Competitive analysis of agency and broker

channel of universal sompo general insurance with

other insurance company

BY SONAL OBEROI

IN PARTIALFULLFILLMENT OF
POST GRADUATION DIOPLAMA IN
MANAGEMENT PROGRAM

TAXILA BUSINESS SCHOOOL

JAIPUR 2019-2020
 PREFACE

It’s a great opportunity for me to done my internship in UNIVERSAL SOMPO

GENERAL INSURANCE COMPANY. In the accomplishment of my internship
I am submitted a project report on “Competitive Analysis of Agency and Broker
Channel of USGI with other Insurance Company.” subject to the limitation of
time efforts and resources every possible attempt has been made to study the
problem deeply. The whole project is measured the data further analyzed and
interpreted and results was obtained.
 ACKNOWLEDGEMENT

A winter project is golden opportunity for learning and self-development. I

consider myself very lucky and in completion of this project.
My grateful thanks to Mr. Vaibhav Pandey Assistant Marketing
Manager who in spite me for being extraordinarily busy with his duties took time
out to hear guide and keep me on the correct path. I don’t know where I would
have been without him. A humble “thank you” sir
Ms.Inna, HR Department monitored my progress and arranged all facilities
to make life easier. I choose this moment to acknowledge her contribution
gratefully.
Prof. Alka Jain whose patience, I have probably tested to the limit. She was
always so involved in the entire process shared her knowledge and encouraged me
to think. Thank you mam
I would like thanks MR. Kishore Sharma placement director for his
effort and help provided to me to get such an excellent opportunity.
Last but not the least there are so many who shared valuable information that
helped in the successful completion of this project.
 OBJECTIVE

1) To know the company profile and full details that can helpful to this project
report

2) To know the market share of USGI and other insurance company.

3) To know the perception of agent and broker.

4) To determine the satisfaction level of agent and broker.

5) To analysis the market what changes and view of agent in this competitive
environment.
 LIMITATION

1) The area of study is restricted it only cover Lucknow zonal office

branch.

2) Study covers only 2 months period only.

3) The accuracy of results based on the response of selected respondents

only.

4) The information collected through secondary data.

5) For cost, time convince sampling method is used for the study.
 CHAPTER-1

INTRODUCTION TO THE TOPIC AND INDUSTRY

Universal sompo general insurance pvt ltd

Introduction

General Insurance

The General Insurance Business Nationalization Act was passed in 1972 to set up the general
protection business. It was the nationalization of 107 insurance agencies into one fundamental
organization called General Insurance Corporation of India and its four backup organizations
with restrictive benefit for executing general protection business. This demonstration has been
altered and the selective benefit stopped on and from the initiation of the protection
administrative and advancement expert act 1999. General Insurance Corporation has been filling
in as a reinsurer in India. Their backups are filling in as a different element and assumes huge job
in people in general part of general protection

General Insurance Corporation of India

General insurance industry in India was nationalized and an administration organization known
as General Insurance Corporation of India was framed by the central government in November,
1972. General insurance agencies have energetically obliged these expanding requests and have
offered a plenty of protection covers that nearly cover anything under the sun.

Objective of the GIC:

 To carry on the general insurance business other than life, such as accident, fire etc.
 To aid and achieve the subsidiaries to conduct the insurance business and
 To help the conduct of investment strategies of the subsidiaries in an efficient and productive
manner.

Role and Functions of GIC

 Carrying on of any part of the general insurance, if it thinks it is desirable to do so.
 Aiding, assisting and advising the acquiring companies in the matter of setting up of standards of
`conduct and sound practice in general insurance business.
 Rendering efficient services to policy holders of general insurance.
 Advising the acquiring companies in the matter of controlling their expenses including the
payment of commission and other expenses.
 Advising the acquiring companies in the matter of investing their fund.
 Issuing directives to the acquiring companies in relation to the conduct of general insurance
business.
 Issuing directions and encouraging competition among the acquiring companies in order to
render their services more efficiently.

Classification of Indian General Insurance Industry

General Insurance is also known as Non-Life Insurance in India. 0 These 16 General Insurance
companies have been classified into two broad categories namely:
1. PSUs (Public Sector Undertakings)
2. Private Insurance Companies

PSUs (Public Sector Undertakings)

These insurance companies are wholly owned by the Government of India(subsidiaries of GIC).
There are totally 4 PSUs in India namely:
 National Insurance Company Ltd-Head Office-Kolkata
 Oriental Insurance Company Ltd- Head Office- New Delhi
 The New India Assurance Company Ltd- Head Office-Mumbai
 United India Insurance Company Ltd- Head Office-Chennai

Private Insurance Companies

There are mainly 12 private General Insurance companies in India namely
 Apollo DKV Health Insurance Ltd
 Bajaj Allianz General Insurance Co. Ltd
 Cholamandalam MS General Insurance Co. Ltd
 Future General Insurance Company Ltd
 HDFC Ergo General Insurance Co Ltd
 ICICI Lombard General Insurance Ltd
 Iffco Tokio General Insurance Pvt Ltd
 Reliance General Insurance Ltd
 Royal Sundaram General Insurance Co Ltd;
 Star Health and Allied Insurance
 Tata AIG General Insurance Co Ltd
 Universal Sompo General Insurance
PSUs market share

national
united india
insurancecompany insurance
company, 10.93%
, 11.48%

oritental
insurance
new india company, 7.60%
assurance
company, 15.06%
 PSU’S MARKET SHARE
National Insurance Company 10.93%
Oriental Insurance Company 7.60%
New India Assurance Company 15.06%
United Indian Insurance Company 11.48%

PSU non-life safety net providers are bringing about robust misfortunes while their private
partners are stamping cash in the medical coverage fragment if the IRDAI's yearly report is
anything to go.

The yearly report demonstrates that the net brought about cases proportion (ICR) of the open
division non-life safety net providers remained at 115% contrasted with 69% of their private
companions in FY 2015-16.

Caused Claims Ratio is the net brought about cases to net premium. Basically, it is claims gotten
for the premium paid towards protection strategies in a year; thus, a low brought about
proportion shows sound development prospects and higher productivity in non-life business.
Ordinarily, a proportion of under 100 demonstrates that guarantors are profiting from a portion.

Kapil Mehta, Co-Founder, Secure Now Insurance Broker ascribed this to wasteful endorsing
rehearses at PSU non-life back up plans. He stated, "The key purpose behind the rising brought
about case proportion in wellbeing portion of PSU non-life safety net providers lies in enjoying
dangerous business and making enormous endorsing misfortunes. Then again, private safety net
providers are increasingly productive in completing endorsing which causes them make gainful
cost disclosure."

Generally, the medical coverage remained an unfruitful suggestion for the non-life industry.
IRDAI information demonstrates that the businesses brought about case proportion remained at
98% in 2015-16 as against 97% in 2014-15.
Among PSU non-life safety net providers, United Assurance has a most astounding caused
guarantee proportion of 122% pursued by New India Assurance with 115% of acquired case
proportion in FY 2015-16. So also, a couple of private general insurance agencies like IFFCO
Tokyo, Liberty Videocon and Magma HDI have recorded caused case proportion of over 100%.

Then again, Kotak Mahindra, HDFC Ergo and Cholamandalam have recorded a sound brought
about case proportion of less than half.

It will intrigue perceive how the PSU non-life safety net providers manage this circumstance and
improve their endorsing rehearses
 Market share

Universal sompo
ACKO GI

Tata-AIG
Bajaj alliance
Shariam General
Bharati AXA
general
DHFI GI

SBI general
Edelweiss

Cholamandalam
Royal sundaram
Future
general
insurance
Reliance General

Go
Reheja HDFC ERGO degit GI
QBE general

Magma HDI
Liberty
IFFCO-TOKIO

Kotak mahindra

ICICI-lombard

Private General Insurance market share

 PI Market share
ACKO GI 0
Bajaj alliance 6.27
Bharati AXA general 1.17
DHFI GI 0.09
Cholamandalam 2.72
Edelweiss 0
Future general insurance 1.26
Go degit GI 0.06
HDFC ERGO general 4.84
ICICI-Lombard 8.2
IFFCO-TOKIO 3.74
Kotak Mahindra 0.12
Liberty 0.54
Magma HDI 0.35
Reheja QBE 0.06
Reliance General 3.36
Royal Sundaram 1.74
SBI general 2.35
Shariam General 1.39
Tata-AIG 3.61
Universal sompo 1.53
Private, PSUs, Health and Specialized Insurance Market Share

market share
PSUs Private GI Health Specialized

6%
6%

45%

43%

Company Market share

PSU 45.07%
Private GI 43.41%
Health 5.50%
Specialized 6.01%
 CHAPTER-2

COMPANY PROFILE

Universal sompo general insurance

Universal Sompo General Insurance Company Limited is a private open joint venture by and
large protection where two nationalized banks, to be specific Allahabad Bank and Indian
Overseas Bank, one private segment bank to be specific Karnataka Bank Ltd, one FMCG in
particular Dabur Investment Corp and a main general safety net provider from Japan to be
specific Sompo Japan Nipponkoa Insurance Inc. have framed a general insurance agency. It is
India's first Public - Private Partnership in General Insurance Industry.

USGI is India’s first non-general insurance company that has the support and partnership of
credible public and private corporate entities from India and japan. The company works towards
building a financially inclusive society in India. Banc assurance is a major USP for USGI.
USGI provides benefits to customers of its partnered bank and has benefitted millions of Indians
at the time of distress.

The Company got the License and Certificate of Registration from IRDA in November 2007.
The joint venture has been promoted with investors' assets of over 435.80 cr. counting share
premium. Three of the Indian accomplices are driving manages an account with a joined
resource base of Rs. 92,602 crores and more than 4000 branches and dissemination focuses. Also
the fourth biggest FMCG Company in India with more than 15 million retail outlets. Sompo
Japan Insurance Inc. Headquartered in Tokyo, with a capital of 70 billion yen, is available in 27
nations - has more than 15,000 representatives and 69,028 operators and its complete premium
0.pay for 2006 - 2007 was in abundance of (identical to) Rs.50,000 cr. twice that of the Indian
General protection industry. All inclusive Sompo has a Gross Written Premium (GWP) of Rs
903.79 Crores for the year finished March 31, 2016.The organization issued over 1.6 million
strategies and settled more than 1,11,787 cases as on March 31, 2016.

Product and Services

Universal Sompo has about 135 IRDA approved products in its basket and is operating on a pan
India basis through 113 Branches and 17 Zonal Offices. Universal Sompo has a dedicated 24*7
 PRODUCTS

HEALTH
INSURANCE

MOTOR COMMERCIAL
INSURANCE

BANCASSURA MISCELLANEO
-NCE -US PMFBY

. HEALTH INSURANCE

Health coverage approach of Universal Sompo is offered to individual as well as his family. The
approach intended to pay the Insured person(s) the hospitalization costs just as domiciliary
hospitalization benefits in the event that he/she endures an ailment or unplanned damage amid
the strategy time frame.

1) Medications just in the Hospitals/Nursing homes in India are secured

2) The inclusion incorporates costs caused towards room, boarding costs, nursing costs,
specialist/master expenses, charges for blood, oxygen and so forth
3) Domiciliary hospitalization advantage implies Medical treatment for a period surpassing
3 days for such ailment which in the typical course require treatment in an emergency
clinic yet really taken while limited at home in India since
 (A) the state of the patient is with the end goal that he can't be evacuated to a
medical clinic or the patient can't be evacuated to the emergency clinic for absence of
settlement
(B)The reimbursement given by the strategy is confined to whole guaranteed and as
far as possible gave in the timetable
4) Premium is determined relying upon the age of the guaranteed and the total safeguarded
chose
5) On the off chance that Your age or Your dependent’s age is over 45 years , You/Your
wards will need to experience restorative tests as recommended by Us and the expense of
such costs will be borne by You
6) The passage age under the arrangement ought to be under 55 years
7) Most extreme inclusion is Rs.5 lacs
8) According to Income Tax Act, the premium paid for this spread is exempted from
assessment under Section 80 D

MOTOR INSURANCE
Private Car Insurance Policy covers Vehicles utilized for social, household and joy reason and
furthermore for expert reason (barring carriage of products other than tests) of the guaranteed or
utilized by protector’s representatives for such reason however barring use for contract or
reward, hustling, pace making, unwavering quality preliminary, speed testing and use for any
reason regarding the Motor Trade.

1. What does policy cover

The Policy covers misfortune or harm to the vehicle protected emerging out of:
Flame, blast, self-start, lightning, thievery, robbery, revolt, strike, malignant act, fear
based oppression, quake, flood, hurricane, inadvertent outer methods, avalanche or
rockslide, street/rail/inland conduit/air travel
It likewise gives spread against Legal Liability to outsider individual damage and
property harm emerging out of a mishap involving the vehicle as required under Motor
Vehicle Act.
The Policy further accommodates mandatory Personal Accident spread for proprietor
driver

2. Optional extension
(a)Loss of accessories

(b)Legal liability to paid driver, cleaner or any workman

(c)Personal Accident to the occupants

(d)Increased legal liability to property damage of third party for a limit of Rs 7.5 lakhs

3. Private car add-ons

(a)Nil Depreciation cover

(b)Return to Invoice

(C)Daily Cash Allowance

(d)Accidental Hospitalization Clause for Family

(E)Key Replacement

(F)Road Side Assistance

(G)Cost of Consumables

(H)Secure Towing (Higher Towing and Removal Costs)

(i)Hydrostatic Lock Cover

(j)Engine Protector

(K)NCB Protector

4. Other salient features

a) Provision of No Claims bonus for claims free experience.

b) Discount for opting higher voluntary excess
c) Discount for approved anti-theft devices installed in the vehicle.
 d) Concession for specially designed/modified vehicle for blind, handicapped and mentally
challenged persons
e) Depreciation, for the parts needing replacement in the accident is defined.
f) Discount for specially Designed/ Modified vehicles for the blind, handicapped and
mentally challenged persons.

5. The policy does not cover the following –

a) Any accidents outside the Geographical Area

b) Consequential loss, normal wear and tear
c) Driving without valid license for the class of vehicle. Driving under the influence of
liquor/drugs
d) Vehicle not being used as per Limitation as to use defined

COMMERCIAL INSURANCE

(FAMER PACKAGE POLICY)

Retail - Farmers' Package Policy Farmer's Package Policy is intended to deal with the protection
needs of a Farmer. It covers both the individual resources of the rancher like the abode and its
substance both against Fire and Theft and furthermore the benefits which help him in acquiring
his work. Such resources incorporate things, for example, Cattle, Pump Set [Electric/Diesel],
Animal Driven Cart, Bio gas Plant and furthermore his tractor, Trolley and other Agricultural
Equipment’s. Such inclusion is both for the harm to the Vehicle just as any Third Party Liability
which might be expedited him while utilizing the vehicle in Public Place. The Policy likewise
gives assurance to the rancher as well as his lawful beneficiary if there should arise an occurrence
of the unintentional demise or Permanent Disablement to the protected.

1) What does policy cover

a) Fire and Allied Perils including Earthquake

b) Burglary and Theft (i.e. theft following upon an actual forcible and violent entry of and /
or exit from the premises)
c) The Personal Accident - The death and/or the permanent disablement of the insured due to
an accident
d) The Insurance of Assets
e) The loss of cattle
f) The loss or breakdown of the Pump set
g) The loss or damage to the Animal Driven Cart
h) The loss to Bio Gas Plant due to Fire & Allied Perils
i) The loss or damage to the tractor/Trolley due to Fire, Explosion ,Theft etc. and the Third
Party Liability due to usage of the same in a public place

2. Additional benefit

On payment of extra premium may also extended to cover

a) Loss or damages to the personal effects due to Terrorism

b) The coverage to the animal used to draw the Cart/Tonga
c) The Personal Accident cover to the other family members
d) The insurance of the agriculture implements used in ploughing the fields

3. Exclusions

The policy does not cover the following

a) Loss or damage to any assets / property lying and/or kept at any premises other than the
premises insured under the Policy
b) Valuables , unless specifically covered in the Schedule
c) Loss or damage of motor vehicles, trailers unless shown in the Schedule
d) Loss or damage in which you, your employees or any other person lawfully on or about
your premises is or is alleged to be in any way concerned or implicated
e) Loss under the Personal Accident Section if at the time of the accident the insured person
was under the influence of intoxication or was involved in any breach of criminal law or
had committed suicide
f) Any damage to the animal cart existing at the time of insurance
g) If the animal covered under the Cattle Section was suffering from any disease or deformity
h) Loss or damage to contents or stock when the premises are left unoccupied for more than
30 consecutive days unless the same has been reported to us in writing and our written
approval obtained
i) Any damage to or any third party liability by the tractor/trailer if the same was being driven
by a person not holding a valid and effective driving license or if the same is being used
for any purpose other than agriculture use
j) Any consequential loss

BANCASSURANCE

This strategy is a proof of the agreement among you and Universal Sompo General Insurance
Organization Limited. The data outfitted by you in the proposition structure and the statement
marked by you frames the premise of this agreement. The Policy, the Schedule and any
Endorsement will be perused together and any word or articulation to which a particular
significance has been appended in any piece of this Policy or of Schedule will bear such which
means at whatever point it might show up. This Policy observes that regarding Your having
paid the excellent, We embrace that if amid the time of protection or amid the duration of this
arrangement by restoration You contract any infection or experience the ill effects of any
sickness or support any substantial damage through mishap and if such malady or damage will
require, upon the advices of a certified Medical Practitioner, hospitalization for
medicinal/careful treatment in any Nursing Home/Hospital in India as characterized in the
approach.

MISCELLANEOUS

(CATTLE INSURANCE POLICY)

Steers and Live Stock the bread and spread for billions of ranchers in India Insurance Policy
covers creatures, for example, Milch cows, Buffaloes, Studs, Bullocks, Sheep and Goats
possessed by you and which are utilized for business and additionally or for individual
purposes against the danger of changeless absolute disablement or passing because of mishap
and/or any illnesses which the creature may contact amid the Policy Period.

1. What does a policy cover The policy cover the death cause
 a) Accident inclusive of Fire, Lightning ,Flood, Inundation, Storm, Hurricane, Earthquake,
Cyclone, Tornado, Tempest and Famine
b) Diseases contracted or occurring during the period of this Policy
c) Surgical Operations
d) Riot & Strike

2. Additional benefits

The policy also provides cover against permanent total disablement suffered by cattle due to
any accident or illness/alignment.

3. Exclusions

The Policy does not cover the following:

a) Malicious or willful injury or neglect, overloading, unskillful treatment or use of animal

for purpose other than stated in the Policy
b) Accidents occurring and/or Disease contracted prior to commencement of risk
c) Intentional slaughter of the animal except in cases where destruction is necessary to
terminate incurable suffering on human consideration on the basis of certificate issued by
qualified veterinarian or in cases where destruction is resorted to by the order of lawfully
constituted authority
d) Theft and clandestine sale of the insured animal
e) War, Invasion ,act of foreign enemy ,hostilities(whether war be declared or not),civil
war,rebellion,revulution,insurrection,mutiny, tumult, military or usurped power or any
consequences thereof or attempted threat
f) Any accident, loss destruction, damage or legal liability directly or indirectly caused by or
contributed to by arising from nuclear weapons
g) Consequential loss of whatsoever nature
h) Transport by land, air and sea
i) Death of the animal(s) covered under the Policy due to diseases contracted within 15 days
from the date of commencement of the risk
 4. Specific exclusions

Pleuropneumonia in respect of Cattle and in case of Sheep & Goats Enterotoxaemia, Sheep Pox,
Goat Pox, Rinderpest, FMD, Anthrax, H.S, B.Q.. These diseases are covered by the Policy if the
animal is successfully inoculated (protected) and necessary Veterinary Certificates are supplied
to the Company. If the Company asserts that by reason of these Exclusions any Claim is not
covered by this Policy, the burden of proving that such Claim is covered shall be upon the
Insured.

a) All the claims received after without ear tag

PMFBY
Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture
sector by way of:

 Providing financial support to farmers suffering crop loss/damage arising out of unforeseen
events.
 Stabilizing the income of farmers to ensure their continuance in farming.
 Encouraging farmers to adopt innovative and modern agricultural practices.
 Ensuring flow of credit to the agriculture sector; which will contribute to food security,
crop diversification and enhancing growth and competitiveness of agriculture sector
besides protecting farmers from production risks?
 MARKET SHARE

market share
dabur investment karnataka bank

indian overseas bank sompo japan nipponkoa

Allahabad bank

13% 6%
28%

18%

35%

Stakeholder market share

Dabur investment 12.81%

Karnataka bank 6%

Indian overseas bank 18.06%

sompo japan nipponkoa 34.62%

Allahabad bank 28.52%

Sompo Japan Nipponkoa acquired 6.2 percent of the shares held by Karnataka Bank, thereby
raising its ownership. Among other shareholders, Allahabad Bank holds 28.52 percent stake
and Indian Overseas Bank holds 18.06 percent stake while Karnataka Bank holds 6 percent (post
share transfer). Further, Dabur Investment Corporation (Partnership Firm) holds 12.81 percent
stake.
 BOARD OF DIRECTORS

Mr. O.N. Singh, Mr. Rajiv Kumar, Mr. N.K.Sahoo, Ms. Radha
Venkatakrishnan,
Chairman Managing Director & Chief Non-Executive Director
Executive Officer Non-Executive
Director

Mr. P. Jayarama Mr. Yuji Kawauchi,

Mr. Mohit Burman, Mr. Yasuhiro
Bhat,
Sasanuma,
Non-Executive Director Non-Executive Director
Non-Executive
Non-Executive Director
Director

Mr. Kuniaki Mr. Sandip Ghose, Mr. Ram Niwas Jain, Dr. Ram Nath,
Takahashi,
Independent Director Independent Director Independent Director
Non-Executive
Director

Mr. Aditya Tibrewala, Mr. Daniel Neo,

Alternate Director Alternate Director

 CHAPTER-3

(CONCEPTUAL FRAMEWORK)

CHANNEL

DIRECT AGENCY BROKER CSC

CORPORATE WEB APPORACH

DIRECT CHANNEL

Under this form of distribution, client purchases the insurance policy directly. This segment utilizes
various media but it is just beginning to grow. These systems comprise telemarketing, direct mail, call
centers etc. Marketing through telephonic devices, generating leads through calls and forwarding the
leads to the main sales team of the company. Companies own sales team concept is now employed by a
majority of the new players and has proved effective in customer creation and retention. Internet has
brought about a revolution in the way business is done and insurance is no exception to this. According to
a recent research by Tower Group; 'e-service' will play a vital role in facilitating the process of servicing
insurance products. At present 60 to 70 percent of online consumers use the internet to search insurance
company and products. The group expects a significant growth in online sales.

Whatever may be the channel; it should be cost effective and contribute to profitability by sharing
responsibility for documentation serving and claim handling up to certain limits. The agency regulations
introduced by IRDA are creating a cadre of professional agents though there are some abuses and
malpractices in certain pockets. Introduction of brokers and their regulation framed by IRDA are
attracting qualified professionals and management graduates to insurance industry. Corporate agents and
institutional agents will extend the reach of insurance and help to widen and deepen the market along with
other choices. Direct marketing, telemarketing, e-business, Internet websites and all others will enter the
field and contribute to distribute insurance products. Younger generation especially, the new age 'yuppies'
will turn these channels to buy their insurance requirements
 AGENCY CHANNEL

A career in the Indian Insurance segment can be very testing yet in addition fulfilling. The
protection business in India is the fifth biggest life coverage advertise in the rising protection
economies all inclusive and is developing at 33% per annum.
An organization project supervisor's essential duty is to oversee office channel deals for the
organization. He/she is in charge of overseeing specialists, preparing operators and
accomplishing deals focuses for the group.

Competencies and Skills Required

 Primary job responsibilities of an agency sales manager are sales target achievement and effective
team management. The manager is expected to demonstrate excellent salesmanship and team
leadership. Some qualities that potential recruiters look for in candidates are:
Sales acumen - The candidate should have practical intelligence and ability to handle
different sales related situations
 Result Orientation- The candidate should be performance oriented and should give due
importance to goal setting, performing and achieving.
 Interpersonal Skills- A good sales manager must have excellent interpersonal skills and
should be approachable for his team members
 Ability to work in high pressure environment- Insurance sales is target driven and an agency
sales manager must be able to thrive under stress and help his team cope with it too
 Ability to Multitask - The candidate must be able to prioritize and handle multiple work
responsibilities simultaneously
 Industry Knowledge - Candidate needs to be well versed with product knowledge and
industry trends in order to do consultative selling.

Agency works on

1. agent goodwill
2. brand name
3. rate
4. payout
5. commission
 Broker channel
A broker, autonomous of any insurance agency, who speaks to the interests of the purchaser in
looking for protection inclusion at the most reduced expense and giving the most noteworthy
advantage to the purchaser.

individual or firm which goes about as a middle person in uniting customers looking for
INSURANCE cover and INSURANCE COMPANIES offering appropriate arrangements. At
times the specialist may essentially acquaint the two gatherings with one another and get a
commission from the insurance agency; or the operator might be utilized by a specific insurance
agency to move protection strategies for its benefit, somewhat on compensation and halfway on
commission. Protection agents are typically free delegates who can consult with various
insurance agencies in the interest of customers so as to anchor for them the most beneficial cover
and terms, just as dealing with cases and offering general protection guidance. The greater part
of the bigger protection intermediaries are individuals from LLOYDS, a partnership of agents
and insurance agencies. Protection representatives are controlled by the FINANCIAL
SERVICES AUTHORITY as per different benchmarks of good practice set down under the
FINANCIAL SERVICES ACT 1986

Difference between Agent and insurance broker

Insurance Brokers and Insurance agents both sell insurance. The key difference between
insurance broker and agent is that an insurance agent (also called captive agent) typically works
for one insurance company and thus can sell insurance policies of this company only. That limits
consumer’s options to compare different products.
Insurance broker on the contrary does not work for one insurance company but rather have a
distributor relationship with multiple insurance companies. That allows insurance broker to
compare several polices available on the market. When engaging an insurance broker to find an
insurance policy, a consumer should clarify upfront with how many companies insurance broker
works.

There are also some differences in compensation of insurance agents and insurance brokers:
insurance agent typically receives a fixed salary and might get a sales bonus based on own sales
results. Insurance broker gets compensated through commission paid by an insurance company
for each policy sold (and sometimes some smaller amounts on policies which stay in place.

Remuneration of agents and brokers:

1. There should be a differential maintained between the Agents and Brokers in their
remuneration packages. The latter has more onerous responsibilities and functions to
discharge. As such the maximum brokerage payable should be a little higher than the
agency commission.
2. Agency commission for tariff covers should be revised to a maximum of 10% to maintain
a differential of 2.5% in the remuneration structure between brokers and agents /
corporate agents.

3. For statutory covers, however, 10% remuneration should be maintained for both of them,
as no special expert advice is required in providing or servicing such covers.

4. On non-tariff covers, the maximum remuneration for brokers should remain at 17.5%
and that of agents at 15%

Brokers and Agents

1. The licensing norms of the direct broker should be reconsidered for the future. A
technical insurance qualification recognized by the Insurance Institute of India such as
AIII or a qualification recognized as its equivalent by the IRDA or experience of a
minimum requirement of 5 years as an insurance practitioner should be the minimum for
the principal officer. Those that have been licenced already should meet the revised
standards at the time of renewal of the licenses. The Regulator can reserve the power to
exempt this requirement in exceptional cases. Professionalism needs to be introduced into
broking community for it to grow on healthy lines.

2. Brokers should open additional offices only after obtaining the prior approval of the
Regulator. The Regulator should be notified of all the new appointments with the
qualifications of personnel appointed so as to ensure that the persons recruited to solicit
business have passed the required examination.

3. Sub-broking as a proposal was considered and not accepted, as the sub broker has no
private of contract with the customer and is not liable for professional negligence to the
customer. Sub-broking will lead to unintended legal problems and should be avoided. 12
4. Brokers should not be permitted to practice after issuance of licence by IRDA, till a
copy of the Professional Indemnity (PI) policy covering the requirements of the IRDA
regulations is produced. Till a PI policy is in force, the customers’ interests, who are
primary, are at risk due to any act of professional negligence of a broker.

5. The duties and functions of a Corporate Agent in the case of banks need a reappraisal
in view of the conflict of interest situations, wherein a bank is a joint beneficiary of a
claim even while representing the insurer as its agent. The Regulator has also to ensure
that the bank has an effective claim advisory service in place, in accordance with the
terms of the code of conduct. The MOU should incorporate suitable stipulations to cover
these aspects.
6. Harnessing the Agency potential to the full for the expansion of the market needs a
commitment on the part of insurers to make this channel function more effectively than
now. The General Insurance Council and the IRDA should spell out in clear terms, the
kind of retraining programmed needed to enhance the technical skills and sales
techniques of agency force that is an integral part of the marketing and sales force of
insurers. Monitoring their performances and mentoring them should be another area of
implementation to improve their effectiveness Vis-a Vis the insuring public.

7. Insofar as the brokers are concerned, the code of conduct towards customers is
specified in the regulations. It would be useful if a code between the insurers and the
brokers is also introduced to develop and maintain best practices and sound conventions
in relation to their mutual transactions. The Committee recommends that best market
practices should be evolved with a give and take attitude and mutual goodwill. The
General Insurance Council should assist in this regard by mutual cooperation with the
Brokers’ Association.

8. The IRDA has nominated one of its Members on the Disciplinary Committee of the
Insurance Brokers’ Association of India, as a permanent member. The Committee is of
the view that this is `neither a healthy nor a desirable convention, as the presence of the
IRDA `member on the Disciplinary Committee would stifle the growth of a self-
regulatory mechanism within. Also, it compromises the independent `status that the
IRDA currently enjoys in the eyes of the public. This proposal to have `the IRDA
member on the Disciplinary Committee should be reconsidered.

9. A tri-partite association/ committee comprising representatives of insurers,

brokers/agents and consumer activists should be nominated and it should meet half-
yearly to consider areas of mutual concern and suggest remedial steps to correct any
imperfections in the systems operated by each to the detriment of the market as a whole.
Such recommendations should be advisory in nature for the consideration by the IRDA
for its feasibility and fairness in implementation.

10. A self-regulatory mechanism of the brokers laying down a code for their market
conduct and service standards for its members, along with the disciplinary code should be
publicized for the information of the public.
 Role of broker
The dealers have communicated that their choice to enter the broking appropriation framework
depended on the Regulations declared before in October 2002 and since each one of them had
contributed a significant capital of Rs 50 lakhs or progressively, any confinement on business as
reported in direction 19 would make them lose expected profits for their contributed capital and
their endeavor would be in this manner disappointed. In an aggressive condition, representatives
alone ought not be blamed for likely refunding as even safety net providers can what's more, do
depend on it to win business. Their self-administrative component is an adequate shield against
refunding rehearses. Agents require consolation as new juveniles and not confinements.
Rebuilding of Regulation 19 of the IRDA (Insurance Brokers) Directions, 2002 is important in
their view.

Special Discount & Remuneration of Agents& Brokers

(Corporate & Public Sector Bodies)
One of the issues raised deals with the question of continuation or otherwise of the special
discount of 5% enjoyed on a few tariff covers by certain corporate bodies. Another issue raised
relates to the linkage between the special discount and the paid-up capital norms and its
continuation.
Special Discount 5%

The 5 % special discount that he/she was eligible; the agent was entitled to get 5 % commission
on the tariff business. Similarly in respect of those bodies, whose paid-up capital was above Rs
10 crores but less than Rs 25 crores, the agent was entitled to get 2.5% subject to the customer
expressing his preference in writing. Above Rs 25 crores, only 5% special discount was to be
given; and the agent as such had no incentive to canvass for such business. Corporate bodies
included both the public and private sector companies and Cooperatives.

Distribution: two largest channel – Agency and Broker face several challenges
in their model
(several changes in agents and broker channel, which together distribute 60% of industry)
Key Challenges of Agents

1. Perceived low income earning potential resulting in relatively poor talent attracted to
industry – translating into low engagement, high churn and low productivity
2. “Aggregators” control a significant part of agency – resulting in lower customer connect
and overall control on process
3. Key asks from the insurers – Better customer service level; “ownership” of customers;
transparency in claims and timeliness of payments

KEY CHALLENGES OF BROKER

1. High fragmentation and low level of professionalism beyond the top 25–30 brokers
(out of total of 300+)
2. Beyond a select few, most brokers unable to offer full range of services to customers
(risk assessment, loss control, policy design)
3. Largely “one size fits all” approach; lack of real product (e.g., liability, special risks)
and segment specialist expertise being developed
4. Insurers not fully evolved to work with brokers as “business partners”; relationships
remain transactional

SWOT Analysis of USGI

Strength
1. All inclusive Sompo General Insurance Company is an ideal case of Public and Private
Partnership in the business of Indian General Insurance. The joint accomplices of this
organization are Allahabad Bank, Sompo Japan Insurance Inc., Dabur Investments,
Karnataka Bank and Indian Overseas Bank. Sompo Japan Insurance Inc. Headquartered in
Tokyo is a Fortune 500 Company with a capital of 70 billion yen. The License of
Registration of Universal Sompo was conceded by the Insurance Regulatory and
Development Authority on November 2007.

2. It has a wide business run in 27 nations over the entire world. As a General Insurance
organization, Universal Sompo has results of practically all the individual and business
protection segments, arranged into five noteworthy sorts: General Accident, Property,
 Marine, Workmen Compensation and Motor. Other than these items the organization
additionally offers specific protection bundles for Small and Medium Enterprises (SMEs)
and Corporate Houses, for example, Operational Insurance, Project Insurance, Liability
and Employee Benefit.

3. With an ideal coordinated effort of outside and Indian cash, Universal Sompo can deliver
the best protection items for the natives of India. They have both retail and business
protection product offerings for their customers. In the retail arrangements of Universal
Sompo, engine vehicles protection, individual and gathering wellbeing strategy,
approaches for agriculturists, businesspeople, householders, gem specialists and a lot more
have included. Then again in business protection they cover fire dangers, plant and
hardware, furniture, fittings, stocks and products.

WEAKNESS.

1. Need more investment in new technologies

2. Financial planning is not done properly and efficiently. The current asset ratio and liquid
asset ratios suggest that the company can use the cash more efficiently than what it is
doing at present.

3. The marketing of the products left a lot to be desired. Even though the product is a success
in terms of sale but its positioning and unique selling proposition is not clearly defined
which can lead to the attacks in this segment from the competitors.

4. Organization structure is only compatible with present business model thus limiting
expansion in adjacent product segments.

5. Limited success outside core business – Even though Sompo Japan Nipponkoa is one of
the leading organizations in its industry it has faced challenges in moving to other product
segments with its present culture.

6. There are gaps in the product range sold by the company. This lack of choice can give a
new competitor a foothold in the market.
 Opportunities
1. Opening up of new markets because of government agreement

2. New customers from online channel

3. New trends in the consumer behavior can open up new market for the universal sompo general
insurance. It provides a great opportunity for the organization to build new revenue streams and
diversify into new product categories too.

4. Government green drive also opens an opportunity for procurement of universal sompo general
insurance products by the state as well as federal government contractors.

5. The new taxation policy can significantly impact the way of doing business and can open new
opportunity for established players such as universal sompo general insurance to increase its
profitability.

6. Economic uptick and increase in customer spending, after years of recession and slow growth
rate in the industry, is an opportunity for universal sompo general insurance to capture new
customers and increase its market share.

7. New environmental policies – The new opportunities will create a level playing field for all the
players in the industry. It represent a great opportunity for universal sompo general insurance to
drive home its advantage in new technology and gain market share in the new product category.

THREATS

1. Changing consumer buying behavior from online channel could be a threat to the existing
physical infrastructure driven supply chain model.

2. The demand of the highly profitable products is seasonal in nature and any unlikely event during
the peak season may impact the profitability of the company in short to medium term.

3. Shortage of skilled workforce in certain global market represents a threat to steady growth of
profits for universal sompo general insurance in those markets.

4. Intense competition – Stable profitability has increased the number of players in the industry
over last two years which has put downward pressure on not only profitability but also on overall
sales.

5. Growing strengths of local distributors also presents a threat in some markets as the competition
is paying higher margins to the local distributors.

6. No regular supply of innovative products – Over the years the company has developed numerous
products but those are often response to the development by other players. Secondly the supply
of new products is not regular thus leading to high and low swings in the sales number over
period of time.

PORTER 5 FORCES

Threat of new entrants- High

The threat for new entrants lies within the industry itself. Some companies are operating in the
niche area of underwriting insurance. They are running the threat of being squeezed out by big
players. Another threat is other financial services companies entering the market.

Bargaining power of suppliers- Medium

For the insurance industry, the source of funds is the premium paid by its customers, hence
intertwining the customer & suppliers here. The suppliers of funds here hence have the option of
choosing from various insurance agencies. However, the insurance agencies cannot reduce the
premiums below a minimum support level. Thereby, the bargaining power of suppliers is
medium

Bargaining power of buyers- Moderate to High

There are 2 types of buyers/consumers- individual and corporate. Large corporate clients who
pay millions of dollars in premium have a lot more bargaining power than individual clients. As
a whole, the buyers have moderate to high bargaining power

Threat of substitutes- Low

There is no real threat of substitutes for the insurance industry. However, PPF and PF can act as
low level substitutes.

Intensity of Rivalry- High

Insurance has become more of a commodity. The Insurance companies with low cost structure,
better customer service and greater efficiency will be able to beat out its competitors.
Considering that more than 27 companies exist in this sector, the intensity of competition would
definitely be high.
Competitive analysis of broker and agency with USGI

LOB HEALTH MOTOR NON MOTOR TOTAL

GWP 17-18 8.00 75.10 6.03 89.12

GWP 16-17 12.70 31.44 11.15 55.29

GROWTH -37.00% 138.80% -45.90% 61.20%

Growth from broker

Company has garnered Business of ` 89.12 Cr from brokers in the FY 2017-18 against ` 55.29 Cr
in the year 2016-17 with growth of 61.20%. The growth driver for the 2017-18 is Motor
Insurance. Company has consciously remained low in the Business of Group Health and large
Non Motor policies due to adverse experience and target only brokers engaged in Retail
Business.

In the year 2018-19 the growth driver for Broker Business promoted Transparency & Corporate
Governance. Corporate Planning Department has always provided accurate vigorous reports &
MIS to ensure on maintaining efficient growth of the Company. The Department has also
advocated for better monitoring & control, formulated effective strategies to achieve targeted
goals in FY 2017-18.

LOB HEALTH MOTOR NON MOTOR TOTAL

GWP 17-18 12.70 102.29 4.75 119.75

GWP16-17 9.98 42.13 4.98 57.08

GROWTH 27.30% 142.80% -4.50% 109.80%

 Growth from agency

Agency has grown by 109.80% in the Financial Year 2017- 18. Major growth was in Motor
Insurance Business followed by Health Insurance Business.

The Company has recruited 304 Agents and 476 Point of Sale Persons in the financial year 2017-
18 against 534 shall be Motor followed by Retail Health Insurance.

INDUSTRIAL DEVELOPMENT
USGI

The General Insurance Industry in India worked with 33 Organizations for the FY 2017-18,
including the 4 Public Sector General Insurance Companies, 6 Standalone Health Insurers what's
more, 2 Specialized Insurers for example ECGC and AIC. In FY 2017-18, 4 new organizations
began activities in General Insurance Controls, 2002 is vital in their view. Organization has
accomplished Gross Direct Premium worth 2,310.86 Cr with a huge development rate of 79.52%
when contrasted with past money related year. Company has effectively finished 10 years of
activities after accepting authentication of enlistment from Insurance Regulatory Advancement
Authority of India in November 2007 and stayed one of the beneficial back up plans sequentially
since most recent 5 years (from FY 2013-14 to FY 2017-18). Your Company has dependably
stayed among best General Insurance players as far as development in premium crosswise over
General Insurance area in India. Your Company has changed business systems to improve
channel just as line of business blend by concentrating on propelling different well known items,
different key organizations tie ups, investigating new topographical territories just as entering to
existing geologies more than 10 years length of the Company's tasks.

LOB Gross direct Premium mix Premium growth

premium (%) (%)
(in cr.)
FIRE 142.05 6.15 8.27
MARINE 21.94 0.95 0.31

MOTOR 647.29 28.01 64.86

WORKEN 1.83 0.08 42.88
COMPENSATION
PERSONAL 58.77 2.54 183.49
ACCIDENT
HEALTH 100.77 4.36 10.96
INSURANCE
LIABILITY 0.56 0.02 9.72
ENGINEERING 13.50 0.58 49.96

CROP 1,243.72 53.82 126.45

OTHER 80.43 3.48 15.34
GRAND TOTAL 2,310.86 100.00 79.52

COMPARISION OF USGI WITH OTHER INSURANCE COMPANY

Top Competitor

1. HDFC ERGO
it is 3rd largest general insurance company in private sector with gross written premium
of INR 7,401 crore and market share is 4.9 % FY2018. Issued more than 6.5 million
policies and serviced 650,000 + claims in FY2018

DISTURIBUTION NETWORK
The Company pursues a multi-geography, multi-item and multi-channel conveyance
methodology. The corporate business developed crosswise over beneficial items, what's
more, crosswise over direct and broking channels. The retail business developed through
all channels – Banc assurance, Agency and Direct, from best 8 and past top 8 areas.

THE GROWTH THROUGH BROKER AND AGENT IN HDFC ERGO

The contribution from broking channel to corporate business increased to 64% in FY18
from 58% in FY17.
During FY 2017-18, CBG recorded a business growth of 9% from 1,207 crore in FY17
to 1,312 crore in FY18.

Channel wise Gross Written Premium

 10.40%

21.70%

AGENT BROKER

2. BHARTI AXA
Bharti Axa General Insurance Company limited is a joint venture between bharti
enterprises, a leading Indian business group of AXA, Bharti Enterprises shares 51% stake
in the venture while AXA Group shares 49% stake. The company offers general
insurance products to retail and commercial clients

DISTURIBUTION NETWORK

BUSINESS ACQUISATION THROUGH DIFFERENT CHANNEL

YEAR ENDED 2018
(IN LAKHS)
CHANNEL PREMIUM

AGENT 22,760

CORPORATE AGENT: BANK 2,587

CORPORATE AGENT: OTHER 2,248

BROKER 68,295

3. FUTURE GENERALI
Future Generali India Insurance (FGII) Company Limited is a private general insurance
company in India. The company is a joint venture between the Future
Group and Assicurazioni Generali. It commenced business in September 2007 and achieved
break-even in its 6th year of operation.
 DISTURIBUTION NETWORK

It includes agencies/agents, motor dealerships, insurance brokerages and direct marketing

channels. We are leveraging advanced technologies like Agent’s Virtual Office, i-MoSS and
i-ViSS to empower our agents, applications for health and wellness programme to better
engage with customers and adding more agents and motor dealers to grow the business.
In FY 2017-18, added [1,256] agents and [670] motor dealers, taking our total network
to [5,630] agents and [1,986] motor dealers. Their retail policies sold increased [68] %
to [70]%, of which [30]% were from the agency network and [25]% from the motor

UNDERWRITER PROFIT OF USGI

The year 2017-18 can be termed as very eventful as the company has been able to infuse
additional capital of Rs100 crore at fair market value
The general insurance firm made a net profit of Rs 296.6 crore in FY18 as against Rs 49
crore in FY17. This has enabled the company to raise its net worth to Rs 750 crore from Rs
354 crore in the preceding fiscal, wiping out the carried forward losses of Rs 82 crore. The
company has shown an underwriting profit of Rs 289 crop insurance, motor and individual
health insurance.

Bajaj Allianz General Insurance reported 27% growth in net profit at Rs 921 crore for the last financial
year against Rs 728 crore in the previous financial year. The underwriting profit of the company stood
to Rs 293 crore in FY18, as against Rs 64 crore in the previous year, as a result of a risk based pricing
and prudent underwriting policy.

Bajaj Allianz General Insurance reported 27% growth in net profit at Rs 921 crore for the last financial
year against Rs 728 crore in the previous financial year. The underwriting profit of the company stood
to Rs 293 crore in FY18, as against Rs 64 crore in the previous year, as a result of a risk based pricing
and prudent underwriting policy.

Bajaj Allianz also improved its combined ratio to 92.3% in FY18 as against 96.8% during the previous
year, reaffirming its strong financial health in the Indian insurance industry. Tapan Singhel, MD &
CEO, Bajaj Allianz General Insurance Company Ltd, said, “At Bajaj Allianz our focus continues to
remain on strong growth with high levels of customer service and profitability. The continued focus on
our retail business lines such as motor, health and property insurance along with increasing footprint in
newer geographies across the country through all our distribution channels and tie-ups have been key
drivers for the company’s overall growth.”

The Gross Written Premium (GWP) of the company increased by 23.4% to Rs 9,487 crore in last fiscal
against Rs 7,687 crore in FY17. “Digitization of processes for an enhanced customer experience, risk
based pricing of products and better expense management over the years has been instrumental in
maintaining our consistent growth in profitability over the years. Whilst growing our top line is our
focus, it’s never been at the cost of writing non-profitable business,” added Singhel.
The incurred loss ratio came down to 66.7% in FY18 from 70.4% in FY17. The company’s solvency
ratio rose to 276% compared to 261% at the end of FY17. The Indian regulations demand a minimum
solvency ratio of 150%. Bajaj Allianz General Insurance settled close to 11 lakh claims and serviced
more than 1.3 crore policies in FY18.
 CHAPTER-4
RESEARCH METHOLOGY

The comprehensive analysis based on the research methodology is been accepted with in this
project and it is described in detail in this thesis. The authentic methodology which is been taken
in to consideration from the qualitative as well as the quantitative methods with in this research
process and even the specific factors which lead to select this methodology is been explained in
detail with in this research.

The interviews which are semi organized are been conducted in order to gather the primary
source of the information as well as this information is been utilized to develop the search
regarding the research and the equivalent research analysis conducted to certify the value of the
research which is been conducted to recognize the actual result from the literature.

Interviewed agent and broker of universal sompo general insurance company with arrange some
set of questionnaire as they are working with USGI for long time so they can describe the
problems and suggestions regarding the company.

The information is collected with the help market research with few questions asked with the
agent and broker. The qualitative research done in which the most of agent given suggestion and
problem they face in the market. The few agent give very good suggestion that company may
accepts the proposal and resolve their problems.

The very basic questions asked with agent and broker that results good conclusion which I can
analysis in this report as the research topic was complete competitive analysis on agent and
broker that can done through this research and that defines values to this report and that can help
me to complete the analysis and give recommendations to the company

In lucknow zonal I interviewed the fifteen broker and fifteen agent that give details regarding
the asked questions
 OBJECTIVE OF RESEARCH

1) To know the perception of agent and broker.

2) To determine the satisfaction level of agent and broker.

3) To analysis the market what changes and view of agent in this competitive
environment.

4) To analysis the suggestion given by agent and broker.

 CHAPTER-5

ANALYSIS OF DATA

The interpretation of the research is done with the help pie chart that that describe the percentage
ratio of agent and broker.

results options result

brand name payout discounting
assets other services
Brand name 20%

payout 40%
5%
5% Discounting 30%
20%

assets 5%

Other services 5%
30%

40%

1) The agents and broker describe that payout is most attractive thing for them in the
insurance business as if they get high payout in a insurance company they will prefer that
company more.

2) Most of the agent and broker describe that brand value is also play vital role it make it
easy for the client to recognize the company well so it take less time and effort to
influence the client with the plans and through brand value they can trust the company
more easily
3) As agent of USGI more attracts towards the payout and discounting structure they need
that providing discounting and payout for 3 to 6 month only which that districts the
business considerations for agent and broker

4) Other services like technology advancement , claim settlement like there is no dissonance
on the claim issue and channel partner’s view is considered in case of any potential
dispute.

results options results

Private car 10%

Two wheeler 15%

private car
Commercial 25%
two wheeler
commercial
health 35%
health
non motor Non motor 20%
other
other 5%

1) As the result shows the agent and broker are more favorable with health insurance as they
say today health insurance is almost compulsory so they can influence the client and also
for going for foreign studies health insurance is most moreover honorable prime minister
also lunches scheme related to health like “Pradhan Mantri Ayushman Bharat Yojna” in
which Ayushman Bharat Yojana or Pradhan Mantri Jan Arogya Yojana or National
Health Protection Scheme or ModiCare is a centrally sponsored scheme launched in
2018.
 2) Moreover for different agent and broker their most favorable segment is different as in
they says is more depend about client what they want to be insured so accordingly they
suggest the plan or scheme offered by the company.

Now, the key factors that attracts the broker and agent for the implement of USGI is that

1) Brand name as the earlier said the agent and broker are says the brand value is more it
make them easy to understand the company norms and recognizable for their client
As USGI is only company in the country that have private and public partnership

2) As the agents are more attracted towards the payout thing they say company should
continue their payout and discounting structure throughout year. As it been observed that
mostly company are providing payout and discounting for 3 to 6 month only districts the
business consideration

3) As there are many schemes that give weightage to them which they can offer to the client
and while working with USGI they can feel secure and trusted towards the organization
goal believe the organization with their commitments towards them.

4) The broker mentions that the company helps to the settlement of claims and if they face
any difficulty while during scheme description the company easily helps them while
clearing their doubt as soon as possible.

In conclusion the agent and broker having almost have same prospective towards the
working with the company as agent is only dealing with the USGI and broker have
different company also but their efforts is nowhere less for the company.
The USGI always think about the betterment of their customer and
well bring. And to spread problem free client administrations from our Point of Sale to
associate with clients for conferring techniques about the after deal administrations of
protection. to guarantee brief activity/criticism on Customer complaint To screen and
upgrade administration levels always to accomplish maintainable premium development
and spotlight on primary concern for benefit.

The agent are more attracted towards the payout scheme that encourage them to do more
hard work and enthusiastic towards their work , they are not disclosing their payout
benefits but they were happy with that.
 results
options result

0-5 lac 10%

0-5 lac
5-10 lac 40%
5-10 lac

10-15 lac 15%

10-15 lac

15-20 lac 20%

15-20 lac

more thean 20 More than 20 lac 15%

lac

The results disclose the monthly procured business of agent and broker as Procurement deals
with the sourcing activities, negotiation and strategic selection of goods and services that are
usually of importance to an organization. Purchasing is the process of how goods and services
are ordered. So they deal the procurement efficiently and effectively.
The purpose Procurement involves the process of selecting
vendors, establishing payment terms, strategic vetting, and selection, the negotiation of contracts
and actual purchasing of goods. Procurement is concerned with acquiring (procuring) all of the
goods, services, and work that is vital to an organization.
THE FEW SUGGESTION THAT WERE GIVEN BY THE AGENT AND BROKER

1) Company should continue their payout and discounting structure throughout the year . it
been observed that most of the company providing payout and discounting for 3 to 6
month only districts their consideration.

2) As USGI taking care of the entire agent well but need to be more fast for solving their
uncertain problem which they face while dealing with client.

3) The agents feels some policies are little complicated that increases the problems while
elaborating to the customer like health cases and sometimes need to revised according to
the policyholder convenient.

4) Policy assignments procedure has difficulty compared with other services that need to be
more flexible.

5) If there is any changes happened in the company inform the agent and broker
accordingly.

RATING TO USGI BY AGENT NAD BROKER

 RESULT

Good
very good
satisfactory
below averge
pathetic
no comment

options Results

Good 30%

Very good 45%

Satisfactory 20%

Below average 2%

Pathetic 0

No comment 3%

As shown in the research most of the agent and broker are satisfy working with
Universal Sompo General Insurance , as they give good rating towards the company
few broker did not comment on USGI and few are given below average as they want more
commission on policies but rest are satisfied working with USGI.
Preferable company-

ACCOUNDING TO AGENT AND BROKER MOST PREFERBLE COMPANY IS ICICI

LOMBARD AND TATA AIG they says that most of their client prefer this company over USGI
as they have good brand value in the market and moreover trustful but few says the working with
or part of USGI given great opportunity that can help them to say committed with company for
long time.
 CHAPTER-6

CONCULSION

The company universal sompo general insurance company is one the best insurance company
with world class with the combination of hassle free end to end solution be provided to customer
for finance and insurance and more over bank tie up for providing finance facility to customer.
The universal sompo also forces on the development of technology as they
already introduce it tools for safe driving using android / iPhone applications “SAFETY SIGHT”
is being considered to add value to customer. Company will expand brand visibility through
displaying Co-Branded publicity material at strategic position for advancing General Insurance
product awareness.
The company networked with the partner banks that are having over 7700
bank branches and are aggressive in retail financing. The services at all times as PAN India
distribution and services capability Even on renewals, the IMD is not changed and ensures
continuity of benefit to Channel partner. Connecting with the customers for imparting procedures
about the after sales services of Insurance Deputing dedicated resources have undergone the
grind of rigorous soft sales skills training to maintain the high standards of customers interaction
Dedicated resources are also trained thoroughly on the retail products with special features of
ADD ON covers & the procedure of after sales claims servicing.
 RECOMMENDATIONS AND FINDINGS

1) The company should focus on agency channel to increase the business value by
providing attracting scheme to agent for implementation.

2) Few cashless facilities are available in this Lucknow location so we need to improve the
number for increasing the business face.

3) Should invest for promotional activities to increase the brand value and make it more
recognizable.

4) Other company are providing higher payout and discounting on private car and two
wheeler business.

5) Company should focus on digital business rather than offline business that helps to work
done on time and errors should be avoided.

6) Provide each policy portal to their agent and broker where they can issued the policy
strand free and can observe the changes.

7) Agent have good goodwill in the market as it can gives value to the company and people
can trust the agent more effectively.

8) The working portal can simple and clear which is provided to the clients which take
minimum 4 to 48 hours for policy.

9) The company should focus on quality agent not quantity, this will remove the extra cost
and quality agent can perform more effectively and efficient.

10) National tie up’s will increase the branding and can attracts much more customers there
is only two tie up’s of universal sompo.

11) Company should liberalize the underwriter’s guidelines to increase the top lines.

12) Digitalization can be done for all the things so error can be avoided.
 APPENDIX

QUESTIONNAIRE

1) What attracts you the most in universal sompo?

(a) brand name (b) payout
(c) discount (d) ASS
(e) other services

2) Which segment is more favorable for doing in this business?

(a) private car (b) two wheeler
(c) commercial (d) health
(e) non-motor (f) other

3) Which thing attracts or key factor for the implement of USGI?

Comment-

4) Monthly how much business you procured?

(a) 0-5 lac (b) 5-10 lac
(c)10-15 lac (d) 5-20 lac
(e) 20-25 lac (f) more than 25 lac

5) Any suggestions that can be done in the company USGI?

Comment-

6) How to do rate the USGI services compare with other insurance company?
(a) good (b) very good
(c) satisfactory (d) below average
(e) pathetic (f) no comment

7) Most preferred company by your client?

Comment-