What is INSURANCE???

Insurance is defined as :1. A promise. 2. future losses. 3. Periodic payments. Designed to protect financial well being. Created by law or optional. E.g. car insurance, health insurance, life insurance, marine insurance, fire insurance.

Insurance sector in India

Commenced with establishment of the Oriental Life Insurance Company in 1818.

Governed by : Insurance Act, 1938. Life Insurance Corporation Act, 1956. General Insurance Business (Nationalisation) Act, 1972. Insurance Regulatory and Development Authority (IRDA) Act, 1999.

 Liberalization began from year 1991. In operation, 29 insurance company

14 private life insurers. nine private non-life insurers. six public sector companies.

life insurance premiums contributes 2.5% of GDP and general insurance premiums contributes 0.65% of GDP. FDI limit of 49%. Only 20% of the population is insured, huge potential to grow.

 Indian insurance companies 1) 2) International insurance companies

1) 2)

Comparison of Insurance sectors

 Its a joint venture between Bajaj Finserv Limited and Allianz SE. Its vision is to be the first choice insurer for customers. In 2008 its the first company to cross the Rs.100 crores mark in profit after tax by generating Rs.105 crores. Bajaj Allianz Life Insurance has a customer base of more than 2 million customers.

 Its a joint venture between ICICI Bank Prudential Plc. ICICI Prudentials equity base stands at Rs. 2100 corer. ICICI Prudential is also the only private life insurer in India to receive rating of AAA (ind) from Fitch rating. ICICI Bank and Prudential plc has holding of 74% and 26% stake respectively.

 Its is one of the leading insurers and financial service provider world wide. Allianz has global operations and subsidiaries and branches spread across Asia, Europe, pan America, the Middle east and Africa. Allianz is headquartered in Munich, Germany and employs 181,207 peoples.

 Established in London in 1848. Provide financial services products and services to more than 20 million customers. In Asia, Prudential is the leading European life insurance company. Manages over 251 billion of funds worldwide

SWOT Analysis Internal factor Analysis

strength strength

1. Strong Brand Image. 2. Largest distribution network. 3. Value added services

1. Leading provider of insurance service. 2. Strong assets management operations. 3. Excellent rating.

Internal factor analysis

weakness weakness

1. Huge competition with the Government Companies. 2. Weak Customer Relations Management. 3. Centralized Structure.

1. Sub prime exposure. 2. Weak German motor insurance operations. 3. Sub optimal combined ratio in some non-life insurance market.

External factors analysis

opportunities opportunities

1. Large Untapped Market. 2. Distinguishable product (like Parivar Account).

1. Booming Russian insurance sector. 2. Global demand for retirement product.

External factors analysis

Threats Threats

1. Presence of very strong competitors. 2. Aggressive marketing by competitors. 3. Various investment Schemes with high returns.

1. Mounting insurance fraud. 2. Occurrence of natural disaster. 3. New regulation of government in Italy.

Internal factor analysis

strength strength

1. Strong Tie Up. 2. Strong Network. 3. Huge Customer Database

1. Leading financial services company. 2. Multi-network distribution. 3. Complementary yet diversified businesses

Internal factor analysis

weakness weakness

1. Low Customer Awareness. 2. Less Promotion. 3. Untouched Rural Population.

1. Exposure to subprime mortgage. 2. Litigations. 3. High combined ratio.

Internal factor analysis

opportunities opportunities

1. Large uninsured Population. 2. Network Building. 3. Targeting the Rural Segment.

1. Expansion into India. 2. Increasing demand for pension and retirement products. 3. Growing life insurance and pension market.

Internal factor analysis

Threats Threats

1. Competitors. 2. Customers belief in LIC. 3. Faster Turnover of Employees.

1. Volatility in financial markets. 2. Mounting insurance frauds. 3. Consolidation in financial services industry.

Result of SWOT Analysis

Indian insurance sector. 1. Strong network and International insurance sector. 1. Strong financial

Strong brand image. 2. Low customer awareness. 3. Large untapped market. 4. Huge competitors

strength. 2. Sub prime exposure. 3. Global demand of retirement product. 4. Mounting insurance frauds and market volatility

7Ps Analysis
Product and services Product and services

1. 2. 3. 4. 5. 6.

Motor Insurance. Asset Insurance. Health Insurance. Travel Insurance. Corporate Insurance Home Insurance.

1. Protection plan. 2. Premium guarantee plan. 3. Wealth creation plan. 4. Group plan. 5. Rural plan. 6. Health insurance.

Price

Price

1. Based on the type of policies. 2. Pricing element is very important as they want to increase market share.

1. Different price structure for different age group. 2. Flexible pricing as price attract policy holder.

place

place

1. locations of every corporate offices is magnificent. 2. very professional manner. 3. Work culture is also conducive to such environment.

1. 1960 branches (including 1096 micro offices). 2. Advisor base of 2,30,000.

Promotion

Promotion

1. Huge advertisements on Television and radios. 2. Tele-marketing 3. Internet Marketing 4. Hoardings and brochures

1. 2. 3. 4. 5. 6.

T.V campaigns. Print media. Publicity. Personal selling. Internet and radio. Others.

People

People

1. Recruits highly 1. Human resource intellectual persons function ant ICICI with good market prudential drives the knowledge. people strategy of business. 2. Upholds values of professionalism, 2. To build a committed innovation, team with a culture of pragmatism, team learning, innovation spirit and integrity. and growth.

Process

Process

1. Approach to insurer through agents. 2. Proposal processing. 3. Final approval. 4. Premium payment by client. 5. Alteration and submission. 6. Receiving sum assured in maturity.

Physical Evidence

Physical Evidence

1. 2. 3. 4.

Business card. Internet / Websites. Furnishings. www.bajajallianz.com /Corp/aboutus/genera l-insurancecompany.jsp. 5. Internal infrastructure.

1. 2. 3. 4. 5. 6.

Internet or web pages. Boucher's. Business card. Building and offices. Financial report. Punch lines and statement.