Presentation on Market Potential of TATA AIG Life Insurance was done by Amrinder Singh in Summer Training Project Report
Submitted by: Amrinder Singh
submitted To: Mr. V.J. Rai & Mr Amanpreet Singh
Introduction / Review of Literature Research Methodology Data Analysis & Interpretation Findings & Recommendations
.Table of Contents
Chapter No Title of Topic
1. 3. 2. 4.
CHAPTER . 1 INTRO / REVIEW OF LITERATURE
5 billion (around Rs. Engineering. Tata AIG Life Insurance Company was licensed to operate in India on February 12. The business operations of the Tata Group currently encompass seven business sectors . The Group s Net Profit for 2007-08 is USD 5. of which 61% was from business outside India.543 crores). 21. Tata AIG Life provides insurance solutions to individuals and corporates. Revenues in 2007-08 are USD 62.4 billion (around Rs. Tata AIG Life combines the Tata Group s pre-eminent leadership position in India and AIG s global presence as one of the world s leading international insurance and financial services organization.
THE TATA GROUP
Tata is a rapidly growing business group based in India with significant international operations.578 crores). Inc. Materials.Communications and Information Technology.Tata AIG Life Insurance Company Ltd. (AIG).000 people worldwide. The Group employs around 350. Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company. Consumer Products
. Services. 2001. 2001 and started operations on April 1. formed by the Tata Group and American International Group. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 per cent. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. Energy. 251.
institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. Tata Chemicals. Tata Teleservices and Tata Communications. (AIG). and a shareholder base of 2. (AIG) American International Group. AIG's common stock is listed on the New York Stock Exchange. Inc. financial services and asset management around the world. is the leading international insurance organization with operations in more than 130 countries and jurisdictions. The Group's 28 publicly listed enterprises have a combined market capitalisation of around $60 billion. Tata Tea. The major companies in the Group include Tata Steel.9 million. Tata Motors.and Chemicals. among the highest among Indian business houses. In addition. Tata Power.
. American International Group. Tata Consultancy Services (TCS). Inc. Indian Hotels. AIG companies are leading providers of retirement services. AIG companies serve commercial. a world leader in insurance and financial services. as well as the stock exchanges in Ireland and Tokyo.
The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced from 1991. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001. History of Insurance in India can be broadly divided into three eras: a) Pre Nationalization b) Nationalization and c) Post Nationalization. General Insurance was however a comparatively lateentrant in 1850 when Triton Insurance company set up its base in Kolkata. Life Insurance was the first to be nationalized in 1956.INDIAN INSURANCE MARKET (HISTORY)
Insurance has a long history in India. General Insurance Corporation of India was set up as the controlling body with New India. National and Oriental as its subsidiaries. General Insurance followed suit and was nationalized in 1973.
. United India. For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Life Insurance Corporation of India was formed by consolidating the operations of various insurance companies.
George Oommen has been named managing director of Tata AIG Life. with branch operations in Delhi. Hyderabad. The company headquartered in Mumbai. is capitalized at Rs.THE JOINT VENTURE Tata AIG Life Insurance Co. Chennai. Ltd. 185crores of which 74 per cent has been brought in by Tata Sons and the American partner brings in the balance 26 per cent. Tata-AIG plans to provide broad array of life insurance plans to cover to both individuals and groups. Bangalore Calcutta. Pune and Chandigarh
2 RESEARCH METHODOLOGY
Project is about to find out competitors of TATA AIG LIFE INSURANCE company. Targeting the right and potential customers. Which type of policies is preferable. Most preferable plans in Ludhiana city.
Main competitor of TATA AIG. Many other private companies are looking to enter in the Indian insurance market. Nowadays all the insurance companies in India are trying to establish themselves in the competitive market. Which sector most preferable public or private. To find out market potential of TATA AIG in Ludhiana city.
.OBJECTIVE OF THE PROJECT
Main objective of the project is to find out the market potential of TATA AIG in Ludhiana city. Differentiating from other companies. They are introducing innovative marketing strategies to survive in the market.
Data collection has been done through by giving structured questioner. This is an exploratory type of research. This study will be based on sampling. percentages. The study was aimed at measuring the customer s preference for life insurance companies and the comparison of various insurance policies of the various companies on basis of various parameters based on customer s responses in LUDHIANA region only.square tests analysis are applied as per the requirement .The level of preference. and primary data has been collected by meeting with the people in LUDHIANA. Secondary sources viz company database. chi. The data collected are represented into suitable tabular forms for drawing inferences. The survey was done on hundred general residents of the selected region. Secondary data can be used only for the reference. Personal interview technique 3. Quantitative techniques like averages. range. Field survey method 2. Research has been done by primary data collection. perception of the customers about the product and company
. Methods adopted for surveys 1. two-way tables.METHODOLOGY
Research is totally based on primary data.
To know the market potentiality of Tata AIG a questionnaire has been prepared.Questionnaire Designing The project is on Market Potential Study of Tata AIG in LUDHIANA city . Nowadays private players are giving a good rate of return rather than the public player. Which type of policies do they prefer can understand from the questionnaire. There is different type of insurance policies in the market. Which type of investment do they prefer? For it cluster analysis will be used.
. To get to know how much Tata AIG is preferable in LUDHIANA city a ranking scale has been used where name of different major Insurance Companies have been given and according to the ranking given by citizen we can get to know the potentiality of Tata AIG in LUDHIANA city. The questionnaire is having both open ended and close ended questions. So in which sector (private or public) do they like to invest and what is the reason behind that? To get to know the reason Likert scale has been used. Questionnaire has been prepared in such a way that we can understand insurance policies are dependable on the occupation of a person or income level of a person. Sample questionnaire has been attached with data analysis and interpretation part. First part of the questionnaire is the demographic part. Which life insurance policies of Tata AIG are most preferable we can get from it. It is also having ranking. To know all of these cluster analysis will be used. multiple choice and check list type of questions.
Possibility of Error in analysis of data due to small sample size.LIMITATION OF THE STUDY
Time limitation Research has been done only in LUDHIANA. Companies did not disclose their secrets data and strategies. Respondents error Limited resources
. Possibility of Error in data collection.
DATA ANALYSIS AND INTERPETATION
So we can say adult more prefer insurance.Age wise classification:
Interpretation: This figure shows that 44 people belong to age group of 31-45.
.Gender wise classification Table 2
Interpretation: This figure shows gender by classification that 66% male and 34% female have respondent .
Income wise classification:
Figure 3 Interpretation: 41% of people have take insurance and is ranked number one by that percent of respondent.
.Type of policy respondent have:
Figure 4 Interpretation: It is clear from the chart that 50% people come to take all policies it s mean customer have more aware to the all type of insurance.
Number of respondent have knowledge of plans and updates on company:
Figure 5 Interpretation: It is clear from the chart that 48 people say yes and 24say no . It¶s mean customer have more aware to the all plans and updates for the company.
.Sources of the information about company plans:
Interpretation: This chart shows that agent is the most communicational tool for insurance company.
MARKET POTENTIAL STUDY OF TATA AIG: 100 sample size taken to know the market potential of TATA AIG. So we have taken y sample size of 85. Out of 100 samples 15 sample size have been rejected due to insufficient information. To find out the market potential of TATA AIG we have taken the ranking of 10 major insurance companies are as below:
CHAPTER 5 Findings and suggestions
Whereas TATA AIG do has some policy with low premium but the charges of allocation are too high.1. d) Sample size: For this research study only hundred sample size has been taken. but still survey TATA AIG needs to improvement regarding its premium charges and advertisement to its target customers.5. So Tata AIG is also going to on the brink of filling bankruptcy. b) Advertisement: During survey we have found that due to lack of advertisements about the products and agents selling the products in which they get high commissions customers are somewhere mislead and they know about very few products though TATA AIG has wide range of variety of the products. A) Premium charges Owing to its high premium charges (Tata AIG Apex Plan. So company should take positive measure to remove this wrong perception from the people. The result will be more appropriate if a large sample size is considered. So we would like to suggest slowing down its premium charges to some extend by reducing administration charges and other charges.
. So we would recommend TATA AIG to invest more in advertisement in form of TV commercials. 90000/-) customers perception about the company¶s product has become that its only for the upper middle class people. RECOMMENDATIONS TO THE COMPANY: Being the best product player in the private sector. c) Wrong perception: AIG is on the edge of filing bankruptcy. Any company that wants to set up an insurance business has to follow very stringent norms given by the Insurance Regulatory & Development Authority (IRDA). pamphlets and hoardings. But insurance in India is a highly regulated industry. Premium RS.
It is a win-win Situation for both company and me.2. c) Working in the office premises has given exposure to corporate world and an experience in working in corporate pressure. BENEFITS TO THE COMPANY AND US: During the survey time sales have been done.5. 1. b) Interaction with the customers for survey and sales has developed our marketing skills. b) The survey also shows the customers perception about TATA AIG s life Insurance product with which it can improve its impression better than now. Benefit to us: a) Doing internship in TATA AIG have given me immense experience in the insurance industry for these fourteen weeks. As TATA AIG leads in most of the parameters so it should continue to serve in the same manner.
. c) The recommendation has given in this report will help TATA AIG to position its product properly to the target customers d) Moreover the sales has been done during this internship have done a good business for the company. 2. The benefits of this summer internship program are discussed below. Benefit to the company: a) This survey has been done in LUDHIANA region on comparison of TATAAIG s product and its competitor can give an idea of this position in the market.