SUMMER PROJECT

PROGRESS REPORT NO. 1

ON

MARKET (SECTOR) ANALYSIS OF

BAJAJ ALLIANZ GENERAL LIFE INSURANCE

INDUSTRY

SUBMITTED TO: SUBMITTED BY:

Name: Harveen Mam STUDENT NAME: Shubham Mishra

Designation: Assistant Professor UID: 20MBA1693
Chandigarh University MBA-Batch 2020-22
Location: Gharuan, Mohali

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 Table Of Contents
Particulars Page
Number
Acknowledgment 3
4-5
Introduction

Distribution Channels and research 6

Products And Services 7-9

Market Size 10-11
SWOT Analysis 12

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 ACKNOWLEDGEMENT
The internship opportunity I have with Bajaj Allianz General Life Insurance was a
great chance for learning and professional development. Therefore, I consider
myself a very lucky individual as I was provided with an opportunity to be a part
of it. I am also grateful for having a chance to meet so many wonderful people and
professionals who led me through this internship period.

I express my sincere gratitude to HOD Sir Dr. Nikhil Varghese for providing me
an opportunity to undergo summer training at Bajaj Allianz.

I am grateful to my faculty guide Harveen Mam who has given me this opportunity
to prepare this project and provided her valuable guidance.

I am grateful to the All-Management Department who has given more guidance

about SIP. I am also grateful to my parents and friends who inspired me to put in
my best efforts.

Last but not the least, my heart also feels to thank and offer a grateful appreciation
to everyone whom I could not mention here but have directly or indirectly
supported and helped me to face this challenge and complete this project right in
time.

Shubham Mishra

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 INTRODUCTION TO CORPORATE
1) Introduction

Bajaj Allianz General Insurance Company Limited is a joint venture

between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and
Allianz SE. Both enjoy a reputation of expertise, stability, and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and conduct
General Insurance business (including Health Insurance business) in India. The
Company has an authorized and paid-up capital of Rs 110 crores. Bajaj Finserv
Limited holds 74% and the remaining 26% is held by Allianz, SE.

1.1) Brief History

Bajaj Allianz General Insurance Incorporation on 12th March 2001 and received
the Insurance Regulatory and Development Authority (IRDA) certificate of
Registration on 2nd May 2001 to conduct General Insurance business (including
Health Insurance business) in India. The Company has an authorized and paid-up
capital of Rs 110 crores. Bajaj Finserv Limited holds a 74% stake and the
remaining 26% stake is held by Allianz, SE.

Bajaj Allianz head office is in Pune and Started Operations On 3rd August
2001. Bajaj Allianz Life assets under management (AUM) had crossed
the ₹70,000-crore milestone by the end of December 2020. "With value-add
products and meaningful improvements across customer services, AUM has grown
79 percent in the past 10 years to touch ₹70,295 crores as of December 31,

"It shows that the pandemic has not impacted the company's growth much instead
it could maintain a steady growth," the private sector insurer said.

1.2) Bajaj Allianz Life- A Trusted Life Insurer in India

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 1) Lives Insured 3.44 Crore
2) Net Worth 9731 Crore
3) Claim Settlement 98.02%
4) Total Employers 10,098
5) Individual agents 74270
6) Branches 556

1.3) Vision

• To be the first choice insurer for customers

• To be the preferred employer for staff in the insurance industry
• To be the number one insurer for creating shareholder value

1.4) Mission
As a responsible, customer-focused market leader, we will strive to
understand the insurance needs of the consumers and translate them into
affordable products that deliver value for money.
1.5) A Partnership Based on Synergy
Bajaj Allianz General Insurance offers technical excellence in all areas of
General and Health Insurance as well as Risk Management. This partnership
successfully combines Bajaj Finserv's in-depth understanding of the local
market and extensive distribution network with the global experience and
technical expertise of the Allianz Group. As a registered Indian Insurance
Company and a capital base of Rs. 110 crores, the company is fully licensed
to underwrite all lines of general insurance business including health
insurance.
1.6) Our Achievements
a) Bajaj Allianz has received an AAAA rating, from ICRA Limited, an
associate of Moody's Investors Service, for Claims Paying ability. This
rating indicates the highest claims-paying ability and a fundamentally strong
position.
b) Bajaj Allianz General Insurance has received the prestigious "Business
Leader in General Insurance", award by NDTV Profit Business Leadership
Awards 2008. The company was one of the top three finalists for the years

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 2007 and 2008 in the General Insurance Company of the Year award by
Asia Insurance Review.

c) BALIC conferred with the ‘Best Digital Customer experience Initiative’

award 2019

d) Best Customer Experience Award 2019

2) Distribution Channel and Research

INSTITUTIONAL BUSINESS RETAIL SALES

1)Bancassurance & NBPSU 1) Agency

a) Insurance Manager

b) Retail Partner Distribution (R.P.D)

2) Business procurement and Financial 2) PSF

Inclusion

3) Corporate Agency & Broking

4) NBFC

5) Corporate Business

6) Web Sales

7) Strategic Alliances

8) BFL

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3) PRODUCTS AND SERVICES

With greater choices comes greater value. Networth offers you more choices by
providing a wide array of products and personalized services, so you can take
charge of your financial future with confidence. So whether you are a new investor
or a seasoned one, we have the resources and advice you would need to make
smart, well-researched investments and help you grow your Networth.

3.1) Child Insurance Plans

Child Insurance Plans from Bajaj Allianz Life help you build a steady corpus that
can be used to finance your child’s life goals. They also come with a life cover
ensuring that the financial needs of your child are also taken care of, even if
something happens to you.
a) Young Assure:- As a parent, your biggest asset is your
child/children and you are always most eager to see their life goals
being fulfilled. Each of their precious milestones makes a happy
memory for you, and also helps them in preparing for their life goals.
While some dreams have no financial obligation to them, several
others of your child’s goals require both time and financial investment
from you. Perhaps, maybe that is why the wise suggestion that you
save and invest towards your child’s life goals as soon as they are
born. By starting early, you not only automatically enjoy the several
benefits of long-term investing, but you are also able to celebrate your
child’s milestones with no worry on the financial front. Bajaj Allianz
Young Assure, a traditional savings cum insurance plan will help you
become a disciplined investor thus ensuring your child achieves their
life goals. It is a traditional, participating, regular, and limited
premium payment endowment plan, which enables you to plan for the
financial milestones of your child’s growing years.
b) Lifelong Assure:- Bajaj Allianz Lifelong Assure, a whole life
insurance plan, is designed to offer financial support to you as your

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 child moves ahead in his/her life goals journey. This child plan
provides income and life cover till you turn 100 years along with a
cash bonus, if any, starting from end of the 6th policy year, along with
guaranteed cashback from the end of your premium payment term
(PPT). Your child’s life goals will receive financial support, even after
your death, as this plan offers a guaranteed death benefit of up to
300% of the sum assured depending on the PPT chosen.

3.2) Saving Plans

Bajaj Allianz Life is a trusted life insurance company and one of the leading
players in the life insurance industry. With over half a dozen savings plans – from
basic endowment plans to regular and guaranteed income plans – Bajaj Allianz
Life offers a complete product portfolio of savings plans for you to choose from, to
take you closer to your dreams and aspirations.

3.3) Investment Plans

Bajaj Allianz Life offers a range of innovative investment plans that cater to your
specific needs with different risk appetites, expectations, and life goals. Bajaj
Allianz Life investment plans allow you to invest in multiple goals at the same
time. Bajaj Allianz Life My Wealth Goal is a case in point. It provides protection,
a regular income, and growth potential for your investment, so you can fulfill your
future goals.

3.4) Retirement Plans

When it comes to retirement planning, effective management of your funds,

whether it is at the time of accumulation or after retirement, takes precedence.
With a proven track record, Bajaj Allianz Life has developed an expertise in
managing investors’ funds, which enables the customers to meet their life goals
through the yields generated on their investments. Our fund performance speaks
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for itself. You can check out the performance of Bajaj Allianz Life Funds here.
However, it is to be reiterated that the past performance of the funds is not
indicative of future performance.

3.5) Term Insurance Plan

Term insurance is the simplest and one of the most affordable types of life
insurance plans. Term insurance provides financial protection in the event of
the sudden demise of the policyholder. If you take a detailed look at what is
term insurance, it is a formal agreement between the insurer and the
policyholder that guarantees a pre-decided amount to the nominee of the
policyholder in the event of his/her death. The policyholder has to pay the premiums
without fail to keep the term insurance plan active.

3.6) Group Life Insurance Plan

Bajaj Allianz Life is a trusted life insurance company with a wide reach and a
commitment to enabling people to meet their life goals through insurance products.
From experience gathered over two decades, the company has developed a
comprehensive portfolio of group insurance products.

3.7) Health Insurance Plan

A health insurance plan protects your and your family’s life goals from getting
derailed due to unanticipated health emergencies. Bajaj Allianz Life Health
Insurance Plan provides a Lump sum benefit on detection of covered critical
illnesses.

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4) Insurance Industry

The insurance industry of India has 57 insurance companies 24 are in the life
insurance business, while 34 are non-life insurers. Among the life insurers, Life
Insurance Corporation (LIC) is the sole public sector company. There are six
public sector insurers in the non-life insurance segment. In addition to these, there
is a sole national re-insurer, namely the General Insurance Corporation of India
(GIC Re). Other stakeholders in the Indian Insurance market include agents
(individual and corporate), brokers, surveyors, and third-party administrators
servicing health insurance claims.

4.1) Market Size

In India, the overall market size of the insurance sector is expected to US$ 280
billion in 2020.
The life insurance industry is expected to increase at a CAGR of 5.3% between
2019 and 2023. India’s insurance penetration was pegged at 3.76% in FY20, with
life insurance penetration at 2.82% and non-life insurance penetration at 0.94%. In
terms of insurance density, India’s overall density stood at US$ 78 in FY20.
The market share of private sector companies in the general and health insurance
market increased from 47.97% in FY19 to 48.03% in FY20. In the life insurance
segment, private players held a market share of 33.78% in premium underwritten
services in FY20.
In FY21 (until March 2021), the premium from the new business of life insurance
companies in India stood at US$ 31.9 billion.
In India, gross premiums written of non-life insurers reached US$ 26.52 billion in
FY21 (between April 2020 and March 2021), from US$ 26.49 billion in FY20
(between April 2019 and March 2020), driven by strong growth from general
insurance companies.
In March 2021, health insurance companies in the non-life insurance sector
increased by 41%, driven by rising demand for health insurance products amid the
COVID-19 surge.

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4.2) COMPARISON OF TOP-UP HEALTH INSURANCE PLAN
IN INDIA

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5) SWOT ANALYSIS

5.1) STRENGTH

1) A strong brand name with a high degree of financial support

which is the backbone of the company.
2) Brand leaders in bringing the latest financial services for the common man.
3) An innovator, pre-problem seeker, and risk-taking capabilities.
4) Systematic, planned, and quick actions taken up lead to quick
reactions by the company ultimately providing a competitive
edge to Bajaj Allianz Insurance.

5.2) WEAKNESS

1) The data collected cannot be considered 100% accurate but it is only an

estimated figure gathered by the survey.
2) The analysis so done cannot be regarded as the final as change is the only
constant thing that happens.

5.3) OPPORTUNITIES

1) A huge untapped market.

2) The emerging middle class, a good potential market.
3) Increasing employment rate and income.
4) Increasing financial investments in the market.

5.4) THREATS

1) Neck to Neck competition with ICICI Prudential and HDFC Standard

concerning services and policies.
2) Threats from growing competitors like Reliance Life and Aviva in the
Insurance sector.
3) A new entrant in the market, Max New York Life, Bharti Axaetc, is an area of
Company.
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