A REPORT

ON

BY
NAKUL DUBEY
21BSP0 0 94

SUMMER INTERNSHIP PRO GRAM

AT
“ADITYA BIRLA SUN LIFE INSURANCE”
 A REPORT
ON

BY
NAKUL DUBEY
ENRO LLMENT NO : 21BSP0 0 94

ADITYA BIRLA SUN LIFEINSURANCE

A REPO RT SUBMITTED IN PARTIAL FULFILMENT O

F THE REQ UIREMENTS O F
PGPM PRO
GRAM O F IBS
PUNE

CompanyGuide: - Faculty Guide:-

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AUTHO RIZATIO N

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Acknowledgement

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 TABLE O F CO NTENTS

Authorizations 3

Acknowledgements 4

ExecutiveSummary 7

Listof Illustrations 8

1. Abstract 9

2. Introduction toInsuranceSector 10

2.1 Introduction to AdityaBirlaCapital 14

2.2 Introduction to Aditya Birla SunLifeInsurance

15 3. Porter’sfiveforces 16

4. S W O T analy sis

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 SIP - EXECUTIVE SUMMARY

Student’s Name: Enrolment No:

Name of the Company: Type of Industry:

Title of SIP:

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 List of Illustrations

Sr.N Conte Page

o nt no.

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 ABSTRACT

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 INTRO DUCTIO N

O verview of the sector

The insurance industry of India has 57 insurance companies 24 are

in the life insurance business, while 34 are non- life insurers.
Among the life insurers, Life Insurance C orporation (LIC ) is the
sole public sector company. There are six public sector insurers in
the non- life insurance segment. In addition to these, there is a
sole national re- insurer, namely General Insurance C orporation
of India (GIC Re). Other stakeholders in the Indian Insurance
market include agents (individual and corporate), brokers,
surveyors and third- party administrators servicing health
insurance claims.

Market Size

 In India, the overall market size of the insurance sector is

expected to US$ 280 billion in 2020 .

 The life insurance industry is expected to increase at a CAGR

of 5.3% between 20 19 and 20 23. India’s insurance
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penetration was pegged at 4.2% in FY21, with life insurance

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 penetration at 3.2% and non- life insurance penetration at
1.0 % . In terms of insurancedensity, India’s overall
density stood at US$ 78 in FY21.

 In the first half of FY22, the life insurance industry recorded

growth rate of 5.8% compared with 0 .8% in the same period
last year.

 The market share of private sector companies in the general

and health insurance market increased from 47.97% in FY19 to
48.0 3% in FY20 . In the life insurance segment, private
players held a market share of 33.78% in premium
underwritten services in FY20 .

 In March 2021, health insurance companies in the non- life

insurance sector increased by 41% , driven by rising demand
for health insurance products amid COVID- 19 surge.

 According to S&P Global Market Intelligence data, India is

the second- largest insurance technology market in Asia-
Pacific, accounting for 35% of the US$ 3.66 billion insurtech-
focused
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venture investments made in the country.

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Economic Contribution

Health insurance witnessed 13.3% growth in GDPI in FY21, while fire

insurance and liability insurance observed 28.1% and 16.4% growth
respectively in the same period.

Government schemes and financial inclusion initiatives shall have

helped in driving the adoption & penetration across all segments.
The government’s flagship initiative for crop insurance
(PMFBY) has led to significant growth in the premium income for
crop insurance, and now covers over 55 million farmer applications
year- on- year. Even during the COVID- 19 lockdown period, nearly
70 lakh farmers have benefitted from it, and claims worth INR 87.4
bn ($ 1.2 bn) were transferred to the beneficiaries.

The growth of the insurance market is being supported by important

government initiatives, strong democratic factors, conducive
regulatory environment, increased partnerships, product innovations,
and vibrant distribution channels.

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Investment and Government Initiatives

 In November 2021, the Indian government signed an

agreement with the World Bank for a US$ 40 million project
to advance the qualities of health services in
Meghalaya, including the state’s health insurance programme.

 In September 2021, the Union Cabinet approved an

investment of Rs. 6,000 crore (US$ 804.71 million) into
entities, offering export insurance cover to facilitate additional
exports worth Rs. 5.6 lakh crore (US$ 75.11 billion) over the
next five years.

 Union Budget 2021 increased FDI limit in insurance from 49%

to 74% . India's Insurance Regulatory and Development
Authority (IRDAI) has announced the issuance, through
Digilocker, of digital insurance policies by insurance firms.

 Under Union Budget 2021, fund of Rs. 16,0 00 crore

(US$ 2.20 billion) has been allocated for crop insurance
scheme.

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Major Players

 Life Insurance Corporation of India

 Max Life Insurance Company

 HDFC Life Insurance Company

 ICICI Prudential Life Insurance

 Tata AIA Life Insurance Company

 Bharti AXA Life Insurance Company

 Bajaj Allianz Life Insurance Company

 SBI Life Insurance Company

 Birla Sun Life Insurance Company

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Introduction to Aditya Birla Capital

Aditya Birla Capital Limited (ABCL) is the holding company for

the financial services businesses of the Aditya Birla Group.

ABC L’s subsidiaries have a strong presence across Protecting,

Investing and Financing solutions, ABC L is a universal financial
solutions group catering to diverse needs of its customers
across their life stages. Powered by more than 30 ,000
employees, the subsidiaries of ABC L have a nationwide reach
with 950 branches and more than 2,00 ,000 agents / channel
partners and several bank partners.

As of December 31st, 20 21, Aditya Birla C apital Limited

manages aggregate assets under management over Rs. 3,724
billion, has a consolidated lending book of approx. Rs. 614
billion, and an active customer base of over 31 million, through
its subsidiaries and joint ventures.

Aditya Birla Capital Limited is a part of the Aditya Birla

Group, in the league of Fortune 500 . Anchored by an
extraordinary force of over 140 ,0 0 0 employees, belonging to
10 0 nationalities.
Today, over 50 % of Group revenues flow from overseas
operations that span 36 countries in North and South America,
Africa and Asia.

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Introduction to Aditya Birla Sun LifeInsurance

Aditya Birla Sun Life Insurance Company Limited (ABSLI) is a part

of Aditya Birla Capital Ltd (ABCL). ABSLI was incorporated on
August 4th, 2000 and commenced operations on January 17th,
200 1. ABSLI is a 51:49 a joint venture between the Aditya Birla
Group and Sun Life Financial Inc., an international financial services
organization in Canada.

ABSLI offers a range of products across the customer’s life cycle,

including children future plans, wealth protection plans, retirement
and pension solutions, health plans, traditional term plans and Unit
Linked Insurance Plans (“ULIPs”).

As of September 20 21, total AUM of ABSLI Stood at Rs.5,71,182

million. ABSLI recorded a gross premium income of Rs. 49,214
million in H1 FY 2021- 22 and registering a y- o- y growth of 24% in
Gross Premium with Individual Business FYP at Rs 9,810 Mn.
ABSLI has a nation- wide distribution presence through 340 +
branches, 7 bancassurance partners, 6 distribution channels, over
70 ,0 0 0 direct selling agents, other C orporate Agents and Brokers
and through its website. The company has over 13,0 00 employees
and more than 18 lac active customers.

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PORTER'S FIVE FORCES ARE FOR THE COMPANY

1. CO MPETETIVERIVALRY

Insurance industry is becoming highly competitive with 53 players operating in the

industry

Companies are competing on price and also using low price and high price return
strategy for customers to lure them.

2. THREATS O F NEWENTRANTS

Other financial companies are also in the industry

Overall threat is medium given that is subject to license and regulations

3. SUBSTITUEPRO DUCTS

Similarity in services makes switchover a potent threat

Investment oriented customers have switched to other avenues.

4. . BARGAINING PO WER O FSUPPLIERS

Suppliers being the distributer or agents have high bargaining power because they
have customer database and can influence customers in making choices

5. BARGAINING PO WER O FBUYERS

Bargaining power of customers especially corporates are very high because they
pay huge amount of premium and they expect more returns

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SWOT ANALYSIS OF THE COMPANY

Strengths

1. HasNetworkof600 branchesandadvisorsspreadover150 0 townsinIndiah

avingover130 ,000 advisors.

2. Backed by Aditya Birla Brand and Sun Life financialservices
3. Emphasis on Customer Satisfaction through TransparentFunctioning
4. Strong CapitalBase

Weaknesses

1. Low Presence in RuralMarket

2. Lesser advertising as compared tocompetitors

O pportunity

1. Growing potential in the RuralMarket

2. Alignment with GovernmentSchemes
3. Better awareness amongst people for gettinginsurance

Threats

1. Economic crisis and economicinstability

2. Entry of new NBFCs in thesector