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Live Project Report

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BAJAJ ALLIANZ LIFE INSURANCE CO. LTD.

INDEX

Serial No. 1. 2. 3. 4. 5. 6.

Chapters Company Profile Conceptual Discussion Research Methodology Data Analysis SWOT Analysis Conclusion & Recommendations Bibliography Questionnaire

Page No 4 6 9 10 15 18 21 22

CHAPTER 1 COMPANY PROFILE

Bajaj Allianz Life Insurance Company Limited
Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Company and Bajaj FinServ Ltd.

Allianz SE:
Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over 119 years of financial experience and is present in over 70 countries around the world.

Bajaj FinServ:
The financial services and wind energy businesses were transferred to Bajaj FinServ Limited (BFS) as part of the recently concluded demerger of Bajaj Auto Limited, approved by the Hon. High Court of Judicature at Bombay by its order. The company is currently engaged in life insurance; general insurance and consumer finance businesses. Apart from financial , BFS is also active in wind-energy generation. At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our business philosophy is to ensure excellent insurance and investment solutions by offering customised products, supported by the best technology.

COMPANY VALUES:
Customer delight the guiding principle Ensuring world class solutions & services Offering customised products Transparent benefits.

LIFE INSURANCE PLANS offered by Bajaj Allianz : Bajaj Allianz offers 26 Life Insurance Plans in 6 different categories :1. plans: Guaranteed-maturity.jsp iGain lll Max-advantage Wealth-insurance plan Shield-insurance plan Money-secure Assured-protection plan Smart-insurance-plan Unit linked insurance 2. plans Invest-gain Save-care-economy Life-time-care Super-saver Cash-rich Super-cashgain-insuranceTraditional insurance

plan

Cash-gain Child-gain

3.

Pension plans Swarna-vishranti Pension-guarantee

4.

Term plans Protector-plan Term Care New Risk Care ll iSecure Loan iSecure More

5. Women Insurance

6. Life + Health Insurance

Women life insurance

Health Care Family Care First

CHAPTER 2 CONCEPTUAL FRAME WORK

LIFE INSURANCE ADVISORS/AGENT
Persons who sell insurance policies, for a single insurance company, in return for commissions are called ADVISORS/AGENT. The Insurance Act, 1938 defines Agent as one who is licensed under the act & is paid consideration of his soliciting or procuring insurance business including business relating to continuance, renewal or revival of policies of insurance.

The importance of advisors:

Provides Complete & diversified product portfolio.

Faster & more accurate service. Multi-channel distribution systems. Highly trained professional sales people offering quality pre & post sales service. It is in the above mentioned areas of personal specialization where the importance of an advisor clearly stands out the advisor not only contribute in bring in new business for the company, but also plays an important part in offering world-class pre & post sales service to the clients to the clients with the support of the organization. 5

But the company in its principles clearly states out that an advisor to means much more than a salesman or a saleswoman, we at Bajaj Allianz recognize out advisors as the ambassadors of our organization in the market place & we consider the advisor force would be our biggest differentiating factor in the coming years. The advisor is an important asset not only for the organization from the business point of view but also to the society on the whole as he/she is someone who provide valuable service to the community be helping people attain financial security & build funds for their future needs thereby assisting them in getting their financial freedom.

THE PROFILE OF AN ADVISOR (Qualifications)

1. Age should be ideally between 18- 60 years.

2. Minimum education qualification:- Urban areas 12

3. Good & convincing communication skills. 4. Capacity to build an impressive network. 5. Engaged in gainful business or corporation.

th

Class

-Rural areas 10th Class.

6. Willing to undergo extensive training & development programs. 7. Pleasing personality.

BENEFITS TO AN ADVISOR
There are some reasons and parameters to be an advisor of the insurance company which are mentioned below: Money Status

Prestige Honor Mitigate human hardship Contribute to the nation

ADVISORS ROLE
I. II. III. IV. V. Identify future client Making appointments Conduct financial review with clients Close sale Get referrals Provide service to the client.

I.

Motivating Factors For The Advisors

Every time only money might not be the motivator to the advisor. Bajaj Allianz believe that there are many other things that advisors aspire to achieve-fame and recognition. Some of the benefits and club membership are mentioned below which give the advisors fame and recognition. Achievers club Job Profile Benefits & Support Provided Rewarding career Successful Team Attractive Remuneration 7

Independence Extensive Product Portfolio Sales & Marketing Support

CHAPTER 4 RESEARCH METHODOLOGY

RESEARCH METHOLOGY is the process, which guide the researcher during the whole course of research. Hence it is, very much necessary for the researcher that he / she has to adopt the design best suited to them.

DATA COLLECTION: 1. PRIMARY DATA: The primary data are those which are collected a fresh and for the first time and thus happen to be original in character. 2. SECONDARY DATA: The secondary data on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical process. For collecting primary data, method adopted was focus group method. Source of primary data 1. Natural Market Relatives Friends Neighbors 8

2.

Survey

Source of Secondary Data 1. 2. Company website Reference data

Sample Size: - 50 respondents

CHAPTER 5 DATA ANALYSIS & INTERPRETATION

Q1. For how long are you working with Bajaj Allianz?
20 15 10 5 0 5 18 15 12 L s than 1 year es 1-2 years 2-3 years More than 3 years

Less than 1 year 18 1-2 years 12 2-3 years 15 More than 3 years 05 Q2. How many products have you sold as an advisor?
30 20 10 0 26 15 6 3 L s than 10 es 10-20 20-30 More than 3 0

Less than 10
9

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10-20 15 20-30 06 More than 30 03 Q3. Whats the purpose of buying an insurance product by customers?
30 21 20 10 0 19 6 Tax benefit Inves ent tm S ecurity Any other

Tax benefit Investment Security Any other Q4. Products which are sold most?
40 30 20 10 0 7 37

21 19 06 04

Unit link plan S art kit Plan m Annuity Plan

Unit link plan Smart kit Plan Annuity Plan Q5. Products which are sold least?
10

37 07 06

30 20 10 0

23 17 10 Termplan Endowm ents plan Group Ins urance

Term plan Endowments plan Group Insurance

23 17 10

Q6. Rate the products of Bajaj Allianz in comparison to its competitors?

20 15 10 5 0 4 19 16 11 Bes t Good Averag e Poor

Best Good Average Poor

19 16 11 04

Q7. What motivates you to stay in this business?

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30 20 10 0 21 17 7 5 Money R ecog nition Motivation by co./UM Any other

Money Recognition Motivation by co./UM Any other

21 17 07 05

Q8. Are you satisfied with the commission provided by the co.?
40 30 20 10 0 32 18 Y es No

Yes No

32 18

Q9. Are you satisfied with the facilities provided by the co. to its advisors in comparison to other players?
12

40 30 20 10 0

34 16 Y es No

Yes No

34 16

Q10. How Bajaj Allianz Life Insurance is better than other companies?
20 15 10 5 0 20 17 13 C m s om is ion R ecog nition Better Products

Commission Recognition Better Products

20 17 13

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CHAPTER 6 SWOT ANALYSIS

STRENGTH
Bajaj Allianz Life Insurance Company Limited is right now the market leader in Private Insurer segment. Good Brand name Bajaj and Allianz are one of the market leaders in their respective sectors. Moody has rated Bajaj Allianz as BA1 above Indian democracy in terms of investment security. Handsome deposit with IRDA Bajaj Allianz has a deposit of total 230 crores with IRDA (Insurance Regulatory Development Authority) as against the minimum cap of Rs. 100 crore. This will assure that the claimants will get their money back on time without any delay. A Complete and diversified Product portfolio The company has a total number of 24 products in 5 categories on offer to the general public, keeping in mind the requirements of the public at different age levels. This is one of the vital strengths of the company. Fast and Accurate Service to the customer The mission statement of the company promises to provide superior products and services to the customer by understanding their needs. The use of latest technology helps the company to give to its customer fast and accurate service. A Highly Trained and Professional Sales Force

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All the employees who are associated with Bajaj Allianz are highly trained and professional in attitude. This quality staff ensures high quality pre and post sales services.

Leader in Terms of Premium Collected The company was the leader in terms of collection of premium that amounted to a sum total of Rs. 122 crores in the last financial year ahead of New York max (43 crores) and HDFC Std. (36crores) Investment in Secured Sector The company has invested 85% of that amount in Government Security and has kept the remaining 15% as a reserve for pre claim settlements.

WEAKNESS
The company right now has lesser number of agents (i.e. financial advisors) than LIC of India, which affects their sales in comparison to LIC of India. Low Reach Since the company has started its operations recently its reach is very limited while its rival LIC has a reach in almost every part of the country. Too Much Dependent On Government The main reason behind the general public to buy insurance is the tax benefits that the assesses gets. If the government reduces the exemption given under different sections the general public may think it otherwise to buy the policy. Though the company aims to change the mindset of the public but still it is the biggest weakness in all insurance companies.

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OPPURTUNITY
Bajaj Allianz Life Insurance Company Limited can give LIC of INDIA agents an opportunity to join Bajaj Allianz Life Insurance Company Limited as Bajaj Allianz has got more incentive packages & servicing quality better than LIC of INDIA. Doing this they can reduce their cost of training and can exploit their experience. Majority of the Market Still Untapped. Under the survey that was carried out it was discovered that only 22% of the total insurable public has taken some or the other insurance. Thus, it is a great opportunity for the company to capture a good market share. Capping in RBI bonds The Reserve Bank of Indian Offers a medium returns tax saving bonds. But from this financial year in the recent amendments there has been a capping on maximum amount i.e. 2 lack that a person can invest. This is a good opportunity for the company to sell its investment products that also promises insurance with tax benefits.

THREAT Competition
Other big brand names like BIRLAS, TATA, HDFC, SBI and AVIVA etc. POLITICAL Right one Bajaj Allianz Life Insurance Company Limited, can go for opening up more & more offices, as the present political environment is business friendly. ECONOMIC

16

Currently economy is not stable, so people want to invest in Govt. sector. SOCIAL

CHAPTER 7 CONCLUSION &

RECOMMENDATIONS

CONCLUSION
The following are the conclusive evidences framed after completion of the necessary training report mentioned here under as follows:

1)
2)

Bajaj Allianz has interested and profitable planes for different age group. There are lots of scopes of life insurance in Indian only 2.5 people are secure

with life insurance so the insurance sector is its booming stage this boom will more increase in 2 or 3 years.

3) 4)

Good profile insurance advisor could do the better job. If Bajaj Allianz

mentions the level of advisor them they may give great sales to the company. Bajaj Allianz has tuff competition with LIC as well as TATA AIG, ICICI

PRUDENTIAL, BIRLA SUNLIFE INSURANCE, SAHARA, ING VYSYA, OM 17

KOTAK MAHINDRA, HDFC INSURANCE, SBI LIFE AND RELIANCE LIFE INSURANCE, PNB LIFE INSURANCE.

5)

BAJAJ ALLIANZ LIFE INSURANCE COMPANY has great goodwill in

market in liberalized Indian market there are approximately 13 big companies in Indian market and BAJAJ ALLIANZ is the No.1 private insurance company. I found this fact in my recent survey. 6) If the company starts to concentrate on village segment market. Then

company can get great business. 7) I got the good profile people near by bank and share market. When I

concentrated on the 20-25 year age group people I found good result. 8) Within 20-25 year age group the sincerity level is high. They are career

oriented and want to earn more. 9) In the age group people made interest to purchase the kids plan and pension

plan and money back plan. 10) In the age group of 30-35 years the people who earning more then 3 lakh p.a.

made interest to purchase ULIP. 11) I found that in insurance sector a person should have great communication

and convenience skill.

12) 13)
14)

People made interest in the business opportunity of Bajaj Allianz because

there are lots of chances to increase earning and make high place in the company. People took interest in CUG programme and also life the professional

environment of the company. In my survey I found that low percentage of people is aware with the life

insurance. 15) It was great experience to communicate with different people. I learnt

through cross-question by peoples. 18

RECOMMENDATIONS
After going table regarding market share of various companies in the financial year , there is no reason why Bajaj Allianz should rejoice of being the number one company in the country.

The growth that companies like BIRLA SUNLIFE, SBI LIFE INSURANCE,
TATA-AIG, ICICI PRUDENTIAL, MAX NEWYORK, AVIVA, , METLIFE have produced that can be quite a big unseen threat for the company in the coming years.

The company should start thinking of what they want from the market &
where they want to see themselves after a span of 10 years because if the popularity of these companies continues then one day they will become good competitors of Bajaj Allianz & then the consequences can be quite disturbing for the company.

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BIBLIOGRAPHY
Books:

2008

Mathew, M.J., Risk Management & Insurance , RBSA Publishers , Jaipur ,

Gulati, Neelam C., Principles of Insurance Management, Excel Books, New

Delhi,2009.

Websites:

www.bajajallianz.com www.google.com

http://www.bajajallianz.com/Corp/aboutus/life-insurance-company.jsp

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QUESTIONNAIRE
PURPOSE: To get a better insight about the advisors satisfaction level the various improvements to be done in the Bajaj Allianzs product. NAME:.... QUALIFICATION: AGE:... PROFESSION:.. TEL No.:. Q1. For how long are you working with Bajaj Allianz? o Less than 1 year o 1-2 years o 2-3 years o More than 3 years Q2. How many products have you sold as an advisor? o Less than 10 o 10-20 o 20-30 o More than 30 o o o o Q3. Whats the purpose of buying an insurance product by customers? Tax benefit Investment Security Any other_______________________________ Q4. Products which are sold most? o Unit link plan o Smart kit Plan o Annuity Plan Q5. Products which are sold least? o Term plan o Endowments plan
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o Group Insurance Q6. Rate the products of Bajaj Allianz in comparison to its competitors? (Best = 4 pointsgood = 3 points average = 2 points poor = 1 point) o Best o Good o Average o Poor Q7. What motivates you to stay in this business? o Money o Recognition o Motivation by co./UM o Any other___________________ Q8. Are you satisfied with the commission provided by the co.? o Yes o No If no, why___________________________ Q9. Are you satisfied with the facilities provided by the co. to its advisors in comparison to other players? o Yes o No If no, why_____________________________________________ o o o Q10. Bajaj Allianz Life Insurance how to better other companies? Commission Recognition Better Products

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