Documentos de Académico
Documentos de Profesional
Documentos de Cultura
UNDER TAKEN
@
ON
INDEX
1. Sector’s Profile
2. Company Profile
3. Executive Training
4. Introduction to IRDA ACT
5. Introduction Insurance Advisor
6. Executive Task Assigned & Achieved
7. Methodology
8. Analysis of performance v/s Target
9. SWOT Analysis
10. Suggestion
11. Limitation
12. Questionnaire
13. Conclusion
14. Bibliography
Sector’s
Profile
INDEX
In India, the concept of insurance was never given a serious thought, as compared to
other countries. Life insurance premium to Gross Domestic Product (GDP) ratio is a
mere 1.4% as compared to a healthier rate of 8% amongst other developing countries.
The reason being lack of awareness and opportunities combined with poor state of
services provided.
LIC has been one of the pioneering organizations in India, which ushered in the use of
information technology in their business on a very large scale to deliver more value
and satisfaction to the policyholders. LIC has fully computerized most of its branches
all over India. Metropolitan Area Network (MAN) has enabled policyholders to pay
premiums or to get their status report, surrender value quotation and loan quotation
online. The Zonal Offices and MAN centers are connected through a Wide Area
Network (WAN). Interactive Voice Response Systems have been made functional in a
number of centers all over the country.
The insurance industry in our country is on the threshold of a new era of rapid
expansion. A more competitive environment is expected to emerge with new private
participants being allowed to enter the insurance industry. The need for private sector
participation in this sector is justified on the basis of enhancing the efficiency of
operations, achieving a greater density and penetration of life insurance in the country
and for a greater mobilization of long-term savings for long gestation infrastructure
projects. In the wake of emerging competition, LIC, with its more than four decades
of experience and wide reach, is equipped to face the challenges emanating from the
entry of new players. Insurance is a federal subject in India. The primary legislation
that deals with insurance business in India is:
The origin of insurance is very old .The time when we were not even born; man has
sought some sort of protection from the unpredictable calamities of the nature. The
basic urge in man to secure himself against any form of risk and uncertainty led to the
origin of insurance.
The insurance came to India from UK; with the establishment of the Oriental Life
insurance Corporation in 1818.The Indian life insurance company act 1912 was the
first statutory body that started to regulate the life insurance business in India. By
1956 about 154 Indian, 16 foreign and 75 provident firms were been established in
India. Then the central government took over these companies and as a result the LIC
was formed. Since then LIC has worked towards spreading life insurance and building
a wide network across the length and the breath of the country. After the liberalization
the entrance of foreign players has added to the competition in the market.
INSURANCE SECTOR IN INDIA
The insurance sector in India has witnessed almost a 360-degree turn over a period of
almost two centuries. It has come a full circle from being an open competitive market
to nationalization and back to a liberalized market again.
India with its large population does provide an immense potential for the insurance
industry to flourish. Below given are some of the statistics pertaining to Indian
insurance Industry.
INDIA AT A GLANCE:
Population: 1 Billion
Economy: 5th largest in the world in terms of Purchasing
Power Parity (PPP)
GDP growth Rate: Over 6% per year on an average for the
last decade
Savings Rate: Around 26% of GDP
Estimated middle class population: 300 Million
Insured population: 70 million only
Estimated business (2008): $6.6 Billion
The insurance sector in India has come up a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360-degree turn
witnessed over a period of almost two centuries.
By any yardstick, India, with about 200 million middle class households, presents a
huge untapped potential for players in the insurance industry. Saturation of markets
in many developed economies has made the Indian market even more attractive for
global insurance majors. The following table reflects the low percentage and per
capita penetration of insurance in India compared to other developed and
developing countries. With the per capita income in India expected to grow at over
6% for the next 10 years and with improvement in awareness levels, the demand for
insurance is expected to grow at an attractive rate in India.
CONTRIBUTION TO GDP
Contribution to GDP
Countries
(Premium as % of GDP)
UK 12.71
Japan 8.70
US 4,48
South Africa 14.04
Australia 6.04
South Korea 9.89
India 1.77
China 1.12
Malaysia 2.13
Indonesia 0.54
Brazil 0.36
Insurance in India before 2000 meant only LIC (Life Insurance Corporation) &
GIC (General Insurance Corporation). These two players signified the entire
insurance sector in India. No doubt they were an amalgamation of as many as
351 private insurance companies i.e. LIC was formed by nationalizing 245
private insurance firms in 1956 & GIC by nationalizing 106 firms in 1970.
INSURANCE SECTOR BEFORE PRIVATIZATION
The Indian Insurance sector before privatization was based on the following factors:
Simple products.
Lower penetration & more direct business due to lack of intermediaries.
Though the domestic savings in India is 25% only 5 per cent of it is insured. The
Gross Insurance Premium in India is as low as 0.3% compared to Japan which is
31%, European Union =25%, Canada = 1.3%. Which is 51st in the world?
But with the Vajpayee government coming to power in 2000 for a brief period,
the way for privatization of insurance sector was paved. & lobe hold, now we
have as many as 26 private players in this field i.e. 13 life-insurers & 13 non-life
insurers. The reinsures function under the umbrella of GIC & are required to
reinsure 30% of their business with it. GIC has allowed Indian exporters to
secure liability insurance from outside the country, which has facilitated its
entry into SAARC.
In various segments of Indian Insurance industry, health care presents a huge
potential. The total expenditure on health in India is 6 per cent of the GDP. The
government spending is less than 25% compared to 30-40% of developed
countries. The health insurance industry in India can be valued at more than
90,000 core rupees. This means that in a population of 1 billion only 2340
million people are insured. It is estimated that this number will grow to 650
million by 2005.
The opening up of this sector has led to heightened activity. To increase
penetration both national & private players are now using conventional means.
However, both the private & national players are reluctant to actively participate
in the motor insurance segment, as the losses in this sector are more than 100%.
Moreover the motor insurance premium is as low as 2.5 per cent of the vehicle
cost compared to international standard of 6 per cent.
The privatization of insurance sector in India has encouraged the government to
go in for more such moves. The track record of LIC has shown that even
national players can function in a competitive environment & still dominate the
market.
Why Private Insurance companies came to India?
In India, the laws & practices have changed significantly, since the 1950’s. The
amendments made in 1952, to the Insurance Act, 1938, did away with the system of
Principal agents, Special agents & chief agents, who were till then permitted to
procure proposals from the market for insurance companies. Restrictions were also
imposed on managing agencies, as well as on the nature of remunerations that could
be paid to agents.
As at the end of 1998, only the following organizations were transacting life insurance
business in India.
Life Insurance Corporation of India (L.I.C.)
Postal Life Insurance (P.L.I)
LIC came into being on 1st September, 1956 as a result of the nationalization of
life insurance business.
LIC was hardly able to cover 10-15% of the population even after its 40 years
of existence in market
All others who were transacting life insurance business in India were prevented from
doing so by the Nationalization Act of 1956, & all their business was taken over by
the L.I.C. It is expected that there could be significant changes in the following years;
if & when new rules are enacted, enabling more private companies to transact life
insurance business in India. LIC came into being on 1st September, 1956 as a result of
the nationalization of life insurance business. It transacts business throughout India &
also in the U.K., Mauritius, Fiji & Bahrain.
LIC of India was the only player in the market from 1956 & even after 40 years of
existence it was not possible for them to cover all the population for life insurance.
They were hardly able to cover 10-15% of the population even after having so many
branches & employees. So for covering each & every individual under insurance,
government allowed private players to get into this business in 1999.
Now in all there are 17 players in Life insurance business including LIC & they are
1. Bajaj Allianz Life Insurance Co. Ltd.
2. Birla Sun Life Insurance Co. Ltd. (BSLI)
3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE)
4. ICICI Prudential Life Insurance Co. Ltd. (ICICI PRU)
5. ING Vysya Life Insurance Co. Ltd. (ING VYSYA)
6. Max New York Life Insurance Co. Ltd. (MNYL)
7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE)
8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd.
9. SBI Life Insurance Co. Ltd. (SBI LIFE)
10. TATA AIG Life Insurance Co. Ltd. (TATA AIG)
11. Reliance Life Insurance Company Ltd.
12. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA)
13. Sahara India Life Insurance Co. Ltd. (SAHARA LIFE)
14. Shriram Life Insurance Co. Ltd (SHRIRAM LIFE)
15. Bharti AXA Life Insurance Co. Ltd. (BHARTI AXA)
16. Future General India Life Insurance Co. Ltd.
17. IDBI Fortis Life Insurance Company
Capacity Building:
In service sector when we are talking about capacity building we are not talking about
procuring sophisticated equipments /machines but about manpower. So in insurance
sector the capacity building i.e. recruiting personnel is done in two ways: a)
Recruiting employees i.e. Sales Manager /Sales officer b) Recruiting Life Insurance
Advisors.
Insurance Industry After Privatization
Reforms have marked the entry of many of the global insurance majors into the Indian
market in the form of joint ventures with Indian companies, which have responded to
the competition in an admirable fashion by launching new products and improving
service standards. In India there are 17 players in insurance sector. One is LIC and
others are as below:
Date of Reg.
Name of the company
1 23.10.2000 HDFC Standard Life Insurance Company Ltd.
2 15.11.2000 Max New York Life Insurance Co. Ltd.
3 24.11.2000 ICICI Prudential Life Insurance Company Ltd.
4 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Ltd.
5 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 23.10.2001 Reliance Life Insurance Company Ltd.
7 30.03.2001 Tata AIG Life Insurance Company Ltd.
8 02.08.2001 ING Vysya Life Insurance Company Ltd.
9 03.08.2001 Bajaj Allianz Life Insurance Company Ltd.
10 06.08.2001 Metlife India Insurance Company Pvt. Ltd.
11 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.
12 06.02.2004 Sahara India Insurance Company Ltd.
13 30.07.2006 Bharti AXA Life Insurance Co. Ltd.
14 3.01.2002 Shriram Life Insurance Co. Ltd
15 4.09.2007 Future General India Life Insurance Co. Ltd.
16 30.03.2001 SBI Life Insurance Company Ltd
17 19.12.2007 IDBI Fortis Life Insurance Company
MARKET SHARE OF LIFE INSURANCE PREMIUM
COLLECTION
Future Generali
LIC
HDFC Standard Life Insurance
Market Shere for Primium collaction Company Ltd
Max New York Life Insurance Co.
of Insu.Co.in 2007-08 Ltd.
ICICI Prudential Life Insurance
Company Ltd.
Kotak Mahindra Old Mutual Life
Insurance Ltd
Birla Sun Life Insurance Company
4% 3% Ltd.
Reliance Life Insurance Company
Ltd
Tata AIG Life Insurance Company
13%
Ltd.
ING Vysya Life Insurance
Company PrivateLtd.
Bajaj Allianz Life Insurance
2% Company Ltd.
Aviva Life Insurance Co. India Pvt.
47% 3% Ltd
Sahara India Insurance company
4% Ltd
Bharti Axa Life insurance
2%
Shriram Life Insurance Co. Ltd
1%
(SHRIRAM LIFE)
SBI Life insurance
11%
Met life insurance
0% 2%
5%
0% Future Generali
0%
0% IDBI Fortis Life
2%
0% LIC
FUTURE OF INSURANCE SECTOR
Job opportunities are likely to increase manifold. The number of people working
in the insurance sector in India is roughly the same as in the UK with a population
that is 1/7 India’s; the US with a population ¼ the size of India has nearly 4 times
the number. In the emerging markets, the picture is no less encouraging. In South
Korea, the number of full time employees more than doubled over a ten-year
period. Thailand added 50 per cent more jobs in four years.
The liberalization of the insurance sector promises several new jobs opportunities
for those employed in the finance sector that are equipped with degrees in finance.
Finance professionals who had witnessed a slump in the job market would be
much-relieved lot to hear about the privatization of the insurance sector.
There could be a huge inflow of funds into the country. Given the industry’s huge
requirement of start-up capital, the initial years after opening up are bound to see a
strong inflow of foreign capital. Moreover, given that the breakeven, typically,
come much later than in the case of other sectors, odds are those first remittances
of dividend will not happen before a good 10-15 years.
In other markets, notably Europe, this has resulted in banc assurance: banks
entering the insurance business. The Netherlands led with financial services firms
providing an entire range of products including bank accounts, motor, home & life
insurance, & pensions. Other European markets have followed suit. In France over
half of all life insurance sales are made through banks. In the UK, almost 95% of
banks & building societies are distributing insurance products today.
Mergers of Citibank with Travelers in USA & of Winterthur, the largest Swiss Co.
with Credit Suisse are recent examples of the phenomenon likely to sweep India
too.
The major elements that will be Critical in shaping the future of the insurance
market can be broadly outlined as:
Distribution
Competition
Building Trust & Customer Confidence
Product innovation
Health Insurance
Training & Education
Information Technology
LIFE INSURANCE
A small, happy family – husband, wife and two cute kids. One bread winner and four
mouth to be fed. Things are doing well, BUT.... What next if something goes wrong
with bread winner?????? Life insurance is a contract payment of some money to the
person assured on the happening of the event issued against. Usually the specified
date at periodic intervals or on unfortunate death, if any occurs earlier.
The Head or the breadwinner of the family generally supports the family for
their basic needs, such as, food, clothing & shelter, by bringing income at a regular
interval. So long as he or she lives & the income is received steadily, the family is
secure; but untimely death or disability of that person puts the family in a very
difficult situation, and sometimes in stark poverty. Uncertainty of death is inherent in
human life.
It is the uncertainty that is the risk, which gives rise to the necessity for some
form of protection against the financial loss arising from death. Insurance substitutes
this uncertainty by certainty.
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear
risk of the caravan trade by giving loans that had to be later repaid with interest
when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal
status to the practice. That, perhaps, was how insurance made its beginning.
Life insurance had its origins in ancient Rome, where citizens formed burial clubs
that would meet the funeral expenses of its members as well as help survivors by
making some payments.
The first ….
Back to the 17th century, in 1693, astronomer Edmond Halley constructed the
first mortality table to provide a link between the life insurance premium and
the average life spans based on statistical laws of mortality and compound
interest. In 1756, Joseph Dodson reworked the table, linking premium rate to
age
The first stock companies to get into the business of insurance were chartered
in England in 1720. The year 1735 saw the birth of the first insurance
company in the American colonies in Charleston, SC.
The 19th century saw huge developments in the field of insurance, with newer
products being devised to meet the growing Needs of urbanization and
industrialization.
In 1835, the infamous New York fire drew people's attention to the need to
provide for sudden and large losses. Two years later, Massachusetts became
the first state to require companies by law to maintain such reserves. The great
Chicago fire of 1871 further emphasized how fires can cause huge losses in
densely populated modern cities. The practice of reinsurance, wherein the
risks are spread among several companies, was devised specifically for such
situations.
With the advent of the automobile, public liability insurance, this first made its
appearance in the 1880s, gained importance and acceptance.
In the 19th century, many societies were founded to insure the life and health
of their members, while fraternal orders provided low-cost, members-only
insurance.
In this entire world, people live and people die. No one is immortal. Everybody
who borne has to die, it is the rule. We all know it, but human beings do not think
much about it, infect we do not want to think about it. Everyone in the world is
very optimistic about his life. No one knows when he/she is going to die and
fortunately it is right also. We all know our Date-of-birth, but we don’t know our
date-of –Death. Here the man is very possessive about his life and wants to live
more and more in what so ever condition is. He wants to live till ripe old age. He
wants to do very last for his parents and watch his children stand on their feet.
But, what if fate cuts life shorts? Who would pay for his children’s education,
their marriage? Ensures life continuity for them? What if sudden disability or
illness puts us out of action? Who would pay the mounting household bills? Have
we ever thought of it? If these adversities occur, are we equipped to face the
situation?
Let us look at the entire concept from a different way. During our life time we are
supposed to deal with three probabilities and two priorities as shown next page:
Children’s
Education Wealth
And Marriage Creation
As just discussed above that everybody KNOWS about it but NO one FEELS about it.
We all know about uncertainty of our life but we still are so optimistic about it. Today’s
stressful and hectic life style increases its uncertainty. It is found that only 3 out of 4
people reach age of 60* and we always consider ourselves among rest of the 3. A
person’s family will need his/her income to maintain the same lifestyle.
Don’t we want them to be happy, not only as long as WE live but as long as THEY live?
* Statistical Survey of India
Living Death:
6 out of 10 people suffer a life-threatening illness before they reach the age of 60.
Critical illness or disability can
shatter your dreams for your loved
ones. Not only you suffer but you
also have to watch your family
suffer. When unfortunate event
occurs, your income should not
stop.
There are certain times in a person’s life when he/she would want his love to be
available to his/her children in form of hard cash.
This is one area where you don’t want to compromise, isn’t it? You are the source of
your children’s happiness-protect it!
Wealth Creation:
Risk-Cover
Peace of Tax
Mind Benefits
Office Forced
Service Savings
CORE
Pre and
Post Sales Return
Service
Liquidity Safety
In short we can say that the total service package of life insurance is as in above
diagram.
Company
Profile
What Is Bharti Axa?
Bharti Axa Life Insurance is collaboration between Bharti Enterprises and AXA
Group.
Bharti AXA Life Insurance 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, we have over
5200 employees across over 12 states in the country. Our business philosophy is built
around the promise of making people "Life Confident".
Vision
To be a leader and the preferred company for financial protection and wealth
management in India.
Values
Professionalism
Innovation
Team Spirit
Pragmatism
Integrity
Bharti Enterprises
It 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 Business Week 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
AXA
AXA Asia Pacific Holdings Ltd (AXA APH) is listed on the Australian stock
exchange and is 52.3% owned by AXA SA. AXA APH is responsible for AXA SA’s
life insurance and wealth management businesses in the Asia-Pacific region. It has
operations in Australia, New Zealand, Hong Kong, Singapore, Indonesia, Philippines,
Thailand, China, India and Malaysia. AXA APH had A$106.4 billion in total funds
under management and administration at 30 June 2007 and reported profit after tax
before non-recurring items of A$374.0 million for the six months ended 30 June 2007
Distribution
Bharti AXA has one of the largest distribution networks amongst private life insurers
in India. As of March 31, 2007 the company has over 934 offices across the country
and over 10,016 advisors. Distribution strategy of Bharti AXA is as follow:
Bancassurance
20%
Corporate
Agency/Brokers
10%
Direct Marketing
70%
Agency Force
PRODUCT LINE
Regional Manager
Territory Manager
Sales Manager
Senior Manager
Unit Manager
Advisors
Corporate structure.
CORPORATE STRUCTURE
TIED
AGENCY ALTERNATE
DISTRIBUTION
VICE PRESIDENT
COURNTRY HEAD
REGIONAL MANAGER
RELATIONSHIP
BRANCH SALES MANAGER
MANAGER
SALES
MANAGER
SALES ASSI SALES
MANAGER MANGER
TRAINESS CUSTOMER
SERVICE
REPRESENT
Executive
Training
(DYNAMICS OF AGENCY RECRUITMENT)
Meaning of Agency recruitment
Agency recruitment is all about recruiting financial advisor for the company.
The financial advisor is the person who can guide the people in making proper
investments regarding their life………………
Now the question comes is that “ how can he/she be the advisor of the
company” ???????
Financial Advisor
Financial advisor is the person who has been issued the government authorized
IRDA license which is valid for three years and in those 3 years he/she can tap
into an unlimited income and reinvent their life.
As a Life Advisor a person’s role would go beyond selling policies. His/her role
would be to explain life insurance and its benefits to potential customers and help
them decide which plan suits them best after analyzing their financial needs.
Hence, life insurance offers one with an opportunity for:
As a Life Advisor with Bharti Axa Life Insurance one would enjoy the following
benefits:
2.Mentoring: Training and support from the Company to meet one’s goals.
Opportunity to learn from industry professionals.
4. Satisfaction: One will help people manage their assets and plan their financial
security, and experience deep satisfaction from making a positive difference in others
lives. One acts as a strategist in annuities, business insurance, estate planning and
personal investment, providing both short and long term solutions to financial risks.
5. Freedom:Continue with your present job occupation if you so desire and treat this
as a parallel source of income. This allows you time to decide if you want to take the
job of a Life Advisor as a full time activity.
“To protect the interests of the policyholders, to regulate, promote & ensure orderly
growth of the insurance industry & for matters connected therewith or incidental
thereto.”
After liberalization of the insurance sector in 1999, private players have entered both
life & non-life business in India. The Insurance Regulatory & Development Authority
(IRDA) was constituted in April 2000, as an autonomous body to regulate & develop
the business of insurance & reinsurance in the country in terms of the IRDA Act
1999.
For getting license to work as an agent of any company a person must complete 100
hours training and pass exam of Indian Institute of Insurance (III). If a person is
already holding license for General Insurance than he will have to complete only 50
hours training.
All the above criteria are common for all the companies, they have to follow it. In
practice, because of competitive environment many companies decide their own
criteria apart from all above. Different criteria used by companies are shown in the
following table:
At least Living in Networ High Net Married Age
Graduat Ahmedaba k/ Income and have grou
e Person d for at Society (HNI)*grou dependent p
least 3 yrs group p s 25-50
yrs
KLI 1
ICICI -
Prudential
2
LIC - - - -
Birla Sun - - -
life
Bajaj - - -
Allianz 3
ING - - - - -
Vysya4
Bharti -
Axa
Aviva 6 NA
Life insurances agent has the unique role of such a person, who enjoys the trust of
two parties - the prospect and the insurer - simultaneously in the same transaction.
To simplify, functions of a life insurance agent could be divided into two parts,
viz.
'Pre-sale functions';
'Post-sale functions'
Contact prospects
Filling of form
Arranging for Medical Examination
Collection proofs of age and income
Any other information required by the underwriters
Assist the policyholder in case he wants to get loan against the policy
assignment.
Assist the policyholder or the claimant to comply with the requirement for
getting timely settlement of claims.
The Target customers of the company are :
Housewives
Students
Businessman
Brokers
Retired persons
BHARTI AXA LIFE INSURANCE, Private leader also take into consideration
most of the criteria. They also focus on quality rather than quality. Further, they
also opt to recruit LIC agents. Logic behind this may be that person won’t require
the training (Elimination of Training Cost), moreover his experience and
Established network can be encased easily. Thus, BHARTI AXA has also adopted
competitive strategy because the LA is a major source of business.
9
8
8
7
7
6
6
5
5
4
4
3 3 3 33
3
2 2 2 22 2 2
2
11 11 1 1
1 0
0
1 2 3 4 5 6 7 8
METHODOLOGY
METHODLOGY
Cold Calling:
Cold calling means to approach the customers with out taking prior appointments. I
have done lots of cold calling as I visited different shops and malls I got a great
experience as I interacted with different kind of peoples. Even I learned lots of things
regarding convincing the customers.
Role Plays:
Data Collection:
My third strategy is to collect data as many as possible from different sources. So for
this data collection I have visited different colleges and even to different banks to get
the data of retired people. I went to colleges to get the data of the graduate students
who would the good prospect for our company.
Canopy:
Canopy is the kind of activity in which we do arrange a small Business
Opportunity Presentation. We select particular area and in this area we give
invitations to the people residing in this area and than we arrange the
presentation. We did our canopy in the areas like Navarangpura, Gurukul,
Vijay Cross Road and tried to cover as many areas as possible.
SWOT
Analysis
STRENGTHS
Offers greater relationships and more face to face contacts with the customers.
BHARTI AXA has marketing, research and development and the competing
products
WEAKNESSES
Higher cost for insurer and consumer because of high commission rates.
Strong Competing brands of other players with almost the same features
The Direct Marketing and other promotional efforts done by other players
increases the competition
Focus on high net worth individuals who prefer relationship over price
High market growth provides opportunity for the company to increase their
role in increasing Premium collections.
Because of the large customer based, the company can have the benefit of
economies of scale in providing services.
The move towards retail customers has access the banks to the rural
population.
Tie up with other banks to increase ATM networks has lowered the
operational cost of the company.
Foreign companies also merge with other banks to increase the networks and
customer services within the nation and internationally.
Lower switching cost for customers can be a threat for the company to convert
other company’s customers to its products.
A higher premium to the agents is one of the biggest cost disadvantages to the
company.
The legal regulation from IRDA may affect particular company negatively.
The scams of co-operative banks have affected the image of private companies
in the mind of the people, which may affect the image of private insurance
companies negatively.
Higher inflation rate can increase the cost for the company in providing
services
SUGGESTIONS
I personally believe that BHARTI AXA requires promoting their very strongly
as in day on day the competitive companies are increasing and to be in the
race it has to promote its products continuously. Their Brand awareness –
specifically in Life Insurance – is high compare to competitors. They should
aggressively promote on media like Television, newspaper like Times of India
and Economics Times.
BHARTI AXA should expand their distribution network in Semi Rural and
Rural areas to target market having huge potential.
Their Motivation Strategy for Life Advisors is very effective during Training
and even after training; they should stick to it and even try for innovative
ways.
Generating Database:
I have faced lots of problem in generating data base as I have used different sources to
generate it, e.g. I visited different colleges to generate data of fresher students and even
visited to different call center to get the data base of the customers but the problem I faced
was they didn’t provided me the data as they told me that it is confidential.
My second limitation was the appointments at improper timings as the customers call us at
any of their convenience time and it can be in the early morning or it can be in the late night
also.
High Fees:
To be an advisor in BHARTI AXA the fees is Rs. 825 so this is quite a huge amount as
compare to the competitors, because in L.I.C it is 450 Rs, in MAX LIFE it is 500 so when a
customers get ready to be advisor he basically stuck to the fees.
Quality Customers:
What BHARTI AXA ask from is to recruit quality advisors, they to maintain the Q
Score but it is very difficult to get that quality customers.
QUESTIONAIRE
Dear Respondent,
We are conducting this research to measure ethnocentrism level
of Insurance Companies. Our objective behind this study is to find our some concrete
outcomes for ethnocentrism. Which help the management students. By filling-up this
questionnaire you can help us in transformation of our efforts in to worth findings.
Whatever data you have to provide it is purely confidential and we have to use this
information for our academic purpose only.
Qualifying Questions:
Name:___________________________________________
Q.1 Gender:
A) Male _______ B) Female ________
Q.2 Age:
A) Below 30 _____ C) 40-50 _______
B) 30-40 _____ D) Above 50 _______
Q.4 Occupation:
A) Financial Investors ________
B) Students ________
C) CA ________
D) Tax Consultant ________
E) Housewife ________
F) Teachers _______
G) LIC Agents _______
H) Advocates _______
A) Insurance _________
B) Investment/stock market _________
C) Multilevel marketing _________
D) Dealership _________
E) Other _________
Q.6 What Criteria do you consider for selecting a business?
Q.7 How many hours would you like to spend on a part time business?
Q.9 What skill do you have which you consider will be an assets in BHARTI AXA
Q.10 What motivate you to enter the field of selling (Please rank order them in order
to perform your performance i.e.1,2,3,4,5)
Q.11 Do you or your family member has taken any life insurance?
A) YES B) NO
Entry of Private players in Insurance Industry has changed the entire scenario of the
Industry. Industry has shown Revolution of 360* starting from 1956. Private players
have challenged the LIC and compelled to face the competition. This cut-throat
competition has been a boon for customer. He has been more informed and getting
better services. Negligence to the Insurance is decreasing day by day. Thus, total
scenario of the Industry has changed from as it was in 1956 – a Monopoly Market.
Effective Sales required to be carried out in a way starting from Prospecting and
Qualifying to Follow-up and Maintenance. Each step in effective selling process is
required to be taken care. In BHARTI AXA, LAs are trained in such a manner that
they are able to carry effective sales process. Sales Managers do them lot of help in
this context. They use Need-Satisfaction approach (Mostly) and also Formulated
approach for this and it works
BIBLIOGRAPHY
Books referred
Websites