A PROJECT REPORT ON MARKET POTENTIAL OF TATA AIG LIFE INSURANCE COMPANY LTD FOR TATA AIG LIFE INSURANCE

COMPANY LTD NASHIK Submitted By PUSHKAR JAIN Under The Guidance Of PROF. IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION TO PUNE UNIVERSITY

ACKNOWLEDGEMENT No study is big or small can be undertaken all by oneself. Behind this project too is guidance of those individual people to whom I will be always grateful. I express my deep sense of gratitude to TATA AIG Group for giving me the opportunity of doing this project in their well-renowned organization which otherwise would not have been easy. I am deeply indebted to Mr. Vishal Chajed, Area Sales Manager in Tata AIG Life Insurance who selected me as a trainee to work with him and guided me throughout the project. I am grateful and would like to express sincere thanks to my guide Prof. Mukund Gaikwad for their valuable suggestion and guidance throughout this project. This tremendously helped me in execution of the entire Project.

Mr. PUSHKAR JAIN (MBA 2009-2011)

DECLARATION I undersigned Mr. PUSHKAR JAIN here by declare that the project report written and submitted by me under the guidance of Prof. is my original work. The empirical findings and data collected in this report are based on the information collected by me through fieldwork. I have not copied from any report submitted to any of the university Institution. I understand that any coping is liable to be punishable by authorities.

Place: Nashik Date: Signature

CONTENTS Sr.No Pg.no.

01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. Executive Summary Introduction topic Industry profile Company Profile. Objective Of Study. Scope and limitations. Research Methodology... Data Analysis and Interpretation... Findings and Suggestions.. Conclusion.. Annexure. Bibliography.

Title

EXECUTIVE SUMMARY The objective of the project was to be Market research & find out the Market Potential for Tata AIG India Life Insurance. For this we have to understand consumer response, time frame, personality constraints and emotions for assessing the potential of insurance sector. So specifically the target of the project is to focus of the high network income groups and retailers for their investment portion. Project involved a blend of marketing where we were to interact with all kinds of retailers, wholesalers, real estate agents & other service group to gather information on site and tell them what are the new opportunities that are with Tata AIG Life Insurance and tell them what are the benefits they will get if they insured with TATA Group. The main task of project involved carrying the fieldwork where we supposed to visit all kind of retail outlets as well as non-retail business in major localities. The first half of my project involved in Future is to carry the fieldwork along with campaigning in different localities in Nashik region. Data collected from fieldwork were submitted to the company for future requirements and also to get back to the customers. The study undertaken for two months. As I have to target specifically to retailers whole sellers who form the majority portion of the total market.

For this purpose Feedback form was prepared which gave a broader picture of the people about their existence investment segments. The form shows details regarding current savings and planning for their future events. Through this form we got to know what people think about private insurance sector and get the idea about different flaws in the insurance sector because it is seen that during interview few people had an idea About private players in the insurance sector and their developments. The questionnaire contains various aspects like profession, education, current savings, number of dependents, address etc. Second part of the study contains scanning the form questionnaire making proper evaluation of given information and going back to them showing how they need to plan their future and the direction to achieve their desired goals. Though, many respondents did not give all the details regarding current savings. For assessing the customer response following market research process followed Step 1:Define the objective: First step is defining the objective i.e. Market Potential for Tata AIG Life Insurance researcher covered most of the areas, which had been instructed by the company. Step 2:Develop research plan: The second step was to develop the most efficient plan for gathering the needed information.

i.

Data sources: Both primary & secondary data are taken into consideration. Primary data are data gathered from field for specific research project. Research approach: I have mainly collected the primary data through survey & few cases by observations. Research instrument: Questionnaire is used to collect most of the primary data.

ii.

iii.

iv.

Sample plan: after deciding on the research approach the instruments I decided sampling plan this cause for three decisions. a. Sampling unit: project was concentrated on retailers, whole sellers, real estate agents, service group & others for the sampling unit b. Sampling size: project consists of 165 respondents from different areas & from different professions. c. Contact method: once a sampling plan has been determined, marketing researcher need to decide how the subject should be contacted: mails, telephone, personal visit or online interview. In my project research it was mostly personal interview and in some cases telephonic interviews was held. Step 3: Collect the information: Data collection phase of the marketing research generally was the most time consuming period. In case of survey few problems arise likewise some respondents may not give all the detail information
7

and might not be available and must be contacted or replaced. Others refused to co-operate and finally some respondents will be biased or dishonest to share information. Step 4:Analyse the information: The collected information needs to be analyzed thoroughly to extract the findings that will be useful to the company. Again this data must be tabulated and averages/measures are computed from various variables. Step 5:Present the findings: And the last step is present the findings that are relevant to the objectives.

INTRODUCTION TO TOPIC Life insurance is a contract between you and a life insurance company, which provides you a predetermined amount in case of your death, accidents or any uncertain events during the contract term. Buying insurance is extremely useful if one is the principle-earning member in the family and unfortunate premature demise, your family can remain financially secured because of the life that you have purchased. The primary purpose of life insurance is therefore protection of the family for uncertain events for future Life insurance is also seen as a tool to plan effectively for the future years, your retirement, education of the children and their future needs. Today, market offers insurance plans that not just cover you and your family but at the same time it helps to grow your wealth too. Life wasnt designed to be risk free. The key is not to eliminate risk, but to estimate it accurately and manage it wisely.
9

Insurance sector have characteristic that can give boost to the growth of any economy. It is due to the savings done at the individual level and at micro level it generates funds for infrastructure building as the cash flow is constant while the payout is differed, so that the insurance companies are becoming biggest investors in long term infrastructure development projects and hence have a great Importance in the developing economy like India. Insurance sector with an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge.

Total value of the Indian insurance market (2008-09) is estimated at Rs. 1350 billion (US$25 billion). According to government sources, the insurance and banking services contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The life Insurance industry in India grew by an impressive 36%, with premium income from new business at Rs. 700.43 billion during the fiscal year 2008-2009, braving stiff competition from private insurers. RNCOS s report, Indian Insurance Industry: New Avenues for Growth
10

2012 , finds that the market share of the state behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04.

Introduction to the topic

The report discusses the work done by trainee Mr. Pushkar Jain student of Institute Of Business Management. The purpose of training was to have practical experience of working in an organization. So the fieldwork was essential to get exposure to various management practices in the field of marketing. The main purpose of the project was basically to find the market potential for Tata AIG life insurance Nashik. It included extensive market surveys and meetings mainly with the retailers, whole sellers and other merchants from different regions of Nashik. The project is divided in two parts, for the first half is contains period of 30 days in which I did research, surveys and meetings with the people to collect data. In the later part I met various retailer, whole sellers, real estate agents, stockiest and few others to promote and make them aware about the company. The survey also helped to provide details regarding various

11

opportunities and different plans and policies that are coming up in the company. This was useful information for them to get the benefits and to know future growth prospects if they join with the company.

INDUSTRY PROFILE Five years after the life insurance sector was opened up to the private sector, market scenario for all these companies in not very much exiting. Already over Rs.15000 crore has been invested in the sector by major and their foreign partners. But that is obliviously not enough, a few thousand crores more will be needed. Because almost of the 21 private sector life insurance companies are incurring substantial losses. Some estimate suggests that private insurers made a combined loss of almost Rs 1000 crore in 2003-04.Things haven t changed much since.

12

- Bajaj Allianz Life Insurance, the second largest private sector life insurer, posted a loss of Rs 76.8 crore in the first nine months of the current fiscal. - Future Generali Life India Insurance registered a loss of Rs 41.22 crores over the same period. - Birla Sun Life Insurance, which claims to be among the most efficient users of capital, posted a loss before interest and taxation of Rs 60.03 crore for the year ended 31st March 2005.And just in the OctoberDecember quarter of 2005,Indias largest private sector insurer, ICICI Prudential posted a loss as the others have run up in the first nine months of FY 06. The losses itself are not a major concern. Such under spread losses are neither abnormal, nor expected in the initial years. In this business, companies have to bear such losses if they want to reap the substantial long-term profits. But profits are still many years away. At the moment, private sector life insurers are at a stage where any growth will only add to their losses. In fact the insurance sector is seeing a strong growth-in terms of penetration. Life insurance premium to GDP has grown from 1.8 percent to 2.3 percent while the per capita premium paid has more doubled from Rs. 280 to Rs. 600. However, there is one big reason for alarm. Insurers do need access to substantial capital in order to keep up this growth despite their initial losses. But many private sector insurers are struggling to raise the required capital. That s because the government has not yet raised the ceiling for Foreign Direct Investment (FDI) in insurance companies from 26 % of equity to 49 % as outlin3d by the previous government. And because of 26 % FDI cap, the burden of funding the growth falls on the

13

Indian promoter. The need for capital is even more crucial in the context of the (IRDA) Insurance Regulatory and Development Authority regulation on solvency margins. In India, for every Rs 100 of claims payable to customers a life insurance company must have assets worth Rs 150. OPTIMISTIC INDIAN MARKET FOR INSURANCE SECTOR: Indian market can be labeled as an untapped market, which in it s core holds immense potential for growth. The hike in FDI from 26% to 49% .this increasing capital participation of international insurers will accelerate the development of the Indian insurance industry, through the greater deployment of technical competencies and innovative products and processes .As The purchasing power of Indian people is increasing, so we can predict that the no. of customers who can afford to investment in health, life, disabilityand pension products is going to increase up to great level.

According to SWISS Economic Research and Consulting.

AREAS OF OPPORTUNITIES

1) New Horizons of investment Insurance companies have shown an unquenchable thirst to offer customized solutions based on individual risk appetite of customers rather than mundane, one size fits all endowenment based insurance products. We have a good example of ULIP (Unit links Insurance Plan) by LIC. It is a single largest innovation in life insurance industry. Life
14

Insurance products are similar to investment product with less or risk coverage, signifying changing preferences of investors. ULP s score over mutual funds, since they offer risk-cover, as well as returns by investing in stock markets, even out performing equity returns in certain instances. We can have the same plans from other private players like Bajaj-Allianz i.e. equity plan funds, ICICI Prudential maximize, HDFC standard life growth fund. Total premium under return for unit-linked plans in the financial year 2004-2005 stood at Rs. 82.47 billion, and outstanding growth of 422% over the previous year. 2) Indian Rural Market A large number of Indians lives in rural India, so this market should be tabbed by insurance companies and it require a different approach of sales services with respect to meeting such challenges as low awareness, irregular incomes and geographical distances. The focus has to be on simple coverage and return of premiums. Very few companies have plans for rural India. 3) Customized Solutions Competitive insurance market exploring the new customer segments, it includes pension plans and children plans. By 2026 India will have 179 million people who wear above 60 years of age. According to that insurance companies should have a marketing plan. Special children plans are the current requirements, as the education is becoming more important and expensive. So such plans must be introduced by all insurance companies. ICICI Prudential and LIC have already done this.

II. WHAT IS NEEDED TO BE EXPLORERED?

15

1) The industry in general faces the challenge of building the credibility of being a Financial service provider while meeting a customer s expectation of what it means to be a financial services company. Financial service brands are based on insuring long-term financial security throw a broad range of inherently risky services and investment options. In the insurance sector, branding has typically involved the concept of stability; trust and protection from risks in time of crises, or even protecting from a crisis throw a standard set of products. It will help to establish what insurers stand for and promise and will eventually help to give an industry new image.

2) The altered scenario of the insurance market in India has brought in new and differentiated products and services offerings to the public and has opened new challenges for insurance companies. Devising specific strategies to reach out to specific segments of the market, different countries and across social strata has been one aspect of the challenge. The other more complex one has entailed designing the products, marketing them, ensuring the smooth selling of products, collecting premiums, managing claims, managing & investing the funds and managing a vast enterprise. This has created a need of strong Risk Management. 3) The core function of the marketing force of an insurance company is to generate awareness about the insurance products among the target market. 4) Branding the marketplace is similar to branding on a cattle ranch, the purpose of a branding program to differentiate our cow from the cattle of range.

16

According to an article in the insurance marketing magazine, Feb-March 2002, brand strategy is one of the most critical parts of the underlying business strategy of any organization. It will help to establish what insurers stand for and promise and will eventually help to give a industry new image. This positioning helps to give credibility to sell RiskFree products design to help customers insure that their family and assets are protected. 5) Branding is the new key challenge in the financial services industry. Life in the 21st century will be longer with more choice in more fields of activity. The financial1 consequences of an increased life span are particularly likely to be tough. Inevitably, this will lead to more complexity, which in turn necessitates greater clarity and appeal from the service providers. Branding is more relevant in the financial services market, which not only faces the problem of securing and retaining customers in an increasingly competitive marketplace but also experiences the need for heightened relevance of the brand proposition in a world where brand has been termed the new religion.

17

QUICK FACTS: Second largest mobilizer of savings after banks. Constitutes 15 % of gross domestic savings after banks. Rs 400,000 crore of assets under management. Rs 40,000 crore invested in infer-structure Share of retail customers to total-92 % Agency force 15 lakhs No. Of policies in force: 20 crore Employees: more than 200,000

18

HISTORY 1912: The Indian Life Assurance Companies Act enacted as the first stature 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 business. 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.5crore from the Government of India.

19

ENTRANCE OF PRIVATE COMPANIES IN INSURANCE SECTORS. Insurance sector is seeing a strong growth in terms of penetration, life insurance to premium to GDP has grown from 1.8 percent to 2.3 percent while the per capita premium paid has more than doubled from Rs 280 to Rs 600.Despite the fact that India boosts a saving rat of around 25 percent, less than 5 percent is spent on insur1ance. The insurance landscape in India is undergoing major changes. Close to foreign competition since nationalization in 1956,the life insurance industry had been protected from competitive pressures. Now with the re-opening of the sector, several new players have entered the scene. Besides, Tata AIG Life Insurance there are 20 other private players working in insurance sector which are as follows.

1.AMP Sanmar Assurance Company Ltd. Indian Promoter Reliance Group Foreign Insurer None 2.AVIVA Life Insurance Company Ltd. Indian Promoter DABUR Foreign Insurer AVIVA,UK 3.BAJAJ Allainz Life Insurance Company Ltd. Indian Promoter BAJAJ Auto. Foreign Insurer ALLIANZ, Germany 4.BIRLA Sun Life Insurance Company. Ltd Indian Promoter ADITYA BIRLA Group

20

Foreign Insurer SUN LIFE, Canada 5.HDFC Standard Life Insurance Company. Ltd Indian Promoter- HDFC Foreign Insurer Standard Life, UK 6.ING Vysya Life Insurance Company Ltd 7.ICICI Prudential Life Insurance Company Ltd Indian Promoter ICICI Bank Foreign Insurer Prudential, UK 8.KOTAK MAHINDRA Life Insurance Company Ltd Indian Promoter- KOTAK Bank Foreign Insurer- OLD MUTUAL, South Africa. 9.LIC. Life Insurance Corpotration of India Govt owned company 10.Max New York Life Insurance Company Indian Promoter MAX India Foreign Insurer NEW YORK LIFE, US 11.MET LIFE Insurance Company Ltd Indian Promoter J & K Bank Foreign Insurer MET LIFE, U 12.SAHARA Life Insurance Company Ltd Indian Promoter SAHARA INDIA Ltd. Foreign Insurer NONE 13.SBI Life Insurance Company Ltd Indian Promoter SBI Foreign Insurer CARDIFF, France

21

14.Future Generali Insurance Company Ltd Indian Promoter Future Group Foreign Insurer Generali. 15.ING VYSYA LIFE INSURANCE Company Ltd Indian Promoter ING Group Foreign Insurer VYSYA 16.LIFE INDIA INSURANCE (LIC) 17.RELIANCE LIFE INSURANCE Company Ltd 18.NEW INDIA ASSURANCE L.I. 19.ORIENTAL INSURANCE Company Ltd 20.UNITED INDIA INSURANCE Company Ltd 21.BHARTI AXA LIFE INSURANCE Company Ltd 22. Tata AIG Life INSURANCE Company Ltd AIG Foreign Promoter 23. Religare Life Insurance Company Ltd 24.Reliance Life Insurance Company Ltd 25.IDBI FORTS LIFE INSURANCE Company Ltd

22

COMPANY PROFILE

23

THE TATA AIG GROUP TATA Group

Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over years that it is a value driven company and has pioneering contributions in various fields including insurance, aviation, iron and steel. Tata companies have forged a number of global alliances with eminent international partners in several fields. In terms of capital market performance as many as 40 listed Tata companies account for nearly 5% of the total market capitalization of all listed companies. The Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalisation of insurance. TATA Group in Insurance The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919. Government of India took over the management of this company as a part of nationalization of general insurance companies in 1972. Not deterred by the move, Tata group have ventured into risk management services having tied up with AIG group, back in 1977, with the incorporation of Tata AIG Risk Management Services Pvt. Ltd. AIG American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial and personal insurance products through a variety of distribution channels in over 130 countries and jurisdictions throughout the world. AIG's Life Insurance operations comprise of the most extensive worldwide network of any life insurer. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products. The Joint Venture Tata AIG Life Insurance Co. Ltd. is capitalised at Rs. 185 crores of which 74 per cent has been brought in by Tata Sons and the American partner

24

brings in the balance 26 per cent. Mr. George Oommen has been named managing director of Tata AIG Life. Tata-AIG plans to provide broad array of life insurance plans to cover to both individuals and groups. The company is headquartered in Mumbai, with branch operations in Delhi, Chennai, Hyderabad, Bangalore ,Calcutta, Pune and Chandigarh . Tata AIG Insurance company, one of the leading insurance company offering both life and general insurance, is a joint initiative of the Tata Group and American International Group,Inc(AIG). The ratio of stake holding of the respective companies is slated at 76:24. Tata AIG has over the years has created a name for themselves in the insurance sector of India. The company provides life insurance alongside an extensive range of general insurance products ranging from automobile, health, accident, property, home, travel to personal offering solutions to individuals as well as corporates and tries to serve all sections of people.

25

Positioning & Objective Positioning

Knowledge Organization with Leadership Approach One Stop Total Insurance Solutions & Services Provider Customer Centric Model embracing Passion,

Convenience and Service Excellence Objective To provide superior customer service and through our

knowledge-based

business

partners

employees

supported by innovative products and services.

26

Products

27

Objective of the topic

To study the Brand knowledge of Tata AIG life insurance co. ltd. To study the saving of insurance sector. To study percentage of Insurances customer. To analysis the no. of insurer of competitors To study the market potential of TATA AIG Life Insurance. To study who is market leader.

28

SCOPE AND LIMITATIONS Scope of the study The study of potential of insurance business is concerned with market study ie. research and fieldwork. This study is going to help the Tata AIG Life Insurance to find out market potential with other companies. The study will help the company to assess their performance and improve it where it is lacking. Research work is a basic function carried out by each organization. The study of market potential of insurance is very helpful to find out who are the market leaders in private companies as well as overall analysis. Availability of time was also taken into account while deciding the particular method to meet the objectives. The entire study programmed was for the period of two months. The subject of the study was selected by looking the necessity and importance to find the market potential and give suggestions related to the topic. Limitations: - One of the major limitations of this study was lack of sufficient time as the subject was required lot of time. - The time limit permitted to cover the major areas of Nashik but not all the regions of the city. - The study limits itself only to Tata AIG Life Insurance.

29

RESEARCH METHODOLOGY INTRODUCTION: Marketing Research is a systematic and objective study of the problems pertaining to the marketing of the goods and services. It may be emphasized that it is not restricted to any particular area of marketing, but is applied to all the phases and aspects. METHOD OF DATA COLLECTION: - Primary Data; The major source for collecting primary data has been the interviews held with retailers, whole sellers, real estate agents, stockiest and few other segment of market. The maximum prospects were visited directly at the shops and interviewed provided they had time to spare. Some of them interviewed via tele-calling and few were interviewed after taking prior permission and appointment. The information given by them was satisfactory and relevant to the subject. - Secondary Data: The sources of secondary data are; INSTITUTION: - Business Magazines - News Paper - Annual Reports / Company Periodicals REFERENCES: - Internet, Company websites - Telephone Directory (BSNL and TATA Indicom) - References from company employees
30

- Annual Reports / Company Periodicals

QUESTIONNAIRE METHOD This method is used to collect general information about the company like total number of employees viz. agents, sales executive, management trainees, front line staff etc. Sales executive provided this information. This information helped to know the basic knowledge about the company before doing the actual research. RESEARCH DESIGN: SAMPLING UNITS: This combines all those respondents in the market who can be the future prospects of being a part as an insurer of Tata AIG Life Insurance. Some of them are retailers, whole sellers, real estate agents, stockiest and few others from different commercial areas of Nashik. As instructed by the company- following are the few segments. 1.Business- Class 2.Agents General Insurance Agents - Postal Agents - Travel Agents - Real Estate Agents 3.Service Class - Professor / Teachers - Office Staff, Banks Staff - Government Employees

31

4. Mutual Fund Agents 5.Tax Consultants 6. Investment Consultants 7. Share Brokers 8. Financial Advisors 9. Chartered Accountants / Company Secretaries 10. Others- House-wife , Medical Representatives

STEP 2 Out of these various segments, the researcher targeted following - Retailers - Who1le sellers - Stockiest - Real Estate Agents - Others Note: It was instructed by the company to target the people having net income between 15000 and above. The required data for above segments is to be such, which is helpful to know the background & potential of the prospects. For all that researcher collected information as there, Name Present AgeAddressPh No.E-mailBrief Information about family Personal Goals Retirement Plans Present monthly expenses

32

- Existing Investment Avenues

SAMPLE DESIGN Sample size (200 people)

Sample Size 200 People

Retailers 96

Wholesale Sellers 48

Real Estate Agents 32

Stockiest 16

Others 8

1.Retailers (96) 2.Whole Sellers(48) 3.Real Estate Agents (32) 4.Stockiest (16) 5.Others (8)

33

DATA COLLECTION TECHNIQUES: - Questionnaire Method - Telephone Interview Method QUESTIONNAIRE METHOD The individual questionnaire of the survey was designed for population between age group of 18-60 years of age who can be the prospect of becoming Tata AIG Life Insurance clients from different areas of Nashik. In total 200 questionnaires were completed who were the samples for research work. SAMPLE SIZE: The sample size of the respondents was taken as 200 considering the scope and constraints of the study. FIELD WORK: The fieldwork was conducted for a period of 60 days in different commercial areas of Nashik. Interviews were conducted from respondents across segments, above 18 years of age and as per their convenience. So as to contrive representative sample. The interview and presentation mode by researcher were carried for the duration of 20 minutes.

34

DATA ANALYSIS AND INTERPRETATION

35

1. Investment options preferred by respondents. Sr.N o 1 2 3 4 5 6 7 Investment Option Insurance Fixed Deposit Post PPF Mutual Fund Shares Daily Collection TOTAL No.Of Respondents 91 23 24 28 11 6 19 165 % Of Responden t 45 12 12 14 5 3 9 100

36

Out of total respondents, maximum i.e. 91 respondents think Insurance is safer option to invest the money. It gives them long-term benefits for not only individual but for the entire family. Thus, people find insurance safe and better option rather than investing in FD, Post, Mutual Funds, Shares etc. 2. Need of Life Insurance Yes No Total 164 36 200 82 % 18 % 100 %

N e e d o f L ife In s u r a n c e

Y es

Y es

Around 82 % of the total samples think that insurance is essential part of the life. But for everyone the need for life insurance has different reasons.18 percent of the people think other options are better than life insurance. Following factors determine the need for life insurance.

Factors to determine need for L.I. Security/Safety

No.Of Respondents

62

37

Savings Long term Investments Tax Savings Total

17 38 47 164

Still majority i.e. 82% people think that insurance is essential. However safety is major concern when people see insurance as investment. 3.Awareness about the Insurance Companies. Insurance Companies ICICI Prudential Future Generali Bajaj Allianz Tata AIG Max New York Life HDFC LIC Total No.Of Customer 110 65 95 65 35 105 125 600 % of Customer 18 11 16 11 6 18 20 100

38

Among all the private players in the market ICICI prudential and HDFC Standard Life are among the most popular and known brands in the market. These two brands are way ahead of the Tata AIG Life Insurance and others. These two Life Insurance companies do effective advertising that made them known brands in the market 4. Reliable companies among the respondents. Insurance Companies Respondents %Of Respond ent ICICI Prudential 75 25 Future Generali 20 7 Bajaj Allianz 55 18 Tata AIG 30 10 Max New York Life 15 5 HDFC 50 17 LIC 55 18 Total 300 100

39

Among all the samples ICICI and HDFC are believed as the most reliable companies among all the private companies in the market. Following are the factors that determine why these two companies are preferred and believed by the people.

Factors determining Reliability Brand Name Safety Peer Pressure ROI Previous Experience Total

Response 45 40 55 70 45 255

% Of Respons e 18 16 22 26 18 100

40

R e li a b il ity F a c to r s B ra n d N a m e 1 2 6 % 2 2 % 1 6 % 8 % S a fe t y P e e r p re s s u re

x p e r ie n c e

People are positive about ICICI and HDFC as reliable companies because of their Returns, Brand name, and Previous experience and also there is lot of peer pressure among

5. Present Insurance holders

Yes No Total

145 20 165

41

respondent s

S e rie s 1

Insurance Companies LIC ICICI Prudential Future Generali Bajaj Allianz Tata AIG Max New York Life HDFC SBI Total

No Of Shares 85 20 15 10 8 17 5 5 165

% Of Shares 52 12 9 6 5 10 3 3 100

42

Among the total market share LIC still has majority share in market, holding 52% of the total respondents. Among the private companies ICICI Prudential, Bajaj Allianz and HDFC are leaders

6. Total Savings for Life Insurance. Savings (Rs) 5000-10000 10000-20000 20000-40000 >40000 Total Respondents 54 78 40 28 200

43

200 150 100 50 0 R pondents es 5000-10000 10000-20000 20000-40000 > 40000 T l ota

Among the total respondents 75 people save anything between Rs. 10000- Rs15000. Thus we can say that still people are doing good amount of savings in insurance. It came to know that all the respondents have some part of their savings in insurance.

7.Benefits from Life Insurance Policy.

Benefits Child Education Personal Goals Marriage Retirements

Response Of Clints 35 90 45 85
44

%Of Clints 11 26 14 26

Savings Total

75 330

23 100

Personal goals, retirement, savings are the prime benefits for which people usually invest in insurance. The same response was found during the research work. It is good sign for the insurance business, as people perceive insurance for achieving the different goals in the life.

8. Awareness about Tata AIG Life Insurance.

Awarenes s Yes No Total e

Respons 166 34 200

45

200 150 100 50 0 R pons es e Yes N o T l ota

Around 95 respondents i.e. 17% didnt have any idea about Tata AIG Life Insurance. This shows that there is awareness in the market, which need to be used through proper value proposition.

9.Awareness about different plans of Tata AIG Life Insurance.

Tata Plans Awareness Yes No Total

46

Response 145 55 200

200 150 100 50 0 R pons es e Yes N o T l ota

As there is awareness, maximum respondents know about the plans and policies of Tata AIG. This Company needs to promote their different plans through effective advertising.

10. Tata AIG prospects for Future.

Interested Prospects Yes No Cant Say Total

Response 30 92 78 200

% Of Response 15 46 39 100

47

15 percent of the total respondents said they are interested to buy the policy from Tata AIG Life Insurance. Out of the remaining respondents 46 percent didn t show any interest in Future and others were not sure whether to buy the policy from Future or not.

OBSERVATION AND FINDINGS OSERVATION: The researcher has taken interview of given various segments as Retailers, Whole sellers, Real-Estate Agents, Stockiest and others and came to know the facts as follows. RETAILERS: Belief:
48

Retailers contribute to the major portion of any market. Therefore, retailers are good prospects for insurance business. Normally it is believed that they spare very less time with other people other than their customers. Retailers are quite busy with their customers and other related work. Facts: Though some beliefs are found correct but observation shows other side of the curtain i.e. - They were quite generous when they knew that they were getting some information. - They spare good amount of time if one presented the company and himself properly. - Retailers give sufficient information if they believe in the work.

WHOLE SELLERS Belief : Whole sellers are believed to be among the busiest people in their work. They are actively involved in loading, unloading, dispatching, billing etc.

Facts:

49

- Whole sellers are not ready when we approached spontaneously to provide some information. - They provide sufficient information if they contacted when they have free time. - Most of them were not really comfortable to give any sort of personal and financial information. - These people runs huge business so these are highly potential prospects for any business. REAL ESTATE AGENTS Belief: These people are not as busy as they have selective and limited no. of customers. But many of these agents are out with their clients on their sites thus it becomes really difficult to meet them. They are believed; as they don t entertain others. Facts: - Appointments need to be taken before visiting to their places. - These agents have very good contacts, which means good customer base. So the give bigger and better clients for insurance business.

STOKISTS/COMPANY OUTLETS Belief: These are believed as high-class people and usually prefer to talk with senior executives of any company.

50

Facts: - These people should be given a call before visiting their place, as they don appreciate direct visits by any people. - Good presentation is required to make them talk for a while. - A highly potential customer if one makes them believe in company by providing detail information regarding company its present and future growth. OTHERS These include house-wife, pensioners etc.

Belief: They are supposed to have sufficient time and believed as the working persons at home normally influence these people. Facts: - Most of the hose-wife was shy to talk with strangers. - These people are dependent for their decisions. - Not a very good prospect for insurance business.

FINDINGS: A): BRAND Knowledge

51

1. It is found during research that 18 percent were lacking any sort of knowledge and information about Tata AIG as life insurance provider. 2. From the total 200 respondents, 146 respondents save good amount of money i.e. between Rs 10000 to Rs. 40000 in insurance. Remaining people save anything between Rs 5000 to Rs 10000.Thus it shows as everyone has some part of savings in insurance, which is good sign for insurance sector. 3. Majority i.e. 53% respondents have their personal goals and retirement plans as prime concern for buying insurance. 4. Out of 200 samples, 176 respondents i.e. around 88 % of them have insurance cover in different private insurance and government organizations. B): PRODUCT Knowledge 1. 28 percent had just heard about Tata AIG but were lacking knowledge about different plans. Out of these 28 percent only 7 percent people were insurance holders of Tata AIG Life Insurance. 2. It is found that still (LIC) Life Insurance Corporation of India rules when it comes to trust for insurance providers, among private sectors its ICICI Prudential, HDFC Standard Life, Bajaj Allainz are among market leaders. 3. Still 82 percent of samples think insurance is essential for various reasons. 4. Many respondents found saying HDFC and ICICI as being more reliable insurance providers in terms of returns, peer pressure, previous experience than their competitors.

52

SUGGESTIONS 1. More penetration through advertising

Media Advertising- T.V Channels, Radio Stations, Internet pop-ups, Video Clips during the intermission in Theaters. Press Advertising - Leading News Papers like Times of India, Economic Times, Hindustan Times, Indian Express and few local language newspapers. Campaigning, Rallies, Sponsorships for the local institutional and social events. All these forms of advertising could be effectively used to create brand awareness for Tata AIG Life Insurance. 2. They need to concentrate on service factor by hiring or recruiting professional people for effective presentation and communication skills. 3. They need to open more branches/offices at the major localities in different cities and if possible in towns. 4. They should hire a Brand Ambassador/Ambassadress from Cricket or Film industry as people from these two fields influence many people in the society. This would promote the company not only within India but also at global standards. This might create strong awareness and give popularity to the company as millions of people are addressed at one time. 5. They need to search for management trainees whom they can provide proper training who could turn out as future employees of the company. 6. Good amount of incentives and basic salaries should be given to the employees to make them perform better.

53

7. Proper training facilities should be given to the new employees, which will help them to get fair idea about the company and its policies. 8. Feedback should be taken from the present clients to know whether they are satisfied and if they have any problems regarding the terms and service. This will certainly help to improve the overall performance of the company. 9. Special schemes like Lucky Draws, Trip to foreign countries; Attractive prizes could be used for promotion. 10. Should develop the plans that are attractive. Also they should develop new plans that are not launched by any other companies to take first launcher advantage.

54

CONCLUSION After all the research work it can be said that Private Insurance companies have good market potential in the coming years. There is steady growth in all the companies from last 2-3 years. Despite the fact that India boosts saving rates of around 25 percent, less than 5 percent is spent on insurance. So there is lot of opportunities to tap the market provided these companies create trust among the people. In case of TATA AIG LIFE INSURANCE, they need to develop a Brand name in the market, which is only possible with effective advertising and good service. They should promote their products throughout the country and target specific group or class for each plan or policy. This will make them concentrate on all the plans, which means maximum portion of the so market can be covered.

55

ANNEXURE 1.Personal detail: Name: Age(Yrs): Phone No. E-mail Gender: Office Address

Residential Address

2.How will you rate following investment options on safety as parameter on scale? a) 0-3 Poor b) 3-7 Average c) 7-10 Good 1.Insurance 3.Post 5.Mutual Fund 7.Daily Collection 2.Fixed Deposit 4.PPF 6.Shares

3.Do you think it is essential to have Life Insurance? a) Yes b) No If Yes, Why? 1.Safety/Security 3.Savings 2.Long term investment 4.Tax saving

4.Which of the following companies are you aware as insurance provider? 1.ICICI Prudential 2.Kotak Mahindra Life Insurance

56

3.BAJAJ Allainz 4.Tata AIG 4.Max New York Life 5.HDFC Standard Life Insurance 6.AVIVA Life Insurance 7.FUTURE GENERALI life insurance

5. Which of the following companies you consider mast reliable to invest? 1.ICICI Prudential 2.Kotak Mahindra Life Insurance 3.BAJAJ Allainz 4.Tata AIG 4.Max New York Life 5.HDFC Standard Life Insurance 6.AVIVA Life Insurance 7.FUTURE GENERALI life insurance If Yes, Why? 1.Brand Name 3.Peer-pressure 5.Previous experience

2.Safety 4.ROI

6.Do you have insurance cover or policy? 1.Yes 2.No If Yes, which? 1.ICICI Prudential 2.Kotak Mahindra Life Insurance 3.BAJAJ Allainz 4.Tata AIG 4.Max New York Life 5.HDFC Standard Life Insurance 6.AVIVA Life Insurance 8.SBI 9. .FUTURE GENERALI life insurance

57

7.Approximately how much money you invest in Life Insurance from your total savings? 1.Rs5000-Rs10000 2.Rs10000-Rs20000 3.Rs20000-Rs40000 4.Rs > 40000 8.What benefits you avail for investing money in insurance? 1.Child Education 2.Personal Goals 3. Marriage 4. Retirement 5. Savings 9.Are you aware about the Tata AIG Life Insurance? 1.Yes 2. No 10.Are you aware about different plans of Tata AIG such as; 1.Yes 2.No

11. In the near future would you be interested to buy any policy from .TATA AIG life insurance? 1. Yes 2. No 3. Cant Say

58

BIBLIOGRAPHY

Company websites:

www.tataaiglife.in

Research Methodology:

C.R. Kothari

59