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A STUDY OF STRATEGY AND FUNCTIONING OF FIELD FORCES IN

BAJAJ ALLIANZ

Sr No. TABLE OF CONTENTS Page No

1 CONTENTS PAGE

2 ACKNOWLEDGEMENT

3 INTRODUCTION

4 SECTOR PROFILE

5 COMPANY PROFILE

6 OBJECTIVES OF STUDY

7 RESEARCH METHODOLOGY

8 DATA ANALYSIS & INTERPRETATION

9 OBSERVATIONS & FINDING

10 PROBLEMS IN THE EXECUTIVE TRAINING

11 LEARNING THE EXECUTIVE TRAINING

12 SUGGESTIONS

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Strategies based on market dominance

In this scheme, firms are classified based on their market share or dominance of an industry. Typically

there are three types of market dominance strategies:

Leader

Challenger Follower

Porter generic strategies

Strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market

penetration while strategic strength refers to the firms sustainable competitive advantage.

Cost leadership

Product differentiation

Market segmentation

Innovation strategies

This deals with the firm's rate of the new product development and business model innovation. It asks

whether the company is on the cutting edge of technology and business innovation. There are three types:

Pioneers

Close followers

Late followers

Growth strategies

In this scheme we ask the question, How should the firm grow?. There are a number of different ways

of answering that question, but the most common gives four answers:

Horizontal integration

Vertical integration Diversification

Intensification

A more detailed schemes uses the categories:

Prospector

Analyzer

Defender

Reactor

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Insurance need

Why is insurance necessary? The question contains the answer within itself. After all, life is fraught with

tensions and apprehensions regarding the future and what it holds for the individual. Despite all the

planning and preparation one might make, no one can accurately guarantee or predict how or when death

might result and the circumstances that might ensue in its aftermath.

We are not saying that life and existence are constantly fraught with danger and uncertainty. But then it is

essential that you plan for the future. The chances for a fatality or an injury to occur to the average

individual may not be particularly high but then no one can really afford to completely disregard his or

her future and what it holds.

People generally regard insurance as a scheme when and where you have to lose a lot to gain a little.

Nevertheless, insurance is still the most reliable tool an individual can use to plan for his future.

And just why is it necessary to plan for the future with Insurance?

An Overview

Insurance business is divided into four classes:

1) Life Insurance business

2) Fire

3) Marine

4) Miscellaneous Insurance.

Life Insurers transact life insurance business; the rest is transacted by General Insurers. No composites

are permitted as per law.

The business of Insurance essentially means defraying risks attached to any activity over time (including

life) and sharing the risks between various entities, both persons and organizations. Insurance companies

(ICs) are important players in financial markets as they collect and invest large amounts of premium.

Insurance products are multipurpose and offer the following benefits:

1. Protection to the investors

2. Accumulate savings

3. Channelize savings into sectors needing huge long term investments.

ICS receive, without much default, a steady cash stream of premium or contributions to pension plans.

Various actuary studies and models enable them to predict, relatively accurately, their expected cash

outflows. Liabilities of ICS being long-term or contingent in nature, liquidity is excellent and their

investments are also Long-term in nature. Since they offer more than the return on savings in the shape of

life-cover to the investors, the rate of return guaranteed in their insurance policies is relatively low.

Consequently, the need to seek high rates of returns on their investments is also low. The risk-return trade

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off is heavily tilted in favor of risk. As a combined result of all this, investments of insurance companies

have been largely in bonds floated by G.O.I, P.S.U.S. state governments, local bodies, corporate bodies

and mortgages of long term nature. The last place where insurance companies are expected to be over-

active is bourses. Lately ICs have ventured into pension schemes and mutual funds also. However, life

insurance constitutes the major share of insurance business. Life insurance depends upon the laws of

mortality and there lies the difference between life and general insurance businesses. Life has toextinguish sooner or later and the claim in respect of life is certain. In case of general insurance, however,

there may never be a claim and the amount can never be ascertained in advance. Hence, life insurance

includes, besides covering the risk of early happening of an event, an element of Savings also for the

beneficiaries. Pension business also derives from life insurance in as much as the pension outgo again

depends upon the laws of mortality. The forays made by insurance companies in this area are, therefore,

natural corollary of their business.

SECTOR PROFILEInsurance in India

Insurance in India started without any regulations in the nineteenth century. It was a typical story of a

colonial era: a few British insurance companies dominating the market serving mostly large urban

centers. After the independence, the Life Insurance Company was nationalized in 1956, and then the

general insurance business was nationalized in 1972. Only in 1999 private insurance companies were

allowed back into the business of insurance with a maximum of 26 per cent of foreign holding (World

Bank Economic Review 2000). The entry of the State Bank of India with its proposal of bank assurance

brings a new dynamics in the game. On July 14, 2000 Insurance Regulatory and Development Authority

bill was passed to protect the interest of the policyholders from private and foreign players. The following

companies are entitled to do insurance business in India.

The private insurance joint ventures have collected the premium of Rs.1019.09 crore with the investment

of just Rs.3, 000 crore in three years of liberalization. The private insurance players have significantly

improving their market share when compared to 50 years Old Corporation (i.e.LIC). As per the figures

compiled by IRDA, the Life Insurance Industry recorded a total premium underwritten of Rs. 10,707.96

crore for the period under review. Of this, private players contributed to Rs.1, 019.09 crore, accounting

for 10 percent. Life Insurance Corporation of India (LIC), the public sector giant, continued to lead with a

premium collection of Rs.9,688.87 crore, translating into a market share of 90 per cent. In terms ofnumber of policies and schemes sold, private sector accounted for only 3.77per cent as compared to 96.23

per cent share of LIC (The Economic Times, 21 March, 2004).

The ICICI Prudential topped among the private players in terms of premium collection. It recorded a

premium of Rs. 364.9 crore and a market share of 25 per cent, followed by Birla Sun Life with a premium

under- written Rs.170 crore and a market share of 15 percent, HDFC Standard with 132.7 crore and Max

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New York Life with Rs.76.8 crore with a market share of approximately 15 per cent each. Unlike their

counterpart in the life insurance business, private non-life insurance companies have not yet started

addressing the retail market. All is set to change in the coming years. Like in the banking sector, non-life

insurance companies will soon have no choice but to focus on individual buyers.

In case of private non-life insurance players, that their market share rose to 14.13 per cent, recording a

growth of 70.75 per cent on an annual basis, while the market share of public sector stood at 85.87 per

cent, registering a marginal growth of 6.34 per cent. The overall market has recorded a growth of 12.32

per cent by the end of January 2004. Among the private non-life insurance players, ICICI Lombard

topped the list with a premium collection of Rs.403.62 crore in one year period with a market share of

3.05 per cent and with an annual 131.6 per cent, followed by Bajaj Allianz with a premium of Rs.385.02

crore and 2.91 per cent market share and Tata AIG with 300.49 crore premium and 2.27 per cent market

share with an annual growth rate of 62.60 per cent.

Among the public sector players, New India garnered a market share of 24.38 per cent, Rs.3,229.49 crore

premium and an annual growth rate of 0.38 per cent, followed by National with a market share of 21.43

per cent, Rs.2,839.11 crore premium and an annual growth rate of 19.88 per cent, United India with a

market share of 19.47 per cent (Rs.2,578.83 crore premium) and Oriental with a market share of 18.25 per

cent, Rs.2,417.17 crore premium and an annual growth rate of 1.86 per cent. It is significant to note that

HDFC Chubb and Cholamandalam have registered annual growth rates of 4030.26 per cent and 1101.20

per cent respectively, whereas New India has registered it as 0.38 per cent. If this trend continues, private

insurer would dominate the public sector like New India Insurance Corporation. It is obviously reflect the

insurance sector has facing the challenges with foreign counter parties as well as private counter parties

and lot more opportunities are prevailing to penetrate the insurance business among the uncovered people

and area of India. Further, it leads to economic development of the country. In this regard, it assumesgreater significance to conduct debate among the inter-disciplinary persons.

BRIEF HISTORY OF INSURANCE SECTOR IN INDIA

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The insurance sector in India has come a full circle from being an open competitive market to

nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a

period of almost 190 years.

The business of life insurance in India in its existing form started in India in the year 1818 with the

establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912 -The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance

business.

1928 -The Indian Insurance Companies Act enacted to enable the government to collect statistical

information about both life and non-life insurance businesses.

1938 -Earlier legislation consolidated and amended to by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956 -245 Indian and foreign insurers and provident societies taken over by the central government and

nationalized. LIC formed by an Act of Parliament, viz.

LIC Act, 1956, with a capital contribution of Rs.5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance

Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

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1907 -The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general

insurance business.

1957 -General Insurance Council, a wing of the Insurance Association of India, frames a code of conductfor ensuring fair conduct and sound business practices.

1968 -The Insurance Act amended to regulate investments and set minimum solvency margins and the

Tariff Advisory Committee set up.

1972 -The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance

business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd.,

the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India

Insurance Company Ltd. GIC incorporated as a company.

INSURANCE MARKET IN INDIA

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NON-LIFE INSURANCE MARKET

In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the

same time, GIC was converted into a national reinsurer. In July 2002, Parliament passed a bill, delinking

the four subsidiaries from GIC.

Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers.

Although the public sector companies still dominate the general insurance business, the private players

are slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent

share of the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked

premiums worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their

operation in 2001.

With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude

of risks throughout the development, construction and operation stages. These include risks associated

with project implementaion, including geological risks, maintenance, commercial and political risks.

Without covering these risks the financial institutions are not willing to commit funds to the sector,

especially because the financing of most private projects is on a limited or non- recourse basis.

Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term

funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure

projects. With long term liability, they get a good asset-liability match by investing their funds in such

projects.

IRDA regulations require insurance companies to invest not less than 15 percent of their funds in

infrastructure and social sectors. International Insurance companies also invest their funds in suchprojects.

Insurance costs constitute roughly around 1.2-2 percent of the total project costs. Under the existing

norms, insurance premium payments are treated as part of the fixed costs. Consequently they are treated

as pass-through costs for tariff calculations.

Premium rates of most general insurance policies come under the purview of the government appointed

Tariff Advisory Commitee. For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets

the premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with

the committee's guidelines; and projects above Rs 15 billion are subjected to reinsurance pricing. It is the

last segment that has a number of additional products and competitive pricing.

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Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead,

shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium.

The other companies share the remaining risk and premium. The policies are renewed usually on an

annual basis through the invitation of bids. Of late, with IPP projects fizzling out, the insurance

companies are turning once again to old hands such as NTPC, NHPC and BSES for business.

RE-INSURANCE BUSINESS

Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be

safely borne from their own funds. The balance risk is reinsured with other insurers. In effect, therefore,

re-insurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a

better spread of risk in the international market, allows primary insurers to accept risks beyond their

capacity, settle accumulated losses arising from catastrophic events and still maintain their financial

stability.

While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently,

all insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to

ensure that GIC's role as the national reinsurer remains unhindered. However, GIC reinsures the amount

further with international companies such as Swissre (Switzerland), Munichre (Germany), and Royale

(UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat

perceptions globally.

LIFE INSURANCE MARKET

The Life Insurance market in India is an underdeveloped market that was only tapped by the state ownedLIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total

400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a

product giving protection. Most customers were under-insured with no flexibility or transparency in the

products. With the entry of the private insurers the rules of the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market

in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000

crore in 2002-03 over last year. Meanwhile, state owned LIC's new premium business has fallen.

Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination

that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone

ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly

turning to the private sector and snapping up the new innovative products on offer.

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The growing popularity of the private insurers shows in other ways. They are coining money in new

niches that they have introduced. The state owned companies still dominate segments like endowments

and money back policies. But in the annuity or pension products business, the private insurers have

already wrested over 33 percent of the market. And in the popular unit-linked insurance schemes they

have a virtual monopoly, with over 90 percent of the customers.

The private insurers also seem to be scoring big in other ways- they are persuading people to take out

bigger policies. For instance, the average size of a life insurance policy before privatisation was around

Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the

average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh-way bigger than the industry average.

Buoyed by their quicker than expected success, nearly all private insurers are fastforwarding the second

phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich

dividends. But a rejuvenated LIC is also trying to fight back to woo new customers.

COMPARISON OF TERM INSURANCE PREMIUMS (Rs./ Year)

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PREMIUM STRUCTURE OF ENDOWMENT PLANS (RS. /YEAR)

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MINIMUM REQUIRED COMPOUND BONUS RATE (IN %)

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WHOLE LIFE INSURANCE PREMIUMS (RS./ YEAR)

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EQUITY SHARE CAPITAL OF LIFE INSURANCE COMPANIES

EQUITY SHARE CAPITAL OF LIFE INSURANCE COMPANIES

(As on 31st March)

(Rs. Cr

Insurer 2008 2007 2006 2005 2004 2003 2

Aviva 1004.50 758.20 458.70 319.80 242.80 154.80 N

Bajaj Allianz 150.71 150.37 150.23 150.07 150.07 150.03 150

Bharti Axa 366.11 150.00 1.10 N.A. N.A. N.A. N

Birla Sunlife 1274.50 671.50 460.00 350.00 290.00 180.00 150

Future Generali 185.00 N.A. N.A. N.A. N.A. N.A. N

HDFC Std 1271.00 801.26 620.00 320.00 255.50 218.00 168

ICICI Pru 1401.11 1312.30 1185.00 925.00 675.00 425.00 190

IDBI Fortis 200.00 N.A. N.A. N.A. N.A. N.A. N

ING Vysya 790.00 690.00 490.00 325.00 245.00 170.00 110

Kotak Mahindra 480.27 330.35 244.58 211.76 151.26 131.30 10

Max New York 1032.43 732.43 557.43 466.08 346.08 255.00 250

Metlife 761.08 530.00 235.00 235.00 160.00 110.00 110

Reliance Life 1147.70 664.00 331.00 217.10 160.00 125.00 125

Sahara 232.00 157.00 157.00 157.00 157.00 N.A. N

SBI Life 1000.00 500.00 425.00 350.00 175.00 125.00 125

Shriram 125.00 125.00 125.00 N.A. N.A. N.A. N

Tata AIG 870.00 547.00 447.00 321.00 231.00 185.00 185

Total(Private Sector)

12291.42 8119.41 5887.05 4347.81 3238.71 2229.13 1664

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COMPANY PROFILE

BAJAJ ALLIANZ LIFE INSURANCE

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates-, Bajaj Auto,

one of the biggest 2 and 3 wheeler manufacturers in the world and Allianz AG, one of the world's largest

insurance companies.

Bajaj Allianz Life Insurance

Is the fastest growing private life insurance company in India.

Currently has over 3,00,000 satisfied customers

We have customer care centers in 155 cities with 28000 Insurance Consultant providing the finest

customer service.

One of India's leading private life insurance companies

Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and

Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA)

certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business (including

Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores.Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.

Bajaj Allianz today has a network of 42 offices spread across the length and breadth of the country. From

Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head

Office at Pune.

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ALLIANZ GROUP

Allianz Group is one of the world's leading insurers and financial services providers.

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees.

At the top of the international group is the holding company, Allianz AG, with its head office in Munich.

Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of

services in the areas of

Property and Casualty Insurance,

Life and Health Insurance,

Asset Management and Banking.

ALLIANZ AG- A GLOBAL FINANeCIAL POWERHOUSE

Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr.

3rd largest Assets Under Management (AUM) & largest amongst Insurance cos.-AUM of Rs.51,96,959

cr.

12th largest corporation in the world

49.8 % of global business from Life Insurance

Established in 1890, 110 yrs of Insurance expertise

70 countries, 173,750 employees worldwide

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BAJAJ GROUP

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of

two-wheelers and three-wheelers in India and one of the largest in the world.

A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with

quality & customer focus.

A STRONG INDIAN BRAND-HAMARA BAJAJ

One of the largest 2 & 3 wheeler manufacturer in the world

21 million+ vehicles on the roads across the globe

Managing funds of over Rs 4000 cr.

Bajaj Auto finance one of the largest auto finance cos. in India

Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03

It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of life

insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer

Financial strength and stability to support the Insurance Business.

A strong brand-equity.

A good market reputation as a world class organization.

An extensive distribution network.

Adequate experience of running a large organization.

PRODUCTS

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Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, trusted for over 55

years in the Indian market, together are committed to offering you financial solutions that provide all the

security you need for your family and yourself.

Bajaj Allianz brings to you several innovative products, the details of which you can browse in thissection.

INDIVIDUAL PRODUCTS

UNITGAIN RISK CARE

A Unit Linked Plan Pure Term Plan

TERM CARE INVESTGAIN

Term Plan with Return-of-Premium An Endowment Plan

LIFETIME CARE CHILDGAIN

Whole Life Plan Children's Policy

LOAN

PROTECTOR CASHGAIN

A Mortgage Reducing Term Insurance Money Back Plan

Plan

KEYMAN INSURANCE SWARNA VISHRANTI

A Promising Business Opportunity Retirement Plan

UNITGAIN PLUS LIFELONG GAIN PLAN

Unit Link plan with higher allocation A lifetime of security for your family

GROUP PLANS

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GROUP CREDIT SHIELD

GROUP TERM LIFE

GROUP TERM LIFE SCHEME

GROUP SUPERANNUATION SCHEME

GROUP GRATUITY CARE SCHEME

Insurance for NRI

All Indians have an underlying need to feel secure, to care for the loved ones and to provide for old age.

The need is felt more when you are away from your Homeland. But being away from India doesn't mean

you have to compromise on the safety and security of your loved ones.

In fact, you can now easily steer your savings from overseas to conveniently meet your family's needs

-now and in the future.

Bajaj Allianz understand your need. The need to do something fruitful for your loved ones.. The urge to

let them know that you care. That's why Bajaj Allianz introduced the NRI Insurance services. Now, you

can invest your hard earned money in India and in the bargain ensure your family's future.

InvestGain - 'With Profits Endowment Plan'.

CashGain -'With Profits Money Back Plan'.

ChildGain -'With Profits Money Back Plan' for children.

Lifetime Care - 'With Profits Whole of Life Plan'.

Swarna Vishranti - 'With Profits Differed Annuity Plan'.

UnitGain - 'Unit Linked Whole of Life Plan'.

RESEARCH METHODOLOGY

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With the authority to think as business managers and build their branches as profit centers. They are

encouraged to open satellite branches. This gives branch managers the depth of decision-making and

speed required to react to market dynamics and consumer needs. The management has also appointed

full-time training personnel for each branch.

The fastest growing private Life Insurance company in India, Bajaj Allianzs portfolio of 19 products

includes comprehensive Employee Benefit Solution (Group Term Life, EDLI, Gratuity, Super annuation,

Keyman Insurance and More); Invest Gain (a unique Life Insurance plan for the individual, where a

regular income is combined in a plan that also pays a lump sum), Cash Gain (money back), Child Gain

(childrens plan), Risk Care (pure term), Lifetime Care (whole life), Term Care (term with return of

premium), Swarna Vishranti (retirement plan), Protector (mortgage term insurance plan), Unit Gain (unit-

linked plan), UnitGain Single Premium, Unit Gain Plus, Unit Gain Plus SP, Lifelong Gain Plus, Unit

Gain Single Pension and Unit Gain Easy Pension.

The approach to the research is considered in this chapter, from the theoretical underpinning to the

collection and analysis of the data. It begins with the extent of the research to provide the specific

guidelines of studying. The next part is concerned with the method of the research that refers to the data

collection and analyzing which is used in the research.

CONCEPTUAL CONTEXT OF THE RESEARCH

As the objective of the research focuses on the research of potential Insurance Consultants with special

emphasis of Bajaj Allianz. It will help the company to increase its sales, which is the prime objective ofthe company at this time. The research attempts to generate awareness among the people of Mumbai

regarding the agency of Bajaj Allianz.

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METHODS

PRIMARY DATA

Date collection for this research was done primarily through filling up of questionnaire. The sample for

the research including different individuals of various age groups and having different professions and

qualifications. Data was collected through the interview of individuals. The questionnaire was containing

questions regarding the personal details of individuals and then some light questions regarding their

primary knowledge related to private insurance companies. Then there were questions related to their

interest in being the Insurance Consultants of company.

SECONDARY DATA

A large amount of secondary data has been collected from secondary sources. Some of the sources are:-

Reports on Insurance Sector of India.

Articles from Newspapers and magazines.

Various web sites of the insurance companies and related sites.

DATA ANALYSIS

There are some features of analyzing data that need to be borne in mind when choosing the method for

analyzing the research. The questionnaire were prepared to explore the psychology of individuals about

being associated with Bajaj Allianz as Insurance Consultants and to help the company grow by increasing

its sales. Instead of testing a hypothesis, a qualitative analyst may demonstrate evidence showing that atheory, generalizing, or interpretation is plausible.

SAMPLE SIZE:-

Various areas of Mumbai were covered in order to fill the questionnaire. We interacted with 200

individuals in order to know about their interest of being Insurance Consultants of Bajaj Allianz.

SAMPLE COMPOSITION

Youth

Executives

Serviceman

Business persons

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RESEARCH DESIGN :

A research design provides the framework to be used as a guide in collecting and analyzing data.

Descriptive Research: Market survey is one of the best example of descriptive research. This is a one shot

research study at a given point of time, and consists of a sample of the population of interest. Itsadvantages are that it gives a good overall picture of the position at a given time. It can cover many

variables of interest, and is not affected by the movements of elements in the sample, because other

elements can be substituted for them.

AGENTS LICENSED BY THE AUTHORITY (2006-2007)

(URBAN AND RURAL)

LIFE INSURERS

Name Urban Rural Total

BAJAJ ALLIANZ LIFE INSURANCE CO. LTD 28912 3768 32680

TATA AIG LIFE INSURANCE CO. LTD 17590 189 17779

AMP SANMAR INSURANCE CO.LTD. 4226 787 5013

BIRLA SUN LIFE INSURANCE CO.LTD. 5432 43 5475

AVIVA LIFE INSURANCE CO INDIA PVT. LTD. 3702 117 3819

HDFC STANDARD LIFE INSURANCE CO. LTD. 9324 1032 10356

ICICI PRUDENTIAL LIFE INSURANCE CO. LTD. 29838 92 29930

ING VYSYA LIFE INSURANCE CO. PVT. LTD. 7404 316 7720

LIFE INSURANCE CORPORATION OF INDIA 173958 179815 353773

MAX NEW YORK LIFE INSURANCE CO.LTD . 6899 99 6998

METLIFE INDIA INSURANCE CO. PVT. LTD. 3310 64 3374

KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE

CO.LTD. 2772 204 2976

SAHARA INDIA LIFE INSURANCE CO. LTD. 1 0 1

SBI LIFE INSURANCE CO. LTD. 1908 267 2175

Sub Total 295,276 186,793 482,069

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DATA ANALYSIS

After collection of data, the analysis of it was done through various graphs:-

Doughnut Pie Diagram

Bar Diagram

Tubes

Cones

According to the data collected through survey with the help of questionnaire, the break up with respect

to income of individuals is as follows :

MONTHLY INCOME NUMBER OF INDIVIDUALS

0-5000 43

5000-10000 60

10000-15000 49

15000-20000 32

20000 AND ABOVE 16

Number

ofindividu

als

Break up according to monthly income

1k=100

00

10

20

30

40

50

60

0k-5k 5k-10k 10k-15k 15k-20k 20 and

above

0-5

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ANALYSIS FOR THE OVERALL INCOME GROUP

Servicemen32% Businessmen-68%

Graduate 95% Beyond Graduate-5%

95

5

Graduate

Non Graduate

32

68

Servicemen

Businessmen

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Company Premium Income (cr) Market Share (%)

HDFC Standard 352.14 3.11

Bajaj Allianz 643.59 5.68

ICICI Pru Life 819.75 7.24

Birla Sunlife 207.93 1.84

Tata AIG 189.24 1.67

16%

29%

37%

9%

9%

HDFC Standard

Bajaj Allianz

ICICI Pru Life

Birla Sunlife

Tata AIG

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Q1. Do you know about the Bajaj Allianz Life Insurance companies?

Ans. The response of individuals are as :-

Yes- 60% No-40%

Q2. Would you l ike to earn some extra money?

Ans. The response of individuals is as follows :

Yes- 90% No-10%

Q3. What is desired or expected monthly income?

60

40

Yes

No

90

10

Yes

No

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TIME PERIOD % people

0-2 hrs. 42

2-4 hrs. 45

4-6 hrs. 11

Full time 2

Q5. Do you have your own vehicle?

Ans. The response of people is as follows :-

Yes- 96.5% No-3.5%

Q6. Do you have your own mobile?

Ans. The response of people is as follows :

Yes- 98% No-2%

96.5

3.5

Yes

No

42

45

112

0-2 hrs.

2-4 hrs.

4-6 hrs.

Full time

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Q7. Would you l ike to work in market/field and want to interactwith people?

Ans. The response of individuals is as follows :-

Yes- 65% No- 35%

Q8. Would you l ike to come our company offic e and spend your

some time with our people in a seminar?

Ans. The response of people are as follows :-

98

2

Yes

No

65

35

Yes

No

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Yes- 45% No- 55%

Q9. Do you want that a sales manager should approach you for agency?

Ans. The responses of people are as follows :

Yes- 64.3% No-35.7%

Q10. How many people do you know in Mumbai?

Ans. The responses of people are as follows: -

YesNo

S1

64.3

35.7

0

20

40

60

80

45%

55%

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MONTHLY INCOME % of people

0-5000 15

5000-10000 10

10000-15000 35

15000-20000 25

20000 and above 15

0-5000 5000-

10000

10000-

15000

15000-

20000

20000 and

above

S1

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IMPORTANCE OF ADVISORS IN AN INSURANE COMPANY:

In the insurance industry the sales team following the typical organization structure:

Hierarchy in Insurance Company

The sales team comprises of the Sales Manager superior to Area Sales Manager, These ASMs (Area

Sales Manager) have their own individual team of Unit Manager and in turn Unit Managers their own

team of financial advisors.

Each team of ASMs competing with each other in surge of achieving targets, each Unit Manager

depends on their Advisors for their busine ss. They repre sent the compa ny i n th e m arket

to the customers, so nobody can deny the importance of Advisors in the whole syst em.

They providing the company with the business and help their respective Unit Manager to achieve theirtargets. So a unit Manager has to be really careful while recruiting their Advisors. During the year of

appointment, new Advisor usually account for a relatively small proportion of the organizations total

production.

SALES

MANAGER

AREA SALES

MANAGER

AREA SALES

MANAGER

AREA SALES

MANAGER

UNIT

MANAGER

UNIT

MANAGER

UNIT

MANAGER

ADVISORS ADVISORSADVISORS

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The most promising means of achieving profitable production growth lies in your sales organizations

capacity to give policy owners good counsel and prompt, courteous serves to give them value for

premium paid. The best guarantee of having that capacity comes from retaining large number of

productive advisor.

Consequently, the development needs of your sales organization call for successful recruiting. Its anecessity. This is why manager who move to the top of Bajaj Allianz honor roll and stay there are always

found to be manpower-focused.

Before we move to the how to of recruiting, lets consider some important philosophies relative to

recruiting.

FIVE PERSISTENT CONCERNS:

As an Bajaj Allianz Manager, you are fully committed to building a high performing, growing agency.

This being true, it follows those five concerns must be constant in your annual planning.

The SEARCH for talent

The EVALUTION of potential advisors

The ATTRACTION of advisors

The RETENTION of advisors

The PRODUCTIVITY of advisors

Any manager who attains satisfying results in these five areas will enjoy

Satisfying sales results

Outstanding persistency of business

Superior policy owner service capabilities

An enviable reputation as a Bajaj Allianz agency builder

A momentum which comes from the synergistic benefit of success

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CHART SHOWING HOW TO GET POTENTIAL ADVISOR:

Putting it simply in a flow

SEARCHWhere to look for

ATTRACT

How to attract to l ife Insurance

EVALUATE

How to evaluate

PRODUCTIVITY

RETENTION

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FINDINGS

People are becoming more & more money conscious as WE didnt find any person who doesnt

want to earn extra money.

People are very much aware of ICICI Prudential among private companies and LIC in public

sector as they respond me first name of LIC then ICICI prudential and then others.

The overall scenario is that still people trust on LIC more than any other insurance company.

Sometimes when WE asked someone to become an agent of Bajaj Allianz they misunderstood

with LIC. For them still life insurance means LIC.

Generally people are having leisure time of around 2-3 hrs and still want to utilize this time toearn extra money, if they can.

Contrary of the prior thinking most of the people dont hesitate in doing field work an roaming in

the market. They know that without hard work they cant earn money.

There were many respondents who were not interested in attending seminar conducted by Bajaj

Allianz among Indian Market.

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CONCLUSION

The bajaj Allianz insurance company is entering into booming here. To increase the market share in

insurance time-to-time research projects are undertaken and this prefects was endeavor in that direction.

To conclude their can't be two ways about Bajaj Allianz life Insurance, commanding a very good brand

image people mostly does not go by Bajaj people still think that Bajaj is partly owned by government.

And hence would be more secure to invest here growing at a breakneck pace with a strong pan Indian

presence Bajaj Allianz has emerged as a strong player in India.

Characterized by global presence with a local focus driven by customer

orientation to establish highearnings potential and financial strength.

Limitation

It is well known fact that constraints and limitation are bound to present in any study do this also has

some limitation as:

It is very difficult to make the people understand the significant of conducting survey.

Lack of knowledge of area has also affected the research.

Due to shortage of monitory resources the project report does not reach to its perfection.

Market share can fluctuate for much minor reason.

Sometimes people don't give the clear answer during the survey.

The people are much faith on L.I.C.

RECOMMENDATIONS

There should be focus on advertisements through T.V. or other Electronic Media.

Try to make Brand Image, with the help of Bajaj Auto, more & more as it has a strong brand

image in Indian market.

Make use of internet banking for increasing sales, and also for promotion.

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They should increase their Distribution Channels by more & more tie ups with the locals banks

also, because they can help them to penetrate in Indian market easily.

There should be more incentives to ICs as they are the backbone of the company in order to

increase sales they have to do more efforts thanothers.

Annexure

Q1.Do you know about the Bajaj Allianz Life Insurance companies?

Yes No

Q2. Would you l ike to earn some extra money?

Yes No

Q3. What is desired or expected monthly income?

0 5000

5000 10000

10000 15000

15000 20000

20000 and Above

Q4. How much t ime you can provide easily besides your job hours?

0-2

4-6

6-8

Full Time

Q5. Do you have your own vehicle?

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Yes No

Q6. Do you have your own mobile?

Yes No

Q7. Would you l ike to work in market/field and want to interact with people?

Yes No

Q8. Would you l ike to come our company off ice and spend your some t ime with our

people in a seminar?

Yes No

Q9. Do you want that a sales manager should approach you for agency?

Yes No

Q10. How many people do you know in LIC?

0 50

50 100

100 150

150 200

200 and Above

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