INTERNSHIP PROJECT REPORT ON RETENTION AND

EXPANTION STRATEGY OF BHARTI AXA

AT

Bharti Axa Life Insurance, Jaipur

Report Submitted In Partial Fulfillment of the Requirement for the Award

Of The Degree

MASTER OF BUSINESS ADMINISTRATION

To

INDIAN INSTITUTE OF PLANNING & MANAGEMENT

By
KUNAL KUMAR

(ID NO.BA1214SSISBE-PGP(B)*20088)

SS 12- 14 SPE1 (B1)

Under The Guidance Of

Strategic Management Group

INDIAN INSTITUTE OF PLANNING & MANAGEMENT

BANGALORE-2012-2014
Page 1
 INTERNSHIP REPORT
ON
CUSTOMER RETENTION AND EXPANTION
STRATEGY OF BHARTI AXA LIFE INSURANCE
COMPANY LTD

BY

KUNAL KUMAR

A report submitted in partial fulfillment of

The requirement of MBA program of IIPM, BANGALORE

DATE OF SUBMISSION:

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 CERTIFICATE

This is to certify that the Project Report at BHARTI AXA LIFE INSURANCE, JAIPUR
Submitted in partial fulfillment of the requirements for the award of the

POST GRADUATE DIPLOMA IN MANAGEMENT

TO

Indian institute of planning and management

Is a record of Bonafide Training carried out under my supervision and guidance and that no
part of this report has been submitted for the award of any other degree/diploma/fellowship or
similar titles or prizes.

GUIDE
Signature:

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 STUDENT’S DECLARATION

I hereby declare that the Project Report Conducted at BHARTI AXA LIFE INSURANCE,
JAIPUR
Under the guidance of
SMG DEPARTMENT
Submitted in Partial fulfillment of the requirements for the degree of
POST GRADUATE DIPLOMA IN MANAGEMENT (AUTONOMOUS)

TO
Indian institute of planning and management
It is my original work and the same has not been submitted for the award of any other
Degree/Diploma/Fellowship or other similar titles or prizes

Place: Bangalore (STUDENT NAME: KUNAL KUMAR)

Date:

Page 4
 ACKNOWLEDGEMENT

Writing acknowledgement is probably attributing concern to the persons who are,

directly or indirectly, involved in completion of the project .As the project is an outcome of the

direct and indirect support of many, but only some of who end up receiving a mention due to

several constraints. Yet, I would be failing in my duty if I do not mention the names of at least

a few of the persons who spontaneously supported the project, and without whose support this

work would have remained incomplete. Of the many individuals, who offered me invaluable

help by expert guidance, advises, timely suggestions, knowledge, experiences, and time with

me. First of all I would like to thanks to BRANCH HEAD of the company MR.VISHAL

SURYAVANSHI AND my company Manager MS.SAPNA AUHJA for providing me a

golden opportunity to work with such a good company.

STUDENT NAME: KUNAL KUMAR

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 EXECUTIVE SUMMARY

The service industry is one of the fastest growing sectors in India today. The upcoming
sectors which are really showing the graph towards upwards are - Telecom, Banking, and
Insurance. These sectors really have a lot of responsibility towards the economy. Amongst
the above-mentioned areas insurance is one sector, which took a lot of time in positioning
itself. The insurance business of non-life companies was not much in problems but the
major problem was with life insurance.

The insurance industry is the industry that keeps entire institution that deals with risk and has
maximum potential and growth opportunities in the present era. Insurance is that a group of
people exposed to similar risk come together and make contribution towards formation of a
pool of funds.

Bharti Axa Life Insurance Company has vision to be a leader and the preferred company for
financial protection and wealth management in India

The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and
periodical valuations of companies should be certified by an actuary. But the Act
discriminated between foreign and Indian companies on many accounts, putting the
Indian companies at a disadvantage. The formation of IRDA, entrance of private life
insurance companies into India with one foreign partner, compulsory training of Insurance
agents etc. developments started to take place. And this was the time when these companies
started searching for proper channel partners who can help the organization in expanding its
network and business in India.

This study is carried out to understand the behavioral dynamics of consumers and to
develop rapid stage segmentation strategies for customer retention and expansion

An exploratory research was carried out through questionnaire for which a stratified
sampling technique was adopted and a sample size of 80 individuals was taken. A

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questionnaire was drafted to analyze the dependence of type of insurance policy required,
on the life cycle stage of the individual. It will also clearly show the customers perception
towards insurance compared with the other investment options and financial instruments,
and as to how we can make it better.

Both qualitative and quantitative techniques were applied but this study heavily relied on
qualitative technique and it was proven that the life cycle stage of an individual is an
important determinant for deciding the type insurance policy required by the individual.
After the completion of the study the recommendations are 1) Life time customer strategy,
2) Introduce innovative policies, 3) Increase dependent features in policy,
4) Maintain a database of customers, which has been more clearly explained in the later
stage of the report.

The implication of this research study for Bharti Axa can be developing customer retention
and expansion strategies by creating a bouquet of offerings to meet and surpass expectations
and add value in the business system and recrafting the offerings at various points in the
product life cycle to provide a total brand value experience.

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CHAPTER 1
TABLE OF CONTENTS

CHAPTER – 1 INDUSTRY ANALYSIS

INTRODUCTION... …………………………………………………………………. 09
COMPETITON IN THE INDUSTRY………………………………………………... 10
POTENTIAL OF NEW ENTRANTS INTO INDUSTRY…………………………… 12
POWER OF SUPPLIERS…………………………………………………………….. 13
POWER OF CUSTOMERS…………………………………………………………... 13
THREAT OF SUBSTITUTE PRODUCTS…………………………………………... 13
NATIONAL SCENARIO…………………………………………………………….. 14

CHAPTER – 2 COMPANY ANALYSIS

ABOUT THE COMPANY…………………………………………………………… 18
VISION, VALUES & STRATEGY…..………………………………………………… 19
STRATEGIC DIFFERENTIATION, MANAGEMENT AND EMPLOYEE………… 20
SKILLS, STYLE AND SYSTEM……………………………………………………….. 21
PRODUCT PORTFOLIO……………………………………………………………. 22
COMPETITORS……………………………………………………………………… 29
HUMAN RESOURCE………………………………………………………………... 30
MANAGEMENT PROFILE………………………………………………………….. 31
ORGANIZATIONAL HIERARCHY AND STRUCTURE…………………………… 32
ORGANIZATIONAL HIERARCHY………………………………………………… 33
AWARDS ….................................................................................................................. 34
SWOT ANALYSIS…………………………………………………………………… 36

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CHAPTER – 3 DISCUSSIONS ON TRAINING
LEARNING EXPERIENCE…………………………………………………………. 37
CONTRIBUTION TO THE ORGANIZATION…………………………………….. 37

CHAPTER – 4 ANALYSIS OF RESEARCH

INTRODUCTION & BACKGROUND…………..……………………………….. …. 38
STATEMENT OF THE PROBLEM………………………………………………….. 38
OBJECTIVES…………………………………………………………………………. 38
METHODOLOGY……………………………………………………………………. 39
SCOPE OF THE STUDY……………………………………………………………….. 39
LIMITATION OF THE STUDY……………………………………………………… 40
DATA ANALYSIS……………………………………………………………………. 41
FINDINGS……………………………………………………………………………. 74
CONCLUSION……………………………………………………………………….. 76
RECOMMENDATION………………………………………………………………. 77

BIBLIOGRAPHY

Page 9
 CHAPTER – I

INDUSTRY ANALYSIS

Introduction:-

Insurance is a broad, generic terms that keep entire institution that deals with risk. Insurance
provides financial protection against a loss arising out of happening of uncertain events. A
person can avail this protection by paying premium to an insurance company. It is a system of
spreading the risk of one onto the shoulders of many. Insurance may be described as a social
device to reduce or eliminate risk of loss to life and property. Under the plan of insurance, a
large number of people associate themselves by sharing risks attached to individuals. The risks,
which can be insured against, include fire, the perils of sea, death and accidents and burglary.
Thus collective bearing of risk is insurance. The concept behind insurance is that a group of
people exposed to similar risk come together and make contribution towards formation of a
pool of funds.

GLOBAL SCENARIO

History of Insurance Sector

The concept of insurance is believed to have emerged almost 4500 years ago in the ancient
land of Babylonia where traders used to bear risk of the caravan by giving loans, which were
later repaid with interest when the goods arrived safely. After 500 years the famous Great code
of Hammurabi provided for the transfer of risk of loss from merchants to money holders.
Historians believe that insurance first developed in Sumer & Babylonia. The merchants &
traders of these societies transferred & pooled their money to protect themselves from
Phoenicians. In the 18th century BC, Babylonian King, Hammurabi developed a code of law
known as the code of specific rules governing the practices of early risk-sharing activities.

The oldest branch of Modern Insurance is Marine Insurance appears to have been started in
Italy in the 13th century. The second of modern branches of insurance was life insurance. In
1536, a group of marine in London that appears to have been the first modern life policy to a
certain William GYbbons.The policy was a one year term policy in the amount of £
400.Insurance developed during the 1700’s in the North American colonies. In 1730, Benjamin

Frank contributed for the Insurance of Houses from Loss by Fire. The company collected
contributions & this money went into an investment fund. Interest on this fund went towards
paying claims dividends to those who contributed money.

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In the USA during the colonial period most insurance was marine insurance. The first
successful insurer was a mutual fire insurance company founded in 1752 by Benjamin Franklin
and his group associates, called the Philadelphia. The first life insurance company in India was
founded in 1759.

The business of life insurance in India in its existing form started in India in 1818 with the
establishment of the oriental life insurance company in India. Interestingly in those days a
higher premium was charged for Indian lives than the non-Indian lives as Indian lives were
considered more risky for coverage. The Bombay Mutual Life Insurance Society started its
business in 1870. It was the first company to charge same premium for both Indian and non-
Indian lives. The Oriental Assurance Company was established in 1880. The General insurance
business in India, on the other hand, can trace its roots to the Triton (Insurance Company
Limited, the first general insurance company established in the year 1850 in Calcutta by the
British. Till the end of nineteenth century insurance business was almost entirely in the hands
of overseas companies.

COMPETITON IN THE INDUSTRY

The insurance sector has gone through a number of phases and changes. Since 1999, when the
government opened up the insurance sector by allowing private companies to solicit insurance
and also allowing foreign direct investment of up to 26%, the insurance sector has been a
booming market. Indian Life insurance industry is the fifth largest insurance market with US
$41bn. The growth rate of insurance sector in India is at a rapid rate of 15-20 percent per
annum according to Life Insurance Council. Together with banking services, it contributes to
about 7% to the country’s GDP.

The Global insurance industry is facing increasing competition, which has put significant
pressure on companies to become more efficient in terms of their technology related process
and their products. Most of the companies are trying to enhance their underwriting process, cut
their overheads and reduce claims leakage as the return on investment are shrinking. The
insurance industry in India has changed rapidly along with the global trends. In the present
scenario Indian insurance companies have become more competitive in nature and are
providing appropriate distributing channel to get the maximum benefit and serve customers in
better and different ways. The industry has big opportunity to expand, given the large
population and untapped potential. The dynamic change in the insurance industry is seen with
the penetration of large number of global insurers.

Insurance sector in India holds vast untapped potential in-

1. Life insurance products

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 2. Life Covers

3. Travel Insurance Policies, etc.

Till date only 20% of the insurable population of India is covered under various life insurance
companies explaining the untapped potential itself. India insurance is a flourishing industry,
with several national and international players competing and growing at rapid rates. Insurance
companies in India offers a comprehensive range of insurance plans, a range that is growing as
the economy matures and the wealth of the middle classes increases. Innovative products,

Smart marketing and aggressive distribution have enabled private insurance companies to sign
up Indian customers faster than anyone expected. Indians, who had always seen life insurance
as a tax saving device, are now turning to the private sector and snapping up the new
innovative products on offer. Some of these products include investment plans with insurance
and good returns (unit linked plans), multi – purpose insurance plans, pension plans, child
plans and money back plans.

In India at present 24 life insurance companies are operating their business. However, the
largest life-insurance company in India is still owned by the government. Since the opening up
of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the
Indian market and 19 private life insurance companies have been granted licenses.

Life Insurance Companies in India are:

1. Bajaj Allianz Life Insurance Company Ltd.

2. Birla Sun Life Insurance Company Ltd.

3. HDFC Standard Life Insurance Company Ltd.

4. ICICI Prudential Life Insurance Company Ltd.

5. ING Vysya Life Insurance Company Ltd.

6. Life Insurance Corporation of India.

7. Max Life Insurance Company Ltd.

8. Met Life India Insurance Company Ltd.

9. Kotak Mahindra Old Mutual Life Insurance Ltd.

10. SBI Life Insurance Company Ltd.
11. TATA AIG Life Insurance Company Ltd.

12. Reliance Life Insurance Company Ltd.

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 13. AVIVA Life Insurance Company India Ltd.

14. Sahara India Life Insurance Company Ltd.

15. Shriram Life Insurance Company Ltd.

16. Bharti AXA Life Insurance Company Ltd.

17. Future General India Life Insurance Company Ltd.

18. IDBI Federal Life Insurance Company Ltd.

19. Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

20. AEGON Religare Life Insurance Company Ltd.

21. DLF Pramerica Life Insurance Company Ltd.

22. Star Union Dai-ichi Life Insurance Company Ltd.

23. India First Life Insurance Company Ltd.

24. Edelwiss Tokyo Life Insurance Company Ltd.

The period from 2010 to 2015 is projected to be the “Golden Age” for the Indian insurance
industry.

POTENTIAL OF NEW ENTRANTS INTO INDUSTRY

The insurance business required enormous capital to start insurance business in a country.
Therefore, the average entrepreneur can’t come along and start a large insurance company.
Hence the threat of new entrants lies within the insurance industry itself. In other words,
smaller companies are fearful of being squeezed out by the big players. The insurance industry
is highly competitive. The difference between one company and another is usually not that
great. As a result, insurance with the low cost structure and greater efficiency and better
customer service will beat out competitors.

The Life Insurance industry entry barriers are moderate. The Finance Ministry controls all the
insurance companies that are in the industry and hence there are less chance of exist. Another
threat for many insurance companies is other Financial Services companies entering into the
market.

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POWER OF SUPPLIERS

The suppliers of capital might not pose a big threat, but the threat of supplier luring away
human capital does. If a talented insurance underwriter is working for a smaller insurance
company, there is the chance that the person will be enticed away by larger companies looking
to move in to a particular market.

POWER OF CUSTOMERS

An individual doesn’t have much influence in the insurance industry. However, large corporate
clients have much bargaining power with the insurance companies. Large corporate clients like
airlines and pharmaceuticals companies pay millions of dollars per year as premium.

THREAT OF SUBSTITUTE

There exist a lot of substitutes inside as well as outside the insurance industry. Majorly, the
large insurance companies provide similar kinds of services and also large number of other
investment opportunities is available in the market in respect of Risk and Returns. Following
are the few other investment options available in the market.

1. Customers deposit their amount into Bank & Post Office deposit

2. Investment in Gold & Silver

3. Investment in Government Securities

4. Money Market investment

5. Capital Market investment

However, in some areas of insurance the availability of substitute opportunities are few
especially “Death Cover” aspect of Life insurance which is not covered by any other
investment option.

NATIONAL SCENARIO

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LIFE INSURANCE INDUSTRY IN INDIA

With the establishment of the Oriental Life Insurance Company in Kolkata, the business of
Indian life insurance started in the year 1818.

The developed insurance markets of the world are the US, Europe, Japan, and South Korea.
Emerging markets are Asia, specifically in India and China, and also in Latin America.

 Total life insurance premium in India is projected to grow Rs 1,230,000 Crore by 2010-
11.

 Total non-life insurance premium is expected to increase at a CAGR of 25% for the
period spanning from 2008-09 to 2010-11.

KEY MILESTONES

1912 The Indian Life insurance Companies Act enacted as first statue to
regulate the life insurance business

1928 The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about 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.

Market Share of Indian Insurance Industry

Entry of private companies in insurance industry has added value in the market. Since these
companies is taking new and innovative steps in this sector. The new players have improved
the service quality of the insurance. As a result LIC down the years have seen the declining
phase in its career. The market share was distributed among the private companies. Though
LIC still holds the 76% of the insurance sector but the upcoming natures of these private
companies are enough to give stiff competition to LIC in the near future.

Page 15
Page 16
 CHAPTER – 2

PROFILE OF THE COMPANY

Bharti AXA Life Insurance Company Ltd is a joint venture between Bharti, one of India’s
leading business groups with interests in telecom, agri-business and retail, and AXA, world
leader in financial protection and wealth management. The joint venture company has a 74%
stake from Bharti and 26% stake of AXA. The company launched national operations in
December 2006. Today, they have over 5200 employees across over 12 states in the country.
Their business philosophy is built around the promise of making people "Life Confident". As
they expand their presence across the country to cater to insurance and wealth management
needs with their product and service offerings, they continue to bring 'life confidence' to
customers spread across India. Whatever client’s plans in life, they can be confident that Bharti
AXA Life will offer the right financial solutions to help them.

Bharti Enterprises is one of India’s leading business groups with interests in telecom, agri-
business, insurance and retail. Bharti has been a pioneering force in the telecom sector with
many firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of
India’s leading private sector providers of telecommunications services with an aggregate of 60
million customers, spanning mobile, fixed line, broadband and enterprise services. Bharti
Airtel was ranked amongst the best performing companies in the world in the BusinessWeek
IT 100 list 2007. Bharti Teletech is the country’s largest manufacturer and exporter of
telephone terminals. Bharti has a joint venture with ELRo Holdings India Ltd. – ‘FieldFresh
Foods Pvt. Ltd’ - for global distribution of fresh fruits and vegetables. Bharti also has a joint
venture - ‘Bharti AXA Life Insurance Company Ltd.’ - with AXA, world leader in financial
protection and wealth management. Bharti has recently forayed into the retail business under a
company called Bharti Retail Pvt. Ltd. It also has a joint venture – ‘Bharti Wal-Mart Private
Limited’ – with Wal-Mart, for wholesale cash-and-carry and back-end supply chain
management operation

AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse
geographically, with major operations in Western Europe, North America and the Asia/Pacific
area. AXA had Euro 1,315 billion in assets under management as of December 31, 2006. For
full year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying earnings
amounted to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million. The AXA

Ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange. The
AXA American Depository Share is also listed on the NYSE under the ticker symbol AXA.

Page 17
 VISION To be a leader and the preferred company for
financial protection and wealth management in India

VALUES Professionalism, Pragmatism, Innovation

Integrity, Team spirit

USP : Bharti is an established brand in India along with AXA’s global presence.

SLOGAN : Jeevan Suraksha Ka Naya Nazariya; Be Life Confident

Strategy

 To achieve a market position among the top 5 in India through a multi-distribution,

multi-product platform.
 To adapt AXA's best practice blueprints as a sound platform for efficient and profitable
growth
 To leverage Bharti's local knowledge, infrastructure and customer base
 To deliver high levels of shareholder return
 To build long term value with business partners by enhancing the proposition to their
customers
 To be the employer of choice to attract and retain the best talent in India
 To be recognized as being close and qualified by customers.

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STRATEGIC DIFFERENTIATION

 Strong partner Bharti - provides access to customer base of more than 130 million
 Multi-channel execution capability
 Current Asia product range which is a strong match to products sold to the mass and
mass affluent Global scale providing cost effective and speedy re-use of systems,
products and business capability Strong AXA and Bharti brands which can be
leveraged to attract and retain a high quality management team.

Management

The management at Bharti Axa Life Insurance is committed to good corporate governance,
which includes transparency and timely dissemination of information to its investors and unit
holders.

The Board of Directors of is a professional body constituting inter-alia of, well-experienced

and knowledgeable independent members. Regular audit committee meetings are conducted to
review the operations and performance of the company.

Employees

Bharti Axa Life Insurance has a code of conduct for all its managers It has a very strict
environment. It has around 5000-10000employees across over 12 states in the country and a
national footprint of distributors trained to provide quality financial advice and insurance
solutions to the large Indian customer base.

The management believes in the principles of propriety and utmost care is taken while
handling public money, making proper and adequate disclosures.

All personnel at Bharti Axa are made aware of their rights, obligations and duties .They are
taken through a well-designed HR program, conducted to impart work ethics, the Code of
Conduct, information security, Intranet and e-mail usage.

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Skills

 Distinctive capabilities of the organization as a whole.

 Selling skills includes the following:
 Patience and Politeness
 A complete knowledge on the products and services to provide financial advice to the
customers.
 Creating good network to identify the potential customers and to expand the business.
 Delivery and Communication skills.

Presentation skills

Presentation skills are very important in the insurance business, because insurance is not an
easy matter for unaware customers. The advisors/unit managers should present the product
details & benefit illustration very effectively to convince them to buy any product.

Technical skills

Customers will have lot of clarification regarding the products and services, the advisor should
be able to clarify those doubts i.e. Tax Planning, Pension planning and Financial Advice.

Style

One element of manager is how he\she choose tom spend time, another aspect is symbolic
behavior. This suggests a second’s attribute that is by no means confused to that of top. The
style is reflected of culture, more than to change the organization or performance.

The Bharti Axa Life Insurance is basically is a democratic system. Before taking any decision
meeting is conducted and a final decision is taken and decision is taken with the consent of all.
Every employee gets chance to give his \her opinion. Every employee can participate in
decision making processes of the organization .The Bharti Axa Life Insurance is a unit union
body hence it takes people into confidence. It does not take any decision unilaterally. Managers
are evaluated based on the quality of their decision making and opinion of fellow employee.
Hence participative and democratic type of system is the best system for such a big
organization.

SYSTEMS

 All the processes & information flows that links the organization together.
 Communications practice and system.
 Management reporting system.
Page 20
  Approval process.
 Planning/budgeting system.

PRODUCTS OF BHARTI AXA

 SECURE CONFIDENT: It ensures that the dreams you aspired for your family in your
lifetime, don’t remain unfulfilled by the financial void which might get created due to the
unfortunate event of death.

 SAVE CONFIDENT: A traditional money back insurance product, offers you a perfect
combination of liquidity, long term saving and life insurance benefit.

 FUTURE CONFIDENT: A complete financial solution that helps you to built wealth
for your long term needs, while providing comprehensive financial protection for your
loved ones, against all odds.

 FUTURE CONFIDENT II: It serves you in building wealth for your long term needs,
but most importantly, provides the extra financial protection to your loved ones.

 WEALTH CONFIDENT: A unit- linked investment cum protection policy, with

premium payment flexibility, higher allocation of your premium for investment and
unique special additions, which not only makes your money grow but also provides your
investment the special treatment that it deserves.

 INVEST CONFIDENT: It not only strives to maximize your investment returns but
also gives you an enhanced flexibility to suit your protection needs.

Page 21
 Protection Plan with High Life Cover

Protect one’s loved ones against financial contingencies at nominal costs

This protection plans offer one’s high life cover at nominal costs so that one can fulfill your
responsibility with ease and your family never has to face financial constraints.

Bharti AXA Life protect

 The simplest way to secure one’s family online

Bharti AXA Life Elite Secure

 Pure Life Insurance cover at very competitive premiums
 Option to cover one’s life till 75 years with a unique to age 75 years term

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Bharti AXA Life Family Income Secure
Guaranteed Annual Income for one’s family in case of any eventuality 100% return of
premium at maturity

Bharti AXA Life Protect Plus

Financial Protection for one’s family
Guaranteed Cash Back on maturity

Bharti AXA Life Premium Waiver Rider

100% of all future premiums under the base policy are waived and paid by the Company on
death of the life insured under the rider.

Health Insurance Plans

Page 23
 Triple Health Insurance Plan

 Cover for up to three unrelated critical illnesses

 Premium waived after the first clai

 Return of premium option also available

Easy Health

 Extremely affordable premiums starting as low as Rs 3 per day

 A range of Daily Hospital Cash Benefit options, with additional benefits in case of accidental hospitalization in an
ICU or otherwise

Hospital Cash Benefit Rider

 A solution that ensures lump sum payout on surgery, fixed benefits for each day of hospitalization, and ICU benefits

Life Insurance Plans

Page 24
 With Bharti AXA Life insurance products, provide financial security and protection to your loved ones. Simple, affordable
plans to safeguard your family from life's uncertainties.

Bharti AXA Life Shield

 Simple and affordable life insurance solution that financially secures the family of the group member by providing a
life insurance cover.

Bharti AXA Life Sanjeevani

 A single premium group term life insurance product which provides financial security and protection to your loved
ones.

COMPETITORS

 Life Insurance Corporation of India (LIC) : Life Insurance Corporation of India

(LIC) was established on 1 September 1956 to spread the message of life insurance in
the country and mobilise people’s savings for nation-building activities. LIC with its
central office in Mumbai and seven zonal offices at Mumbai, Calcutta, Delhi, Chennai,
Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in important
cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the
country.

Page 25
 Max New York Life Insurance Co. Ltd: Max New York Life Insurance Company
Limited is a joint venture that brings together two large forces - Max India Limited, a
multi-business corporate, together with New York Life International, a global expert in
life insurance. With their various Products and Riders, there are more than 400 product
combinations to choose from. They have a national presence with a network of 57
offices in 37 cities across India.

 ICICI Prudential Life Insurance Company Ltd: ICICI Prudential Life Insurance
Company is a joint venture between ICICI Bank, a premier financial powerhouse and
prudential plc, a leading international financial services group headquartered in the
United Kingdom. ICICI Prudential was amongst the first private sector insurance
companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). The company has a network of
about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups.

 Kotak Mahindra Life Insurance Co. Ltd : Kotak Mahindra Old Mutual Life
Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old
Mutual plc.

 Birla Sun Life Insurance Company Ltd : Birla Sun Life Insurance Company is a joint
venture between Aditya Birla Group and Sun Life financial Services of Canada

Page 26
HUMAN RESOURCE

BOARD OF DIRECTORS

Rakesh Bharti Mittal

Non‐executive Director and Chairman

Manik Jhangiani Nasser Munjee

Non-Executive Director Non-Executive Director

Akhil Gupta Bharat Raut

Non-Executive Director Independent Director

John Dacey Jitender Balakrishnan

Non-Executive Director Independent Director

Michael Bishop Milind Chalisgaonkar

Non-Executive Director CEO & Managing Director

Shubhro Mitra Sandeep Ghosh

Additional Director CEO & Managing Director

Page 27
Key Persons as defined in IRDA Registration of Companies Regulations, 2000

 V Srinivasan - Chief Finance Officer

 Mark Meehan - Chief Operating Officer
 A.Venkatasubramanian - Appointed Actuary
 Sushanto Mukherjee - Chief Distribution Officer

MANAGEMENT PROFILE

Page 28
ORGANIZATION STRUCTURE AND ORGANIZATION CHART

The design of an organization at structure is a critical task of the top management of an

organization. It is the selection of whole organization. It refers to organizational arrangement
and relationships. It prescribes formal relationship among various positions and attitudes.
Arrangement about reporting relationship, how an organization members are all part of
organization structure.

Operations are mainly classified into four:

1. Administration
2. Operations
3. Marketing
4. Finance

Page 29
 ORGANIZATIONAL CHART

Chairman

MD

Zonal Manager

Regional Manager

Retail Marketing Alternative Operation Chanel Human Resource

Channel

Territory Manager Territory Manager Team Manager HR Executive

Branch Manager Branch Manager Operation Manager

Asst. Branch Mgr. Channel Executive

Business Div. Mgr.

Sale Div. Mgr.

Page 30
AWARDS

Best Employer Brand Award

Bharti AXA General Insurance was conferred the “BEST EMPLOYER BRAND” award by
jury and council of board members of IPE BFSI Awards. The award was given on the innovate
approach taken towards HR Practices within the organization.

Best Product Innovation Award 2012 and Commercial Lines Growth Leadership Award
2012

Bharti AXA General Insurance has been conferred the ‘Best Product Innovation Award 2012’
and ‘Commercial Lines Growth Leadership Award 2012’ at the India Insurance Awards 2012
in a ceremony held at Mumbai on 7th June, 2012. These annual awards are jury awards given
out to honor performance, product, innovation, customer service, technology and commitment
of top Insurance companies in the Life, GI and Health Insurance Industry.

Personal Lines Growth Leadership Award 2011

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Bharti AXA General Insurance received the prestigious award "Personal Lines Growth
Leadership Award 2011" at the India Insurance Awards 2011. Bharti AXA GI was honored for
consistent performance and tremendous growth in terms of volume, revenues and client base
over the span of three years, 2008- 2011 in the retail insurance segment.

Risk Manager of the Year

Bharti AXA General Insurance received the prestigious “Risk Manager of the Year Award
2011" at the Asia Insurance Industry Awards held at Singapore on the 31st of October 2011.

Bharti AXA General Insurance is the only Indian company in the Life & General Insurance
category to be nominated for and winning the prestigious Award.

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 SWOT ANALYSIS

STRENGTHS WEAKNESS

 Partners having experience in different  Low capital base.

markets of the world.  Yet to build strong distribution
 Synergy with existing operations. network.
 Professional management.  Cannot tap rural market.
 Good Customer service.  Less penetration in rural India.
 Create a brand name.
 Small agent base.
 Integrated approach to seek innovative Insurance companies have a poor
solutions. image when it comes to payment
 Flexible Products. of dues.
 Policies for various age and economic
groups.
International expertise of AXA group
Strong Marketing Campaign.
The joint venture has a 74% stake from
Bharti and 26% stake from AXA Asia
Pacific Holdings Ltd.
Bharti enterprise serves over 110 million
customers

OPPORTUNITIES THREATS

 Untapped market.  Large distribution network of

 Banks ready to tie up for as a readymade LIC.
distribution network for a small fee.  Decades of experience and brand
 Growing rural market name of LIC.
Earning Urban Youth  Price war with the Competitors.
Low capital base.
 Cross selling through financial
 Yet to build strong distribution
services such as banking
network.
 Cannot tap rural market.
 Changing the Regulations by the
Government.

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MARKETING STRATEGY USED BY BHARTI AXA TO RETAIN
CUSTOMER AND EXPAND BUSINESS:

Customer retention is on the minds of small and medium businesses across the world.
With rising customer acquisition costs, businesses need to get innovative and start taking a
proactive role in retaining their clients.

Reason for customer’s switching:

 68% leave because they were unhappy with the service they received

 14% were unhappy with the product or service

 9% decided to use a competitor

 NATURE OF GOOD MARKETING

THAT IS WHAT BHARTI AXA INSURANCE BELIEVES IN, a good marketing

Adopts different methods for the marketing:-

Bharti AXA has positioned itself in terms of BRAND POSITIONING as:-

FINANCIAL FREEDOM: “life’s full of fabulous choices”.

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Bharti AXA always expressed itself as always close to Customers with the help of:-
 Ads
 Merchandising
 Corporate Stationery

TELE MARKETING:

It is a kind of Direct selling, which makes the LEAD GENERATION for the BUSINESS,
or it turned into the SALES that are again building BUSINESS for the company.

Tele Marketing is marketing the product through telephone. The most important aspect of
Tele Marketing is COLD CALLING, HOT CALLING, and OBJECTION HANDLING.

Cold Calling means Calling to the unknown telephone number for the first time and that
even without knowing the respondent.

Hot Calling means Calling to already approached person for the further response
Objection Handling means to handle the type of objection that may arise while calling.
By different type of calling we used to generate the LEAD for the further business.

Result from Calling:-

Appointment: - Calling used to turn into the appointment to generate the lead for the
business depending upon the motto to call, which was sometimes for the appointment
of the Life Advisors and sometimes for selling the policies.

Mail Brochure: - Sometimes responses were that the respondent is not able to talk due
to some reasons and they ask to mail the details via e mail.

CHANNEL MARKETING

Distribution Network of Individual Life Insurance Business in India

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Direct selling part includes Tele marketing through advertisements etc.

Brokers are the one who can sell the insurance product of a lot of company and is appointed
by the company but works for the individual and earn brokerage through company.

Life Advisors is the name given to the traditional “Agent” which we often hear. Life Advisor
is the one who can sell the insurance product of only one company and commission is what he
earns in reference to the business provided by him.

Other channel here means the Corporate Agents, banks, selling through Franchisee etc. are
the parts of the channels which create business for the company.

Channel development’s most important aspect is Life advisor so we should know the process
of recruiting the life advisor.

At Bharti AXA, marketing strategy revolves around two strong pillars:

 Customer insights 
 Innovations to redefine the way the customer looks at insurance. 

Their research- based approach has helped them create products, which have challenged existing
market norms.
This was not all, they went ahead and offered the customer lump sum compensation upfront so that
not only were medical bills covered like in any health insurance cover, but the customer was now
empowered to manage lifestyle expenses like paying the child’s school fees, monthly EMIs for the
house/car and even grocery expenses in case he/she had the misfortune to be diagnosed with a
critical illness.

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Strategy used by Bharti Axa to retain customer:

 Set customer expectations

 Know your customers by name and greet them as often as you can.

 Reward Your Best Customers

 Be Professional Yet Have Fun

 Offer Quality Products and Services

 Happy Employees = Happy Customers

 Be the expert

 Build trust through relationships

 Make use of automation

 Implement customer feedback surveys

 Build relationships online

 Stay connected after the sale

 Create a customer service culture

 Get ideal customers to be VIPs.

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 CHAPTER 3

LEARNING EXPERIENCE GAINED DURING THE TRAINING

During my 8 weeks of project with Bharti Axa Life Insurance, a good insight was obtained
about the functioning of marketing strategy mainly on customer retention strategy.

1. A necessary amount of knowledge was gained about the different products of Bharti-
Axa.
2. The various products of insurance plans, the benefits and other extra rider benefits was
possible to derived from various investment plan
3. The marketing strategy used in retaining customers and market expansion were learned.

CONTRBUTION TO ORGANIZATION

The internship duration that is, 8 weeks of time span is very short for the contribution to any
organization. However, I have succeeded in giving reference for two Life insurance policy to
the company during this period along with this research work which may help the company in
taking useful and important decisions in regard with their available products.

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 CHAPTER – 4
ANALYSIS OF RESEARCH UNDERTAKEN

AIM

To know the customer awareness and evaluate the functioning of marketing strategy used by
Bharti Axa Life Insurance for retention and expansion of customer

STATEMENT OF PROBLEM

Insurance industry in India is one of the fastest growing segments Insurance sector’s
contribution together with banking services, towards the GDP of India is 7%.It is a boom for
economic development as it provides the long term funds for development and strengthening
the risk taking ability of the country. Bharti Axa Life Insurance is facing now-a-days a stiff
competition with other private players of insurance sector. Customer retention is very crucial
as they have a lot of choice and to lose an existing customer costs high to the company.
Therefore, there is a need to study” the customer retention and expansion strategy at Bharti
Axa Life Insurance”.

RESEARCH OBJECTIVE

 To understand the behavior dynamics and need state.

 To determine whether the company s doing enough to spread it’s awareness in the
market
 To determine strategies for customer retention and expansion.
 To determine that what factors should company focus on to attract more and more client
data base

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RESEARCH METHODOLOGY

Stage- I - Approaches to Research Design

Research Design

Analytical Research Design is used in the project because the study and the inferences are
drawn based on the Analysis made for the Secondary Data collected using Analytical
Techniques in drawing inferences.

Data Collection

Secondary data

The secondary data for the project is obtained from various sources like websites, company
brochures, journals and publications.

Data Analysis

After collecting the data, the raw data had to be classified and proper tables had to be put. For
these tables, suitable titles were given. Then the analysis task was undertaken where in for each
table analysis was done, inference was obtained and graphs (suitable) were depicted. On the
basis of this findings were framed and recommendations were given. Finally the study was
concluded.

Stage-II - Scope of the study

The study was conducted in Bharti Axa Life Insurance at Jaipur city in India.

Stage-III - Limitations of the Study

 LIMITATIONS
 Project was undertaken in Jaipur region only .So it might not be a true
Representation of the views of the insured of other places.
 Limited time was given to conduct survey and meet the people.
 Responses depend on perception and prejudice of people.

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 DATA ANALYSIS & INTERPRETATION
Table-1
Why would you take a life insurance policy?

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 Table-2

Need at different stages while taking a policy

21-30 31-40 41-50 51-60

asset building 4 10 13 7
needs
old age need 2 5 12 17

children need 8 15 7 3

family need 7 16 15 15

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 Table-3

Attitude towards investment instruments at different life stages

21-30 31-40 41-50 51-60

Insurance 2 7 9 7
policy
Mutual 7 6 7 10
funds
Shares 11 7 4 3

Table-4

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 Numbers of policies hold by different life stages

21-30 31-40 41-50 51-60

0 Policies 12 6 2 0

0-3 Policies 5 5 8 2

3-5 Policies 1 3 7 9

5 and 2 3 5 10
above

Table-5

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TABLE- 6

Suitable medium to gain knowledge Suitable medium to gain knowledge of different

Suitable medium to gain knowledge Suitable medium to gain knowledge of different of
different financial instrument

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 21-30 31-40 41-50 51-60

Personal reference 17 10 7 15

Financial advisor 0 10 10 5

Telephonic 0 0 0 0
Advertising (T.V.,
Newspaper 3 0 3 0

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 RELATIONSHIP BETWEEN THE VARIABLES

In table- 5, Correlation is applied to find out the level of correlation between different
variables. The various variables are as follows:
a) Flexibility
b) Diversification
c) Security
d) Return on investment
e) Requirements of funds
f) Transparency
g) Liquidity
h) Control over financial future
Correlations are shown in the Graph below:-

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 Highly Correlated variables are:
 Flexibility & Diversification
 Flexibility & Return on investment
 Security & Transparency
 Return on investment & Requirement of funds

Less Correlated variables are:

 Flexibility & security
 Diversification & Security
 Transparency & liquidity
 Liquidity & Control over financial future
 Control over financial future & Diversification

On the basis of correlation between various variables, interpretation can be done that:
1) The highly correlated variables are dependent on each other. They have a direct effect
on each other. If one variable will increase another variable will also automatically
increase.
2) The less correlated variables have an inverse effect on each other. If one variable will
increase then another will automatically decrease.

Page 48
FINDINGS AND ANALYSIS

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 On age group 21-30
After analyzing the findings derived from the questionnaire we come across to some
interesting facts.
 60% of the respondents from the age group 21-30 do not hold any life insurance policy at
all and also none of them hold more than 5 policies. (Table-4)
 This age group is more attracted towards share market with 55% and mutual funds with
35%. (Table-3)
 The various needs at this age group are very low. (Table-2)

This may be due to various reasons.

Page 50
  The primary reason being maximum percentage of this age group are not married and do
not have children so do not have any kind of a responsibility towards family.
 Secondly most of them are still parasites and dependent on their parents for living. A
small extent is working but do not have sufficient fund to take a life insurance policy.
 They have high risk takers and want to earn quick money so are more interested in the
share market.
 They have a notion that they will live long and no unavoidable circumstances can
hamper their life.

On age group 31-40

 Again moving towards the age group 31-40 we can observe that 40% of the respondents
hold 3-5 policies and 25% have 0-3 policies and 10% have more than 5 policies. (Table-
4)
 From table-3 we can analyze that the number of people favoring insurance over other
investment instruments have increased.
 Table-2 exhibits that the various needs have also increased to a great extent. The major
needs in this age group have been children need and family need. Asset building need
has also shown a tremendous increase.
 There has been a growth of about 100% in each need in this age group.

The reasons for these shifts may be:

 The mass populations in this age group are married and even have a child or two. They
now being the bread earners for their family have a sense of responsibility towards them.
 People at this stage generally start earning a good living and can afford to invest in
policies
 Since they are earning well so they can invest in policies to save tax to some extent.

On age group 41-50

 Now in age group 41-50, 45% have over 5 policies and 35% have 3-5 policies. (Table-4)
 Table-3 clearly shows that there has been a shift of interest from other financial
instrument to insurance. About 45% believe investing in insurance.
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 There has been a 140% increase in the old age policy need as compared to age group 31-
40.
(Table-2)
 About 50% fall in the children need policies can be observed. (Table-2)

This may be for the following reason:

 The offspring’s are already grown up and investment for their benefit has already been
made in the previous stage.
 They start thinking about their old age and after retirement financial solution.

On age group 51-60

 In the age group 51-60, 50% of them hold more than 5 policies. (Table-4)
 The primary needs being old age and family need and critical illness.
 Children need has fallen by 80 %.( table-2)
 The asset building need has fallen by 50% from the previous age group
 This age group least wants to invest into shares

The various reasons may be:

 He wants to secure his financial future when he retires from his job or takes leave from
his business so that he is self-dependent.
 Their children are already grown up and self dependent with their own family.
 They want to secure themselves towards any kind of critical illness.
 The risk taking ability decreases and want safe and secure returns

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 SUMMARY

 The age group 41-50 takes most of the insurance policies

 Requirement of Old age need policies increase in number with the increasing age.
 The age groups 31-40 and 41-50 are most interested in asset building needs and family
needs.
 The age group 31-40 is most interested in children need and family need and maximum
in covering future cash needs.
 The age groups 31-40 and 41-50 also take insurance to take the benefit of tax relaxation.
 Comparing the amount of investment different age groups would like to make in
different financial instruments i.e. mutual funds insurance policy and shares, given
100000/-. The mean value of all the respondents in different age group were taken

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 21-30 31-40 41-50 51-60
Insurance 10000 35000 45000 35000
Mutual funds 35000 30000 35000 50000
Shares 55000 35000 20000 15000

 47% of the respondents like to take decision on various financial instruments by

consulting a financial advisor.
 37% of the respondents feel personal reference most reliable source to take an
investment decision
 A very large proportion of the respondents perceive insurance to be less flexible
compared to mutual funds and shares.
 They also feel it gives the least scope to diversify.
 They are also not satisfied with the liquidity aspect of insurance.
 Insurance scores high on attributes like security and control over financial future and
scores average on attributes like requirement of fund, rate of return and transparency.

SUGGESTIONS

Page 54
 To retain customer, company should design such insurance policies that contain the
composition of the features having high correlation. Due to this, customer will attract
more towards insurance rather than other investment.

 A few of the innovations should be based on specific needs at certain life stages.
Consumers are often migrated to these newer policies. The Critical Illness Plan should be
introduced as a response to a stated need of consumers. The differentiator here is clearly
different in the number of illnesses it includes

 Unlike other categories, customer retention in the insurance business has not yet been
under serious consideration. Insurance as an industry till date has adopted a strategy of
“one time customer”, and is the same with Bharti Axa, but the concept should be revised

Page 55
 and “life time customer” Strategy should be adopted for long term sustainability and
growth of the company.

 The company has to begin a huge database monitoring exercise with annual statements /
mailers to the customers and updating their databases. This can also be used for cross
selling of different policies at different life stage of the customer

 Company should invest more in advertising as it is in developing stage.

 The company should start rural education program to increase awareness and penetrate in
untapped market.

Page 56
 APPENDIX

BIBLIOGRAPHY

Reference:

To obtain more information regarding present study and to subordinate it with theoretical proof
following references were made.

Page 57
 Times of India
 Skees, J., Hazell, P., Miranda, M. 1999. New Approaches to Crop Yield Insurance in
Developing Countries.
 Business Research Methods, Cooper & Schindler
 S. Balchandran, IRDA, IC-33 LIFE INSURANCE
 Financial Express
 Business Today

WEBSITE REFERENCE
 http://www.irdaindia.org/
 http://www.licindia.com/
 http://www.bharti-axalife.com/
 http://www.lifeinscouncil.org/
 www.iinvestor.com
 www.google.com
 www.insure.com
 www.financialexpress.com

ANNEXURE

SHOBHIT UNIVERSITY
SCHOOL OF BUSINESS STUDIES

Name: __________________________________Occupation:____________________
Address: _______________________________
Age: 21-30 31-40 41-50 51-60
Gender: Male Female

Page 58
Income: 1.5-3 L 3-5L 5-10 10 above

1) Do you hold a life insurance policy?

 Yes
 No

2) If no, why have you not taken any life insurance policy?
 Not aware
 I don’t require it
 Have other investment options
 Lack of fund
 Planning in near future

3) Now being aware of life insurance why would you take a life insurance policy?
(Can give multiple choices)
 To cover Future cash needs
 Tax benefit
 As an investment instrument
 As an angel of mercy
 As a hedge against old age

4) If yes how many life insurance policies do you hold at present?

___________

5) If yes what was your main concern for taking a life insurance policy?
 Investment
 Tax benefit
 Purely insurance

6) What were your needs when you had taken life insurance policies? (Can tick multiple
choices)
 Family need
 Children need
 Old age need
 Asset building need
Assuming that life insurance policy is purely an investment option please answer the
following questions

7) If you hold a policy please rate the benefits in insurance policy compared to investing in
shares market and mutual funds on scale of 1-5 (where 1 being the least and 5 being the
most?)

 Flexibility 1 2 3 4 5
 Diversification 1 2 3 4 5

Page 59
  Security 1 2 3 4 5
 Return on investment 1 2 3 4 5
 Requirement of funds 1 2 3 4 5
 Transparency 1 2 3 4 5
 Liquidity 1 2 3 4 5
 Control over financial future 1 2 3 4 5

8) Given a certain amount of money where would you invest, assuming that insurance is
purely an investment option?
 Life insurance
 Mutual funds
 Share market

9) Suppose you have 100000/- of rupees in spare, how much would you invest in the
investment options state below?
 Life insurance __________
 Mutual funds __________
 Share market __________

10) What would be the reason for above decision? (30 Words Max)

11) Which medium do you find more suitable to gain knowledge about different financial
instruments?
 Personal reference
 Financial advisors
 Telephonic
 Advertisement (T.V, newspaper)

12) Please give a few suggestions as to how we can make life insurance a better
investment option compared to mutual funds and share market?
________________________________________________________________________
________________________________________________________________

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