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Bajaj Allianz General Insurance Trianing Report
Bajaj Allianz General Insurance Trianing Report
Bajaj Allianz General Insurance Trianing Report
A STUDY OF STRATEGY AND FUNCTIONING OF FIELD FORCES IN BAJAJ ALLIANZ GENERAL INSURANCE Submitted to
In partial fulfillment of the Requirements for the award of Degree of Master of Business Administration
Submitted by:
Name of the student University Roll No. University Reg.No. Ankit Kumar S1803B32 (2nd SEM) 10810218
CERTIFICATE
Lovely Professional University, Chaheru, Phagwara (Punjab)-144402, bearing Registration Number-10810218, and was successfully conducted at BajajAllianz General Insurance Co.Ltd.,Ghaziabad Office, from 1st July 2009 to 14th August 2009, for the partial fulfillment of the course M.B.A of Lovely Professional University,Phagwara (Punjab).
Mr. Rahul Tomar, Direct Marketing Incharge (Sales Manager) BajajAllianz General Insurance,
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Ghaziabad.
ACKNOWLEDGEMENT
No man is indispensable but there are certain mortal without whom the quality work suffers their guidance becomes important in acquiring quality results.
I would like to express my gratitude to all those who gave me the possibilities to complete this thesis.I want to thank Sales Manager, Bajaj Allianz, Ghaziabad, Mr. Rahul Tomer for giving me permission to commence this thesis in the first instance, to do the necessary research work and for being my Company Guide. With a deep sense of gratitude and humble submission I would like to express my heartiest gratefulness to my Faculty Guide Lect. Rohit Duggal, whose help, stimulating suggestions and encouragement helped me in all the times of research for and writing of this thesis.
I am also grateful to my parents and friends who inspired me to put my best efforts.
Date: Signature:
(ANKIT KUMAR)
TABLE OF CONTENTS
Sr.No
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
CONTENTS
INTRODUCTION SECTOR PROFILE COMPANY PROFILE OBJECTIVES OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION OBSERVATIONS & FINDING SUGGESTION
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21 31 33 39 50 52 54 55
BIBLIOGRAPHY
QUESTIONNIARE
INTRODUCTION
INTRODUCTION
A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategy as a key part of the general corporate strategy marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and competitors in the market arena for success. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. They should flow from the firm's mission statement. They are also influenced by a range of micro environmental factors.
Marketing strategy and sectarian tactics and actions: A marketing strategy also serves as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service."
A strategy consists of well thought out series of tactics. While it is possible to write a tactical marketing plan without a sound, well-considered strategy, it is not recommended. Without a 6
A good marketing strategy should integrate an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable.
Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. Types of marketing strategies Every marketing strategy is unique, but if we abstract from the individualizing details, each can be reduced into a generic marketing strategy. There are a number of ways of categorizing these generic strategies. A brief description of the most common categorizing schemes is presented below:
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.
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
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 organisations. Insurance companies (ICs) are important players in financial markets as they collect and invest large amounts of premium. Insurance products are multi purpose and offer the following benefits: 1. Protection to the investors 2. Accumulate savings
SECTOR PROFILE
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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:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 11
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.
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INSURANCE SECTOR
The opening up of Insurance sector was a part of the on going liberalization in the financial sector of India. The changing face of the financial sector and the entry of several companies in the field of life and non life Insurance segment are one of the key results of these liberalization efforts. Insurance business by way of generating premium income adds significantly to be the GDP. Over the past three years, more than thirty companies have expressed interest in doing business in India. The IRDA (Insurance Regulatory Development Authority) is the regulatory authority, which looks over all related aspects of the insurance business. The provisions of the IRDA bill acknowledge many issues related to insurance sector. The IRDA bill provides guidance for three levels of players - Insurance Company, Insurance brokers and Insurance agent. Life Insurance sector is one of the key areas where enormous business potential exists. In India currently the life insurance premium as a percentage of GDP is 1.3 % against, 5.2 per cent in the US.
General Insurance
General Insurance is another segment, which has been growing at a faster pace. But as per the current comparative statistics, the general insurance premium has been lower than life insurance. General Insurance premium as a percentage of GDP was a mere 0.5 'per cent in 1996. In the General Insurance Business, General Insurance Corporation (GIC) and its four subsidiaries viz. New India Insurance, Oriental Insurance, National Insurance and United India Insurance, are 13
In 1994, the committee submitted the report and some of the key recommendations included:
Competition: 1. Private Companies with a minimum paid up capital of Rs. 1 bn should be allowed to enter the industry.
2. No Company should deal in both Life and General Insurance through a single entity.
3. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.
5. Only one State Level General Insurance Company should be allowed to operate in each state.
Regulatory Body:
1. The Insurance Act should be changed. 2. 3. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.
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Investment:
1.Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%.
2. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time.)
Customer Service: 1. LIC should pay interest on delays in payments beyond 30 days.
3. Computerization of operations and updating of technology to be carried out in the insurance industry.
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Life Insurance
General Insurance
1. Oriental Insurance Company Ltd. 2. New India Assurance Company Ltd. 3. National Insurance Company Ltd. 4. United India Insurance Company Ltd.
New Entrants
ICICI Prudential Life Insurance Ltd. Tata AIG Life Insurance Corporation Ltd. ING Vysya Life Insurance Corporation Ltd. Om Kotak Mahindra Life Insurance Corporation Ltd. MaxNewYork Life Insurance Ltd Bajaj Allianz General Insurance Company Ltd. Reliance General Insurance Company Ltd. Tata AIG General Insurance Company Ltd. Royal Sundaram Alliance Insurance Company Ltd.
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MARKET SHARE
In the FY2008 ICICI Lombard and Bajaj Allianz have witnessed aggressive growth by making the retail segment their target segment ,aggressive growth strategies and huge distribution network.The general insurance industry has witnessed the entry of many nontraditional players .IRDA has issued a license to the Rajan Raheja Group(RRG) for setting up a general insurance joint veture with Australias QBE Insurance Group.Last two years have seen the emergence of special institutions,such as ECGC,Star Health&Allied Insurance ,Appolo DKV and Agriculture Insurance Co.
Motor insurance has the biggest share in general insurance market and show a high growth over three years. Corporate ex-health shown a low depression in Fy 2006-07 and high depression in Fy2007-08.Health insurance shows positive trend in all these FYs.
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COMPANY PROFILE
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Vision
To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value
Mission
As a responsible, customer focused market leader, we will strive to understand the insurance 21
Achievements
Bajaj Allianz has received "iAAA rating, from ICRA Limited, an associate of Moody's Investors Services, for Claims Paying Ability.This rating indicates highest claims paying ability and a fundamentally strong position Bajaj Allianz General Insurance has received the prestigious Business Leader in General Insurance, awarded by NDTV Profit Business Leadership Awards 2008. The company was one of the top three finalists for the year 2007 and 2008 in the General Insurance Company of the Year award by Asia Insurance Review.
Companys History
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Bajaj Auto Ltd. Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj Trading Corporation. Initially it started by assembling two and three wheelers in collaboration with Piaggio of Italy. After the expiry of the Agreement in 1971 the two and three wheelers acquired the brand name of Bajaj. The strength of the company lies in its strong brand image and ability to offer value for money products leveraging on its large-scale operations.
The Joint Venture Bajaj Allianz General Insurance a joint venture non-life company promoted jointly by Bajaj Auto and German insurer- Allianz. Indian auto major holds 74% while Allianz holds 26% in the Joint Venture, and has an authorized and paid up capital of Rs. ll0 crores. Mr. Graham Norris is the CEO of the company. Bajaj Allianz General Insurance will leverage the customer base and expertise of Bajaj Auto Ltd and Allianz.
o Health Guard
o Critical Illness
o Burglary Insurance
o Householders Insurance
o Travel Companion
o Office package
o Money Insurance
o Public Liability
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Figure shows profit after taxes in Rs.(In Millions) The company has earned a Profit Before Tax of Rs. 1,679 Mn for the year ended 31st March 2008, an increase of 43.5% over the previous year profit of Rs. 1,170 Mn. The Profit Before Tax includes a provision of Rs. 361 Mn towards provisions for losses from the IMTPIP. The net profit for the year, after provisions for reported losses from the IMTPIP, was Rs. 1,056 Mn as against Rs. 754 Mn reported in 2006-07, which is an increase of 40.0%. In a year when prices of insurance fell significantly, increasing its profitability whilst improving the market share has been a significant achievement for your Company. It is a matter of pride for Bajaj Allianz that it have become the benchmark for other companies in the market in so far as underwriting profitability and return on equity are concerned. The Earnings per share (EPS) for the year ended 31st March 2008 was Rs. 9.59/- (compared to Rs. 6.85/- for the previous year) and the book value of equity shares on 31st March 2008 was Rs. 52.15/- per share (as against Rs. 37.40/- per shares as on 31st March 2007). 516
470 217 1056
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Future prospects/plans
The Indian general insurance industry detarrification to start a new growth story.Share of motor insurance was 43.1% of the total general insurance premium in April-Dec 2008.Motor insurance is expecting to increase with motor sale,this year, there is a sharp rise in the auto industry (passenger car sales increased at a rate CAGR of 17% during FY08) as income level rise.However last year and the initial months of this year showed a negative trend in sales but as the market is recovering ,auto sales showed a positive trend. Post detarrifictio, in January 07 ,drop in motor premiums was expected ,but rise in car sales has helped boost total motor premiums.Recent hike of 70-150% in loss making motor third party liability segment will help reduce losses.Its very important time for Bajaj Allianz to formulate new plans strategies and to capture more marketing share.
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To study the sales Strategy of field force of Bajaj Allianz General Insurance.
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. Research methodology constitutes of research methods, selection criterion of research methods, used in context of research study and explanation of using of a particular method or technique so that research results are capable of being evaluated either by researcher himself or by others. Why a research study has been undertaken, how the research problem has been formulated, why data have been collected and what particular technique of analyzing data has been used and a best of similar other question are usually answered when we talk of Research methodology concerning a research problem or study. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet.
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AREA OF STUDY
The area of the study related with getting correct information of policies of different peoples in the region of Ghaziabad. SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the techniques or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well be drawn from the population to be included in the sample i.e. the size of the sample. Sample design is determined before data are collected. During my study I have taken 50 insurance care consultants as the size of sample. generalinsurance
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TOOLS USED
To know the response, I have used the questionnaire method. If one wish to find what insurance care consultants think or know, the logical procedure is to ask them. This has led marketing researchers to use the questionnaire technique for collecting data more than any other method. In this method questionnaire were distributed to the respondents and they were asked to answer the questions in the questionnaire. The questionnaire were structured non disguised questionnaire because the question which the questionnaire contained, were arranged in a specific order besides every question asked were logical for the study, no question can be termed as irrelevant. The questionnaire was non-disguised because the questionnaire was constructed so that the objective is clear to the respondent. The respondents were aware of the objective. They knew why they were asked to fill the questionnaire. With the help of following techniques, which are using by Bajaj Allianz I analyse that the how techniques of sales promotion are useful.
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DATA COLLECTION
PRIMARY DATA SOURCES Through interaction with insurance care consultant Through questionnaires filled from the insurance care consultant.
SECONDARY DATA SOURCES: Through internet, various official sites of the companies. Through pamphlets and brochures of the companies. Journals & Magazine
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insurance care consultants only. The sample size was of 50 insurance care consultants only so that accuracy of data so collected could be absurd covered by circulation of questionnaire. 3. The accuracy of indications given by the respondents may not be consider adequate as whether the language used in the questionnaire is understood by the respondent cannot be taken for granted. 4. The study is based on the information gathered from the insurance care consultants. Therefore in such case it is possible that the information supplied might be biased because the insurance care consultant might have shown partiality towards their insurance policies. 5. Since the survey was limited to 50 insurance care consultants it is rather difficult to give a precise conclusion but I have tried to the best of my capability to give the conclusion on a comprehensive manner.
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Options Display Door to Door Demo Exhibition Catalogue Price Off Interpretation:
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Options Display Door to Door Demo Exhibition Catalogue Price Off Interpretation:
According to the study 36% insurance care consultants say door to door demo techniques giving good response, 18% insurance care consultants say to the display & exhibition, 16% to the catalogues & 12% say to the price off technique.
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Options Display Door to Door Demo Exhibition Catalogue Price Off Interpretation:
According to the 46% insurance care consultants, catalogue technique is economically beneficial. 22% to the door-to-door demo and 12% insurance care consultants prefer price off technique.10% to the exhibition & display technique.
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Options Display Door to Door Demo Exhibition Catalogue Price Off Interpretation:
According to the study 38% insurance care consultants say display technique requires less time in sales promotion. 22% to the display technique, 16% insurance care consultants vote to the catalogues, 14% insurance care consultants vote to the 10% to the exhibition.
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Interpretation: According to the study 34% insurance care consultants say that the catalogues is easily manageable, 30% to the door to door demo,18% insurance care consultants prefer display technique 10% to the exhibition, and 8% insurance care consultants say to the price off technique.
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Options Display Door to Door Demo Exhibition Catalogue Price Off Interpretation:
According to the study 40% insurance care consultants vote to the price off technique is require less knowledge to execute.22% insurance care consultants prefer catalogues, 14% to the display and 12% to the exhibition & door to door.
Q.7
Which technique requires more knowledge to execute? Response in % 20% 42% 24% 10% 4%
Options Display Door to Door Demo Exhibition Catalogue Price Off Interpretation:
According to the study 42% insurance care consultants vote to the door-to-door technique that it requires more knowledge to execute than others. 24% to the exhibition, 20% to the display technique, 10% insurance care consultants give vote to the catalogues and 4% insurance care consultants prefer price off technique.
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According to the study 46% insurance care consultants say yes that the price off are necessary for sales promotion. 40% say no and 14% say cant say.
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Allianz. are satisfactory? Options Yes No Cant say Interpretation : According to the study 46% insurance care consultants say No that the sales promotion program that is presently undertaken by Bajaj Allianz are satisfactorily 36% say Yes and 20% say cant say.
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Insurance care consultants said that their sale is decreased in the last years because of negative trend in market. Insurance care consultants said that the customer are curious in getting insurance policies because they want more discounting on the products and low claim time after any accident.
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SUGGESTIONS
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SUGGESTIONS
Here are some suggestions, which may help to strengthen the firm further
Many of the insurance care consultants of the Bajaj Allianz. Has the lack of good communication skills and training. So training should be easy. Bajaj Allianz. Should use new techniques of sales promotion. Customer services should be more comfortable than others. People must be made aware of the benefits of the policies of Bajaj Allianz. The company should give personal attention to each customer. Proper assistance should be provided to the customer at the time of claim settlement. All the details about the company should be given to the customers. Regular advertisement of the company should be given TV and Newspaper. The company must try to find new markets especially in the rural areas. The company should do frequent analysis of the competitors.
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BIBLIOGRAPHY
Books
Kothari C.R., (1999) Research Methodology, Wishwa Prakashan Kotler P. and Armstrong G., (2005) Principles of Marketing New Delhi, Prentice Hall of India
Kotler P., (1999)Marketing Management Analysis, Planning, Implementation and Control, New Delhi, Prentice Hall of India Saxena Rajan, (1999) Marketing Management, Tata McGraw Hill
Websites:
www.bajajallianz.com www.indiainfoline.com www.irdaindia.org www.thehindubusinessline.com
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Q.1
To which technique of sales promotion you prefer? B) Door to door demonstration D) Catalogue
Q.2 which technique is giving good response from customers? A) Display C) Exhibition E) Price-off B) Door to door demonstration D) Catalogue
Q.3
Q.4
Which technique requires less time in sales promotion? B) Door to door demonstration D) Catalogue
Q.5
Q.7
Which technique requires more knowledge to execute? B) Door to door demonstration D) Catalogue
Q.8 A) Yes
Price off and installment offers are necessary for sales promotion? B) No
C) Cant say
Q.9 A) Yes
Do you think that sales promotion program that is presently undertaken by Bajaj Allianz. are satisfactory? B) No
C) Cant say
Q.10 Should Bajaj Allianz. take up new sales promotion program? A) Yes C) Cant say B) No
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