invest plus Premier- and has lined-up a few more for
in Q2.
According to Bajaj Allianz Life Insurance CEO, Kamesh Goyal, “In Q2, we plan to
launch a few products--our plans will be finalized by June 30"
Many of the products of Bajaj Allianz in the pipeline, company have filed for a few
with IRDA and were awaiting its approval.
Currently the company has maintained the no. 2nd position in the general insurance
industry and the next plan of company is to maintain the same position in the life
insurance sector also. Currently company has the market share of 4% in life insurance
and the main focus of the company is to strengthen their position in the next
upcoming year by launching some more value added product.
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3) MCKINSEY 7-S MODEL
The 7s model are a frame work for analyzing organizations and their effectiveness. It looks
at seven key elements that make the organization successful, or not; a structure; a system,
skills, staff, shared values.
Consultants at McKinseys and company developed by 7s models in the late 1970s to help
managers address the difficulties of the organization change. The model shows that
organizational immune system and the many inter connected variables involved make change
complex, and that an effective change effort must address many of these issues
simultaneously.
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The 7s model is a tool for managerial analysis and action that provides structure with which
to consider a company as whole, so that the organizational problems may be diagnosed and a
strategy may be developed and implemented.
The seven diagrams illustrates the multiplicity interconnectedness of elements that
organization’s ability to change. The theory helped to managers thinking about how
company could be improved. It says that it is not just a matter of devising a new strategy and
following it through. Nor is it a matter of setting a new system and letting them generate
improvements?
To be effective, your organization must have degree of fit or internal alignment among all the
7s. Each S must be consistent with the reinforcement of the other ‘S’. All ‘S’ are interrelated
so a change in one has a ripple effect on all others. It is impossible to make progress on one
without making progress on all. Thus, to improve the organization you have to master
system thinking and pay attention to all of the seven elements at the same time. There is no
starting point or implied hierarchy different factors may drive the business in any one
organization.
STRUCTURE
The structure defines former relationship and the use of people in the organization. In
today’s complex and ever changing environment, successful organization may take
temporary structural change to cope with specific strategic tasks without abandoning basic
structural division throughout the organization.
Organizational structure with results from the organizing process is the basic frame work
within which the decision making behavior of an executive takes place. It is an establishment
pattern of relationship among the components of the organization.
In the BAJAJ ALLIANZ each and every department is empowered with the officer, clerk
and sub staff. The authority is delegated to officer/manager to extract work from the staff.
The each department consists of members based on its requirements. Thus it is having an
effective work on the various activities efficiently and effectively.
The board of directors, chair, and managing director (CMD)
Top management is responsible for all the organizational activities and also they are
responsible for decision making and performance taken by each department.
Middle level management is concerned about their respective departmental activities.
The departmental managers communicate with their respective department activity to
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the top level management regularly or weekly. Marketing department, HR
department, finance department constitute this level of management. Each of these
departments is headed by respective director and they are responsible for their
departmental activities.
The lower level management consists of assistant manager of each department. They
will communicate and report their performance and activity to the middle level
manager.
ORGANIZATION STRUCTURE:
CEO/M.D
AREA
SALES
DISTRICT
MANAGER
MANAGER
TERITORY
MANAGER
26
ADVI ADVIS AD
OR VISOR
SOR
BRANCH
BRANCH
ASSISTANT
COMMERCIAL TERRITORY
CO- SALES
EXECUTIVE MANAGER
MANAGER
ORDINATOR
NON- STAFF
SECURITY
HR DEPARTMENT CHART
HR Manager
Admin. Staff
HR Executive
27
Trainers’
Department Profile
3.3.1 HUMAN RESOURCE DEPARTMENT
Human Resource Department
The success of an organization depends upon the quality of its work force. HR department is
responsible for the recruitment and selection of employees based on ability, skills and
qualification. The HR department is also responsible of certain activities concerned with the
employees.
Objectives of Human Resource Department:
To maintain a healthy relationship and act as a mediator between the employer and
employees.
To recruit and select prospective candidate, arrange for an interview and fill vacancies
in the concerned department.
Personnel department is responsible for all the good and bad works done by the
workers.
HR department has to maintain the good relationship with all the other departments.
Recruitment:
It handles the recruitment and the appointment of the required staff for various
department of an organization.
Appointment:
The person so appointed or selected will be placed in the vacant post defining the
respective jobs to be done.
Induction:
Later the induction programme of the employees will be arranged for to introduce all
the department of company by the labor officer as well as the concerned department
28
head. Therefore, the employees can come in terms with the objectives of the
company and his participation in fulfillment of the company objectives considering
himself as an essential ingredient of the company.
Training:
This is also one of the important functions of the department, keeping in view to
update his/her knowledge and to increase his/her efficiency, so after sometime such
programme are arranged by this department and employees of the company are kept
in touch with the least ways of the morale booster and fondness towards the company
is injected in the blood of employees.
Employees are couched and instructed by training instructions, they learn the job by
personal observation and practice. It is learning by doing.
Compensation Components
The compensation that is given in your appointment letter comprises of base
Salary, FCP (Flexible Compensation Plan), and Employers contribution to provident
Fund Fund and Employers contribution to Gratuity. Base salary is as per company
policy is not flexible amount since a lot of statutory and non-statutory benefits are
linked to the base salary.
Statutory Benefits
The Provident Fund and Gratuity are governed by Acts of Law and are mandatory.
29
Provident Fund
The Provident Fund is a one of the mandatory schemes established by the
government of India to provide social security to the service class. It is a scheme,
which is bearing on the employer and the staff member and provides security to the
staff member and / or his dependants on retirement, disability or death.
Gratuity
The Gratuity Fund is regulated by the gratuity fund Act, 1972. At present, the
following benefit is available. All Permanent staff members of the company,who have
completed five years continuous service, are eligible for payment of gratuity at the
time of retirement.
Financial head
Fund Manager
Portfolio Manager
Staff
The main functions are recording all the accounts including employees’ and workers’
salary and their PF etc.
30
Summarizing the transactions
31
Corporate communications handles media relations and is responsible for some of
the news regarding BALIC that you see in the press. You can check out the most recent clips
in the BALIC in the new section.
Customer Service & Operation
The operation department the work process between the customer and the company to
ensure consistent and quality service to the customer. To streamline the Operations, the
operation department interfaces between the claims and the agents, the branches and
underwriters, and manages work processes.
2. SKILLS
It is a more reputed insurance company, as it is providing financial solution of where to
invest, how to invest and number of products with having more benefits to investors. It has
reputed customers who are loyal to the organization. The service given to the customers are
accomplished as per their requirements. Financial services generally do mass supporting
services are rendered to all types (classes) of customers. More over the people feel their task
is in safe hands of the industry. The organization is having various capabilities over the
competitors. These skills are unique from the competitors of BAJAJ ALLIANZ.
The skills are broadly categorized as follows:-
Market knowledge, analytical skills, Services, Research, Personal/administration, Soft skills,
Supporting, Medical, Finance, Information relations, others.
Most of the employees at BAJAJ ALLIANZ are recruited from management and technical
streams.
32
3.STYLE
BAJAJ ALLIANZ follows participative management, where in each major decision
regarding the company is taken in tip down fashion and other decision like targets and growth
aspects BAJAJ ALLIANZ follows bottom up style.
We think it is important to distinguish between the basic personality of a top management
team and the way the team comes across to the organization. Organization may listen to what
managers say but they believe what managers do. Not words, but pattern of action is decisive.
The power of style then is essentially manageable.
One aspect of style is symbolic behavior. Typically have more people on board who
understand exploration are have headed exploration department. Typically they fund
exploration more consistently.
4.STRATEGY
By “strategy” we mean those actions that a company plans in response to or anticipation of
changes in its customers, its competitors. Strategy is the way A Company aims to improve its
position vis-à-vis competition perhaps through low cost production or delivery, perhaps by
providing better value to the customer, perhaps by achieving sales and service dominance. it
is, or ought to be, an organization way of saying:” here is how we will create unique value”.
The BAJAJ ALLIANZ has set of objectives, strategies to achieve the objective, the course of
action to be taken to achieve the objective and guidelines for the course of action.
BAJAJ ALLIANZ adopts low pricing strategy to generate huge returns and good market
share in the industry, since it has well expanded its business all over INDIA.
BAJAJ ALLIANZ charges minimal to its clients for the services. It provides more benefits to
customers compared to its competitor. Hence it is known for the good pricing strategy in the
industry.
5.SYSTEM
The BAJAJ ALLIANZ has various techniques to control this procedure as system like to
improve the back office targets by giving addition support.
Information system: the implementation of computers has made information flow fast and
reliable. The information is versatile. Since BAJAJ ALLIANZ has good backup system.
Recruitment, training and development system
33
Recruitment process starts with the identification of the vacancies by the department head of
the respective department. A form requesting for the human resource is sent from the
department to HRD.
6. STAFF
Staff (in the sense of people, not line/staff) is often treated in one of two ways. At the hard
end of the spectrum, we talk of appraisal systems, pay scales, formal training program and the
like. At the soft end, we talk about morale, attitudes, motivation and behavior.
The BAJAJ ALLIANZ is in the course of cutting down the cost of service. If it starts
recruiting, the selection is done based on the education qualification first class degree.
The various training program to the employees are taken like refresher course, job rotation
and job training. The promotion in the organization is taken place based upon the service,
seniority and educational qualification. The performance appraisal is also taken as a basis for
promotion so officer’s staff makes it. Staffing is a process of acquiring human resources for
the organization and assuring that they have the potential to achievement of the
organizational goal. Staffing necessity for allotting the duties and responsibility among the
employees.
Duties and responsibilities of Manger:
34
7. SHARED VALUES
Unlike the other six S’s, super ordinate goals don’t seem to be present in all, or even most,
organizations. They are, however, evident in most of the superior performers.
The value shared by the members of an enterprise is known as the shared values. The
organization of BAJAJ ALLIANZ is having a strategy of sharing values. The significant
meaning or guiding concepts that an organization induces in its members. The shared value
of BAJAJ ALLIANZ is:
Human touch.
Empowered teams.
4. SWOT ANALYSIS:
Environmental Scan
Strength
Threats
Weaknesses Opportunities
35
A SWOT analysis is a strategic planning tool used to evaluate the strengths,
weakness, opportunities and threats involved in a project or in a business or
in any other situation requiring a decision.it involves monitoring the
marketing environment internal and external to the company. The technique is
credited to Albert Humphrey, who led a research project at Stanford
University in the 1960s and 1970s using data from the fortune 500
companies.
The aim of any SWOT analysis is to isolate the key environmental factors
that are important to the plans of the organization. SWOT groups key pieces
of information into two main categories:
Internal factors: The strengths and weakness internal to the
organization, i.e. its strategies and its relation to its competition.
External factors: the opportunities and threats presented by the external
environment and completion.
STRENGHTS
1. Strong Brand Image
36
4. Bajaj Allianz Life Insurance is the first large pvt.sector life insurance co. with a pan
India network and strong retail focus to declare substantial profits for the financial
year.
6. Largest distribution network to reach the customers across the country with 2, 13,000
agents, 900 offices in 840 towns, 200 corporate agents & Banc assurance partners.
WEAKNESSES
1. They have to compete with the Government Companies like LIC and UTI who has
been very established in this field. So they will have to attain the same trust of the
public as it is in case of LIC and UTI.
3. Low number of offices and network and number of life insurance agents.
OPPORTUNITIES
1. Life insurance has captured its mere15 – 20% growth therefore a wide open untapped
market is open to the company to develop, grow and measure its success.
2. Still the numbers of companies are few and company has every capability to grow and
forward its performance areas to the widest.
37
THREATS
1. People are hesitant to invest and put their hard earned money to the private life insurance
company with the fear of getting lost.
3. Alternative financial services such as mutual fund, banking services, share and securities
also pose problems and threats to the working of the life insurance sector.
5. Rising real estate industry also pose threat as people are investing a bulk of their money
over to that industry.
38
a) Liquidity: Liquidity shows the ability of the business to service the short term obligation.
b) Solvency: Solvency shows the ability of the business to meet the long term obligation.
c) Efficiency: Efficiency shows the ability of the business to use the resources of the
business.
d) Profitability: Profitability shows the ability to the business to generate and distribute
profit.
Financial Highlights
Particulars 2009-10 2008-09 2007-08
Others 93 164 -7
39
Provision for Tax -590 -546 -623
Commission 2% 1% -1%
Ratio
00
st st
Particulars 31 March, 2010 31 March, 2009
Sources of fund
Shareholders fund
Share Capital
1102273 1102273
Reserve and surplus
6,830,724 5,622,446
40
Fair value change (5094) -
Account
Borrowings - -
Total 7927903 6724719
Application of Funds
Investments 25314595 21937504
Loans - -
Fixed Assets
Gross block 2496177 1556866
Less:- accumulated 1227583 1038900
depreciation
Net block 1268594 517966
Capital work in 264964 767460
progress including
capital advances
1533558 1285426
Deferred tax assets 378480 152080
Current assets
Cash and bank 2964880 28490009
balance
Advances and other 7132312 5446286
assets
Subtotal (A) 10097192 8295295
41
Current liabilities 18064657 14495261
Provisions 113331265 10450325
Subtotal (B) 29395922 24945586
Net current (19298730) (16650291)
assets(C)= (A - B)
Miscellaneous - -
Expenditure(to the
extent not written off
or adjusted)
Debit Balances in - -
profit and loss
account
Total 7927903 6724719
42
6. LEARNING EXPERIENCE
In the class just we can assume how the corporate world is but it is completely
different when I started to go to the company. In the class just we will read,
learn and same thing we will write in the exam and we will get pass but when
we go for searching job really we will feel the heat of outside world, regarding
pressure for target achievement, competition for jobs etc…
During my stay in the organization I was exposed to the actual working of the
organization. I learnt how the different departments of an organization functions
and coordination for overall smooth function.
That was a wonderful experience to me in that company. I learnt so many things
there, what is the real corporate culture, How much we have to be smart, How
much talented we should, How we should achieve our target, what is our
responsibity. I could also analyze how McKinsey’s model contributes to
effective working of the organization. During this short period, by interacting
with my guide and other key persons, it enables me to know about the functions
of various departments. Their workflow, discuss and responsibilities of
respective heads.
I learn how the company motivates the employee to retain and make them work
effectively with full satisfaction towards achieving their individual goals which
indirectly can achieve the organizational goals.
Some of the findings during my 10 weeks stay in the organization are as follows:
Company has excellent infrastructure.
Corporate culture amongst the employees is excellent irrespective of their cadre
and their designation.
Excellent environment to work with committed employees.
Welfare facilities as well as infrastructural facilities given to the employees
helps in boosting up their morale.
The company has a lot of prospects to come up as a profit making organization.
43
Finally, excellent experience, which let me to compare theoretical learning to
my practical experience.
PART –B
CHAPTER -1
A. GENERAL INFORMATION
To study about the “Brand Awareness of Life Insurance and changing investment
pattern"
Secondary objectives
To study the investment pattern of people in Life Insurance.
To observe the extent of the market.
To recognize the target groups.
To find out which type of insurance is preferred by the investors.
To study the factors responsible for the low investment in Life Insurance.
To study the different facilities of Life Insurance given by different companies.
To study the risk factor involved in Insurance.
To study which company is providing better services of Insurance with higher returns.
44
1.3 Scope of the study
The study is conducted at Bajaj Allianz Life Insurance Corporation at Bangalore. The
study covers the various marketing techniques to know about the brand awareness and
changing investment patterns towards the life insurance industry. The data collected and
interpreted will be useful for the company Scope of study refers to the area selected for the
survey purpose. It includes businessman, employees, household and retired persons who are
interested in investment their money. Various findings, observations and valuable
suggestions, recommendations help the company to materialize its future plans.
A. Sampling plan
After collecting entire data and deciding on the research approach and instruments, now I had
to decide on the sampling plan which was one of the important task, because from the bunch
of people I had to select only those people ,whom I can target from now onward. There are
three way of sorting the data.
B. Sampling unit
45
Who is to be surveyed? And now my task was to define the target population, which will be
sampled from the number of people. Population refers to the total items about which the
information is desired. Here in this project I have considered finite population that is we are
taking one single individual as single unit which is fixed to 50 respondents, each separately
C. Sample size
Large sample give more reliable result than small sample, so for this reason I had taken
around 50 people with whom the survey was conducted to get an understanding of the
respondents satisfaction level towards the different insurance brands.
• Once the date is collected the next task is to analyze it. The raw data should be
classified into some purposeful usable categories. For example: tabulation, coding, etc.
Analysis work, after tabulation, is generally based on the computation of various percentages,
coefficients, etc. by applying various well defined statistical formulae like frequency
distribution, calculation of average and dispersions. Here in this report it is found that the
investment pattern of people in private insurance companies is not satisfactory.
There are several ways of collecting the data which different considerably in context of
money, cost, time and other resources. In this project the data which was required gave
details about the behavior of people who make investments in insurance, mutual funds, IPO,
46
share market, etc.
1. PRIMARY DATA
The primary data are the first hand information gathered for research to solve the need by
surveying the sampling units and collections of feedback from them involves the primary
data with structured queries will be prepared for the customers. There will be survey within
the customers giving the questionnaire. The questionnaire were structured non disguised
questionnaire because the question which the questionnaire contained, were arranged in a
specific order besides every question asked were logical for the study, no question can be
termed as irrelevant.
Sources of primary data
Personal interview.
Questionnaires.
Personal Interview
This method was the most appropriate way of survey, because by personal interview I came
to know about how the respondents feel about the life insurance companies. The personal
interview is conducting mainly for collecting information for fulfill of the questionnaire.
Questionnaire
This method proved to be even better because it was not possible to interview every one and
it was less time consuming to fill up the questionnaire rather than answering the interviewer’s
questions. The questionnaire is to prepare to know the awareness level. The questionnaire is
fully focused for collecting the brand awareness information and finding the market potential
of Bajaj Allianz Life Insurance Corporation.
In this method questionnaire were distributed to the respondents and they were asked to
answer the questions in the questionnaire. The questionnaire were structured non disguised
questionnaire because the question which the questionnaire contained, were arranged in a
specific order besides every question asked were logical for the study, no question can be
termed as irrelevant.
47
2. SECONDARY DATA
The secondary data is collected from the company website and other websites, through listing
by personal observation. The secondary data are collected by some other people for their
work and it is already exist. The researcher started investigation by first examining the
secondary data to see whether the problem can be partly or fully solved by without collecting
primary data. Since the secondary data were not sufficient to solve the entire problem, so
primary data were collected to fill the gap.
• Through internet, various official sites of the companies and other search engines.
48
RESEARCH PROCESS ADOPTED:
• Research Area : Bangalore
• Sample Size : 50
5. Since the survey was limited to 50 insurance care consultants it is rather difficult to
give a precise conclusion but I have tried to the best of my capability to give the conclusion
on a comprehensive manner.
49
CHAPTER-2
DATA ANALYSIS & INTERPRETATION
TABLE-1
Table showing the awareness about Life Insurance among respondents
Awareness No. of respondents Percentage
YES 49 98%
NO 1 2%
Total 50 100%
Analysis: The above table showing out of 50 respondents, 49 respondents are aware about
life insurance only 1 is not aware about it.
2%
YES
NO
98%
50
Interpretation: - The above pie chart states that 98% of the total sample knows about life
insurance. Only 1% of the total sample does not know about Life Insurance.
From the above interpretations it is very clear that almost every body knows about Life
Insurance.
Table showing specific brand awareness about Bajaj Allianz Securities Ltd. among
respondents
Analysis: The above tables showing out of 50 respondents, 43 respondents know about Bajaj
Allianz securities ltd., Only 7 respondents are not aware of it.
CHART- 2
14%
YES
NO
86%
Interpretation: - The above pie chart states that 86% of the total sample knows about Bajaj
51
Allianz Life Insurance Corporation. Only14% of the total population does not knows about
Bajaj Allianz Life Insurance Corporation. From the above interpretation it is clear that
although Bajaj Allianz is a strong brand amongst the financial investors, people of Bangalore-
Table -3
Table showing how much amount respondents can invest per annum?
amount No. of respondents percentage
<10,000 19 38%
10,000-20,000 13 26%
20,000-30,000 10 20%
> 30,000 8 16%
Total 50 100%
Analysis: The above table showing out of 50 respondents, 19 respondents are investing less
than10000 per annum, 13 respondents are investing 10000-20000,10 respondents between
20000-30000 and 8 respondents are investing more than 30000 per annum.
Chart -3
<10,000
16%
38%
10,000-20,000
20,000-30,000
20%
>30,000
26%
Interpretation: - The above pie chart represents that 38% population is willing to invest less
than Rs. 10,000, 20% of the people want to invest 20,000-30,000, only 16% population is
52
willing to invest more than Rs. 30,000 per annum. while the people investing between Rs.
Table - 4
Table showing for what duration respondents would like to hold the policy
Years No. of respondents Percentage
<5 years 11 22%
5-10 Years 26 52%
10-20 Years 8 18%
>20 Years 5 8%
Total 50 100%
Analysis: the above table showing out of 50 respondents 11 respondents would like the
policy for till 5 years, 26 respondents would like to hold the policy for 5 to 10 years and
rest of 13 respondents would like to invest for more than 10 years.
22%
18% 8%
<5 years
5- 10 years
10-20 years
>20 years
52%
53
Interpretation: - The above pie chart clearly shows that the people are more willing in the
investment policies having maturity period between 5-10 years.
Investment policies having long maturity periods are less preferred by the peoples.
Table - 5
Table showing which Insurance plan respondents would like to opt or opted?
Analysis: The above table showing that out of 50 respondents, 31 respondents would
like to go for unit linked plan and rest of the respondents would like to go for traditional
plan.
Traditional plans
Interpretation: - The above chart states that 38 % of the people of the total sample size like
to invest or they have already invested their money in traditional plan of the Life Insurance
while 62% of the people like to invest or they have already invested their money in Unit
54
linked plan, which is the modern plan of the Life insurance.
So, it is clear from the above interpretation that traditional plans are still popular
among the masses although the modern unit linked plans are available in the market.
Table -6
Table showing which company specific insurance plan respondents would like to invest
the money?
Analysis : The above table showing that out of 50 respondents 31 respondents have a
faith on LIC, 6 respondents would like to invest in Bajaj Allianz and rest want to invest
their money in other insurance company.
55
10%
6% 10% LIC
BAJAJ ALLIANZ
HDFC
ICICI Prudential
12% Others
62%
Interpretation: - The above pie chart states that 62% of the population wants to invest their
money in L1C when there is any option of investing in life insurance. 12 % of the total
sample wants to invest their money in Bajaj Allianz, 10% in ICICI Prudential, 6% in HDFC
From the above interpretations it is clear that L1C is the strongest brand in comparison to the
other private insurance company’s brand. It is also because L1C is the oldest company when
Table - 7
56
Table showing from whom respondents would like to buy or bought insurance plan?
Channels No. of respondents Percentage
Direct from the company 3 6%
Any consultant 2 4%
Any agent 45 90%
Total 50 100%
Analysis: the above table showing that out of 50 respondents, 45 respondents would like
to buy or already bought from agents.
6%
4%
Any Agents
90%
Interpretation: - The above pie chart states that 90% of the total sample sizes take the
insurance polices from the insurance agents. 6% of the total people take the insurance
policies direct from the company and only 4% of the total sample takes the insurance policies
So, here we can say that the mass prefer to take life insurance policies from agents in
other words the business of the life insurance is completely dependent on the agents.
Table-8
57
Table showing type of information respondents would like to know while taking any
insurance plan.
Information type No. of respondents Percentage
About the company 7 14%
About plan 3 6%
About returns 7 14%
About initial investment 4 8%
All the above 29 58%
Total 50 100%
Analysis: The above table showing that out of 50 respondents, 29 respondents would
like to know all information like about the company, about plan, about returns, about
initial investment before taking any insurance plan.
About Returns
About Initial
Investm ents
All the above
6%
58%
14%
8%
Interpretation: - The above pie chart states that 6% of the total sample size wants to know
about the plan while taking any insurance plan 14 % of the total sample is concerned about
the returns while investing in life insurance. 14% of the total sample wants to know about the
company, 6% of the total sample wants to know about plan, 58% of the total sample wants to
know about all information while investing the money in life insurance while taking any
58
insurance plan. From the above interpretation it is clear that most of the people are concerned
about all the information while taking any life insurance policy. The major information they
want to know while taking any life insurance policy is the information about the company &
Table -9
Table showing where the respondents would like to invest the money?
Analysis : The above table showing that out of 50 respondents 23 respondents would
like to invest the money in Fixed deposits, 3 respondents in share market, 7 in mutual
fund, 15 respondents in insurance and 3 respondents in other market.
59
15%
6%
Share Market
48% Insurance
Fixed Deposits
Others
31%
Interpretation: - The above pie chart states that 46% of people invest their money in Fixed
Deposits, 30% of people invest in Insurance, 14% of people invest in Mutual Funds, 6% of
So it is very clear from the above interpretation that people still like to invest their money in
Fixed Deposits although other better options available in the financial investment market.
Table -10
60
Total 50 100%
Analysis: The above table showing that out of 50 respondents, 15 respondents ranked
fixed deposit as the best/ safest market, 18 respondents opinion is about insurance.
28%
30%
IPO
Share Market
Mutual Funds
Insurance
Fixed Deposits
36% 2%
4%
Interpretation: - The above interpretation shows that 30% population believes that investing
money in Fixed Deposits is best/safest 36% of the people believe that insurance is the
best/safest. While total 6% (2%+4%} of the people believe that Mutual Funds & Share
Market is the best/safest option for investing their money. So from the above interpretation it
is clear that people think that investing their money in Fixed Deposit is the safest option
available. It is also true that is the oldest option available in the investment market. A mind
set is their in the minds of people that no other option is safest or best in terms of investing
their money.
61
Table -11
Table showing the respondents expectations when they think about investment in
financial product?
Area of consideration No. of respondents Percentage
Low Risk, Low Profits 3 6%
Low Risk, High Profits 36 72%
High Risk, Low Profits 0 0%
High Risk, High Profits 11 22%
Total 50 100%
Analysis: The above table showing that out of %0 respondents 36 respondents taking
consideration as a low risk, high profit, no respondents would like to invest in the high
risk, low profit financial product.
6%
22%
0%
72%
Interpretation: - drawn from the above pie chart states that 72% of the people expect low
risk and high profit when they think about investing their money in financial product. While
22 % of the people expect high risk and high profit when they think about investing their
money in any financial product. Only 6% of the people expect low risk and low profit form
62
their financial product & obviously none would like high risk and low Profits combination.
So it is very clear from the above interpretations that very less number of people
wants to take risk when it comes to investing the money. They also want to make high profits
Table -12
Table showing the attribute attracts the most respondents while taking an insurance
plan?
Analysis: The above table showing that out of 50 respondents, 15 respondents taking
insurance for tax planning, 13 respondents as an investment planning, 11 respondents
for children education, 4 & 5 respondents respectively as risk cover & retirement
planning.
63
4% 30%
26%
Tax planning
Risk Cover
Retirem ent
Planning
Children
22% Education
Investm ent
Planning
10% 8%
Others
Interpretation:-There are so many reasons to take an investment plan. Most of people like to
take an investment plan to take tax benefit and some of them due to uncertainty and risk
factor in life. A large sample of population prefers an insurance plan for their investment
purpose. These are near about 26% of total population. Near about 10% people likes to take a
plan for retirement solution and 22% for their children’s education.
Table -13
Table showing the additional benefit a respondents want from the policy
Analysis: The above table showing that out of 50 respondents, 19 respondents wants accident
as an additional benefit from the policy, 11 respondents considering critical illness as
additional benefit and rest of the respondents considering other parameter like start of life,
family income benefits.
64
16% 38%
Accidental
24%
Critical illness
Start of Life
22%
Interpretation: - The above pie chart shows that 38% of total population likes to take a plan
to get accidental benefit. After that they want other benefits near about in the same ratio i. e.
critical illness, start of life and family income benefit with 22%, 19% and 21% respectively.
Table -14
Table showing the respondents awareness of the risk cover and other benefits that are
offered in Life Insurance
65
Analysis: The above table showing that out of 50 respondents, 35 respondents are aware
of the risk cover and other benefits offered by a life insurance company, rest of the
respondents are not aware of the benefits offered by the company.
30%
YES NO
70%
Interpretation: - The above pie chart shows that 70 % of the total population is aware about
the benefits given by the company and rest of the population is not aware about it.
So, the company should try to make aware the people aware about the benefits of the plan to
Table -15
Table showing the satisfaction with the service that is offered by the Insurance
Company.
66
Level of satisfaction No. of respondents percentage
YES 24 48%
NO 26 52%
TOTAL 100%
Analysis: The above table showing that out of 50 respondents, 26 respondents are not
satisfied by the service which is offered by an insurance company, rest of the
respondents are satisfied the service.
48%
52%
YES NO
Interpretation: - The above pie chart shows that only 48% of the population is satisfied by
the services offered by the company. A large segment of population is not satisfied by the
67
Table -16
policy for safety, 6 respondents for investment purpose, 8 respondents for tax savings and 1
16% 2%
12%
SAFETY
INVESTMENT
TAX-SAVING
OTHERS
70%
Interpretation: When asked about the importance of insurance in their lives, 70% of people
were in favor of safety i.e. they have taken insurance for safety purpose.
Table-17
Table showing the respondent satisfaction towards the service offered by Bajaj Allianz life
insurance
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Analysis: the above table showing that out of 50 respondents, 5 respondents ranked the
10%
10%
12%
EXCELLENT
GOOD
AVERAGE
POOR
Interpretation: 10% of the respondents are fully satisfied, 48% of the respondents are satisfied
Table - 18
Table showing that respondents opinion about Bajaj Allianz as a trustworthy company.
Analysis: the above table showing that out of 50 respondents, 45 respondents trusts on Bajaj
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10%
Trustw orthy
90%
Interpretation: 90% of the respondents have a trust at Bajaj Allianz insurance company, 8%
Table- 19
Table showing that the respondents opinion about using sales promotional activity
Analysis: the above table showing that out of 50 respondents, 28 respondents suggested that
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yes
44%
no
56%
Interpretation: The Company still needs a lot to be done as far as publicity is concerned. The
following chart depicts that 55% people says that the company needs more publicity
Table – 20
Table showing that the respondents opinion about using suitable media by the company for
advertisement.
Media No. of respondents Percentage
Television 24 48%
Radio 10 20%
Newspaper 12 24%
MYNL representative 4 8%
Total 50 100%
Analysis: the above table showing that out of 50 respondents, 24 respondents suggested that
television as an effective media for advertisement.
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8%
24%
Television
48% Radio
New spaper
MNYL Representative
20%
Interpretation: The most preferred media chosen by most of the people is television as they
more deeply come to know about the features of the product through it
FINDINGS
The aim of the survey was to find out the "Brand Awareness of Life Insurance and Changing
Investment Pattern with special reference to Bajaj Allianz life insurance” All the due efforts
were made to find out the appropriate and confide results. Following are the various findings
of the research.
People still like to invest their money in fixed Deposits although other better options
People think that investing their money in fixed Deposits is the safest option
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available. It is also true that it is the oldest option available in the investment market. A mind
set is their in the minds of people that no other option is safest or best in terms of investing
their money.
Very less number of people wants to take risk when it comes to investing the money.
They also want to make high profits without taking high risks.
Traditional plans are still popular among the masses although the modern units linked
L1C is the strongest brand in comparison to the other private insurance company
brands. It is also because L1C is the oldest company when we talk about life insurance.
Most of the people are concerned about the plan while taking any life insurance
policy. This is the major information they want to know while taking any life insurance
policy.
Although Bajaj Allianz is a leading life insurance company but still people of
Bangalore city do not know much about the company and its working.
Most of the people invest their money in banks and other government securities.
Very less number of people has shown willingness to invest in Life Insurance.
Unit linked plan of life insurance are subject to market risk.
A large slot of population doesn't have insurance policy which can be target
population for life insurance companies.
People have much faith in Govt. securities than in private companies & it is also
found that people while investing require expert advice.
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RECOMMENDATIONS
resources of the firm and all the alternative courses of action. A Communication system is
necessary to maintain the uniformity & balance in the flow of information within the fire.
Although is very early to suggest any thing to such a internationally famous company Bajaj
Allianz Life Insurance Company Ltd. in it's mature state of marketing, interactions and feed
backs from various outlets, segments of investor. I would like to suggest as under:
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Consultant should disclose schemes provided by the company to each and every
investor.
In the case of tragedy the company should provide all facilities easily to the investor.
At least one glow sign board should be displayed in the main area of the market.
Company should sponsor important events like World Cup, Afro Asian games, IPL
and any event related to film awards and other local programs.
Many of the insurance care consultants of the Bajaj Allianz have the lack of good
communication skills and training. So training should be easy.
Bajaj Allianz. Should use new techniques of sales promotion.
Customer services should be more comfortable than others.
People must be made aware of the benefits of the policies of Bajaj Allianz.
The company should give personal attention to each customer.
Proper assistance should be provided to the customer at the time of claim settlement.
All the details about the company should be given to the customers.
Regular advertisement of the company should be given TV and Newspaper.
The company must try to find new markets especially in the rural areas.
The company should do frequent analysis of the competitors.
CONCLUSION
Conclusion should be drawn with direct reference to the objective of the study. This project is
directed towards the effectiveness of knowing the fact about insurance sector. The overall
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As it has been discussed, insurance offer several benefits that are unmatched by
other investment options. Post liberalization, the industry has been growing at a rapid pace in
However, due to the low key investor awareness, the inflow under the industry is
yet to overtake the inflows in banks. Rising inflation, falling interest rates & a volatile equity
market make a deadly cocktail for the investor for whom insurance offer a route out of the
impasse.
But it is the skill of the managing risks that investment managers seeks to
implement in order to strive & generate superior returns than otherwise possible that makes
Now a day, the insurance sector is growing rapidly & BAJAJ ALLIANZ is the
one who has beaten the no. 1 company in private insurance i.e. ICICI Prudential & very soon
it will over perform LIC. So persons are keen to become a part of it as an I.C. & further
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