Final Report ion

8/9/2019 Final Report ion

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USINESS PLANUSINESS PLANOR NEW ENTRANT INOR NEW ENTRANT INNSURANCE SECTORNSURANCE SECTOR


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IRDA regulation for setting new insurance company

Company has to deposit 100 Cr. For taking insurance license.Company has to strictly follow IRDA guidelines.Company will form under the company act 1956.

Insurance act 1938

Company has to disclose their financial position every year.In case of foreign partner Indian company will hold 74% andforeign partner will hold 26% stake.Company has to maintain 150% solvency ratio.


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ABOUT PATRENT COMPANY

NEW COMPANY

OWNERSHIP

LOCATION AND FACILITIES


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COMPANIES NAME AND LOGO

LE Insurance company ome one care


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OMPANY LOGO


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ObjectivesTo establish The People Insurance company in the

-market for quality and value priced insurance products.in Rural India

Maintain the standard service and also to ensure

.proper returns to policy holders in the long run Increasing awareness on financial security


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Management Summary

Organizational StructureOpportunities For New Entrants

Risk For New Entrant

Market Potential


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Current market size of insurance industry in India


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orecasted market size for 2010


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s per the forecasted market size


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: - ,OLICIES SOLD NON LIFE LIFE AND GENERALnsurer -006 07 -007 08

Public Sector 33972092 38547040

Private Sector 12692053 18703219otal 46664145 57250259


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orecasted sales for 5 years


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Competition

ocal independent brokers-Strengths alternate markets-Strengths Large advertising budget

( )ass Markets including other companies- .Strengths large advertising budget and very competitive prices

- Weakness not local and largely unknown to our clients at the

.present time

ur own Companies- ;Strengths already known to our clients will be competitively

.priced Weakness no prior experience in this field

roup Plans - ,teachers public employees- .Strength group pricing- , Weakness very little obviously since we insure very few of the.professions


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a r k et re se a r c h ind information bserve Yourompetition alk to Suppliers alk to Customers urveys and FocusGroups


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rket Analysiso know Customerhe Right Product

ositioning of Business

rket Segmentation


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.arketing planEmphasize service and ongoing support. We must avoid selling only one

policy at the lowest price for each customer and concentration account sellingwhich greatly enhances client retention.

Build an Insurance Partnership. The customer does not want to shop everyyear for a new broker. Concentrate on building a long term relationship with

our customers and make the client and our staff appreciate the value of a long-term relationship.

Focus on target markets. We must focus on personal and business customersthat we identify and select to insure, instead of allowing potential customers tochoose us, which could result in our brokerage attracting problem clients from

other brokers.


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arketing StrategyPromotion Strategy

Distribution Strategy

Positioning Strategy

Pricing Strategy

Sales Strategy


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nitial steps for setting THE PEOPLENSURANCE in the market mall towns and local recruits ffices and branchesPresence ew location nnovative chain strategy gent recruitment egional focus


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ORECSTED PROFIT FOR 5 YEARS


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ajor costs for the companyCommission payment

Operating expenses

Employee expenses

Advertisement and publicity

Training expenses


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RENDS OF COST OF DIFFERENT COMPANIES IN LAKHS


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DISCOUNT RATE 0.15

INITIAL INVETMENT -600.00

CASH FLOW 1 86.9

CASH FLOW 2 143.64

CASH FLOW 3 229.95

CASH FLOW 4 274.08

CASH FLOW 5 288.26

NPV $30.78

CALCULATION OF NPV


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NITIAL INVETMENT -600ASH FLOW 1 .6 9

ASH FLOW 2 .43 64ASH FLOW 3 .29 95ASH FLOW 4 .74 08ASH FLOW 5 .88 26

IRR %7

ALCULATION OF IRR


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HANK YOU

Final Report ion

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