Bajaj Allianz Final Report[1]

8/3/2019 Bajaj Allianz Final Report[1]

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SUMMER TRAINING PROJECT REPORT

ON

REVOLUTION OF BAJAJ ALLIANZ

WITH

SPECIAL BUSINESS ASSOCIATE MODEL

Submitted To: Submitted By:

DR. ANJU GUPTA

NEHA TALWARIYA

BBA 2010-2011


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PREFACE

I was assigned the project on Revolution of Bajaj Allianz with S.B.A model. In order to comeup with the inefficiency faced by the insurance industry due to inefficient and unskilledemployees the company comes up with this model. In this I was asked to recruit S.B.As .WhereI collected data from surveys and questionnaires. With all collected data an analysis has beendrawn.

I surveyed different area and did tele-calling for more than a month and visited different esteem

clubs of Jaipur city, met retired LIC development officers, various bank managers and pursuethem to avail the opportunity of Bajaj Allianz Life Insurance Company.

I had to visit many offices and shops located in different areas and convince them to chase theopportunity.

Overall it was a good learning experience. During my training period, I met people from different

strata of societies, i.e. from executive to the people on the managerial post and even the ownersof the big showrooms and business outlets; I interacted with all of them and discussed the

business proposal. This really boosted my confidence and also ended up my hesitation towardshardcore marketing.

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ACKNOWLEDGMENT

Many of the ideas that lead me to design and develop and Business Associate Model resulted from a

distillation of the experience and opinions of many people. It would be prudent to commence this report

with a sincere tribute to all those who have played an indispensable role in the accomplishment of this

work by improvising whenever and wherever their able guidance was required.

I am very thankful to MR.GIRIRAJ SHARMA (DIVISIONAL MANAGER) and Mr. ANGA BHANOT

(SR. BRANCH MANAGER) and Mr. NITESH JAIN (BRANCH MANAGER) for helping me throughout

my training and have shown the right way that I can say LIGHT OF THE DAY.

I would sincerely like to thank my project guide, Mr. AJIT SINGH (TRANNING MANAGER), for their

valuable guidance, constant supervision and motivation during the project period. I would also like to

thank entire Bajaj Life Insurance Company's staff for supporting me, helping me in dealing with

customers.

My last but not the least thanks are due to my parents for their constant support and strongest motivation,

which has been a source of inspiration for me at every step of my life.

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Research Methodology

Aim of the study was to overcome the inefficiency in insurance industry caused due to

lack of experienced and skilled employees and induce cost saving strategy.

The availability of time was eight weeks.

The data collected during the study was both primary and secondary.

Primary data source -Preparation of questionnaire and conducting surveys for analysis

and drawing conclusions.

Secondary data source- Information collected through internet web pages, Business tobusiness yellow pages, newspapers.

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OBJECTIVE

As a project trainee I was required to do:

To introduce new Business Associates to Bajaj Allianz Life insurance company.

Train and develop the recruited B.As to become high producers like you.

Earn incentives on the production of I.C.s;

Continue to earn through your own sales.

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EXECUTIVE SUMMARY

Insurance is a system to alleviate financial losses by transferring risk of loss from one entity to another.

Earlier there was only Life Insurance Corporation of India (LIC) who' was taking the burden of insuring

people from certain and uncertain risk. This was the scenario before a regulatory authority was introduced.

After coming of the IRDA that is Insurance Regulatory Development Authority, many private players

attacked the market. There were 14 new players introduced which reported to IRDA including LIC.

BAJAJ ALLIANZ LIFE INSURANCE started its journey in 2001. Bajaj Allianz life insurance company

is a joint venture between Allianz SE and Bajaj Auto Limited. It is the worlds largest insurance company

by revenue of Rs 5,20,353 cr (Euro 96.9 billion)

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Table Contents

1) BAJAJ ALLIANZ LIFE INSURANCE COMPANY

i) Introduction of Companyii) Vision & Missioniii) Productsiv) S.B.A Modelv) Achievementsvi) Future Plans

2) CONCLUSION

3) BIBLIOGRAPHY

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD.

Bajaj Allianz Life Insurance Company Limited is a joint venture between Bajaj Auto Limited and AllianzSE. Both enjoy a reputation of expertise, stability and strength. INCORPORATED: 12 MARCH 2001. Itsvision is:TO BE THE BEST INSURANCE COMPANY IN INDIA TO BUY FROM, WORK FOR ANDINVEST IN. It Works on the principle JAISI ZAROORAT WAISA INSURANCE. Bajaj Auto holds74% and the remaining 26% is held by Allianz, A.G. Germany.

BACKGROUND

Founded in 1890 in Berlin, Allianz is now present in more than 70 countries with over 162,000employees. Allianz Group provides its more than 70 million customers worldwide with a comprehensiverange of services in the areas of property and casualty insurance, life and health insurance, assetmanagement and banking. In fiscal year 2005, Allianzs total revenues exceeded US$ 124 billion.

India operations

Allianz entered India by setting up a liaison office in 1996. Subsequently, Allianz has set up two jointventure companies in India and is currently present in the Life and General Insurance businesses. The jointventures are with Bajaj Auto Ltd., Indias leading two and three wheeler manufacturer. Bajaj Auto holds74 per cent and the remaining 26 percent is held by Allianz, Germany. Companys activities in Indiainclude Life and General Insurance and Risk Management. Companies of the Allianz Group in IndiincludeBajaj Allianz General Insurance Co Ltd (BAGICL) and Bajaj Allianz Life Insurance Co Ltd (BALICL)

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VISION

Vision is To be the best insurance Company in India to buy from, work for and

invest in

They hope to achieve this by:

Understanding the needs of customers and offering them superior products and

service,

Leveraging technology to device customers quickly, efficiently and conveniently.

Developing and implementing superior risk management and investment strategies

to offer sustainable and stable returns to their policyholders

Providing an enabling environment to foster growth and learning for their

employees,

And above all building transparency in all their dealings

VALUES

The success of the company is due to its unflinching commitment to 4 core values.

Customer delight the guiding principle,

Ensuring world class solutions and services,

Offering customized products

Transparent benefits

Each of the core values describe what the company stands for the qualities of their

people and the way they work

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Be a winning team.

Have a passion for excellence and hate Bureaucracy.

Be empowered and have the confidence to take decisions quickly and be

accountable Be driven to achieve results, to deliver.

Be professional and socially committed.

Be open to ideas , sharing ,transparent and trusting

Focus everything we do on our customers.

Make BALIC a great place to work.

Have a sense of humor.

ORGANIZATION STRUCTURE, DEPARTMENTATION AND DETAILS OF

DIVISION HEAD

Zone

(Additional ZM/ZM)

Regional

(Dy.RM/Add RM/RM/Sr RM)

Divisional

(Add DM/DM/Sr.DM/ Chief DM)

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Branch

(BM/Sr BM/Add Chief BM/Chief BM)

The CEO and Managing Director of Bajaj Allianz Life Insurance Company is Mr.Kamesh Goyal.

The Bajaj Allianz Life Insurance Company Limited Board comprises of reputed people from the finance

industry both from India and abroad.

Our promoters

SYNDICATE BANK: The Syndicate Bankoffers varied products and services like:

Deposits- Syndicate 400 Plus & Syndicate 500 Plus, Syndicate-Super Premium Savings BankAccount, Syndicate Samanya Savings Bank Account, Syndicate Tax Shield Deposit, Vikas CashCertificate, Syndicate Suvidha Deposit, Pigmy 1928 Deposit, Pigmy Plus 2007 Deposit, SyndCorporate Suvidha Deposit Scheme

Personal Loans- SyndSaral, SyndSenior, SyndRent, SyndVahan, SyndSuvidha, Synd Vyapar,SyndSwarna, SyndPigmy, SyndLaghuUdhyami, SyndKisan, SyndNivas, SyndNivas Plus,SyndVidya, SyndVidyarthi, SyndPravasi, SyndMahila, SyndMortgage, SyndiUdyog

Agricultural Loans - Synd Jai Kisan Loan Scheme, Jewel Loan Scheme for Agriculture,Syndicate Farm House Scheme, Farm Mechanisation Schemes, Finance for Hi-tech Agriculture,Development of Irrigation Infrastructure, Syndicate 2/3/4 Wheelers Scheme, Animal HusbandryScheme, Rural Employment Generation Programme, Syndicate Kisan Credit Card, Solar WaterHeating Systems

Priority Sector Loans - Scheme for Financing Rural Tourism, Synd Swarojgar Credit CardScheme, Syndicate Kisan Samrudhi Credit Card Scheme, Syndicate General Credit CardScheme, Synd Solar Jyothi Scheme, Grameen Bhandaran Yojana

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1) Other value added services offered by the Syndicate Bank In India are the Cash Management

Services, Gift Cheques, ATM,

2) Standard charted accounted : Standard Chartered combines an in-depth knowledge of local

markets with global product expertise to offer effective financial solutions to date.

Standard Chartered combines an in-depth knowledge of local markets with global product expertise to

offer effective financial solutions to date local market information, country-specific global risk

management strategies. Local market information, country-specific global risk management strategies.

3) GE Money : GE Money is a leading provider of financial services to consumers and retailers in

47 countries around the world. As a unit of the General Electric Company, with more than $106

billion in assets, we offer a full range of innovative financial products to suit our partners' needs.

Those products include private label credit cards, personal loans, bank cards, auto loans andleases, mortgages, corporate travel and purchasing cards, debt consolidation, home equity loans

and credit insurance.

BAJAJ ALLIANZ LIFE INSURANCE What Makes it No. 1

The BALICedge comes from our commitment to our customers, in all that we do - be it product

development, distribution, the sales process or servicing. Here's a peek into what makes us leaders.

1- Our products have been developed after a clear and thorough understanding of customers' needs. It is thisresearch that helps us develop Education plans that offer the ideal way to truly guarantee your child'seducation, Retirement solutions that are a hedge against inflation and yet promise a fixed income afteryou retire, or Health insurance that arms you with the funds you might need to recover from a dreadeddisease.

2- Having the right products is the first step, but it's equally important to ensure that our customers canaccess them easily and quickly. To this end, BALIChas an advisor base across the length and breadth ofthe country, and also partners with leading banks, corporate agents and brokers to distribute our products.

3- Robust risk management and underwriting practices form the core of our business. With clear guidelinesin place, we ensure equitable costing of risks, and thereby ensures a smooth and hassle-free claimsprocess.

4- Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy thataims to achieve risk-adjusted returns over the long-term.

Last but definitely not the least, our 16,000 plus strong team is given the opportunity to learn and grow,

every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can

deliver on our promise to cover you, at every step in life.

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SWOT Analysis

STRENGTHS

Strong Tie Up

Brand Equity

Strong Network

Huge Customer Database

Strong Financial Base

WEAKNESS

Low Customer Awareness

Less Promotion

Untouched Rural Population

OPPURTUNITIES

Large uninsured Population

Network Building

Targeting the Rural Segment

THREATS

Competitors.

Customers belief in LIC

Faster Turnover of Employees

ROLE OF LIFE INSURANCE

Security and Stability

Investment

Presentation of Health

Increase Efficiency

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Self Reliance

Mental Peace

Planning lf future

Safe guard against statutory liability

Capitalization of earning capacity

Exemption from Tax Liability

Safety of investment Mode

OUR CORE COMPETENCY

The BALIC edge comes from our commitment to our customers, in all that we do - be it product

development, distribution, the sales process or servicing. Here's a peek into what makes us leaders.

1) Our products have been developed after a clear and thorough understanding of customers' needs.

It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your

child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income

after you retire, or Health insurance that arms you with the funds you might need to recover from adreaded disease.

2) Having the right products is the first step, but it's equally important to ensure that our customers

can access them easily and quickly. To this end, BALIC has an advisor base across the length and breadth

of the country, and also partners with leading banks, corporate agents and brokers to distribute our

products

3) Robust risk management and underwriting practices form the core of our business. With clear

guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free

claims process.

4) Entrusted with helping our customers meet their long-term goals, we adopt an investment

philosophy that aims to achieve risk adjusted returns over the long-term.

5) Last but definitely not the least, our 25,000 plus strong team is given the opportunity to learn and

grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they

can deliver on our promise to cover you, at every step in life.

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COMPETITOR OF BAJAJ ALLIANZ LIFE

1) Life Insurance Corporation Of India

2) ICICI Prudential Life Insurance Company Limited

3) Birla Sun Life Insurance Company Limited

4) HDFC Standard Life Insurance Company Limited

5) ING Vysya Life Insurance Company Private Limited

6) Max New York Life Insurance Company Limited233a

7) Met Life India Insurance Company Private Limited

8) Kotak Mahindra Old Mutual Life Insurance Limited

9) SBI Life Insurance Company Limited

10) Tata AIG Life Insurance Company Limited

11) Aviva Life Insurance Company India Private Limited

12) Reliance Life Insurance Company India Private Limited

13) Sahara India Life Insurance Company Limited

14) Shriram Life Insurance Company Limited

15) Bharti AXA Life Insurance Company Limited

16) I.D.B.I Fortise

17) Canara H.S.B.C

18) D.L.F Premerica

19) Aegon Religare

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DEVELOPMENT OF INSURANCE PLANS, PRODUCTS

Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail of both

segments ULIPs have gained high acceptance due to attractive features they offer. These include:

Flexibility

Flexibility to choose Sum Assured.

Flexibility to choose premium amount.

Option to change level of Premium /Sum Assured even after the plan has started.

Flexibility to change asset allocation by switching between funds

Transparency

Charges in the plan & net amount invested are known to the customer

Convenience of tracking ones investment performance on a daily basis.

Liquidity

Option to withdraw money after few years (comfort required in case of exigency)

Low minimum tenure.

Partial / Systematic withdrawal allowed

Fund Options

A choice of funds (ranging from equity, debt, cash or a combination)

Option to choose your fund mix based on desired asset allocation

Traditional Plans

These are the oldest types of plans available. These plans cater to customers with a low risk appetite. Some

of the common features of traditional plans are:

Steady Investment

Major chunk of investible funds are in debt instruments

Steady and almost assured returns over the long term

Features

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Death benefit is Sum Assured + guaranteed & vested bonus

Helps in asset creation as they are for a long tenure

Premium to Sum Assured ratios are fixed for each plan and age.

PRODUCTS AND SERVICES

The topics covered under this are:

Product Mix

Product Life Cycle

Pricing

Promotion Strategies

PRODUCT MIX

BALIC offers a range of innovative, customer-centre products that meet the needs of customers at every

life stage. Its 19 products are combined with up to 6 riders to create a customized solution for each

policyholder. The company provides insurance solutions for both individuals as well as groups.

The insurance solutions for the individuals are:

Savings Solutions

1- Invest Gain is a saving plan that combines high protection with a unique family income benefit.

2- Cash Gain is the only money back plan that offers quadruple protection, going up to 4 times the

basic sum assured, and a family income benefit.

3- Save Care Economy SP a single premium investment plan for 10 years, which provides

life cover along with growth in savings.

Protection Solutions

Pure insurance plans to protect your family

Term Care: An economical way of providing life cover, this plan also ensures the return

of all premiums at the time of maturity.

Risk Care: Is a pure term insurance plan and offers one of the most economical means to

provide financial security to your loved ones. The only pure term plan in the market to provide Hospital

cash benefit.

Lifetime Care: This whole life plan provides survival benefits at the age of 80 thereby making

sure you are financially secure at a time when you need it the most.

Child Plans

Child Gain: Rightfrom providing for your childs education to securing a bright future, this plan is tailor

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made to suit your childs needs

Retirement Solutions

When you have retired, your go lden years can be secure. Live a worry free life.

Swarna Vishranti: In addition to life insurance and attractive tax benefits, this plan enables you to make adequate

provisions for your years after retirement as well. This deferred annuity plan comes with a host of additional

benefits which include term cover, accidental cover, critical illness and h ospital cash benefits.

The policies forgroups are:

Bajaj Allianz also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees,

They are:

1) Gratuity Credit Shield:This scheme insures the loan amount outstanding in the account in case of premature

death or disability.

2) Group Term Life:This scheme coves the m ember of an organization against the risk of death or disability.

3) Group Term life scheme in lieu of EDLI:This scheme is a better alternative to the employees Deposit Linked

Insurance Scheme.

4) Group Gratuity Care:This scheme provides for systematic funding to meet your gratuity

liabilities.

5) Group Superannuation Care: A defined contribution scheme that provides for a Retirement Fund

which ensures financial stability, security andindependence in the post retirement years of each member.

6) Small Group Term Life: This scheme covers small groups between size of 1- 49 against the risk of

death.

Flexible Rider Options

Bajaj Allianz Life insurance offers flexible riders, which can be added to the basic policy at a marginal

cost, depending on the specific needs of the customer. Most of the riders come 'with the traditional money

back and endowment policies and the flexibility here may well be the USP of the latest generation of

insurance products.

Bajaj Allianz riders are meant to cover accidents, critical illness, assistance for major surgeries and a

desire to double the insurance cover during the life of the Policy.

The major advantage of the riders offered by Bajaj Allianz as well as it competitors is that a policyholder

has the flexibility to mix and match the rider according to requirements, and thereby avoid paying for

benefits one does not need.

1-Accident and disability Benefit:If death occur-s as the result of an accident during the term of the policy

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the beneficiary receives an additional amount equal to the sum assured under- the policy, If death occurs

while traveling in an authorized mass transport vehicle the beneficiary will be entitled to twice the sum

assured as additional benefit.

2-Accident Benefit: This rider option pays the sum assured under the rider on death due to accident.

3-Critical Illness Benefit: This protects the insured against financial loss in the event of 9 specified

critical illnesses. Benefits are payable to the insured for medical expense prior to death.

4-Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in

the event of the death of the life assured. It is available with Secure Plus and Cash Plus.

5-Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are

waived till maturity. This rider is available with Secure Plus and Cash Plus.

RECRUITMENT PROCESS OF SBA

20

Finding prospects

Detailing the Proposal

&

Acceptance

Filling the recruitment form


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Recruitment forms the first stage in the process, which continues selection of the candidates.

Recruiting makes procurement possible to acquire the number and the types of people necessary to ensure

the continued operation of the organinsation. Recruiting is the discovering of the potential applicant for

actual anticipated organizational vacancies. In other words, it is a linking activity bringing together

those with job and those seeking job.

COMPENSATION STRUCTURE

RECRUITMENT FEE:

Company shall pay Recruitment Fees for assisting Company in recruiting Agents (ICs). The fees shall becalculated on the following Basis.

An one time payment of Rs.1000 for every newly Recruited IC.

Recruitment means Licensing of the IC with a net adjusted premium of Rs.10, 000/- ( 100% credit to RP& 10% credit to SP)

ACTIVITY FEES:

Company shall pay Activity Fees for assisting Company in developing productivity of the Agents (ICs).The fees shall be calculated on the following Basis.

Rs500 per month for every active IC. An IC would be deemed to an Active one if he/she has an adjustedpremium of Rs.10, 000/- in a month (100% credit to RP & 10% credit to SP)

TRAINING FEES:

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Code Generation

In Functional Mode


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The Company shall [ay Training Fees for conducting training sessions of ICs. The Scale of the feeswould be calculated on the following basis and will be payable monthly.

25% oof Base First Year Commission earned by the ICs recruited and in-force.

Note: All the payments will be made after the company realizes the premiums paid by the policyholdersthrough cheques / demand dra.

MY ROLE:

My role in BALIC was to work as a project trainee for the 8 weeks. In that I have to do:

Who are targeted clients?

Charted accountants

Retired Deputy Officers Of any company

Branch Managers(VRS)

Club members of other company

Working Women

Housewives

Brokers

Eligibility Criteria

For rural 10th pass

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For urban 12th pass

Process to become an S.B.A:

Formal application by eligible candidate to the Div. Manager / Branch Manager.

Recommendation by CM/ RM /ZM after interview.

Process for ICs Recruitment

ENROLLMENT FOR III EXAM

50 HRS TRAINING

MINIMUM 50% MARKS TO PASS

LICENSE ISSUE

These are the documents required by the different insurance companies in Jaipur

Company

Name

ICICI

Prudential

Bajaj Alianz ING

Vysya

HDFC

Standard

LIC of India

D.O.B.Proof

Required Required Required Required Required

ResidentialProof

Required Not Required Required Required Required

Photographs Seven Five Five Eight Five

Fees 1000 750 1500 600 250

HigherEducationProof

+2 +2 +2 +2 +2

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Revolution in Bajaj Through S.B.A

Revolution was brought about in Bajaj through S.B.A i.e. SPECIAL BUSINESS ASSOCIATE

MODEL . Its operation started in January 2007 and by the end of February 2007 the first business was

reported. From financial year 2007 onwards the business of 1.83 cr was recorded and the number of

policies sold were 865.This model completely revolutionized and also increased the business of the

company. By adopting this model:

Company got more exposure not only in urban sector but also in rural sector which proved

beneficial for the company.

It was well accepted both in rural and urban areas.

Its business was spreaded to rural areas and awareness about its product was

also generated among people living in rural areas.

It proved to be cost effective tactic.

METHODOLOGY

1. How to CONVERRT A PROSPECT INTO S.B.A:

First I need to contact to people. For that first I have to have proper data base of contact with me.

Personal references: I collected information from our relatives, friends and friends to friends about the

potential clients.

Directory: It is also one of the good sources of data collection. I collected numbers of CA' s, brokers from

the directory.

Other sources: there are so many other sources from where we collected data like internet sites, yellow

pages, mobile connection shops, newspapers etc.

Client: Apart from above sources I collected data from my clients.

Whenever I met to client I always ask for five references whether he/she is agreed to purchase agency or

not.

After getting data base I did contact to my targeted clients. For that I have to go through from a process:

Tele calling

Direct marketing

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Tele calling: When I called up that person I have to take care of the limitations of company as well as I

was supposed to take care of my client time. Before calling to client I had to make a telephone script

which have certain steps, which are following:

On call first I greet to my client and confirm that a person with whom I am talking is my

client or not.

Then I give my introduction to that person and tell him/her about the company and take

permission to speak about product.

After getting permission, first I create interest by asking question and greet his/her

Then I tell them the purpose of the call. I tell them what the benefits are;

After telling it if my client is interested I get an appointment and confirm the time and

place of the meeting.

In last I appreciate that person and I close my call.

2. Direct marketing: After getting appointment I meet that person and I tell him/her about

company & S.B.A Model details and try convince and clear his/her doubt. In that meeting I

tell certain things to my client which create interest in his/her about the job. These things are

as follows:

a. Why they choose insurance industry as a career?

Insurance industry is the only industry which is growing in high rate. In present it's growing at the rate of

140%. Insurance industry is booming industry because right now insurance field has covered only 8-9% of

total population of India means still more than 90% population yet to cover that means insurance sector

has huge market to cover and if a person choose it to make career that means he/she has an opportunity to

grow.

Another reason for choosing insurance industry is its major player. If you will see top 10 Indian Houses

they all have their different business but only one business in common among them that is INSURANCE.

They all are dealing with insurance business. For example:

1) Bajaj Allianz Life Insurance Company Limited

2) Birla Sun Life Insurance Company Limited

3) HDFC Standard Life Insurance Company Limited

4) Kotak Mahindra Old Mutual Life Insurance Limited

5) SBI Life Insurance Company Limited

6) Tata AIG Life Insurance Company Limited

7) Aviva Life Insurance Company India Private Limited

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8) Reliance Life Insurance Company India Private Limited

9) Sahara India Life Insurance Company Limited

10) Bharti AXA Life Insurance Company Limited

There are many other reasons which make insurance industry booming:

Insurance is the best possible way for family protection.

The terms of life are hard. The terms of insurance are easy.

There are tax benefits, both in income tax & capital gains.

Insurance enhances the existing standards living.

Insurance help people lice financially solvent lives.

b. Why they choose BALIC

BALIC is the NO.1 Company in private sector. LIC is on the top among all players after it Bajaj Allianz is

on 2nd number if we talk about its product. LIC has 67% business of total market of insurance industry and

private sector has remaining 33% business. Out of this 33% business, Bajaj Aliianz has 30% business, rest

15 players have only 70% business and it makes it number 1 private sector company.

Bajaj Allianz has a vision to be the best insurance company in India to buy from , work for and

investment in.

Sampling Design

The Sampling design used is Non Probability Sampling.

Under this sampling design the sampling techniques used are Judgmental Sampling and Quota Sampling,

Since collecting the characteristics that best describe the population was required.

The set of respondents along with sample size is mentioned in the table below:

Respondents Sample Size

Processionals 20Businessmen 15

Servicemen 20

Housewives 15

Educated unemployed 20

Students 10

The sample size was such that it can be a representative of the whole population as anybody can be a

prospective advisor and results could be extrapolated to the whole sample.

Research Design

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The study conducted is exploratory study that later on turned into a formal study. Based on the method of

data collection the study was communication study.

As per the variables involved the design was an Ex post Facto Design since there was no control the

variables.

The kind of study employed is both descriptive as well as casual. The research environment is totally as

per actual environment conditions.

Data Collection

The major instruments of data collection were Questionnaires.

To embark upon the data collection, different acres of Jaipur city were explored.

The study started with the preparation of separate questionnaires for prospective advisors and existing

advisors seeking subjective responses so as to explore the expected data and aiding to further refinement

of questionnaires. A pilot testing on ten percent approximately of the sample size for both the

questionnaires was done and then the questionnaires were refined at multiple stages.

The study is based on the primary data collected from the Jaipur city and existing advisors of the company

of Jaipur branch.

The respondents for prospective S.B.A were tapped by various ways:

Personal contacts Tele calling

Leads from the company

To proceed with data collection, communication approach was employed where personal interviewing was

used to gather raw data and information.

The questionnaires aimed towards structured responses. Different Questionnaires were framed for

prospective as well as existing advisors.

The objective of Questionnaire for prospective S.B.A was to explicit the following information.

Sample Size = 100

1. Promotion of insurance from BALIC

2. Generating awareness about insurance.

3. Knowing the thinking of people.

4. Defining the business opportunity.

The objective of the questionnaire for existing advisors was to explicit the following information:

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Sample Size = 200

1) To know which policies are sold most and which are sold least.

2) To determine the varios improvements that can be done in the products.

3) To get a better insight about the satisfaction level of the advisors.

4)To the requirements of the customers.

Apart from this, there is a certain target audience that has to be targeted:

Advocate

Two and Four wheeler finance companies

Courier services

Retailers of different products

Computer Hardware Business

Software Business

Furniture shops

LIMITATIONS

People are not ready to go for training. As the training period is of17days and it involves

full day, so it becomes difficult for them to leave their offices or shops for such a long

time.

The compulsion of selling 12 policies in a year also restricts them from becoming

advisors. If they do not fulfill this target, then their license is cancelled after a year.

Lack of trust on any company of Private Sector.

Lack of knowledge about the products of BALIC and their total and blind faith on LIC.

Sometimes, fresh graduates want to become advisors but the company denies making

them an advisor as they are very fickle-minded and also unreliable.

There is a problem in targeting Chartered Accountants. ICAI, which is the governing

body of Chartered Accountants does not allow them to become advisors. However. now

they ha\'e permitted some CA' s to become advisor but these are only those ones who

are doing jobs somewhere and not allowed the ones who are doing their practice. So

still this decision is very dicey.

Sometimes, even those people want to become ICS for the company,but then the

major problem that they face is that they have got no natural market. So they are very

susceptible about their performance and whether they will be able to generate business

for the company or not, so they avoid to take up this challenge.

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It was a great problem to get appointments from people in the month of March as most

of them were busy in filing their returns.

Some people ask about comparative analysis with LIC.

Some people consider IRDA fees of Rs. 750 as a constraint.

Non-availability of part-time training.

All small towns are not open for doing this business.

One cant be IC of other company.

Time constraint is the biggest constraint in taking up the study.

The information provided by you (customer) is for the research work and will be kept confidential.With your help we will be able to improve customer service level.

1. Name2. Occupation

3. Income Groupa. Upto Rs.50,000 b. Rs. 50,000-1,50,000c. Rs. 1,50,000-3,00,000 d. Above Rs. 3,00,000

4. Do you know about any of them Life Insurance Company ?a. LIC b. Bajaj Allianz life insurancec. TATA AIG d. Birla Sun Life

5. Do you know about the Life Insurance.a. Yes b. No

6. How will you rate this bank in terms of its Products. Services and staff on a Rating Scale of 1-5 (1 forhighest & 5 for lowest ).a. Excellent b. Very Good c. Good d. Averagee. Poor

7. How did you come to know about this company ?a. Advertisement b. Executivec. Friends/Relative d. Any other

8. Does your bank provides you privacy, confidential and security in its dealings ?a. Yes b. No

9. Bank provides you services at the time they promises to do ?

a. Strongly Agree b. Agreec. Neither agree nor disagree d. Disagree

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e. Strongly disagree

10. Are you satisfied with the way frontline employees behaves with you ?a. Completely satisfied b. Satisfiedc. Dissatisfied d. Completely dissatisfied

11. Does the bank employees makes you understand all the proceedings ?a. Strongly agree b. Agreec. Neither agree, nor disagree d. Disagreee. Strongly disagree

12. Do you have to stand in the Queue in the bank ?a. Yes b. No

13.The process of getting your concerns resolved wasa. Unsatisfactory b. About averagec. Satisfactory

14. Would you like to buy and suggest any other products of the bank to others ?a. Yes b. No

15. Are you satisfied with the documentation process of recruitment followed by your company? If no,

why?

Yes [ ]

No [ ]

16. Working in the Organization from last?

0-1 Year [ ]

1-2 Year [ ]

2-3 Year [ ]

More than 3 Year [ ]

17.An insurance advisor has to attend IRDA training classes, which is of 100hrs or 50hrs or 18hrs?

Yes [ ]

No [ ]

18.For becoming insurance advisor you have to pass-recruitment exam are you satisfied with it?

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Yes [ ]

No [ ]

19.Company charge fees for license, exam and for product training should be charged?

a) At the time of recruitment

b) After completing IRDA training

c) After passing exam

d) After getting first policy

20.Insurance advisor have to work on commission basis are you satisfied with it?

Yes [ ]

No [ ]

21.Any suggestions from your side?

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Fig.2 : K now ledge Ab out Insu

C o m p a n y

5 6 %2 6 %

1 0 %

8 %

L IC IC IC I P ru T A T A A IG B ir la Su n L i

F i g .3 A w a r e n e s s A b o u t L if e In

7 0 %

3 0 %

I n s u r e d U n i n s u r e

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Fig.4 Rating Scale of Customer

Satisfaction

55%27%

11%7% 0%

Excellent Very Good Good Average Poor

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Fig.5 Knowledge Sources of Insura

Company

70%

27%2%1%

Advertisem ent Executive Friends / Relative Any Other

Fig.6 Does Your B ank provides you pr i

con fide ntial and sec urity in its d ealing

99%

1%

Yes No

Ques 7. Are you satisfied with the documentation process of Recruitment followed by your company if

no why?

Ans:- According to the survey of different company agents I have collected following data.

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0

5

10

15

SatsfiedNot Satsgied

Satsfied 13 15 14 12 11

Not Satsgied 7 5 6 8 9

ICI

CI

LI

C

Ba

jaj

H

DF

IN

G

From the above data more number of advisors is satisfied with the documentations process followed by

the company. From the total sample size more number of LIC agent are satisfied due to less formalities

and less charges.

Ques 8. An insurance advisor has to attend IRDA training classes, which is of 100 hrs. Or 50 hrs. Or 18

hrs?

Ans: - According to the survey of different companies agent I have collected following data: -

From the above data more number of advisors says that insurance advisors have to attend IRDA training.

The largest number of advisors saying no is in ING Vysya because of more extra fee.

Ques 9. Advisors has to pass pre-recruitment exam conducted by IRDA. Are you satisfied with it?

YES [ ] NO [ ]

Ans: - According to survey of different company agents I have collected following data.

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0

5

10

15

20

YE

N

YES 4 6 2 2 3

NO 16 14 18 18 17

BAJ LIC ICICI Hdfc ING

From the above data the advisors from BajajAllianz and HDFCStandard have largely sating no

Ques10. From how much time you are working in the organization?

[a] 0-1 Year [b] 1-2 Year

[c] 2-3 Year [d] more than 3 Year

Ans: - According to the survey of different company agents I have collected following data.

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0

2

4

6

8

10

12

14

16

0-1ye

1-2ye

2-3ye

>3yea

0-1year 8 5 9 10 15

1-2year 9 8 7 8 5

2-3year 2 5 4 2 0

BA

JAJLIC

ICI

CI

HD

FCING

According to the above data the insurance agents of the company like ICICI and LIC work for longer

time and for the others work.

Ques11. Company charges fees for license, examination also for product training it should be charged?

[a] At the time of recruitment

[b] After completing IRDA training

[c] After passing exam

[d] After getting first policy


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0

2

4

6

810

12

14

[

[

[

[

[a] 2 2 0 0 1

[b] 2 2 3 2 1

[c] 6 6 7 4 5

BA

JAJ LIC

ICI

CI

HD

FC ING

Ques12. Insurance Advisors has to work on commission basis. Are you satisfied or not?

Yes [ ] No [ ]


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0

2

4

6

8

10

12

14

Ye

No

Yes 11 12 10 14 13

BAJ

AJLIC ICICI

HDF

CING

CONCLUSIONS

Findings from the survey of Prospective Advisors:

1- People who are associated with Bajaj Allianz are aware of the fact that it is the No.I Private life Insurance company in selling policies but those who are not associated with the company arenot aware of this fact. So the company has to do something to emphasize on this fact.

2- Housewives and students are the segments that are still not fully insured. These arethe segments that the company can target.

3- More or less people still feel that insurance is just a tax saving tool. 32% of therespondents under study strengthen the fact. Only 19% of the respondents consider insurance as aninvestment tool. Due to this mind set of the people, what happens is that more than half of the business inan insurance company comes only in the months of January, February and March.

4- Awareness about insurance as a business opportunity is quite low. 39% of therespondents are not sure about the paying capacity of insurance.

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5- People generally consider the monetary benefit before picking up a businessopportunity. This result came out through the findings of the questionnaire that depicts that 43% of therespondents consider money to be a motivating force before choosing a business opportunity.

General Observation:

It is very difficult to convince people about the business opportunity because one has to

convince the prospective advisor in just 5 min. It is difficult to generate the need of an

individual in that short time span. Therefore, the company needs to identify the current

need of the individual and pitch him / her accordingly.

Another thing is that when one gives a lot of follow up to the individual, and then he/she

feels that it is the need of the company to recruit him / her and not his need. So he / she

tries to negotiate and dictate terms to the compnay.

Insurance is an altogether different field so people hesitate to change the stream. They

just want to indulge in similar activities.

All the insurance companies are targeting the same segment of individuals so people

have become choosey and they try to compare the products and benefits to them.

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Recommendations

Expand Distribution Network In Semi Rural Areas

Start business in all small towns.

Target Semi Rural Market

Offer agencies to localite people.

Open operation offices with highly educated team.

Other Recommendations

1. Provide lower premium policies so that we could target middle class people and generate good cash flow

for further growth.

As per BCG matrix to ensure long-term value creation, a company should have a portfolio of products that

contains both high-growth products in need of cash inputs and low-growth products that generate a lot of

cash Bajaj Allianz has high growth product in urban market but company should follow the low growth

product strategy also in urban market.

2. Start advertisement campaign again on television, radio and Internet also. Do intensive marketing for

business opportunity and products both.

3. Keep more seminar and target LI/GI agents, CAS, Tax consultant financial investor etc.

4. Provide best motivation to Agency holders.

5. Build trust upon customers through services and transparency in investment and other policy.

6. Provide all branches in local language.

7. Provide part time training.

8. Focus on any mass marketing activity for generating awareness of company among people and offering

them business opportunity too.

9. Hold stall activity in different places.

10. Do some social activities through which company could get benefit of marketing indirectly.

Try to collect data of life / General Insurance agents across India and invite them to associating with ICICI

Prudential.

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REFERENCES

BOOKS:

Kotler Philip: Marketing in new Millennium.

C.R.Cothari: Research Methodology,WishvaPublications,New Delhi.

WEB SITES

www.iciciprulife.com

www.ipruniverse.com

www.icici.com

www.irdaindia.org

www.indiacore.com

www.maxnewyorklife.com

Magazines

Insurance Plus

Business India

Economic Times

Material Provided by the company

Survey

Search Engines

www.google.com

www.askjeeves.com

www.altavista.com

Bajaj Allianz Final Report[1]

Documents

Transcript of Bajaj Allianz Final Report[1]