Summer PROJECT Report

On

For

BAJAJ ALLIANZ

Submitted To:
Miss Parneet Submitted By: Puneet garg BBA 3rd year. Roll No. 6727

D.A.V College, Sector 10, Chandigarh-160011

ACKNOWLEDGEMENT

We are thankful to management of Bajaj Allianz Life Insurance for granting the opportunity, corporation and valuable information for completion of this project. No words are enough to thank Agency Manager, who not only inspired us to work on this project but also accepted to guide us a lot. In spite of heavy responsibilities and busy schedules, they always managed time to provide proper guidance. We are also thankful to our college professors for their constant suggestion which resulted in successful completion of the project. Last but not the least; we would like to thank our parents and friends for giving us their constant support and encouragement in completion of our project.

Puneet garg

PREFACE
The competition in the insurance sector is highly volatile in nature. Over the decade only government undertaking company was operating in India but with the opening up of the economy several new players like private sector & multinational insurance entered in Indian horizon. In the given project we made a comparative analysis of mutual fund & life insurance among MNC. Comparing their features & services one hand & also done a research on the interest of investor regarding mutual fund & life insurance in Bajaj Allianz Life Insurance Research design method used was descriptive research. The sampling method used was simple random sampling. We have taken a size of 60 respondents. I first formed a structure questionnaire to collect data & the questionnaire is filled by the person, who have one charted insurance company & or more with any other MNC insurance company. On the basis of filled questionnaire, coding sheet is formulated & the conclusions are drawn with the help of graphs pie charts.

TABLE OF CONTENTS
EXECUTITIVE SUMMARY OF THE PROJECT COMPANY PROFILE FEATURES OF BAJAJ ALLIANZ PRODUCT PORTFOLIO RIDERS INTRODUCTION TO CHANNEL DEVELOPMENT AND RECRUITMENT METHODOLOGY USED TO RECRUIT ADVISOR SWOT ANALYSIS FUTURE GROWTH PROSPECTS OF COMPANY COMPETITIVE ALLIANZ RECOMMENDATONS LEARNINGS BIBLIOGRAPHY ANALYSIS WITH BAJAJ

EXECUTIVE SUMMARY OF THE PROJECT

Identifying different profiles of the people and giving them Career & Business Opportunity to join Bajaj Allianz Life Insurance as an advisor. A market survey was done on life insurance companies. Different questions regarding the companies training programs for advisor, top 5 usp's, training centers etc were asked. The areas covered up in this survey were Raipur & Bhilai. The report contains details of different life insurance companies, which are in healthy competition with Bajaj Allianz Life Insurance Insurance industry is growing rapidly day-by-day. India itself has a population of 1.12billion out of which roughly 33.2% people are insured. This clearly shows that most of the people are not insured just because they dont know much about insurance. Most people have some common queries about life insurance:

What is Life Insurance ?

A policy that will pay a specified sum to beneficiaries upon happening of an unexpected event to the insured. An agreement that guarantees the payment of a stated amount of Monetary benefits upon death of the insured.

Why Insurance?
Insurance is the protection of life and assets against unpredictable circumstance. Whether it is a general accident policy, a Mediclaim policy or a pension policy, an insurance policy helps you to scope with uncertainty and insecurity. Ever thought about why you should take an insurance policy. For one, it helps you to hedge risks against unforeseen circumstances and save more. If that's not all, it is: Superior to an ordinary savings plan as it provides full protection against risk of death. Encourages and forces compulsory savings unlike other saving instruments, wherein the saved money can be easily withdrawn. Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan. Offers tax relief to policyholders. Hedges risk against uncertainty. For a policy taken under the MWP Act 1874, (Married Women's Property Act), a trust is created for wife and children as beneficiaries. Based on the concept of sharing of losses, the society will benefit as catastrophic losses are spread globally.

Who can buy a life insurance policy? Any person above 18 years of age, who is eligible to enter into a valid contract, can go for an insurance policy. Subject to certain conditions, a policy can be taken on the life of a spouse or children.

How is a life insurance policy useful?

Planning for the financial consequences of a premature death is an essential part of every financial plan. Generally, the consequences are simply too large to ignore and cannot be totally covered with your own resources. Life insurance is nothing but a contract with an insurance company under which the insured (purchaser) pays a premium in exchange for coverage of specified losses. Life insurance protects your family against the risk of the premature death of you (or your spouse). Life insurance planning should consider your family's short-term needs (for example, medical expenses) and long-term needs (for example, replacing your income). In the course of our life we are accosted by risk-that of failing health, financial losses, accidents and so on. Insurance is a means by which life's uncertainties are addressed in financial terms. It offers a monetary compensation against those losses. Insurance is considered more as a hedging mechanism rather than a true investment avenue. Life insurance, in particular is essentially acknowledged as a mechanism that eliminates risksubstituting certainty for uncertainty primarily by transferring risk from the insured to the insurer.

COMPANY PROFILE
. Bajaj Allianz Life Insurance Company Limited is a Union between Allianz SE, one of the worlds largest Life Insurance companies and Bajaj Auto, one of the biggest 2- &- 3 wheeler manufacturers in the world. Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion Euros (Over R. 55,00,000 crores). Allianz SE has over 115 years of financial experience in over 70 countries. Bajaj Auto is one of the most trusted name is Indian auto for over 55 years. At Bajaj Allianz customer delight is our guiding principle. Ensuring world-class solutions by offering customized products with transparent benefits, supported by best technology is our business philosophy.

FEATURES OF BAJAJ ALLIANZ

1) Fix return 20-22% 2) Insurance premium X 5 3) Tax benefits 80 10(10)(d) no TDS 4) Locking Time 3 Years

PRODUCTS PORTFOLIO
Bajaj Allianze Life Insurance has a wide array of insurance plans that have been designed with the philosophy that different individuals are bound to have differing insurance needs. The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend on the age and life stage of the individual apart from a host of other factors.

LIC

BANK

SAFETY

INTEREST

Safety & Interest Ensured By Bajaj Allianz

10

Life Insurance Plans:

Under Life insurance plans, Bajaj Allianze Life Insurance offers plans under the following major Traditional Plans
Child Gain Invest Gain Cash Gain Health Care Swaran Vishvauli Pension

Ulip
New Century Plus Fortune Plus Unit Gain Plus Gold New Unit Gain New Unit Gain Easy Pension Future Secure Unit Gain Protection

Health Product Suite:

Under Health Product Suite, Bajaj Allianz Life Insurance offers plans under the following major categories:
Family Care Care First Health Care

RIDERS
1. FIB :-Family Income Benefit

11

a) Total disability / Death 100 % Sum Assured b) WOP : - Wavier of Premium c) Family Income :- 1 % of S.A. per Month 2. HCB :- Hospital Cash Benefit (Room Rent 500-1000) 3. CIB:- Critical Illness Benefit 100% Sum Assured 4. MG:- Mahila Gain 18-45 Age/ CIB 5. CAP:- Comprehensive Accidental Protection a) Partial Disability 50% Sum Assured b) Total Disability 100% Sum Assured

12

INTODUCTION TO CHANNEL DEVELOPMENT AND RECRUITMENT

Who is an insurance advisor?
An agent is the representative of an insurance company who sells different policies or product to its clients. Another term used for insurance agents is advisors; Bajaj Allianz Life Insurance introduced this term. Today in life insurance companies advisors are known to be the backbone of the whole system. Advisors/agents do not work on monthly payroll basis; they receive a certain commission on the policies they sell to the clients. The eligibility required to become an advisor/agent is that he/she should be 12th pass to operate in urban area and 10th pass for rural areas. Before a person becomes an advisor/agent he/she has to undergo 100hrs training according to IRDA norms, which is compulsory. A person who wants to be an advisor has first to fill a recruitment form and has to pay a fee of Rs. 1000/- in favor of Bajaj Allianz Life Insurance. Then, he has to pass a test, which is compiled by IRDA. After he gets through that test he is awarded a license and then his training starts in the company regarding the insurance business. Pru provides this training in 3 modes as per the suitability of the advisors viz: 1) Classroom training: - it is a Full Time Training with a period of 17 days regular between 9 am to 5pm at the training centers allotted to the advisor.

13

2) Online training: - it is another mode of training where the company provides CDS and books to the advisor for his own study. 3) Classroom training: - it is a Part Time Training with a period of 36 days.

Advisor Role:
To provide ongoing financial advice for his/her clients: Identify future clients Making appointments Conduct financial review meetings with prospects/clients. Close sales Get referrals Provide service to clients. Follows internal sales and reporting system. Working Environment of an advisor/agent. To be a part of world-class sales team. Work from your own office or residence. Work full time or part time (an advisor can work part time by undergoing only 50hrs of training and 100hrs training is for full time advisors.) Earn Commission, Bonus & Incentives. No upper limits on earnings. Flexible career.
14

Opportunities for an Advisor/agent. No startup capital required. Flexible working environment. Be your own boss. Unlimited earning potential. To be a part of a world-class team.

Commission Structure.
Different products will have different commission structures. For example: Single Premium products will have a commission of 2%. Renewal Commission is paid at the following rates: 2nd yr: 7.5%, 3rd yr: 7.5%, 4th yr: 5% ,5th yr: 5% onwards

15

Most preferred profiles to recruit as Advisors/agents.

Housewives Income Tax Consultant Chartered Accountant Sales Personnels working in Automobile Dealership Credit Card Co. Telecom Mutual Fund DSAs M Rs Doctors Teachers VRS Holders Advisors of other insurance companies Post Office Agents Business Men Accountants OI in an organization

16

How does an advisor/agent work.

Firstly an advisor/agent has to make a list of 100 people that he/she knows. Then the Advisor/agent makes a call to these clients and tries to fix an appointment. When an appointment is fixed the advisor/agent meets the customer & tries to sell the product. After that the advisor/agent asks for the reference of maximum number of people from the client. The reference is asked in context to make future calls and the whole procedure is repeated again.

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INSURANCE ADVISOR SURVEY

GENDER OF THE RESPONDENT
Table 1 Frequency Female 15 Male 50 Total 65 Percent 23.1 76.9 100.0 Valid Percent 23.1 76.9 100.0 Cumulative Percent 23.1 100.0

Valid

gender of the respondent

female male

23.1

76.9

18

Inference
As we can see from the figure itself that there is a sex ratio difference between males and females, which is 3:1 in the insurance industry. It is mainly because advisors job is demanding in terms of rigorous fieldwork and hence women finds difficult to cope up with it.

MARITAL STATUS OF THE RESPONDENT

Table 2 Valid Percent 75.4 24.6 100.0 Cumulative Percent 75.4 100.0

Valid

Married Unmarried Total

Frequency 49 16 65

Percent 75.4 24.6 100.0

marital status of the respondent

married unmarried

24.6

75.4

19

Inference
More married people work, as advisors and company prefer to employ them in comparison to unmarried ones because being family people they tend to take their work more seriously. Because generally a laid back attitude has been observed in the unmarried people.

EDUCATIONAL QUALIFICATION OF THE RESPONDENT

Table 3

Valid

Inter Graduate Professional Total

Frequency Percent 5 7.7 40 61.5 20 30.8 65 100.0

Valid Cumulative Percent Percent 7.7 7.7 61.5 69.2 30.8 100.0 100.0

educational qualification of the respondent

inter graduate professional

7.7

30.8

61.5

20

Inference
Among insurance advisors, it has been observed that 61.5% of them are graduates in comparison to professionals like CAs or MBAs who are just 30.8%. While intermediate pass people just make 7.7% of the whole lot.

CLUB MEMBERSHIP OF THE RESPONDENT

Table 4 Frequency Percent 17 26.2 48 73.8 65 100.0 Valid Cumulative Percent Percent 26.2 26.2 73.8 100.0 100.0

Valid

Yes No Total

club membership of the respondent

yes no

26.2

73.8

21

Inference
The insurance advisors who do remarkable work in terms of fetching business for the company are given club memberships like DM club, MDRT club, Zonal Club etc.

MODE OF TRAINING BY IRDA UNDERGONE BY RESPONDENT

Table 6

Valid

Classroom Online None

Total

Frequency 42 12 11

65

100.0

% 64.6 18.5 16.9

Valid Cumulative Percent Percent 64.6 64.6 18.5 83.1 16.9 100.0
100.0

mode of training by IRDA undergone by respondent

classroom online none

16.9

18.5 64.6

22

Inference
Insurance companies provide training in three modes classroom training, online training and part time training. We find out that 64.6% of the respondents had preferred to take classroom training as according to them it gives a better hang of the insurance business operations since you are one on one with the training manager and hence you can ask any queries then and there only.

EXPERIENCE IN THE FIELD OF THE RESPONDENT

Table 7 Frequency Valid 0 to 6 months 6 to 12 months More than 1 year Total 2 7 56 65 Percent 3.1 10.8 86.2 100.0 Valid Percent 3.1 10.8 86.2 100.0 Cumulative Percent 3.1 13.8 100.0

experience in the field of the respondent

100

80

Y Axis

60

40

20

0 0 to 6 months 6 to 12 months more than 1 year

23

Inference
86.2% of the total respondents were found to be well established in this field since they have been working for over one year and majority for the last 10 15 yrs.

CUSTOMER SIZE PER MONTH OF THE RESPONDENT

Table 8
Frequency Valid 1 to 5 5 to 10 More than 10 Total 11 6 48 65 Percent 16.9 9.2 73.8 100.0 Valid Percent 16.9 9.2 73.8 100.0 Cumulative Percent 16.9 26.2 100.0

customer size per month of the respondent

50

40

Frequency

30

20

10

0 1 to 5 5 to 10 more than 10

24

Inference
On an average an insurance advisor deals with more than 100 customers in a month and out of them he converts 80% of the calls i.e. he sells policies to them. 73.8% of the respondents had a customer base of more than 10 which was the minimum figured option included in our questionnaire. And these were the advisors who had been in this field for the last 5 to 8 years or more than that.

CONTACTING THE CUSTOMER BY THE RESPONDENT

Table 9 Valid Percent 13.8 15.4 70.8 100.0 Cumulative Percent 13.8 29.2 100.0

Frequency Valid Personal meeting & telephone Telephone & references All Total 11 10 46 65

Percent 13.8 15.4 70.8 100.0

contacting the customer by the respondent

personal meeting & telephone telephone & references all

9

10

46

25

Inference
When respondents were asked that what are the ways they use for contacting the clientele base they are having then 70.8% of them named telephone calls, personal meetings and references as the major means of keeping in touch with their customers while only 15.4% named telephone calls and references as their sources.

FREQUENCY OF VISITING THE CUSTOMER BY THE RESPONDENT

Table 10 Valid Cumulative Percent Percent 15.4 15.4 75.4 90.8 9.2 100.0 100.0

Valid

Once a month Twice a month More than that Total

Frequency Percent 10 15.4 49 75.4 6 9.2 65 100.0

frequency of visiting the customer by the respondent

50

40

Frequency

30

20

10

0 once a month twice a month more than that

26

Inference
75.4% of the advisors were find to visit their customers almost twice a month for various purposes like updating the customers for new policies and products company is introducing etc. and only 15.4% visited their clients once a month.

ANNNUAL PRODUCTIVITY OF THE RESPONDENT

Table 11 Valid Percent 6.2 23.1 70.8 100.0 Cumulative Percent 6.2 29.2 100.0

Frequency Valid Below Rs. 50,000 Rs. 50,000 -1,00,000 Above Rs. 1,00,000 Total 4 15 46 65

Percent 6.2 23.1 70.8 100.0

annnual productivity of the respondent

50

Frequency

40

30

20

10

0 below Rs. 50,000 Rs. 50,000 -- 1,00,000 above Rs. 1,00,000

27

Inference
The commission earned by the advisors on the policy they sell to their customers is called the premium or the productivity. 70.8% of them had an annual productivity of more than 1 lac due to the large amount of business they gained via insurance only while 23.1% were earning between 50,000 to 1,00,000 because either they were new to this business or they were not able to devote much time to this field.

SOURCE OF INFORMATION OF THE CUSTOMER

Table 12 Valid Cumulative Percent Percent 23.1 23.1 21.5 36.9 18.5 100.0 44.6 81.5 100.0

Valid Newspapers Television and radio Relatives/friend s Other sources Total

Frequency 15 14 24 12 65

Percent 23.1 21.5 36.9 18.5 100.0

source of information of the customer

25

20

Frequency

15

10

0 newspapers television and radio relatives/friends other sources

28

Inference
As per the point of view of the 36.9%advisors, the customers usually get to know about the policies and products of any insurance company via their relatives or friends while 23.1% advisors gave the credit to the advertising in the newspapers as the source of information to the people. TV and Radio had 21.5% of the advisors favoring them.

PARAMETERS DEMANDED IN INSURANCE POLICIES

Table 13

Valid

Service Quality Product features Brand Total

Valid Cumulative Frequency Percent Percent Percent 14 21.5 21.5 21.5 18 27.7 27.7 49.2 11 22 65 16.9 33.8 100.0 16.9 33.8 100.0 66.2 100.0

parameters demanded in insurance policies

service quality product features brand

21.54

33.85

27.69

16.92

29

Inference
33.8% advisors feel that while buying a policy what customer looks is the brand name associated with it. Like for selling a LIC, which is a generic brand you dont need to do that much hard work because customer knows it. 27.7% favored quality of the product they are selling as the top priority of the customer.16.9% advisors gave their consent to the product features as one of the enticing factor for the customers in buying into a policy.

PURPOSE OF GETTING INSURANCE

Table 14 Frequency 9 10 9 13 11 13 65 Valid Cumulative Percent Percent Percent 13.8 13.8 13.8 15.4 15.4 29.2 13.8 20.0 16.9 20.0 100.0 13.8 20.0 16.9 20.0 100.0 43.1 63.1 80.0 100.0

Valid

Protection Savings Child future Retirement Investment Tax saving Total

purpose of getting an insurance

protection savings child future retirement investment

13.85 20

tax saving

15.38

16.92

13.85

20

30

Inference
20% of the advisors felt that retirement and tax saving are the main purpose of the people for getting an insurance done. While 13.8% felt that child future and protection were the causes for the people to get an insurance done.16.9% favored investment as the reason and 15.4% voted for savings as one of the cause for getting an insurance.
NEAREST COMPETITOR OF THE COMPANY WITH WHICH RESPONDENT IS ASSOCIATED

Table 15 Frequenc y 46 13 6 65 Percent 70.8 20.0 9.2 100.0 Valid Cumulative Percent Percent 70.8 70.8 20.0 9.2 100.0 90.8 100.0

Valid

LIC ICICI PRU LIFE OTHERS Total

nearest competitor of the company with which respondent is associated

80

60

Percent

40

20

0 LIC ICICI PRU LIFE OTHERS

31

Inference
LIC is one generic brand, which no one can beat, and hence the biggest competitor of any insurance company.70.8% of the respondents had this viewpoint while only 20% felt that Bajaj Allianz Life Insurance is the next big emerging competitor after Bajaj Allianz Life Insurance of course.

ANY OTHER AGENT IN THE FAMILY OF RESPONDENT

Table 16 Frequency 13 52 65 Percent 20.0 80.0 100.0 Valid Percent 20.0 80.0 100.0 Cumulative Percent 20.0 100.0

Valid

Yes No Total

any other agent in the family of respondent

yes no

20

80

32

Inference
Only 20% of the total advisors surveyed had some other family member also as an agent along with them and 80% of the advisors were the only one in their family who were into the insurance business.

GENERAL MASS SURVEY

GENDER OF THE RESPONDENT Table 1 Valid Percent 62.7 37.3 100.0 Cumulative Percent 62.7 100.0

Frequency Vali d Male Female Total 42 25 67

Percent 62.7 37.3 100.0

Gender Of The Respondent

male female

37.3

62.7

33

Inference
As the figures speak for themselves, total respondents whom we surveyed 62.7% were males while rest were females (37.3%).

MARITAL STATUS OF THE RESPONDENT

Table 2 Frequency Percent 32 47.8 35 52.2 67 100.0 Valid Percent 47.8 52.2 100.0 Cumulative Percent 47.8 100.0

Valid

Married Unmarried Total

Marital Status Of The Respondent

married unmarried

47.76 52.24

34

Inference
As the figure shows that 52.24% were married while 47.76% were unmarried. In a way, it helped us because while prospecting the people for making them the advisors we prefer those who are married.

EDUCATIONAL QUALIFICATION OF THE RESPONDENT

Table 3 Frequency Valid Any Professional Degree Post Graduate Graduate Undergraduate/ XII Pass Total 7 42 9 9 67 Percent 10.4 62.7 13.4 13.4 100.0 Valid Cumulativ Percent e Percent 10.4 62.7 13.4 13.4 100.0 10.4 73.1 86.6 100.0

Educational Qualification Of The Respondent

any peofessional degree post graduate graduate

13.4 10.4

undergraduate/ XII pass

13.4

62.7

35

Inference
62.7% of the respondents were found to be post graduates and next came under graduates and graduates with 13.4%. Only 10.4% were found to be professionals like CAs or MBAs.

OCCUPATIONAL BACKGROUND OF THE RESPONDENT

Table 4 Frequency Percent Valid Govt/ State Services Private Job Professional Others Total 21 33 8 5 67 31.3 49.3 11.9 7.5 100.0 Valid Percent 31.3 49.3 11.9 7.5 100.0 Cumulativ e Percent 31.3 80.6 92.5 100.0

Occupatonal Background Of The Respondent

Govt/ State Services Private Job Professional

7.5

others

11.9 31.3

49.3

36

Inference
Most of the respondents belonged to the private sector like they were working in some bank or in any private enterprise so they were easily convertible into agents because they can take agencies on their name while government people cant do that. Only 31.3% belonged to the government sector.

ANNUAL HOUSEHOLD INCOME

Table 5 Frequency Percent 34 50.7 19 28.4 14 20.9 67 100.0
Annual Household Income

Valid

5 to 8 lacs 3 to 5 lacs 1 to 3 lacs Total

Valid Cumulative Percent Percent 50.7 50.7 28.4 79.1 20.9 100.0 100.0

5 to 8 lacs 3 to 5 lacs 1 to 3 lacs

20.9

50.7

28.4

37

Inference
Almost 50.7% were found to earn between 5 to 8 lacs. Those people who are earning up to one lac are avoidable profile for tapping the insurance advisors. We were supposed to look for people who fell in an average income group of earnings between3 to 5 lacs. Even people who had income of 8 lacs were to be ignored because it was difficult to entice them into the insurance business.

INTEREST OF THE RESPONDENT IN MAKING EXTRA INCOME

Table 6 Frequency 51 16 67 Percent 76.1 23.9 100.0 Valid Percent 76.1 23.9 100.0 Cumulative Percent 76.1 100.0

Valid

Yes No Total

Interest Of The Respondent In Making Extra Income

yes no

23.9

76.1

38

Inference
When the respondents were asked the question that whether they will be interested in earning a surplus income then 76.1% of them were enthusiastic about it especially when they were told that this business well cost NIL investment from their side. Only 23.9% said they were not inclined to earn extra since they were satisfied with their present business.

OPTION CHOSEN BY THE RESPONDENT TO MAKE EXTRA INCOME

Table 7 Frequency Percent 8 11.9 23 23 13 67 34.3 34.3 19.4 100.0 Valid Percent 11.9 34.3 34.3 19.4 100.0 Cumulative Percent 11.9 46.3 80.6 100.0

Valid MLM MUTUAL FUND AGENT/ INSURANCE AGENT TRADING OF STOCK INVESTMENT IN PROPERTY Total

Option Chosen By The Respondent To Make Extra Income

MLM MUTUAL FUND AGENT/ INSURANCE AGENT

11.9 19.4

TRADING OF STOCK INVESTMENT IN PROPERTY

34.3

34.3

39

Inference
34.3% of the respondents wanted to earn that extra income by means of the trading of the stock or being an insurance advisor while 19.4% preferred investing in the property. BEST INSURANCE COMPANY AS RATED BY THE RESPONDENT Table 8 Frequency Percent 46 68.7 15 22.4 6 9.0 67 100.0 Valid Percent 68.7 22.4 9.0 100.0 Cumulative Percent 68.7 91.0 100.0

Valid LIC ICICI OTHER Total

Best Insurance Company As Rated By The Respondent

LIC ICICI OTHER

9

22.4

68.7

Inference
When the respondents were asked to give a name of insurance company, which they found best then one could easily see the impact of the LIC in life of a common man since 68.7% instantly took the name of Bajaj Allianz Life

40

Insurance only. Bajaj Allianz Life Insurance stood second with 22.4% people recalling its brand name. INTEREST OF THE RESPONDENT IN JOINING BAJAJ ALLIANZ LIFE INSURANCE Table 9 Frequency Percent Valid CERTAINLY 29 43.3 PROBABLY 26 38.8 DEFINITEL 12 17.9 Y NOT Total 67 100.0 Valid Cumulativ Percent e Percent 43.3 43.3 38.8 82.1 17.9 100.0 100.0

Interest Of The Respondent In Joining ICICI PRU

CERTAINLY PROBABLY DEFINITELY NOT

17.9

43.3

38.8

Inference
If given a choice to join Bajaj Allianz Life Insurance as its advisor, almost 43.3% of the respondents said that they would certainly be interested while only 38.8% said that they would think over it because as per them their

41

decision depended on the money they will be getting from prudential in comparison to other insurance companies.

Interest Of The Respondent In Getting High Returns

Table 10 Frequency Percent 58 86.6 9 13.4 67 100.0 Valid Percent 86.6 13.4 100.0 Cumulative Percent 86.6 100.0

Valid

Yes No Total

Interest Of The Respondent In Getting High Returns

yes no

13.4

86.6

Inference
86.6% of the total respondents said that they would definitely like to join a business where they will be rewarded with high returns without actually spending a single penny from their pocket. While 13.4% said they are not interested since as per them there is no such business where you dont have to invest any thing.

42

METHODOLOGY USED TO RECRUIT ADVISOR

The basic aim of the company in providing us with this assignment was to find out the peoples perception of their brand in the market and via this increasing their advisor base by encasing on their brand name. 1) Hence, our sales pitch in recruiting the good profile advisor was based on: Money: For those who are needy, greedy and speedy Excellent back end support, attractive payments and benefits and Extensive training for that edge over competition Reward and Recognition For those who want to be recognized and honored Several programs including foreign trips, seminars etc. Selected club memberships like presidents club, Bajaj Allianz Life Insurance Star Club, MDRT club etc. Achievements rewarded with trophies and certificates as well with Point rewards to give you a flying start. Career Prospects For people who want to climb the success ladder fast. A program like PINNACLE, AGENCY CHAMPION and TIGER TEAM has been devised.
43

This whole strategy was based on the MASLOWs THEORY OF NEEDS. 2) Then, instead of going personally and meeting these already wellestablished Advisors, we tried the concept of holding BOP (Business Opportunity Presentation). For this we drafted an invitation, which was a gimmick so as to entice these advisors into coming to our own office, and it was based on the pretext of ONE MILION POLICY CELEBRATIONS, the target that Bajaj Allianz Life Insurance has just achieved. And result was good in the sense that we were able to convert 5 to 10 advisors for our company then and there only. 3) Then, we targeted high profile people like CAs or MBAs or govt. people. For that, we drafted a letter in which we just gave them a hang of what our proposal was for them (for recruiting them as our advisors) and asked them to contact us themselves if they are interested. We got at least 10-15 calls of people who were interested and wanted to become our advisors. Meetings were held with them and they were converted. The BOP letter and then invitation for the BOP i.e. Business Opportunity Presentation has been attached at the end in the annexure.

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SWOT ANALYSIS
Strengths:

Vast untapped market

In a country of 1 billion people there is a huge potential market for life insurance products. In India the penetration of the insurance sector in the rural and semi-urban areas is low. There is a market of 900 million for life insurance and 200 million for householders insurance policy. In addition to this the affluent section can be tapped for Overseas Mediclaim and Travel Insurance policies.

Huge pool of skilled professionals

Whether it is banks or insurance companies there is no dearth of skilled professionals in India to carry out a successful banc assurance venture.

Weakness:

Lack of networking among bank branches

In spite of growing emphasis on total branch mechanization (TBM) and full computerization of bank branches, the rural and semi-urban banks have still to see information technology as an enabler. Complete integration of branch network involves huge investments for creating IT and communication infrastructure.

Low savings rate

Though we have a huge market for insurance policies, the middle class who constitutes the bulk of this market is today burdened under inflationary pressures. The secret lies in inculcating savings habit but considering the amount of surplus funds available with the middle class for investing in future security, the ability to save is very nominal

45

Opportunities:

Data mining

Banks have a huge customer database which has to be properly leveraged. Target segments should be identified and tapped.

Wide distribution networks of banks provides a great opportunity to sell insurance products through banks Another potential area of growth of banc assurance is exploiting the corporate customers and tying up for insurance of the employees of corporate clients Human Resource Challenges

Threats:

Success in banc assurance venture requires a change in mindset. Though we have a large talent pool, the inability to sell complex insurance products on the part of bank professionals and their reluctance to learn can be severe setback. There has to be a change in the thinking, approach and work culture.

Non-response from the target groups can also pose a challenge as it happened in the USA in 1980s

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FUTURE GROWTH PROSPECTS OF COMPANY:

IN the total market share, Bajaj Allianz Life Insurance has reduced its share from 91% to 70%. This means that private insurance players have got more margins in their hands which have increased from 9% to 30% in last 2years only. In the private market share, Bajaj Allianz Life Insurance leads with 39% of the market share in its hand followed by Bajaj Allianz with 18% shares and then comes Birla Sun Life with 15% market shares. Bajaj Allianz Life Insurance has been maintaining its NO 1 position since last 5 years because of its prolific product range and commanding brand equity. It has a highest capital base of Rs. 925 crores and a team of more than 56,300 well-trained advisors. It enjoys a brand recall rate of 92% and gives credit of its success to the 5 core values Integrity Customer Boundary Less Ownership Passion

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MARKET SHARE IN PRIVATE SECTOR

Allianz 18%
Birla Sun Life 15%

BajajPrivate

share in the market

ICICI Prudential 39% ICICI Prudential Tata AIG HDFC Std Life Max New York Life Birla Sun Life Bajaj Allianz

Max New York Life 8%

HDFC Std Life 14%

Tata AIG 6%

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RECOMMENDATIONS AND SUGGESTIONS

During the exposure of 2 months I had in the insurance industry via Bajaj Allianz Life Insurance, it helped me to develop the basic understanding of how this industry works and the work experience & knowledge gained has also helped me to give the recommendations as stated below: An insurance policy is a product, which needs a lot of convincing before it can be sold because what I analyzed in this internship that there are very few people who have a basic knowledge about life insurance especially the lower middle class society. So, it is essential for the advisor to know what the customer actually needs and then letting the customer know what benefits he will get out of it. The limitation here is how to win the trust of people when so many companies are offering the same product range. Here, Bajaj Allianz Life Insurance needs to encash its brand name because after the survey I conducted what I concluded is that after LIC if people know any other insurance company is then it is Bajaj Allianz Life Insurance. During the calls where I went along with the Unit manager, I observed that people in general have the perception that insurance is all about getting discount in tax. People should be made realize that it is a great way of saving for the future too.

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 Besides doing market research, my other job was also to increase the advisor base of the company. And company preferred the profiles of the already established insurance advisors of the other company especially the LIC ones. What I suggest is that before approaching these prominent agents we need to do a SWOT analysis of the co. they are into. Like LIC Agents usually complain of LOW returns and hence icici pru can tap them on this loophole of LIC. Instead of approaching these good profile agents personally, the company can hold Seminars Or Club Meetings because every one comes for free lunches. Once they come, they can be given Business Opportunity presentations about the incentives, commission structure etc Bajaj Allianz Life Insurance is offering to its advisors.
Since the commission structure has been fixed by the IRDA only so

no insurance company can give more commission on products but every company has a different mode of distributing commission, since Bajaj Allianz Life Insurance has all kind of products and policies with it (including the products which LIC have and even those which LIC do not have) thus every agent can earn as much (NO UPPER LIMIT ON EARNINGS) as he wants because he has more choice to offer to the customer. This can be one of the sales pitch for the Bajaj Allianz Life Insurance.

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LEARNINGS
The basic aim of the company in providing us with this assignment was to find out the peoples perception of their brand in the market and via this increasing their advisor base by encasing on their brand name.

I learned how to recruit insurance advisor and convinced them for job profile.
When I was doing this project I met several people & collected their responses, some of them give positive response, some gave negative response & some cant say any thing, they dont believe in private sector. I also personally met 20 to 25 people in a day. I also did Tele-calling & had appointment. It is very helpful in the collection of the customer databases.

Under this project:

No. of customer met; more than 250 No. of customer called (phone); 300 No. of forms filled; more than 100 No. of customer converted; 25 Bajaj Allianz Life Insurance is the number one private life insurance company in India with a market share of 42.2%. Birla sun life stands second in private life insurance companies with a market share of 18.5%. Looking in private sector Bajaj Allianz Life Insurance has been the dominant player because the amount of gap between the market shares is huge. But if we analyze in all sectors of life insurance then LIC has been the most dominant player since 1956. The impact of LIC has been so

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much in both rural and urban areas that people use the term LIC instead of life insurance. Bajaj Allianz Life Insurance faces a big challenge in front of them to stay in the race with Life insurance Corporation (LIC) because with the entrance of other companies like Max New York, HDFC Standard Life & Birla Sun Life the competition has become tougher. But insurance is also growing day by day, India has a population of 1.2 billion and only 33.3% population is insured. This means insurance is an upcoming industry but Bajaj Allianz Life Insurance has to work a lot on their strategies to overcome LIC.

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BIBLOGRAPHY
Monthly Fact Sheet MAY 2006 Mutual fund Review MAY 2006 Study Material for AMFI exam Investment update report of other AMCS Various Business Newspaper Magazines WWW. AMFINDIA. COM
WWW.INVESTMSRTINDIA.COM WWW.PERSONALFN.COM WWW.ECONOMICTIMES.COM

WWW.STOCKINDIA.COM
WWW.BAJAJALLIANZLIFE.CO.IN

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THANK YOU

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