EFU INSURANCE

Mustufa Nasir Omer Naushad Aamir Mohsin Mursul Rehman

Company Background
Eastern Federal Union Insurance (EFU) was incorporated in

1932 with its operations starting in Calcutta Later in 1947 the company moved its operations to Pakistan, becoming the local pioneer in the insurance industry During Zulfiqar Bhuttos regime Life Assurance was nationalized therefore the company started to operate in General Insurance only In 1972 the company was renamed to EFU General Insurance Limited In 1992 EFU once again entered in Life Assurance after the approval of the government Listed in Karachi Stock Exchange and Lahore Stock Exchange. At present EFU General Insurance has 1236 employees

Accolades for EFU

1) 1992: Launch of EFU Life 2) 1993: A Billion Rupee Company

3) 2000: Pakistans First Specialized Health Insurer joint

venture with Allianz AG of Germany, worlds largest insurance company

4) 2005: A Billion Rupee Branches SITE and Central Divisions

became billion rupee branches

5) 2008: Euromoney Award- Euromoney, an international

financial journal adjudged EFU as Pakistans best insurance company

6) 2009: "Brands of the year Award, hat-trick" & "Brands ICON of

Pakistan"

Vision and Mission

Vision
To continue our journey to be better than the best.

Mission
To provide services beyond expectation with a will to go an extra mile. In the process, continue to upgrade technology, human resource and reinsurance protection.

Industry
There are a total of 30 companies operating in the General

Insurance industry
As at 30th September 2012 total business underwritten in the

industry was of Rs. 34,884,602

EFU General Limiteds contribution was of Rs. 9,578,340 The companys market share stood at 27.5%

It also had the highest Earning Per Share of 10.54 and the

greatest number of Total Assets in the industry.

Competition and Market Growth

EFU Gen. Ltd is the leader in the industry and competes

with another 29 companies

Its major competitors are: 1. Adamjee Insurance market share 20% 2. Jubilee General Insurance market share 14.2% 3. IGI Insurance market share 4.4%

The market growth in the General insurance sector has been very low because it is contingent to the growth of other industries. 2-5% growth in the industry.

Products Offered
Following types of insurances are offered: 1. 3.

Aviation Motor

2. Marine: (a) Cargo (b) Hull

4. Property: (a) Engineering (b) Fire 5. Risk Management

Recruitment of Sales force

Interview Key Traits:

PR
Due to the changing situation, the market is

STAGNANT

The Sales Force

What are development agents? Total 500 development agents in EFU Approx. 125 in Karachi

CLIENT CODE
The DEVELOPMENT agents can bring

business from all over Pakistan, there is no territory system A CLIENT CODE is issued by the head office DEVELOPMENT AGENTS can only visit the organization once they have the client code for it. No other agent can then approach the buiness

Normal Routine Practice

EFU does a whole package deal with it

corporate clients Take an example of a textile mill When building, you need construction policy insurance When importing machinery, you need marine insurance

 Once operational, then many other

insurances pour in Reinsurance Including, installation insurance Fire or theft insurance Machinery break down insurance Employees (life insurance) Vehicles insurance

 Further, our sales people bring relevant

information from a potential client Our underwriting department reviews it thoroughly in terms of profitability for EFU Then if it fulfills the criteria, the company is approached for a possible dealing

 The quotations from both the sides are

exchanged, if there is a agreement on the basic elements Then, the top management of EFU sits with the upper management of the potential client This is done for confidence building measures. In the end, the head office of EFU gives a last review before a final agreement.

Thus

ONE WINDOW OPERATION

How to attract new businesses

Through REFERENCES!

 Quit over's from other companies are now

hired The new employees bring business of other company with them This gives the hiring company advantage in terms of customer knowledge

3 months probation period

In House training center 3 months training and field work under assistance Competency of the sales person is assessed in this

period Candidates who are able to demonstrate key traits of successful sales agent are hired permanently Insurance based training programs Non-Insurance based training programs

Ratios to Determine Success of Agent

Value of Business brought in Loss Ratio Future profitability Expense Ratio

EFU is at RISK
They have to en sure the safety measures in

the company are satisfactory Fire Prevention system and emergency exits are in place The level of dangerous activity being carried out Training of staff to deal with emergency situation

Market Development Hierarchy

Executive Vice president Vice President Assistant Vice President Senior Manager Manager Deputy Manager Chief Development Officer Senior Development Officer Development Officer

OBJECTIVES OF MARKETING & DEVELOPMENT DEPARTMENT

Open new branches in new territories in order to expand

Punjab and Sindh and then in other provinces. Focus on encouragement and reward for best results. Appraisal performance on merit. Performance will be evaluated on regular intervals of each marketer. Bank enlistment and limits arrangements matters Reinsurance arrangements of the Company Co-insurance arrangements of the Company, if any

OBJECTIVES OF HUMAN RESOURCE DEPARTMENT

To ensure that adequate and suitably

experienced is recruited and provided, so that the Companys objectives can be achieve S more efficiently & effectively. To ensure those policies that support human resource department. To monitor performance and absenteeism, to lowering cost, to increase profitability, efficiently and effectiveness of manpower.

The staffing function

Recognition of need of manpower for the Company Defining job specification for fulfilling the need. Establishment of the recruitment criteria. Recruitment process
Training & Development functions Job Orientation Employee Training Employee Development Career Development

MOTIVATION FUNCTIONS Outstanding performance increments The best employee of the year award Job rotation High Salary Medical Allowance Payment of Utility bills, mobile phones, laptops

 Being a company with the largest market

share, EFU doesnt always need to approach its corporate clients at their door steps.
Rather businesses find the need to insure

themselves and so when they look into the insurance industry, they find EFU as a reliable partner.

HOWEVER!
Insurance market is stagnant Companies are fighting to get businesses for

the competitors

 They try to achieve first mover ADVANTAGE

Existing customers are hesitant to switch over because of their long term relationship, usually of 15 to 20 years Sales rep also contribute to the relationship as they deal with a specific company for years

Conclusion
Give authority to the sales force Make the process simpler Disintegration of the sales department Priority for nurturing hunters Influenced hiring

 THANK YOU