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The Changing face of InsurancePROJECT REPORTONTHE CHANGING SCENARIO OF INSURANCEAt SUBMITTED TO: Mr. ASHISH CHANDRA
05115903909RUKMINI DEVI INSTITUTE OF ADVANCED STUDIESACKNOWLEDGEMENT
I YASH BANSAL student of RDIAS [Rukmini Devi Institute of Advanced Studies], have done a project on TATA AIG Life Insurance Co. Ltd. with the help of able people who have guided me at every moment of crisis. First of all I owe my everything to my Director Sir & to all my Professors at RDIAS, who helped me a lot in developing a right attitude, a competitive spirit, a sense of responsibility and commitment to work hard. I truly admire their competence & dedications. I give sincerely thanks to Mr. ASHISH CHANDRA who guided me through out the project with his knowledge and skill.
Secondly, I would like to thank my parents & my colleagues.
In the need, I would like to thank that my supreme authority which rests above all-THE ALL MIGHTY God who has blessed me with opportunity to work with such a good people. I sincerely pray to God to give me courage and will to work harder & harder all through my life.
PREFACEThis project reports on THE CHANGING SCENARIO OF INSURANCE at TATA AIGThis project report gives the needed beneficial practical knowledge and could help anyone to know the history and uses of the products being promoted by the company.
This project is based on the qualitative data and it help to discover new relationship. So this project is based on the exploratory research.
In this project primary data is qualitative in nature. Along with this data a lot of secondary data is also used.
EXECUTIVE SUMMARYIn todays competitive and dynamic world, with every business providing the same kind of product or service, only that firm which comes up with an innovative idea can hope to survive in the long run, by attracting and luring customers.Insurance, sure is an upcoming sector but with the privatization of the same, selling insurance products has become tough due to the competition angle attached to it.It is usually said that if you can sell insurance, you can sell anything in the world including garbage. The reason behind this concept is the hesitant and unaware population, who simply run away at the mere mention of its name.
Providing insurance to a huge population such as ours encompassing different strata of society has indeed been a formidable task for the last few decades. WHO statistics put the insurance access in India at around 65 percent. The remaining 35 percent do not have any access at all. Governments in most parts of the world, developed or otherwise, realize the limitations when it comes to providing Insurance per se or its financing aspects. In a globalize market-driven economy, it becomes imperative for each country to look for the solutions and structure them to suit the domestic needs. While there will be various factors both external and internal influencing this search, there is no doubt that public and private healthcare providers and financers will have to keep the customer in focus when formulating a well thought out and highly integrated approach to cover all sorts of requirements.
It is true that in managing healthcare, the pre-payment route through insurance schemes rather than out-of-pocket payments are preferable and a fairer form of revenue collection. But there are loopholes in the present indemnity-based insurance products offered by the public sector units and pricing of products are mostly non-scientific. It is well known that Mediclaim is a loss-making proposition with claim ratios being as high as 130 percent. The opening up of the health insurance sector to private is seen as one that will provide better solutions. Insurance concepts in healthcare are changing from managed care to defined care and there is no doubt that the private insurers can provide the customers with a wide variety of products. But health insurance is still in a limbo at the moment in absence of any clear-cut guidelines from the IRDA.
Pricing is the key issue and major international players already present in India are sort of waiting in the wings to see what and how their competitors go about their strategies.
It is one of the largest financial investments in India.
Broad spectrum of financial solutions for corporate and retail customers.
Assets in excess of Rs. 106600 cr.
Better than sovereign rating.
It is trusted by millions of Indians over the years.
Shares In Market
To be India's most preferred General Insurance Company.
To create unmatched value for our customers, employees, business partners and shareholders by delivering remarkable service that is consistent, fair and transparent.
Customer First: Anticipate their priorities. Exceed their expectations.
Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.
People: We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. Strive to develop diverse talent and reward excellence.
Performance: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.
Passion: We must be excited about what we do. We must have a strong internalized drive to meet goals. Relentless determination to solve customer problems.
AREAS OF SPECIALISATION
1 out of 4 people dont reach the age of 60.
You are providing your family with a lifestyle.
This lifestyle is dependent on your continued income generating capability.
If this income were to stop unfortunately, how would your family meet its financial requirements?
My responsibility is to help you protect your family financially in event something unfortunate happens
Living too long
7 out of 10 people endure retirement instead of enjoying it.
Do you want financial independence post retirement?
Imagine living beyond your working years on a depleted income.
However, you would want to maintain your some living standards and be financially independent.
My responsibility is to help you secure a financially stable future post retirement.
To get a premier MBA degree in year 2010 will cost Rs. 14 lakh.
It is your responsibility to provide your children with best possible education they can have.
Do you want to compromise on their future?
My responsibility is to help you build financial assets for your childrens future.
OBJECTIVES OF THE STUDY
The objectives of this project are as follows:
To learn and understand the distribution aspect of insurance products.
To identify the insurance needs of the Indian population with respect to their emotional, physical and financial conditions.
To match the needs of the population with the products in hand or else design a new product.
The research is carried on in a proper planned and systematic manner. This methodology includes:
Familiarization with the concept of insurance and its various terms.
Thorough study of the information collected.
Conclusions based on findings.
WHEN WAS INSURANCE STARTED.
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice.That, perhaps, was how insurance made its beginning.
Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its members as well as help survivors by making some payments.
As European civilization progressed, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, Medieval guilds took it upon themselves to protect their member traders from loss on account of fire, shipwrecks and the like.
Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom for members held captive by pirates. Burial expenses and support in times of sickness and poverty were other services offered. Essentially, all these revolved around the concept of insurance or risk coverage. That's how old these concepts are, really.
In 1347, in Genoa, European maritime nations entered into the earliest known insurance contract and decided to accept marine insurance as a practice.
The first step.Insurance as we know it today owes its existence to 17th century England. In fact, it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. By the end of the 18th century, Lloyd's had brewed enough business to become one of the first modern insurance companies.
Insurance and Myth...Back to the 17th century. In 1693, astronomer Edmond Halley constructed the first mortality table to provide a link between the life insurance premium and the average life spans based on statistical laws of mortality and compound interest. In 1756, Joseph Dodson reworked the table, linking premium rate to age.