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AJAY SINGH RATHORE(3003) MBA II JODHPUR INSTITUTE OF MANAGEMENT
Mr. Sanjay Khandewal Mr. Kedar Upadhyay Mr. Dhiraj Khichi Faculty Guide: Dr. Abha Purohit
Sr. Divisional Branch Manager Area Training Manager Branch Training Manger Ass. Professor (JIM)
Date of Submission:
18th July 2009
What Is Insurance ? Meaning & Definitions.
Future is always uncertain and full of risk. It is not certain that what is going to happen tomorrow. Therefore a man is always worried about security of property and life. Insurance is a means of meeting out loss caused by future risks and uncertainties. “Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event.“ According to Patterson – “Insurance is an agreement between two parties under which one party undertakes specified future risk of another party and compensates the loss from that risk on payment of some consideration known as premium payable by the later”.
Insurance provides: •Protection to investor. •Accumulation of savings. •Channeling these savings into sectors needing huge long term investment Insurance business is divided into four classes: •Fire Insurance •Miscellaneous Insurance •Life Insurance •Marine Insurance
Bombay mutual life assurance society is the first Indian owned life insurer 1912 A BRIEF HISTORY OF THE INSURANCE
The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 Crore from the Government of India. 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R. N. Malhotra to draw a blue print for insurance sector reforms. 1994 Malhotra committee recommended reentry of private players. 1999 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India. 2000
In 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The
Role of IRDA:
•Protecting the interests of policyholders. •Establishing guidelines for the operations of insurers, and brokers. •Specifying the code of conduct, qualifications, and training for insurance intermediaries and agents. •Promoting efficiency in the conduct of insurance business. •Regulating the investment of funds by insurance companies. •Specifying the percentage of business to be written by insurers in rural sectors. •Handling disputes between insurers and insurance intermediaries.
Bajaj Allianz Life Insurance Company Limited Bajaj Life Insurance Company Ltd. Is one of India’s leading private companies, which offers a range of individual and insurance solution? It is a joint venture between Allianz se Limited and Bajaj auto. Bajaj auto l.t.d. is India’s leading automobile company. Bajaj Auto Ltd. is the largest exporter of two and three wheelers. With Kawasaki Heavy Industries of Japan, Bajaj manufactures state-of-the-art range of two-wheelers. The brand, Pulsar is continually dominating the Indian motorcycle market in the premium segment. Its Discover DTSi is also a successful bike on Indian roads.
Bajaj Allianz Life Insurance
•Is the fastest growing private life insurance company in India. •Currently has over 3,00,000 satisfied customers •We have customer care centers in 155 cities with 28000 Insurance Consultant providing the finest customer service. •One of India's leading private life insurance companies
Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance Company Limited is one of the private insurance companies in India. Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv. (recently demerged from Bajaj Auto.). Bajaj Auto Limited is 74% shared holder in the company with the remaining 26% being held by Allianz SE. On 2001, the Bajaj Allianz Life Insurance was given the IRDA (Insurance Regulatory and Development Authority) certification of Registration for conducting the Life Insurance business (which also included the Health Insurance business) in the country. Bajaj Allianz India is headquartered in Pune. The company has its offices in 200 towns all over India. Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over 115 years of financial experience and is present in over 70 countries around the world.
S.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
101 104 105 107 109 110 111 114 116 117 133 135 121 122 127 128 130 133 135 136 138 140 142
Existing Life Insurance 23.10.2000 HDFC Standard Life Insurance Company Ltd. Company
15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 04.09.2007 19.12.2007 03.01.2002 14.05.2002 06.02.2004 17.11.2005 14.07.2006 04.09.2007 19.12.2007 08.05.2008 27.06.2008 27.06.2008 Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited . ING Vysya Life Insurance Company Private Limited Bajaj Allianz Life Insurance Company Limited Metlife India Insurance Company Ltd. Future Generali India Life Insurance Company Limited IDBI Fortis Life Insurance Company Ltd. Reliance Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Insurance Company Ltd. Shriram Life Insurance Company Ltd. Bharti AXA Life Insurance Company Ltd. Future Generali India Life Insurance Company Limited IDBI Fortis Life Insurance Company Ltd. Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. Aegon Religare Life Insurance Company Ltd. DLF Pramerica Life Insurance Company Ltd. Star Union Dai-ichi Life Insurance Co. Ltd.,
MARKET SHARE OF DIFFERENT PRIVATE PLAYERS:
Effective marketing strategies A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategy as a key part of the general corporate strategy marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and competitors in the market arena for success. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. In the competitive market, insurance companies are being forced to adopt a strictly professional approach in marketing. The insurance companies face the challenge of changing the uninspiring public image of the industry. Some of the important marketing elements are Marketing mix. The importance of relationship. Positioning.. Segmentation. Branding. Insuring service quality. Effective pricing. Customer satisfaction research
The following factors influence the market and
demand of productGovernment policies. Growth in population. Changing age profile. Income wise distribution of the population. Level of insurance awareness. The pricing of the policies. The economic climate of the country.
Types of marketing strategies
Every marketing strategy is unique, but if we abstract from the individualizing details, each can be reduced into a generic marketing strategy. There are a number of ways of categorizing these generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are three types of market dominance strategies: •Leader •Challenger •Follower Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. •Cost leadership •Product differentiation •Market segmentation
Innovation strategies :
This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: •Pioneers •Close followers •Late followers
In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers: •Horizontal integration •Cost leadership •Product differentiation •Market segmentation A more detailed schemes uses the categories: •Prospector •Analyzer •Defender •Vertical integration •Diversification •Intensification
ULIPs and its Features: Unit linked insurance plans (ULIPs) are insurance plans that combine the benefit of investment with insurance. They give the investor an option to put a part of their premium in various investment portfolios and derive the benefits depending upon the performance of the funds chosen by them. ULIPs were launched at an opportune time when stock markets had just taken off. Being market- linked, they were major beneficiaries of the secular rise in stock markets. ULIPs have gained high acceptance due to the attractive features they offer. These include: 1. Flexibility 1. Flexibility to choose Sum Assured. 2. Flexibility to choose premium amount. 3. Option to change level of Premium even after the plan has started (Top up facility). 4. Flexibility to change asset allocation by switching between funds. 2. Transparency 1. Changes in the plan & net amount invested are known to the customer. 2. Convenience of tracking one’s investment performance on a daily basis. 3. Liquidity 1. Option to withdraw money after few years (comfort required in case of exigency). 2. Low minimum tenure. 3. Partial / Systematic withdrawal allowed 4. Fund Options 1. A choice of funds (ranging from equity, debt, cash or a combination). 2. Option to choose fund mix based on desired asset allocation.
Stages in Policy Issuance
1) Proposal A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the application form is received by COPS, but it is pending for issuance due to further clarifications required from the customer. 2) Login A proposal which is complete i.e., duly filled with all necessary documents attached to it & accepted by the Branch ops, is called a Login 3) Reject An Application gets rejected at the Branch Ops level due to necessary details not filled in the form or necessary documents not submitted is a Reject. It is then sent back to the Advisor for completion. 4) Issuance Issuance means a policy that is issued to the Customer by Central Ops. 5) Decline Status When a customer refuses to take a policy post login but before Issuance is called a Decline 6) Cancellation When the cheque given by the customer bounces, it amounts to cancellation of the policy.
Agency business model In India insurance is sold through mainly four channels. •Through branch •Through agency •Through financial institution •Through banks Functions of agency manager: a person who governs a group of insurance advisors is known as agency manager. Success of an agency manager depends on the success of their advisors. work of agency manager is to control the advisors in an efficient way. Agency manager is like a creature of two wings. He has to recruit advisors as well as to give sales to the insurance company. •To recruit advisors. •Make them aware of different insurance products. •To give them training session. •To motivate them for efficient work. •To get maximum and efficient work from their advisors.
•Insurance companies are recruiting their advisors mainly through personal reference, through advertisement, and through walk in interviews. None of the company is recruiting their advisors through placement agencies. •Those advisors who are recruited through personal references need more training session and company has to put effort to make them active. Most of the companies are giving training session to advisors to make them active. Companies are also providing higher channel position and increasing incentives to make them active. •Most of the insurance companies have started recruiting agency manager and high posted people from professional colleges to improve efficiency of the insurance company. •Insurance companies have forgotten their traditional products. Companies are totally concentrating on selling ULIP products. Now insurance companies are selling their products as an investment product not as life insurance products. •Insurance companies are using their products mostly based on customer needs and demands. Insurance companies are not doing enough market researches to know the potential of the market. •Most of the insurance companies are differentiating themselves from the competitors by providing better service quality, better pricing of the product, advertisement and promotional activities. •Sales managers of most of the companies think that providing better service quality is the best tool to compete in the market. Better service quality may be in the form•Issuing policy in time. •Providing claims in time. •Making customers aware about their status of policy.
Kothari C.R., (1999) Research Methodology, Wishwa Prakashan Kotler P., (1999)Marketing Management Analysis, Planning, Implementation and Control, New Delhi, Prentice Hall of India Business today
www.bajajallianzlifeinsurance.com www.freepress.iin www.licindia.com www.irda.org www.lifeinsure.com
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