WELCOME

Presentation on Market Potential of TATA

AIG Life Insurance
was done by Amrinder Singh in Summer
Training Project Report

Submitted by:
submitted To:
Amrinder Singh Mr. V.J. Rai & Mr
Amanpreet Singh
 Table of Contents
Chapter Title of Topic
No

1. Introduction /
Review of Literature
2. Research
Methodology
3. Data Analysis &
Interpretation
4. Findings &
Recommendations
 CHAPTER . 1

INTRO / REVIEW OF
LITERATURE
Tata AIG Life Insurance Company Ltd.

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint
venture company, formed by the Tata Group and American
International Group, Inc. (AIG). Tata AIG Life combines the Tata
Group’s pre-eminent leadership position in India and AIG’s global
presence as one of the world’s leading international insurance and
financial services organization. The Tata Group holds 74 per cent
stake in the insurance venture with AIG holding the balance
26 per cent. Tata AIG Life provides insurance solutions to
individuals and corporates. Tata AIG Life Insurance Company
was licensed to operate in India on February 12, 2001 and
started operations on April 1, 2001.

THE TATA GROUP

Tata is a rapidly growing business group based in India with

significant international operations. Revenues in 2007-08 are
USD 62.5 billion (around Rs. 251,543 crores), of which 61%
was from business outside India. The Group’s Net Profit for
2007-08 is USD 5.4 billion (around Rs. 21,578 crores). The
Group employs around 350,000 people worldwide. The Tata
and Chemicals. The Group's 28 publicly listed enterprises have a
combined market capitalisation of around $60 billion, among the
highest among Indian business houses, and a shareholder base of 2.9
million. The major companies in the Group include Tata Steel, Tata
Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals,
Tata Tea, Indian Hotels, Tata Teleservices and Tata Communications.
American International Group, Inc. (AIG)

American International Group, Inc. (AIG), a world leader in insurance

and financial services, is the leading international insurance
organization with operations in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional and
individual customers through the most extensive worldwide property-
casualty and life insurance networks of any insurer. In addition, AIG
companies are leading providers of retirement services, financial
services and asset management around the world. AIG's common
stock is listed on the New York Stock Exchange, as well as the stock
exchanges in Ireland and Tokyo.
 
INDIAN INSURANCE MARKET (HISTORY)

Insurance has a long history in India. Life Insurance in its current

form was introduced in 1818 when Oriental Life Insurance
Company began its operations in India. General Insurance
was however a comparatively lateentrant in 1850 when Triton
Insurance company set up its base in Kolkata. History of
Insurance in India can be broadly divided into three eras: a)
Pre Nationalization b) Nationalization and c) Post
Nationalization. Life Insurance was the first to be
nationalized in 1956. Life Insurance Corporation of India was
formed by consolidating the operations of various insurance
companies. General Insurance followed suit and was
nationalized in 1973. General Insurance Corporation of India was
set up as the controlling body with New India, United India, National
and Oriental as its subsidiaries. The process of opening up the
insurance sector was initiated against the background of Economic
Reform process which commenced from 1991. For this purpose
Malhotra Committee was formed during this year who
submitted their report in 1994 and Insurance Regulatory
Development Act (IRDA) was passed in 1999. Resultantly
 THE JOINT VENTURE

Tata AIG Life Insurance Co. Ltd. is capitalized at

Rs. 185crores of which 74 per cent has been
brought in by Tata Sons and the American
partner brings in the balance 26 per cent. Mr.
George Oommen has been named managing
director of Tata AIG Life. Tata-AIG plans to
provide broad array of life insurance plans to
cover to both individuals and groups. The
company headquartered in Mumbai, with branch
operations in Delhi, Chennai, Hyderabad,
Bangalore Calcutta, Pune and Chandigarh
 CHAPTER . 2

RESEARCH METHODOLOGY
 OBJECTIVE OF THE PROJECT

Main objective of the project is to find out the market potential of

TATA AIG in Ludhiana city. Project is about to find out competitors of
TATA AIG LIFE INSURANCE company. Nowadays all the insurance
companies in India are trying to establish themselves in the
competitive market. They are introducing innovative marketing
strategies to survive in the market. Many other private companies
are looking to enter in the Indian insurance market.
 
To find out market potential of TATA AIG in Ludhiana city.
 
Main competitor of TATA AIG.
Which type of policies is preferable.
Most preferable plans in Ludhiana city.
Which sector most preferable public or private.
Targeting the right and potential customers.
Differentiating from other companies.
 METHODOLOGY

Research is totally based on primary data. Secondary data

can be used only for the reference. Research has been
done by primary data collection, and primary data has been
collected by meeting with the people in LUDHIANA. Data
collection has been done through by giving structured
questioner. This study will be based on sampling. This is an
exploratory type of research. The study was aimed at measuring
the customer’s preference for life insurance companies and the
comparison of various insurance policies of the various companies
on basis of various parameters based on customer’s responses in
LUDHIANA region only. The
survey was done on hundred general residents of the
selected region. Methods adopted for surveys 1. Field
survey method 2. Personal interview technique 3.
Secondary sources viz company database. The data
collected are represented into suitable tabular forms for drawing
inferences. Quantitative techniques like averages, percentages,
range, two-way tables, chi- square tests analysis are applied as per
the requirement .The level of preference, perception of the
customers about the product and company
 Questionnaire Designing

The project is on “Market Potential Study of Tata AIG in LUDHIANA

city”. To know the market potentiality of Tata AIG a questionnaire
has been prepared. The questionnaire is having both open ended
and close ended questions. It is also having ranking, multiple choice
and check list type of questions. First part of the questionnaire is
the demographic part. Questionnaire has been prepared in such a
way that we can understand insurance policies are dependable on
the occupation of a person or income level of a person. Which type
of investment do they prefer? For it cluster analysis will be used.
Nowadays private players are giving a good rate of return rather
than the public player. So in which sector (private or public) do they
like to invest and what is the reason behind that? To get to know
the reason Likert scale has been used. To get to know how much
Tata AIG is preferable in LUDHIANA city a ranking scale has been
used where name of different major Insurance Companies have
been given and according to the ranking given by citizen we can get
to know the potentiality of Tata AIG in LUDHIANA city. There is
different type of insurance policies in the market. Which type of
policies do they prefer can understand from the questionnaire.
Which life insurance policies of Tata AIG are most preferable we can
get from it. To know all of these cluster analysis will be used.
 LIMITATION OF THE STUDY
• Time limitation

• Research has been done only in LUDHIANA.

• Companies did not disclose their secrets data and

strategies.

• Possibility of Error in data collection.

• Possibility of Error in analysis of data due to small

sample size.

• Respondents error

• Limited resources
 CHAPTER 3
 
DATA ANALYSIS AND
INTERPETATION
Age wise classification:

Table
1

Figure 1

Interpretation: -

This figure shows that 44 people belong to age group of 31-45.

So we can say adult more prefer insurance.
Gender wise classification

Table 2

Figure 2

Interpretation: -

This figure shows gender by classification that 66% male and

34% female have respondent .
 Income wise classification:

Table 3

Figure 3
Interpretation: -

41% of people have take insurance and is ranked number one by

that percent of respondent.
 Type of policy respondent
have:

Table 4

Figure 4

Interpretation: -

It is clear from the chart that 50% people come to take all policies
it’s mean customer have more aware to the all type of insurance.
Number of respondent have knowledge of plans and updates on company:

Table 5

Figure 5
Interpretation: -

It is clear from the chart that 48 people say yes and 24say no . It’s mean customer
have more aware to the all plans and updates for the company.
 Sources of the information about company plans:

Table 6

Figure 6

Interpretation: -

This chart shows that agent is the most communicational tool for insurance
company.
MARKET POTENTIAL STUDY OF TATA AIG:
100 sample size taken to know the market potential of TATA AIG. Out of 100
samples 15 sample size have been rejected due to insufficient information. So we
have taken y sample size of 85. To find out the market potential of TATA AIG we
have taken the ranking of 10 major insurance companies are as below:

Table 7
 CHAPTER 5
 
Findings and
suggestions
5.1. RECOMMENDATIONS TO THE COMPANY:
Being the best product player in the private sector, but still survey TATA AIG needs to
improvement regarding its premium charges and advertisement to its target customers.
A) Premium charges
Owing to its high premium charges (Tata AIG Apex Plan, Premium RS. 90000/-)
customers perception about the company’s product has become that its only for the upper
middle class people. Whereas TATA AIG do has some policy with low premium but the
charges of allocation are too high. So we would like to suggest slowing down its premium
charges to some extend by reducing administration charges and other charges.
b) Advertisement:
During survey we have found that due to lack of advertisements about the products and
agents selling the products in which they get high commissions customers are somewhere
mislead and they know about very few products though TATA AIG has wide range of
variety of the products. So we would recommend TATA AIG to invest more in
advertisement in form of TV commercials, pamphlets and hoardings.
c) Wrong perception:
AIG is on the edge of filing bankruptcy. So Tata AIG is also going to on the brink of filling
bankruptcy. But insurance in India is a highly regulated industry. Any company that wants
to set up an insurance business has to follow very stringent norms given by the Insurance
Regulatory & Development Authority (IRDA). So company should take positive measure to
remove this wrong perception from the people.
d) Sample size:
For this research study only hundred sample size has been taken. The result will be more
appropriate if a large sample size is considered.
5.2. BENEFITS TO THE COMPANY AND US:
During the survey time sales have been done. It is a win-win Situation for
both company and me. The benefits of this summer internship program are
discussed below.
1. Benefit to the company:
a) This survey has been done in LUDHIANA region on comparison of
TATAAIG‟s product and its competitor can give an idea of this position in the
market. As TATA AIG leads in most of the parameters so it should continue to
serve in the same manner.
b) The survey also shows the customers perception about TATA AIG‟s life
Insurance product with which it can improve its impression better than now.
c) The recommendation has given in this report will help TATA AIG to position
its product properly to the target customers
d) Moreover the sales has been done during this internship have done a good
business for the company.
2. Benefit to us:
a) Doing internship in TATA AIG have given me immense experience in the
insurance industry for these fourteen weeks.
b) Interaction with the customers for survey and sales has developed our
marketing skills.
c) Working in the office premises has given exposure to corporate world and
an experience in working in corporate pressure.
THANK YOU