PES College of Business

Management

Project Report
STRATEGIC
MANAGEMENT

Aashish JN
V sem A sec
 Page |2

ACKNOWLEDGEMENT

I would like to thank Mr. Venugopal Naidu, HOD, PES College of Business
Management, Bangalore, for his support and help throughout the course.

My hearty thanks to AEGON Religare Life Insurance Company (Brigade

Road, Bangalore) for the kind support and the timely guidance and I would
like to personally thank Mr. Rahul, the Branch Head and Mr.Manjunath and
Ms. Jayeeta, the Business Managers for lending their valuable time for the
success of this project and completion of the internship programme in a
fruitful manner.

I am also grateful to Mr. Dinesh N, faculty of PES college of Business

Management, for his guidance and inspiration.

I am immensely thankful to all my respondents and friends who have

helped me in completing this project successfully.

Lastly, I thank my parents who supported me in completing this project

easily.

Regn. No.: 08BMC08121

Place : Bangalore

Name & signature of the student

AASHISH JN

DECLARATION
 Page |3

I, Aashish JN hereby declare that this report entitled

“REPORT” submitted in complete fulfilment of the
requirements for the knowledge of the corporate
world is my original work in which I have given my
sincere efforts to do the project under the guidance
of Mr. Manjunath and Mr. Rahul

I further declare that the finding and conclusions in this

report are based on information collected by me and the
field work done by me.

Register number – 08BMC08121

Place – Bangalore

Aashish
JN

Contents of the report

 Page |4

TOPIC PAGE NUMBER

General Introduction about the 4

company Profile.

Current status and achievements of the 8

company.

Organisation Chart and Organisational 15

Policy.

Findings and Observations. 17

Social Responsibility. 19

Conclusions and Suggestions. 21

General Introduction about Company Profile

 Page |5

AEGON, an international life insurance, pension and investment

company, Religare, one of India’s leading integrated financial
services groups and Bennett, Coleman & company, India’s
largest media house, have come together to launch AEGON
Religare Life Insurance Company Limited. This venture is
dedicated to build a firm future, both for customers and
employees and will continue to balance a local approach with
the power of an expanding global operation.

It is the 5th largest life insurance company in the world based on

revenue and is ranked 103 among the fortune 500 companies.
It has 4 crore customers and 31,500 employees worldwide and
is present over 20 markets in the America, Europe and Asia.
The company launched its pan-India multi-channel operations in
July, 2008 with over 30 branches spread across India.

AEGON Religare Life Insurance is the first company that offers

policy servicing on the phone via Interactive Voice Response
System (IVR) by issuing the customer a T-Pin for authentication.

It is also the first company to include the customer’s medical

report in the policy kit.

AEGON has a long and rich history. The Group’s roots stretch
back to the first half of the nineteenth century. At that time,
AEGON was providing modest funds for people in the
Netherlands to arrange decent burials for their family
members and loved ones. AEGON has come a long way since
then. Today, AEGON is one of the world’s leading life
insurance and pension companies, with businesses in some
twenty-five countries around the world.
 Page |6

Origins
 AEGON can trace its origins back to the burial funds that
began to spring up in the Netherlands in the mid-nineteenth
century. The oldest was the Algemene Friesche, which was
created by two civil servants in the northern part of the
Netherlands in 1844.

 After 1860, Dutch burial funds began to face

competition from new ‘life insurance’ companies. In the
Netherlands, life insurance became increasingly tied up with
the idea of social reform and ‘self help’. One of AEGON’s
predecessors, Olveh, was initially formed as a self-help
organization for civil servants and white-collar workers.

 At the same time, another AEGON company – Nilmij –

was putting down roots in the Dutch East Indies. Formed in
1859, Nilmij provided civil servants and military personnel in
the former Dutch colony with an opportunity to save and
invest.

 Strong economic growth in the latter part of the

nineteenth century led to a rapid expansion of the Dutch life
insurance market. However, the outbreak of the First World
War brought severe disruption across Europe, while the years
immediately following the fighting were characterized by
economic uncertainty and high inflation.

 AEGON’s international expansion was not confined to

North America. The 1980s saw other acquisitions as well – in
Spain, Belgium and the Netherlands.

 In the 1980s, AEGON also started listing shares on stock

exchanges around the world, giving the Group access for the
 Page |7

first time to international capital markets, vital for its

continued growth.

 In 1985, the Group went one step further and floated

shares in New York. At the time, the flotation was
heralded, not without a touch of hyperbole, as 'the most
important arrival from Holland since Peter Stuyvesant
founded New Amsterdam in 1653'.

A diversified financial services group with a pan-India presence

and presence in multiple international locations, Religare
Enterprises Limited ("REL") offers a comprehensive suite of
customer-focused financial products and services targeted at
retail investors, high net worth individuals and corporate and
institutional clients.

REL, along with its joint venture partners, offers a range of

products and services in India, including asset management,
life insurance, wealth management, equity and commodity
broking, investment banking, lending services, private equity
and venture capital. Religare has also ventured into the
alternative investments sphere through its holistic arts initiative
and film fund.

With a view to expand and diversify, REL operates in the life

insurance space under 'AEGON Religare Life Insurance
Company Limited' and has launched India's first wealth
management joint venture under the brand name 'Religare
Macquarie Private Wealth'.

REL, through its subsidiaries, has launched India's first holistic

arts initiative - with a gallery - as well as the first SEBI approved
film fund, which is an initiative towards innovation and spotting
new opportunities for creation and maximization of wealth for
investors.
 Page |8

REL operates from seven domestic regional offices, 43 sub-

regional offices, and has a presence in 498* cities and towns
controlling 1,837* business locations all over India.

To make a mark in the global arena, REL acquired UK-based

Hichens, Harrison & Co. in 2008 which was subsequently re-
named as Religare Hichens Harrison PLC ("RHH"). Hichens,
Harrison & Co. was incorporated in London in the year 1803
and is believed to be one of the oldest firms of stockbrokers in
the City of London.

Pursuant to expansion of REL's business, the company has

grown from largely an equity trading company into a diversified
financial services company. With the addition of RHH the REL
group now operates out of multiple global locations, other than
India, (the UK, the USA, Brazil, South Africa, Dubai and
Singapore).

Religare is a diversified financial services group of India offering

a multitude of investment options. Financial services which
Religare offers can be broadly clubbed across three key
verticals - Retail, Institutional and Wealth spectrums. Religare
has also ventured into the alternative investments sphere
through its holistic arts initiative and Film fund.

With a view to expand, diversify and introduce offerings

benchmarked against global best practices, Religare operates
in the wealth management space under the brand name
'Religare Macquarie Private Wealth'.

Current Status and Achievements

 The 1990s saw AEGON continue to expand its
international presence. At the beginning of 1991, the Group
 Page |9

bought Regency Life, a UK insurer specializing in unit-linked

products and pensions. Then, two years later, AEGON began
its relationship with Scottish Equitable, one of the best-known
names in the UK financial services industry.

 By 1998, AEGON had taken full control of Scottish

Equitable. The following year, the Group extended its
businesses in the United Kingdom even further, buying the
life insurance operations of Guardian Royal Exchange. The
United Kingdom is now one of AEGON’s three main markets
alongside the United States and the Netherlands.

 The early 1990s also saw AEGON take its first steps in
two other regions that were to become increasingly
significant for the Group in the years ahead: Central and
Eastern Europe and Asia. In March 1992, AEGON bought a
75% stake in Állami Biztosító , Hungary’s former state-owned
insurance company – the springboard for further expansion in
the region, at the time only just emerging from decades of
Soviet domination.
 In Asia, AEGON set up a Greenfield operation in Taiwan
at the end of 1993. Over the next few years, the Group
strengthened its position in Taiwan, which, like Hungary, was
to play a significant role in helping AEGON push out into new
markets throughout Asia.
 Alongside this international expansion, AEGON decided
to concentrate more on its core markets: life insurance,
pensions and long-term savings and investments. As a result,
the Group withdrew from some businesses, including Belgium
and Greece, the general insurance market in the United
Kingdom and part of the healthcare sector in the
Netherlands. AEGON also sold its stake in FGH Bank and its
merchant bank Labouchere. The result was a more efficient,
better focused Group.
 P a g e | 10

Achievements of the Company:

Here are a selection of the awards recently won by AEGON’s
businesses. Each award is a huge compliment and recognition
of our achievements. We’re delighted by this success – it shows
we’re getting things right which means our customers benefit.

Financial Adviser Service Awards 2009

 We've been awarded 5 stars for Investments, 4 stars for

Life and Pensions and recognised as Most Improved
Provider in the Investment category

Protection Provider of the Year 2009

 Bankhall advisers have voted for us as Protection Provider

of the Year

Best new product - AEGON Secure Lifetime Income

 AEGON Secure Lifetime Income has been named Best New

Product at the International Adviser Awards 2009

Best Pension Service Provider 2009

 For the third year running, we've won Best Pension Service
Provider at the Investment Life and Pensions Moneyfacts
Awards. We're also highly commended for Best Group
Pension Provider, Best Income Drawdown Provider and
Best Personal Pension product and commended for Most
Competitive Annuity Provider

'EEE' ratings from FTRC 2009

 P a g e | 11

 We've been awarded 15 'eee' ratings across a wide range

of products and services including Individual Pensions,
SIPP Specialist, Pensions Tools, Corporate Pensions,
Individual Protection, Investment Control, SIPP and
Drawdown

Headline Money award 2009

 Best press office - for the third year running

Five star ratings from defaqto - for the second year

running

 Five star ratings have been awarded for SIPP, Onshore

Bonds and Offshore Bonds in 2009 – which means one of
the best combinations of quality, flexibility, choice and
access

Mortgage Strategy award 2008

 P a g e | 12

 Best Mortgage Protection Provider: AEGON Scottish

Equitable

National Sales Award finalists 2008

 Finalists in the Sales Team of the Year (B2B) and Best

Incentive and Motivation Programme of the Year
categories

Professional Adviser award 2008 – Individual Protection

 Best Life Insurance Provider 2008

Financial Times ‘Adviser Firm of the Year – TCF’ – Origen

 Origen wins award for significant progress in treating

customers fairly (TCF) during 2008

Money Observer’s Individual Fund awards 2008 –

winners in UK Growth and Ethical categories

Park Row ‘Provider of the Year’ 2008

 Park Row (a national IFA form founded in 1998), selected

AEGON Scottish Equitable as provider of the year

Lighthouse Group Awards 2008 (Lighthouse is one of the

leading IFA and Wealth Management groups with 540
advisers in the UK)

 Top Provider 2008: AEGON Scottish Equitable

FT Business Pension and Investment Provider Awards

2008

 Third Party Administrator of the Year: AEGON HS Admin

Money Marketing Financial Services Awards 2008

 P a g e | 13

 Best Retirement Planner: Origen

Corporate Adviser Awards 2008

 Best Group Pension Provider: AEGON Scottish Equitable

Lipper UK Funds Awards 2008

 Best Overall Group Award – Equity (Large): AEGON Asset

Management

Organisational Chart

COMPANY POLICIES

1. Customer Policy

• To adopt a Customer-focused approach at all times with

transparency.

• To meet more Customer needs and expectations pertaining to

Products, Quality, Satisfaction and value for Money.
 P a g e | 14

• Greater value to relationships with Customers and to make

efforts at strengthening these relations for mutual benefit.

2. HR Policy

• Provide work environment that makes the employees

committed and motivated for maximizing productivity.

• Establish systems for maintaining transparency, fairness and

equality in dealing the employees.

• Empower employees for enhancing commitment,

responsibility and accountability.

• Encourage teamwork, creativity, innovativeness and high

achievement orientation.

• Provide growth and opportunities for developing skill and

knowledge.

• Ensure functioning of effective communication channels with

employees.

3. Code of Business Conduct & Ethics for Board Members and Senior
Management

4. General Rules & Other Policies

5. HRD Policy

• Identify development needs of the employees on a regular

basis, provide the necessary training and continually evaluate
and monitor the effectiveness of the training so that the
quality of the training also gets upgraded.

• Provide inputs to the employees for developing their attitude

towards work and for matching their competencies with the
organizational requirements.
 P a g e | 15

• Prepare employees through appropriate development

programs for taking up higher responsibilities in the
organization.

• Fulfill social obligations by providing training to the students of

educational institutions and to the trainees of other
organizations.

Findings and Observations

Analytical study on telemarketing and recruitment

Telemarketing in AEGON Religare

Telemarketing is a method of direct marketing in which a sales person

solicits to prospective customers to buy products or services, either over
the phone or through a subsequent face to face or Web conferencing
appointment scheduled during the call.

Telemarketing can also include recorded sales pitches programmed to be

played over the phone via automatic dialling. Telemarketing has come
under fire in recent years, being viewed as an annoyance by many.

Some people believe that in the 1950s, Dial America Marketing, Inc
became the first company completely dedicated to inbound and outbound
telephone sales and services. The company, spun-off and sold by Time,
Inc. magazine in 1976, became the largest provider of telephone sales
and services to magazine publishing companies.

The term telemarketing was first used extensively in the late 1970s to
describe Bell System communications which related to new uses for the
outbound WATS and inbound Toll-free services.

Categories

The two major categories of telemarketing are Business-to-business and

Business-to-consumer.
 P a g e | 16

Subcategories

 Lead Generation, the gathering of information

 Sales, using persuasion to sell a product or service

 Outbound, proactive marketing in which prospective and pre-

existing customers are contacted directly

 Inbound, reactive reception of incoming orders and requests for

information. Demand is generally created by advertising, publicity, or the
efforts of outside salespeople.

Procedure

Telemarketing may be done from a company office, from a call centre, or

from home. It may involve either a live operator or a recorded message, in
which case it is known as "automated telemarketing" using voice
broadcasting. Prospective customers are identified by various means,
including past purchase history, previous requests for information, credit
limit, competition entry forms, and application forms. Names may also be
purchased from another company's consumer database or obtained from
a telephone directory or another public list. The qualification process is
intended to determine which customers are most likely to purchase the
product or service.

Charitable organizations, alumni associations, and political parties often

use telemarketing to solicit donations. Marketing research companies use
telemarketing techniques to survey the prospective or past customers of a
client’s business in order to assess market acceptance of or satisfaction
with a particular product, service, brand, or company. Public opinion polls
are conducted in a similar manner.

Telemarketing techniques are also applied to other forms of electronic

marketing using e-mail or fax messages, in which case they are frequently
considered spam by other people.

Recruitment and selection of Life Advisors

People are a company’s most important assets. They can make or break
the fortunes of a business. In today’s highly competitive business
environment placing the right people in the right position is very critical
for the success of any organization.
 P a g e | 17

The recruitment and selection decision is of prime importance as it is the

vehicle for obtaining the best possible person-to-job fit that will, contribute
significantly towards the Company's effectiveness. It is also becoming
increasingly important, as the Company evolves and changes, that new
recruits show a willingness to learn, adaptability and ability to work as
part of a team. The Recruitment & Selection procedure ensures that these
criteria are addressed

In this project I have studied Recruitment and Selection process of AEGON

Religare Life Insurance and attempted to provide some ways so as to
make recruitment more effective and to reduce the cost of hiring an
employee.

I am privileged to be one of the students who got an opportunity to do my

Internship with AEGON Religare Life Insurance. My involvement in the
project has been very challenging and has provided me a platform to
leverage my potential in the most constructive way

AEGON Religare Life insurance is one of the world’s leading financial

institutions offering complete financial solutions that encompass every
sphere of life. In a short span of time AEGON Religare has set an example
by having a steady and confident journey to growth and success.

Findings

• Recruitment is done throughout the year more during the months of

May-June and Oct-Nov;

• Huge investment of time

• Huge recruitment cost

 P a g e | 18

• To pursue these, I would be going through the recruitment policies

of the company. By active participation in the recruitment process,
the areas where improvement can be bought about can be
identified.

• Thus the whole research would be done under the guidance of

external guide. It will also involve recruitment and selection
processes, reading the material provide internally by the
organization, information from the new employees.

Major Insurance Players

Licenses have been issued for the following companies:

• ICICI Prudential Life Insurance Limited

• ICICI Prudential Life Insurance Company Limited
• HDFC Standard Life Insurance Company Limited
• Birla Sun Life Insurance Company Limited
• TATA AIG Life Insurance Company Limited
• Max New York Life Insurance Company Limited
• SBI – Cardiff Life Insurance Company Limited
• ING Vysya Life Insurance Company Limited
• Bajaj Allianz Life Insurance Company Limited
• MetLife Life Insurance Company Limited
 P a g e | 19

• Aviva Life Insurance Company Limited

• AMP Sanmar Life Insurance Company Limited
• Sahara India Life Insurance Limited
• Sri Ram Life Insurance Limited
• AEGON Religare Life Insurance Limited

Social Responsibility:
Integrated financial services provider Religare Enterprises has tied up with
SOS Children's Village to sponsor orphaned children and women as part of
its corporate social responsibility (CSR) initiative.

"Religare will keep on looking at such initiatives aimed at improving the

socio-economic conditions of those who need it the most. We will look into
more such avenues of helping the disadvantaged sections," Religare
Enterprises Director (Brand and Corporate Communications) Subhrangshu
Neogi said.

Further, the diversified firm is also looking at other possible CSR initiative
in sectors like environment and heritage.

Under the CSR initiate, Religare has rolled out sponsorship for SOS
Children's, which helps in the rehabilitation of orphaned children and
women with disturbed past by providing shelter and education.

"Religare's support will go a long way in ensuring that each child of SOS
Children's Village become a contributing member of the society. Also we
will be able to reach out to many more children in need," SOS Children's
Village National Director Rakesh Jinsi said.

“Women & children in India need as much attention as possible.” That, in

short, is the voice of commitment that comes from Religare. And taking
the first step towards fulfilment of its corporate social responsibility (CSR),
Religare Enterprises Ltd. today announced its tie up with SOS Children’s
village.
 P a g e | 20

Launching the Religare CSR Initiative at the Religare Art Gallery, Mr.
Subhrangshu Neogi, Director, Brand and Corporate Communications,
Religare Enterprises Limited, averred,

“All large corporates must take serious steps about giving back to the
society and the ecosystem. We in our own little way have taken the first
baby steps in CSR and will continue to further take such initiatives in the
future as well.”

Religare’s children’s initiative rolled out with a sponsorship for SOS

Children’s
Villages of India. While SOS Children’s Villages of India creates the right
environment for orphaned children, they also get women with disturbed
pasts rehabilitated as their “mothers.

” This initiative not only offers shelter, education and healthcare, to the
children and women but also gives them a second chance to lead a
normal life.

On the occasion of Children’s Day and to formally flag off the CSR
initiative, a painting competition was held at the Religare arts.i gallery in
Connaught Place for children from the SOS Village.

The painting competition was adjudged by celebrated painter, Anjolie Ela

Menon. Speaking about the tie-up, Mr Rakesh Jinsi, National Director, SOS
Children’s Village, “We at SOS Children's Villages of India, are grateful to
Religare for their support in our endeavour to take care of parentless
children in the country.

Their support will go a long way in ensuring that each child of SOS
Children's Villages of India becomes a contributing member of our society.

Also, with the help of committed friends like Religare, we will be able to
reach out to many more children in need." Religare’s earlier initiative
included their tie up with Give India Foundation wherein employees could
donate a part of their salaries to their pet cause, thereby doing their share
for society’s betterment.
Suggestions
 P a g e | 21

 The company is well known in the corporate and the urban

world but should spread its roots in the rural sector as
well.

 The company should create a lot of awareness of the

products and policies it has to offer to the public.

 The infrastructure of the company can be better as it is

located in an area such as Brigade Road.

 Bangalore being a major city in India has only 2 centres of

the company. This has to be replenished by adding more
centres.

 They need to advertise and market their products through

various media as they have adopted a major part of their
advertising through telemarketing
 P a g e | 22

Conclusion

After my 15 days of work in AEGON Religare I was satisfied and

content that I had made the right choice. This was because my
internship program had taught me how to tackle customers of
different orientations and how to effectively communicate to
people. The company arranges various events and treats for its
employees from time to time to break the monotony.

This shows that the company’s HR is very strong. Apart from

that the company takes good care of its employees by
continuous activities and perks. They encourage students to
enter their company and learn and gain experience in their own
fields. As this in turn gives them recognition in the market and
society.

Thus, I would like to conclude that AEGON Religare being an

insurance company has a lot of challenges in store for
prospective candidates as well as a tough competition for its
rivals as they have higher slab and commission rates. And have
strong future plans, as AEGON being the worlds 5th largest
insurance company and has joined Religare an Indian medical
oriented company to bring about a change in the society and
the insurance market setting.

Bibliography/References

Books and magazines:

Economic times
 P a g e | 23

Times of India

India today

Websites:

www.aegonreligare.com

www.ask.com

www.answers.com

www.wikipedia.com

www.irda.com