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SUMMER TRAINING PROJECT

REPORT AT IFFCO TOKIO


INSURANCE SERVICES Ltd.

PRESENTED BY:
ANJALI VERMA
OUTLINE OF THE PRESENTATION
üCompany Profile.
üVarious assignments.
üSummer training project – Analysis of the
Business Practices of the Company .
üLearnings.

SECTION - 1
COMPANY PROFILE
ü IFFCO-Tokio Insurance Services Limited (ITIS) is a
wholly owned subsidiary and a retail marketing arm of
IFFCO TOKIO General Insurance Co. Ltd. (ITGI).

ü It was incorporated on 1st August 2003.


ü ITIS has its own offices known as Lateral Spread Centers


in 103 locations as on April 2010.

ü ITIS targets Cooperative premium through Bima Kendras


which are 265 as on April 2010.

ü The strength of ITIS as on April 2010 is 1343.


SECTION - 2
VARIOUS ASSIGNMENTS
OBJECTIVE OF THIS SECTION

ü
ü
BENEFITS
ü It helps to understand the insurance sector from wider
range.
ü It gives the knowledge of new concepts.
ü It helps me to understand the structure and the service
being provided by the company.
ü
SECTION – 3
PROJECT
ANALYSIS OF BUSINESS PRACTICES OF
THE COMPANY
OUTLINE OF THE PROJECT
üNeed of the study.
üObjective of the study.
üLimitations of the study.
üResearch Methodology.
üFindings and Analysis.
üSuggestions.

ü
NEED OF THE STUDY
üTo get the framework of the company’s
working.
üTo analysis the business practices of the
company.
OBJECTIVE OF THE STUDY
ü To understand the concept of insurance.
ü To analyse the overall business practices of the company.
ü To analyse the retrospective growth and performance of
the company.
ü To analyse various threats and opportunities for the
company.
LIMITATION OF THE STUDY
ü The research was carried out in a short period of 6 weeks
as a part of summer training.

ü The analysis was done on business practices so it was not


possible to have confidential data being used for the
project.
ü
RESEARCH METHODOLOGY
Ø RESEARCH METHOD:-
 Observation and interviews with the employees of the
company.

Ø DATA COLLECTION:-

 PRIMARY COLLECTION - Information from the employees


of the company deputed into different departments.

 SECONDARY COLLECTION - Annual reports, MIS,


monthly reports and company’s websites

INSURANCE
Ø Insurance is defined as the equitable transfer of the risk of a
loss, from one entity to another, in exchange for a
premium, and can be thought of as a guaranteed small
loss to prevent a large, possibly devastating loss.
Ø An insurer is a company selling the insurance
Ø An insured is the person or entity buying the insurance.
Ø The insurance rate is a factor used to determine the amount
to be charged for a certain amount of insurance coverage,
called the premium.

CATEGORIES OF INSURANCE
The Insurance Regulatory and
Development Authority (IRDA)

IRDA was set up as
an independent
regulatory authority,
IRDA has been
framing regulations
and registering the
private sector
insurance
companies.

FINDINGS AND ANALYSIS
ITGI Premium Share in the Insurance
Industry
ANALYSIS OF BUSINESS
CONTRIBUTION BY ITIS

ITIS CONTRIBUTION IN BUSINESS OF ITGI

Amount in Crore
IT IS ITGI % CONTRIBUTION OF
TOTAL ITIS
2007-08 383 1235 26.16
2008-09 555 1515 31.88
2009-10 651 1639.56 35.34
CONTRIBUTION FROM VARIOUS
BUSINESS MODELS OF ITIS
RECOMMENDATIONS
ü The maximum premium is procured from LSCs which amount
to around 71% of the total business. The company can
increase the percentage by increasing the number of LSCs
and transferring manpower to more potential LSCs.
ü
ü The company can to focus more on Banc assurance and
Cooperative models as they are the potential models and
gain lot of opportunity for the company.
ANALYSIS OF PREMIUM EARNED
BY LSCs.
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

2008-09 23.5 23.3 24.9 23.8 21.6 22.5 27.5 24.1 29.5 26.5 29.1 31.3

2009-10 23.9 24.4 26.8 24 22.7 25.7 31.5 28.3 29.6 30.3 35.9 30.5

GROWTH % 1.6 4.7 7.6 0.9 5.7 14.1 14.4 17.4 0.1 14.4 23.4 -2.8
RECOMMENDATIONS
ü The maximum premium is achieved during the month of
February.

ü The company can focus on On- Job training with senior


employees rather than focusing on Back office
training.

PRODUCT WISE PREMIUM
SERVICED BY ITIS
RECOMMENDATIONS
ü The company can focus more on micro insurance
products .
ü The company can also focus on servicing unique health
products.
ü The company can also focus on servicing Marine
insurance as it is the emerging area with lots of
opportunity.
ACHIEVEMENT ANALYSIS
RECOMMENDATIONS
ü Achievement analysis helps the company to set target for next
financial year in order to procure more business than
previous financial year.

ü Company can to focus on states like West Bengal where


premium achieved is more than target. The target set was
also low compared to other states. Thus the company need
to focus on setting high target for such LSCs in order to
increase business procurement.

ü The company can gain opportunity by looking towards states


like Karnataka, west Bengal, etc
ü
ANALYSIS OF EILR OF LSCs
ü Earned Incurred Loss Ratio (EILR) = Net Incurred
Loss / Net Premium Earned.

ü The company has set a particular benchmark for different


LSCs which is of 50%.

ü There are certain LSCs which has EILR above the


benchmark. The reasons are:
 1. High claims: - this may occur due to poor
underwriting. Thus the particular LSCs need to go for
proper underwriting for reducing risk and reducing EILR.
 2. High Expenses and Running Cost

RECOMMENDATIONS
ü The company can focus on minimising the budgeted
expenses.

ü The company can focus on low EILR LSCs like Kerala,


Tamil Nadu and Gujarat to generate more premium
and growth of the business.
ü
ANALYSIS OF EXPENSE RATIO
OF LSCs
üExpense ratio = Total premium / Running
expenses

üThe benchmark for expense ratio is 4%.


üThe reason for expense ratio above the


benchmark may be high expense or low
premium earned.
RECOMMENDATIONS
ü LSCs can look their budgeted expense cost and can sketch
certain limits for that.

ü LSC under Delhi & NCR has more fixed expense compared to
LSC under Gujarat, Punjab, and Kerala (through the
analysis from fixed and variable expense of LSCs) which is
78.18% of Delhi & NCR. This shows that the LSC has more
manpower and thus they can earn more premiums to reduce
the expense ratio.

SECTION - 5
LEARNINGS
üLearnt communication skills.
üLearnt how to draft an official mail.
üLearnt negotiation skills.
üLearnt Team work.
üLearnt Punctuality.
üLearnt formal etiquettes.
üLearnt how to improve personality.
üLearnt to cope up against unfortunate
condition.