RESEARCH REPORT

ON COMPARATIVE ANALYSIS OF BAJAJ ALLIANZ VS ICICI PRUDENTIAL

Under the guidance of:

Submitted By: AJAY KUMAR MBA FINAL YEAR Roll no-0706070003

GYAN INSTITUTE OF MANAGEMENT AND TECHNOLOGY KURSI ROAD LUCKNOW

ACKNOWLEDGEMENT
I would like to take this opportunity to express my deep gratitude to all those who, directly or indirectly made this project possible.I have got considerable help and support in making this project report a reality from many people. I would like to thank MR. JYOTI PATHAK whose endeavor for perfection, under fatigable zeal, innovation and dynamism contributed in a big way in completing this project. This work is the reflection of his thought, ideas, concept and above all his modest effort.

PREFACE
The importance of an academic course would gain advantage and acceptance of the true form, only through practical experience. Hence it is quite necessary to put the theories into talk. It is rigidly accepted that the theory widens ones thinking horizons viz. Concepts of marketing philosophies, but practice indicates the modern marketing and used in variety of settings of products. The research programs are designed to give the manager the future of the corporate happenings and work culture. These real life situations are entirely different from the stimulated exercise enacted in an artificial environment inside the research programmers and designed, so that the manager to tomorrow do not feel ill case when the time comes to shoulder responsibilities. Practical exposure for the MBA students is very necessary because what they study in the classroom is not the reality. Situation in the market is unknown and very much unpredictable. So the practical experience is very much necessary this is made possible with the research project in Bajaj Allianz Life Insurance Co. in marketing related to search for the Potential Insurance Consultants. All organizations involve into business with some objective and one of the objectives is to endorse product or service which they produce. In my marketing project I tried to fid out the potential Insurance Consultants through questionnaire for the Bajaj Allianz Life Insurance Co. The

product for the insurance company is its policies which company sale through its Insurance Consultants. So its quite clear that there will be as many Insurance Consultants. There will be increased sales.

TABLE OF CONTENTS
1. Executive Summary 2. About Life Insurance Sector 3. Industry Overview 4. Company Profile 5. About Policies Of Bajaj Allianz 6. About ICICI Prudential 7. Research Methodology 8. SWOT analysis 9. Findings 10. Conclusion 11. Recommendations 12. Bibliography 13. Questionnaire

EXECUTIVE SUMMARY At the present time of cut throat competition in every industry every company want to top the chart and want to show as big as possible figure of profits in its balance sheet. It is quite clear today that at present time the growth of any organization is possible only with the help of hard working and well focused staffs that are the backbone of any organizations. It was my great pleasure that I did my research project on Bajaj Allianz Life Insurance Co. where I got to know that in Insurance industry the skills of the man power matters most and increasing number of Insurance Consultants organization. Insurance Co. help So the it is organization quite clear to increase its issuance of policies which in turn result in growth for the that Insurance Consultants matter most for the Bajaj Allianz Life

WHAT IS LIFE INSURANCE

First of all we should come to know that what is Life Insurance. The different definitions describing life Insurance are as:Insurance in which the risk insured against is the death of a particular person, the insured, upon whose death while the policy is in force, the insurance company agrees to pay a stated sum or income to the beneficiary. Life Insurance pays a specified sum to the beneficiaries upon the death of the insured. It is generally used to provide cash to your family in the event of your death. There are several types of life insurance whole life insurance provides a lifetime of protection as long as you pay the premiums to keep the policy active. They also accrue a cash value and thus offer a savings component. Term life insurance provides protection only during the term of the policy and the policies are usually renewable at the end of the term. Insurance on human lives including endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits for disability, and annuities.

LIFE INSURANCE INDUSTRY IN INDIA

Many may not be aware that the life insurance industry of India is as old as it is in any other part of the world. The first Indian Life Insurance Company was the Oriental life Insurance Company, which was started in India in 1818 at Kolkata. A number of players (over 250 in life and about 100 in non-life) mainly with regional focus flourished all across the country. However, the Government of India, concerned by the unethical standards adopted by some players against the consumers, nationalized the industry in two phases in 1956 (life) and 1972 (non-life). The insurance business of the country was t0hen brought under two public sector companies, Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). With 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 15-20 percent annually. Together with banking services, it adds about 7 percent to the countrys GDP. In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life Insurance cover and the Health Insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to

this

immense

growth

that was

the

regulations by

were the

introduced in the insurance sector and in continuations Malhotra the industry. The Committee recommended throwing open the sector to private players to usher in competition and bring more choice to the consumer. The objective was to improve the penetration of insurance as a percentage GDP, which remains low in India even compared to some developing countries in Asia. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy as the main idea behind the reform. Committee constituted government in 1993 to examine the various aspects of

A BRIEF HISTORY
The origin of insurance is very old. The time when we were not even born; was 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 insurance came to India from UK; with the establishment of The Oriental Insurance Corporation in 1818. the Indian Life Insurance company act 1912 was the first statutory body that started to regulate the Life Insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been established in India. Then the central government took over these companies and as a result the LIC was formed. Since then LIC has worked towards spreading Life Insurance and building a wide network across the length and the breath of the country. After the liberalization the entrance of foreign players has added to the competition in the market. 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. In 1957 General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for

ensuring fair conduct and sound business practices. In 1972 the General Insurance Business in India with effect from 1 s t January 1973. it was after this that 107 insurers amalgamated and grouped into four companies viz. the National Assurance Insurance Company Company Ltd, the Ltd, the New India Oriental Insurance

Company Ltd. GIC incorporated as a company.

INSURANCE SECTOR REFORMS

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor was formed to evaluate the Indian industry and give its recommendations. The committee came up with the following major provisions: Private industry. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Only one state level Life Insurance Company should allow to operate in each state. Reforms were initiated with the passage of Companies with a minimum paid up capital of Rs. 1 bn should be allowed to enter the

Insurance Regulatory and Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put in place regulations in line with global norms.

IRDA
The IRDA since its incorporation as a statutory body has been framing regulations and registering the private sector insurance companies. IRDA being an independent statutory body has put a framework of globally compatible regulations.

INSURANCE MARKET IN INDIA

By any yardstick, with about 200 million middle class households, presents a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. With the per capital income in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels, the demand for insurance is expected to grow at an attractive rate in India. An independent consulting company, the Monitor Group has estimated that the Life Insurance market will grow. WINDS OF CHANGE Reforms have marked the entry of many of the global insurance majors into the Indian market in the form of joint ventures with Indian companies. Some of the keys names are AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player LIC. Which has responded to the competition in an admirable fashion by launching new products and improving service standards.

Market Expansion : There has been an overall expansion in the market. This has been thanks possible to the due large to improved of awareness levels number

advertising campaigns launched by all the players. The scope for expansion is still unlimited as virtually all the players are concentrating on large cities and towns except by LIC to an extent there was no significant attempt to tap the rural markets. New Product Offering: There has been a plethora of new players, mainly from the stable of their international partners. Customers have tremendous choice from a large variety of products from pure term insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. services More based customers on their are true buying needs products and not and just

traditional money-back policies, which is not considered very appropriate for long-term protection and savings. However, there are still some key new products yet to be introduced e.g. health products. Customer Service : Not unexpectedly, this was one area that witnessed the most significant change with the entry of new players. There is an attempt to bring in international best practices in service and operational efficiency though use of latest technologies. Advice and need based

selling is emerging through much better trained sales force and advisors. There is improvement in response and turnaround times in specific areas such as delivery of first policy receipt, policy document, premium notice, final maturity payment, settlement of claims etc. However, there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels. Channels of Distribution : Till two years back, the only mode of distribution of life insurance today products to be a was the of through Agents. While agents channel, continue predominant innovative distribution alternative

number

channels are being offered to customers. Some of them are bancassurance, brokers, the internet and direct marketing. Though it is too early to predict, the wide spread of bank branch network in India could lead to bancassurance emerging as a significant distribution mechanism. 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 LIC. Since 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 quality of the insurance. As a result LIC down the years

have seen the declining phase in its career. The market share was distributed among the private players. LIC market share has decreased from 95% (2002-03) to 82% (2004-05). The following companies has the market share of the life insurance industry. Insurance Company Market Share (Fig. in %)

LIC 71.44 ICICI Prudential 11.35 Bajaj Allianz 7.06 HDFC Standard Life 2.37 SBI Life 1.81 Birla Sun Life 1.49 Max New York Life` 0.98 TATA AIG 0.79 Aviva 0.89 OM Kotak Mahindra 0.86 ING Vyasa 0.57 Reliance 0.37 MetLife 0.24 Market Share of Life Insurance Companies as of May 2008

CURRENT SCENARIO OF THE INSURANCE INDUSTRY IN INDIA

India with about 200 million middle class household shows a huge untapped potential for players in the insurance more industry. for Saturation global of markets in many The developed economies has made the Indian market even attractive insurance majors. 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. Life 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 all array of products, different in price, features and benefits. How the customer is going to make his choice will determine the future of the industry.

CUSTOMER SERVICE Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerization technology best has of operations and in updating the of of become in imperative through current latest

scenario. Foreign players an bringing in international practices service use technologies. The one time monopoly of the LIC and its agents are now going through a through revision and training programs to catch up with the other private players. DISTRIBUTION CHANNELS 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 well balanced, alternatives channels of distribution. LIC has already well established and have an extensive distribution channel and presence. New players may find it expensive and time consuming to bring up a distribution channel to have an advantage. At present the distribution channels that are available in the market are: Direct Selling Corporate Agents

 Group Selling Brokers and Cooperative Societies Bancassurance To make all these channels a success the

companies have to be very alert and skillful to know how to use these channels in a proper way. Bancassurance is on of the most upcoming channels of distribution. BANCASSURANCE: India has an extensive bank network established over the years. What Insurance companies have to do is to just take advantage of the customers long-standing 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. Another advantage is that banks, with their network in rural areas, help to fulfill rural and social obligations stipulated by the Insurance Regulatory and Development

Authority (IRDA) 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 quality product and delivery at doorsteps. Everybody 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 Customers have tremendous choice from a large variety of products from pure term insurance to unitlinked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional moneyback policies, which is not considered very appropriate for long-term protection and savings. RURAL MARKETING Rural 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 a marathon, not a sprint. This is because of the nature of the business being long term. However it seems that they if not anything, are only increasing their spending, though only out of the capital. As insurance companies Already exhibiting go more India and The more Rural rural in search is of business, there will be opportunities in the rural sector. United an consumer for now increasing propensity Insurance

products. A research conducted exhibited that the rural

consumers are willing to dole out anything between Rs. 3,500 and Rs. 2,900 as premium each year. In the Insurance the awareness level for Life Insurance is the highest in rural India, but the customers are also aware about motor, accidents and cattle insurance. According to a study 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 creditability among the rural populace. INFORMATION TECHNOLOGY 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- size-fits-all manner. Instead of focusing on their different products lines as silos (i.e., life, property and casualty etc) 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. Insurance industry is a data-rich industry, and thus, there is desire need to use the data for trend analysis and personalization. With increased competition among insurers, service has become a key issue. People today dont want to accept the current value propositions, they want personalized interactions and they look for more and more features and add ones and better service. Today

managing the customer intelligently is very critical for the insurer especially in the very competitive environment. Companies need to apply different set of rules and treatment strategies to different customer segments. With the explosion of Website and greater access to direct or policy information, there is a need to developing better techniques to give customers a truly personalized experience. Personalization helps organizations 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 personalized information, many organizations are incorporating knowledge database-repositories of content that typically include a search engine and lets the customers locate the all document and information related to their queries of request for services. Customers can hereby use the knowledge database to manage their products or the company information and invoices, claim records, and histories of the service inquiry. These products also may be able to learn from the customers previous knowledge database and to use their information when determining the relevance to the customers search request. The insurance sector remains a very competitive market and those companies that are able to best utilize their data and provide their customer with the most personalized options will have the distinct competitive advantage.

MERGERS AND ACQUISTIONS: This is an era of mergers and acquisitions. Private companies including MNCs are amalgamating the world over to get more competitive edge. Currently, the general insurance industry has been opened up. The insurers are doing enough to raise the level of risk awareness or are they merely content to compete in the markets organized and established. The private players in the future would have to turn their attention to working in the unorganized and under served markets. What is likely to happen is that the private players would continue to skim the profitable segments of the already organized business in the urban areas? The time has already come for the government of India to evaluate the performance of private companies. However it is high time for the government to realize that importance of merging the public sector general insurance companies into single entity. The recent scenario calls for a better performance from part of each of the public sector insurance companies against each other. The result what we see is the undercutting to retain or wrest business and quoting an uneconomical rate of premium. While this allows one of the Public Sectors Company to win a business form another in this manner. The others suffer a loss and the resultant effect is a cannibalization with a fall in the average premium of the public sector itself.

The (GIC)

purpose

of

having

four

companies New

all

subsidiaries of General Insurance Corporation of India National Insurance Company, India Assurance Company, Oriental Insurance Company, and The United India Insurance Company; at the time of nationalization was to have competition among themselves in service and products at the same price. Now 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 size. It is to be stated that size does matter in insurance business. All over the worlds mergers and acquisitions in the risk-underwriting 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-liability mismatch and reduction in cost. The loss of profitable business in view of undeserved competition among the public sector companies is hampering the subsidization of social insurance including the motor third party liability (TPL). 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 another. public sector companies fail one after

STRATEGIC ALTERNATIVES: If one analyses the history of growth of the insurance industry since reforms, it is marked by allround growth of all players. More or less all players have aggressively recruited and trained advisors, appointed agents, service launched standards networks. new products, Every improved would customer their the like and revamped/expanded player

distribution

customers to believe that its service standards are the best or that its agents are the most informed and ethical. In other words, each company is trying to be everything to everybody. Some players justify the above strategy on the basis that the Indian market is huge and it can accommodate everybody. Still, in a market where it is difficult to distinguish oneself sufficiently on service or any other parameter to be able to charge a premium, it will lead to unmitigated price competition to the detriment of all players. In the insurance industry where large amounts of capital are required, this is risky. While there is room for a few scale players with a finger in every pie, it is profitable for the players to focus on different segments to survive and thrive in a multifirm open environment. While each company has to choose its own unique positioning based on its unique strengths.

 Variety-based Positioning This type of positioning is based on varieties in products and services rather than customer segments. It is a sensible strategy for those companies who have distinctive advantages or strengths in offering certain products and services. In the insurance industry too, it is possible to achieve category a of unique position by focusing its on certain fund products. Through superior

management capabilities, the insurance company can deliver better returns on it investment- linked products and thereby for itself a leadership position in this segment. Then there is the entire category of pension products, which is widely touted to have immense growth potential in India due to imminent pension reforms. It is possible to achieve profitable positioning by focusing and excelling in only pension products. Needs based Positioning This is the most commonly understood positioning and is based on the different needs of different groups of consumers. This can be done successfully if a company has unique strengths to service a group of customer needs better than others. The insurance needs of young family with small children will be quite different from that of a family in which the income-earner is close to retirement. However, in India most of the Life Insurance companies have a wide variety of products of different customer

needs and there is no company focusing only on a particular customer needs. Access- based Positioning Positioning of customers can also be done by the way they are accessible that is different groups of customers may be accessible in different ways even though they may have similar needs. Access is typically a function of customer scale. There is excellent opportunity in the insurance industry to employ access- based positioning by targeting the rural insurance sector. The rural market for Life Insurance is very different from the urban market in terms of needs, income levels, distribution, penetration of media and so on. Except for LIC, no other player has paid any attention or focus on the rural sector. Contrary to common perception it is a big opportunity as emphasized repeatedly by such eminent strategies like C.K.Prahlad. Rural market can be a highly profitable position if one is able to carefully plan. CHOOSING THE RIGHT STRATEGY The right strategic choice is not a matter of

positioning choice alone. It is the configuration of the entire value chain of the company through a different set of activities to deliver unique value to consumers. The set of activities cover all upstream and downstream activities, from the selection of the product mix. Some Life Insurance companies focusing on rural markets

have adopted innovative means of distribution. Instead of appointing agents as is done typically, they have used Gramsevaks in different villages across the country to promote Life Insurance and act as their sales arm. So we can conclude that, the size of the market has grown and the size of the insurable population in India is indeed vast and the existing players have managed to cover about one-fourth of it. The falling interest rates, the collapse of many small time financial institutions, the scope for entering related areas like banking and pensions in a bid for synergy and the promise of the e-commerce are some of the other opportunities knocking at the doors of the insurance majors. A number of web sites are coming up on insurance, a few financial magazines exclusively devoted to insurance and also a few training institutes being set up hurriedly. Many of the universities and management institutes have already started courses in insurance. Life insurance has today become a mainstay of any market economy since it offers plenty of scope for garnering large sums of money for long periods of time. A well regulated Life Insurance industry which moves with the times by offering its customers tailor-made products to satisfy their financial needs is, therefore, essential if we desire to progress towards a worry-free future.

COMPANY PROFILE

ABOUT BAJAJ ALLIANZ LIFE INSURANCE

Mission: As a responsible customers focused market leader, we still strive to understand the insurance needs of the consumers and translate it into

affordable products that deliver value for money. Vision: To be the first choice insurer for customers. To be the preferred employee for staff in the insurance industry. To be the number one insurer for creating shareholder value. SAM GHOSH, who was the CEO of Bajaj Allianz earlier has taken over as country Manager and is also the CEO of Bajaj Allianz Life Insurance Company.

Bajaj Allianz Life Insurance Company Limited Bajaj Allianz Life Insurance Co. Ltd is a joint venture between two leading conglomerates-, and Bajaj

Auto,

one

of

the

biggest

two

and

three-wheeler

manufacturers in the world and Allianz AG, one of the worlds largest insurance companies.

Bajaj Allianze Life Insurance Is the fastest growing private life insurance

company in India. Currently have over 300000 satisfied customers. Have Customer care centers in 156 cities with 28000 Insurance Consultant providing the finest

customer service. One of Indias leading private life insurance companies.

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

Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2 n d , 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an

authorized and paid up capital of Rs.110 crores. Bajaj Auto holds 74% and Allianz holds the remaining 26%. AG, Germany. In its first year of operations the company has acquired the NO. 1 status among the private non-life insurers. As on 31 s t March 2003, Bajaj Allianze General Insurance maintained its leadership position by

garnering a premium income of Rs.300 Crores. Bajaj Allianze also became one of the few companies to make a profit in its first full year of operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores. Bajaj Allianze today has a network of 40 offices spread across the length and breadth of the country. From Surat to Sliliguri all the and 38 Jammu offices to are

Thiruvananthapuram,

interconnected with the Head Office at Pune. In the first half of the current financial year, 200405, Bajaj Allianz generated a premium income of Rs.405 crores, achieving a growth of 84% and

registered a 52% growth in Net profit of Rs. 20 Crores over the last year for the same period. In the financial year 2003-04, the premium earned was Rs.480 Crores,

which is a jump of 60% and the profit zoomed by 125% to Rs. 21.6% Crores. Shareholders & Promoters Bajaj Auto Limited Bajaj Auto Limited is the largest manufacturer of two and three-wheelers in India and also one of the largest manufacturers in the world. Bajaj Auto has been in operation for over 55 years. As a promoter of Bajaj Allianz General Insurance Company Ltd., Bajaj Auto has the following to offer: Vast distribution network. Knowledge of Indian consumers. Financial strength and stability to support the

insurance business Allianz AG, Germany Allianz Group is one of the world's leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in more than 70 countries with over 177,000 employees. At the top of the international group is the holding company, Allianz AG, with its head office in Munich.

Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of Property and casualty insurance, Life and health insurance, Asset management and banking. In fiscal year 2005, Allianz's total revenues amounted to some 100.9 billion euros. At the end of 2005 Allianz Group had more than 1.26 trillion euros in assets under management. Of this, 743 billion euros were assets managed for third parties. History of Allianz Documenting and researching its corporate history is part and parcel of the corporate culture of Allianz AG. The Allianz Center for Corporate History devotes itself to these tasks. As a frequently used information center, it has evolved into the company's "living memory". Global Presence Allianz Group is present on every continent and has companies and offices in about 70 countries. More information about our locations throughout the world is available by moving the cursor over the world map.

Business Fields: Property & Casualty Insurance When it comes to property and casualty insurance, Allianz is number one in Germany. Allianz also ranks as one of the world's leading global industrial risk insurers. Life & Health Insurance In life and health insurance, Allianz Group is among the top companies in Europe. Private and corporate retirement provision is emerging as a major market Asset Management & Banking Allianz Group's asset management activities are

integrated under one roof at Allianz Global Investors. With Dresdner Bank, the Allianz Group has laid a broad foundation in order to address clients' needs on the investment market. Allianz AG is in the business of General (Property & Casualty) Insurance; Life & Health Insurance and Asset Management and has been in operation for over 110 years. Allianz is one of the largest global composite insurance with operations in over 70 countries. Further, the Group provides Risk Management and Loss

Prevention Services. Allianz has insured most of the

worlds

largest

infrastructure

projects

(including

Honkong Airport and Channel Tunnel between UK and France), further Allianz insures the majority of the fortune 500 companies, besides being a large industrial insure, Allianz has a substantial portfolio in the

commercial and personal lines sector, using a wide variety of innovative distribution channels. Allianz AG has the following of offer Bajaj Allianz General Insurance Company Ltd.: Set up and running of General insurance operations New and improved international products One of the worlds leading insurance companies More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide Provides insurance to almost half the Fortune 500

companies A Partnership Based on Synergy Bajaj Allianz General Insurance Company offers technical excellence in all areas of General and Health Insurance as well as Risk Management. This partnership successfully understanding combines of the Bajaj local Autos and in-depth extensive

market

distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs.110 crores, the company is: Fully licensed to underwrite all lines of general insurance business including health with management control by Allianz AG About Bajaj Allianz Life Insurance: Bajaj Allianz Life Insurance Company has

developed insurance solutions that cater

to every

segment and age-income profiles. Its products include Invest Gain (a unique life insurance plan where

sustenance of income is combined in the same plan that also pays a lump sum), Cash Gain (Money Back), Child Gain (Childrens plan where sustenance of income is combined in the same plan that also pays a lum sum), Cash Gain (Money Back), Child Gain (Childrens Plan), Risk care (Pure Term), Life Time Care (whole Life), term Care (term with return of premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term insurance plan), UnitGain (Unit Linked Whole of Life Plan) and Unit Gain Single Premium.

Bajaj Allianz Life Insurance is poised for an accelerated growth in the market and has already become the fastest growing private life insurance company in India. Bajaj Allianz Life Insurance has a wide pan India presence of office network in 156 citied of the country and is aided with a strong and trained Agency network of over 28000 agents. Bajaj and Allianz has also forged strong Banc and

assurance

Corporate

Agency

relationship

continues to build on new tie-ups for fast track growth and deep market penetration. Bajaj Allianz Life Insurance has launched a slew of need-based products to cater to each varied needs of the customer. Currently Bajaj Allianz Life Insurance has a product portfolio of 19 products and more need-based products are in the pipeline. Bajaj Allianz general Insurance: 125 percent profit Increase Bajaj Allianz General Insurance Company Limited is a joint venture company between Bajaj Auto Ltd., Indias leading manufacturer of two and three wheeler vehicles and the Allianz Group.

Bajaj Allianz General Insurance offers technical excellence in all areas of general and health insurance and risk management. The partnership successfully combines Bajaj Autos extensive expansive understanding distribution of the local market and global

with

Allianz

Groups

experience and technical expertise. Bajaj Allianz General Insurance is headquartered in Pune and has a wide network of 40 offices spanning the country. All the offices are fully networked. The company received the IRDA registration in may 2001; today, it already has a vast range of 45 products to suit its corporate and retail customers. The company has also pioneered in unique forms of risk cover. In the year 2006-2007, the company garnered a premium income of approximately 4.8 billion Rupees (86 million Euros) with a profit after tax of 220 million Rupees (3.9 million Euros); it sold 1.2 million policies. With this result, it achieved a net profit growth of 125 percent, gross written premiums jumped by over 60 percent.

Allianz Bajaj Changed Its Name To Bajaj Allianz Life Insurance Allianz Bajaj Life Insurance Co. Ltd., the fastest growing private life insurance co. today announced that it has changed its corporate name to Bajaj Allianz Life

Insurance Co. Ltd, effective from August 03, 2004. The change in company name comes in conjunction with research findings from existing customers, business associates, prospective customers and other

stakeholders indicates higher comfort level and ease of recalling Bajaj name first and then Allianz, and hence the name Bajaj Allianz. Bajaj Allianz General Insurance Company Limited and Bajaj Allianz Life Insurance Company Limited will now have a common logo and branding which will help in increasing our visibility and familiarity, which will create a much larger awareness and a greater mind share. The new logo incorporates the new Bajaj Auto logo. Commenting on this occasion Mr. Sam Ghose

Manager, Allianz and CEO, Bajaj Allianz Life Insurance said, we are not only acquiring a new name, but have put in motion a new level of energy and commitment to delivering the best products. The name change coupled

with aggressive strategic market initiatives to reach service customers better will give us an unbeatable position in the insurance market in this country and both Life and General companies together can unleash the Power of One and be the leader in the insurance industry.

Bajaj Allianz Life Insurance recently launched over 100 satellites branches, new life and non-life group products, which has helped Bajaj Allianz (formerly

known as Allianz Bajaj) to log in Rs.100 Cr. Gross Written Premium (GWP) in the first 100 days of this financial year and has leaped to 2 n d position as per IRDA figures ending June 07, from its 7 t h position at the end of last financial year. Bajaj Allianz Life Insurance has also brought in the key executives, to infuse greater thrust, new ideas, efficiency and professionalism to impart state of the art servicing to the customers across the length and breadth of the country. CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE

INSURANCE

The Bajaj Allianz Difference Business strategy aligned to clients needs and trends in India and global economy industry Internationally experienced core team, majority with local background Fast, decentralized decision making Long-term commitment to market and clients

Trust At Bajaj Allianz, they have realized that the

customer seeks an insurer whom he/she can trust. Bajaj Allianz Limited is trusted name for over 55 years in the Indian market and Allianz AG has over 110 years of global experience in financial services. Together they are committed to provide the customer with time tested and trusted financial solutions that provide the customer all the security he/she need for their investments. And more Underwriting Philosophy Their underwriting philosophy focused on: Understanding the customers needs Underwriting what we understand

 Meeting the customers requirements Ensuring optimal coverage at lowest cost Claims Philosophy The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims processing. They pride themselves on a friendly and open approach. They are focused towards providing the customer a hassle free and speedy claims processing. Their claims philosophy is to: Be flexible and settle fast Ensure no claim file to be seen by more than 3 people Check Allianz processes OPEX regularly against the global

(Operational

Excellence)

methodology Customer Orientation At Bajaj Allianz, the guiding principals are customer service directed and client satisfaction. understanding All the the efforts are

towards

culture,

social

environment and individual insurance requirements- so that they can cater to all the customers varied needs.

Experienced and Expert Servicing Team Bajaj Allianz is driven by a team of experienced people who understand Indian risks and are supported by the necessary international expertise requires to analyses and assess them service engineers located in every major city. Superior Technology In order to ensure speedy and accurate processing o the customers needs, they have established worlds class technology, with renowned insurance software, which networks all our offices and intermediaries Using the Web, policies can be issued form any office across the country for retail products Unique, user friendly software developed to make the process of issue of policies and claims

settlement simpler (e.g. online insurance of marine policy certificate) Unique Forms of Risk Cover Special PA cover for Amarnath Yatris Housing loan cover for people, who are suddenly unemployed Film insurance

 Event management cover Risk Management Their Expertise Their service methodology is tried, tested and Proven the world over and involves: Risk identification: Inspection Risk analysis: Portfolio review and gap analysis. Risk retention
Risk Transfer: To an insurer as well as rein surer (as

required) Creation of need based products

PRODUCTS OF BAJAJ ALLIANZ

LIFE INSURANCE

LIFE INSURANCE POLICIES

PENSION PLANS

SWARNA VISHRANTI You have been working hard. Youre going to retire one day, How do you see your retirement? Traveling Golfing? Turning a hobby into a second career or volunteering for a noble cause or simply spending more time with your family. In retirement, how you choose to spend your time is now up to you. Its also up to you to ensure your retirement income lasts as long you do. The decisions you make about your money today should be flexible enough to accommodate your changing needs. Taking charge of your olden years are golden years.

What does Bajaj Allianz Swarna Vishranti offers?

With Bajaj Allianz Swarna Vishranti, a person can take control of his/her future and ensure a retirement he can look forward to. This plan helps a person to prudently play for his retirement today, so that he

doesnt have to worry about inflation, declining interest rates and rising medical bills in the future as also ensures the financial security of his family. The annuity payable under this plan will ensure that his/her earnings never stop during their lifetime. Packed with a host of innovative features and with flexibility like never before, then the search for the perfect pension ends here with Bajaj Allianz Swarna Vishranti, they have the option to choose the following additional benefits:

a)

Family Income Benefit : The customer can select the unique Family Income Benefit from Bajaj Allianz that ensures total financial

protection for loved ones. In case of death or accidental total permanent disability, a

guaranteed monthly income of 1% of the Sum assured (12% per annum) is paid till the vesting date or at least for period of 10years, whichever is higher. Moreover, all future premiums are waived. This unique regular income benefit can act as important supplement to the pension available to the spouse in the case of death.

b)

Comprehensive

Accident

Protection

:This

benefit provides comprehensive cover in case of an accident. It comprises of :

Accidental Death Benefit : Accidents are always sudden and sometimes fatal. You cant lessen the emotional shock but you can certainly soften the financial one.

Bajaj Allianz Accidental Death Benefit gives the loved ones something to start with after the permanent loss of income by paying an amount equal to the Sum

Assured. (Subject to a maximum of Rs. 50,00,000/- under all policies with Bajaj Allianz taken together).

Accidental Disability

Permanent Benefit :

Total/Partial Accidents are

unpredictable and so are the consequences. They may lead to a disability- partial or total. This benefit provides a financial

cushion against such misfortunes. One will

get 50% of the Sum Assured in case of partial disability and 100% in case of total disability. (Subject to a maximum of Rs. 25,00,000/- for partial and Rs. 50,00,000/- for total disability under all policies with Bajaj Allianz taken

together).

Waiver of Premium Benefit : An accident may lead to premium total disability, limiting ones ability to earn. Bajaj Allianz Waiver of Premium Benefit is a helping hand when one needs it most. It waives off all future premiums while keeping the valuable life insurance cover alive, thus enabling you to live up to your commitments.

ABOUT US ICICI PRUDENTIAL :

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank , a premier financial powerhouse and Prudential plc , a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst The first private sector insurance companies to begin operation in December 2000 after receiving approval from Regulatory Development Authority (IRDA). ICICI Prudentials equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31,2005, the company garnered Rs 1584 crore of new business premium for a Total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups. For the past four years , ICIVI Prudential has retained its position as the No. 1 private life insurer in the country , with a wide range of flexible products that meet the needs of the Indian customer at every step in life. Insurance

VISION :

To make ICICI Prudential the dominant Life and Pensions built on trust by world class people and service. This we hope to achieve by:
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 our policyholders. Providing an enabling environment to foster growth and learning for our employees. And above all, building transparency in all our dealings. The success of the company will be founded in its unflinching customer commitment First, to 5 core less, valuesIntegrity, Ownership and

Boundary

passion.Each of the values describes what the company stands for, the qualities of our people and the way we work. We do believe that we are on threshold of an exciting new opportunity, where we can play a significant role in redefine and reshaping the sector. Given the quality of our

parentage and the commitment of our team, there are no limits to our growth. PROMOTERS : ICICI Bank is Indias second- largest bank with total assets of about Rs.1112,024 crore and a network of about 450 branches and officies and about 1750 ATMs. It offers a wide range of banking products and financial services to corporate and retailcustomers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and nonlife insurance, venture capital, asset management and information technology . ICICI Bank posted a net profit of Rs.1,637 crore for the year ended march 31, 2004. ICICI Banks equity shares are listed in India on stock exchanges at Chennai , Delhi, Kolkata and Vadodara, the stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). THE COMPANY ICICI Prudential Life Insurance company is a joint venture between ICICI Bank , a premier financial powerhouse , and Prudential plc , leading international financial services group

headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operation in December 2000 after receiving approval from Insurance Regulatory Development Authority (IDRA). ICICI Prudential ?s equity base stands at Rs. 925 crore with ICICI Bank and prudential plc holding 74% and 26% stake

respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 corer and wrote nearly 615,000 policies. For the past four years , ICICI prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet that needs of the Indian customer at every step in life. Prudential plc: Established in London in 1848, Prudential plc, through its business in the UK . And Europe, the US and Asia, provides retail financial services products and Services to more than 16 million customers, policyholder and unit holders worldwide. As of June 30,2004, the company, had over US$300 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking , investment is the

management and general insurance. In Asia, Prudential

leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries China , Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the

Philippines, Singapore, Taiwan, Thailand and Vietnam

MANAGEMENT
BROAD OF DIRECTORS : The ICICI Prudential Life Insurance Company Limited Broad comprises reputed people from the finance industry both from India and abroad . Mr . K.V. Kamath , Chairman Mr. Mark Norbom Mrs. Lalita D. Gupte Mrs . Kalpana morparia Mrs. Chandra Kochlar Mr. Kevin Holmgren Mrs. M.P. Modi Mr. R Narayanan Ms. Shikha Sharma , Managing Director Savings Plans ICICI prudential offers a variety of policies that give you the benefits important wedding. of protection and the opportunity to save for

assets or events , like a home , a car or a

Invest Shield Cash A regular premium unit linked insurance plan with an assurance of Capital Guarantee# with the added advantage of flexible liquidity option . An ideal plan for long term planning with the benefit of liquidity . The Key features of the plan are: Flexibility to choose a specific level of protection (Sum Assured) , based on a multiple of the annual premium . you can also choose the term of the plan. At the end of the term , the higher of the value of units or the guaranteed value* is paid . On death , Sum Assured along with the higher o value of units or guaranteed value is payable.
Facility to make withdrawals from the 6 th policy year

onwards till

the end of the policy term . Every year

withdraw up to 10% of the value of units .

Additional credits payable as a percentage

of the

initial annual premium are paid along with the death maturity benefit . Additional insurance for 10 year after the maturity , for an amount of 50% of the Sum Assured.

 Flexibility to make additional investment with the help of top up facility. Flexibility to increase / decrease your annual premium amount Facility of Automatic premium payment With this

facility you can take a temporary break from premium payment. ** Total transparency with the premium allocations , and other charges declared upfront. The guaranteed value of the unit fund is value of all invested premiums (premiums net of all charges) along with the declared bonus interests.

SWOT ANALYSIS STRENGTHS: Multi channel distribution and one of the largest distribution networks in India. Customer centric products and serevices. Superior investment and risk management framework. Training process of the company is very strong. Different plan for different peoples. WEAKNESSES: Company does not penetrate on the rural market at a time. There is no plan for the low income group. Fees for the advisor is high than the other company.

OPPORTUNITY: Insurance market is very big, where company can expand its horizon in insurance industry. Though good investment and insurance it is easy to top indian customers. The huge insurance market (96%) is left so company has opportunity to expand our products.

THREATS: OLD HABITS DIE HARD : its still difficult task to win the confidence of public towards private company. The company is facing major threats from LIC which is an only government company. Plans for all income groups is not available which can create adverse effect later on the market share of the company.

RESEARCH METHODOLOGY
Research methodology is a description explanation and

justification of various methods of conducting research. TYPE OF RESEARCH APPLIED RESEARCH:It aims at finding a solution for an immediate problem facing a sociaty or an individual business organisation. Thus Applied research is to discover a solution for some pressing practical problem. SAMPLING: The sampling plan for the study decides the work area that is the population, which has to be surveyed . A Brief idea about the sampling for this research consisting of its different parameters is given below: TYPE OF SAMPLING: Connivance Sampling Sample Size: 100 Universe: Lucknow TOOLS USED FOR DATA COLLECTION The research was carried out through surey method with the help of a QUESTIONNAIRE consisting of closed ended question.due to flexibility , questinnairemethod is ideally suited for collection of primary data.

Research Problem

Factors affecting the satisfaction of existing advisors. Factors

affecting the peoples for becoming advisors in

insurance.

OBJECTIVE OF THE STUDY

To

study

COMPARATIVE

ANALYSIS

OF

BAJAJ

ANALIANZ VS ICICI PRUDENTIAL .

Factors

affecting the choice of customer for becoming

Insurance.

ANALYSIS AND FINDINGS

Reasons of being Consumers with Bajaj Allianz extra income 14%

career progression -14% recognition flexibilityall the above5% 3% 64%

extra income career progession recognition flexibility all the above

Annual business 0-35000: 35000-7000: 5% 14%

more than 70000: 81%

0-35000 35000-70000 more than 70000

Satisfaction level of customers Highly satisfied-19% Satisfied-43% Highly dissatisfied-8% Cant say-8% Highly satisfied-19%

highly satisfied satisfied dissatisfied highly disssatisfied cant say

Reason of linking with icici purdential.

Integrity-27% Good working envt-11% Customer friendly policies-32% Can work all over the country-30%

integrity

good workin environment customer friendly policies can work all over the country

very good good average poor

Working environment of company

VERY GOOD-32% GOOD-32% AVERAGE-24% POOR-5%

PREFERANCE OF INSURANCE COMPANY

ICICI PRU LIC HDFC 0M KOTAK BAJAJ ALLIANZ RELIANCELIFEINSURANCE OTHERS

25% 45% 10% 2% 11% 4% 3%

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

ICICI PRU LIC HDFC 0M KOTAK BAJAJ ALLIANZ RELIANCELIFE INSURANCE OTHERS

HAPPY WITH PRESENT LEVEL OF INCOME YES-17% NO-83%

YES NO

RECOMMENDATION
The companies have to concentration on the factors

like prevention of loss, Assured Return and long term investment. .

The Bajaj allianz can increase its potential through more

advertising.

The company should give more training programs

LIMITATIONS

The market study and finding are applicable to city of Lucknow and near by areas. One other important limitation of the study was that of time limitation due to which researcher could not make detailed study. The sample size was taken only 100; therefore it is difficult to say any thing concretely. Absence of professional researcher and team was another limitation of the study.

CONCLUSION

The market potential for private insurance companies is found to be greater in the long run as most of the Indians are of the opinion that, private insurance companies would be able to perform well in the future.

The private and foreign insurance companies have to take immediate steps in appointing more number of agents and/or advisors in addition to the employees as it has been found out that agents are the best channel to reach the general public regarding selling of insurance products.

The private and foreign insurance companies have to concentrate on the factors like Prevention of Loss , Assured Returns and Long term Investment. They can also focus on an insurance amount of Rs. 1 2 lakhs with money back policies. Hence, the market has potential. The private and foreign insurance companies that are taking immediate steps can tap it easily & rapidly.

BIBLIOGRAPHY
REFFERED BOOK: RESEARCH METHODOLOGY C. R. KOTHARI COMPANY SITE:
www.bajajallianzlife.co.in

www.iciciprulife.com

ANNEXURE
QUESTIONNARIE 1.Name. . 2.Address.. 3.Tel no.. . 4.Email. 5.Age ................... 6.Marital status. 7.No of dependent 8.Qualification 9.Occupation a) student d) Pvt. service 10.Annual income a) less than 10000 c)200000-400000 b) d)above 11.are u associated with any club or social organizing a) yes b)no b)100000-200000 b)Govt service e)House wife c)Business f) others Sex..

12.are u interested in part time work a) yes b)no

13.are u interested in any of these field a)Insurance b)banking c)IT d)Telecom

14.If u got an opportunity to work with any of these companies who would u prefer a) Reliance Insurance d) others specific 15.Are u happy with your present level of income a) yes b)no b) ICICI pru c)HDFC