in su a rance project for mba

7/27/2019 In Su a Rance Project for Mba

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AVIVA LIFE INSURANCE INDIA PVT. LTD

Where exceeding expectations through innovative

solutions is "our" way of life


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Flow of the presentat ion

What is Insu rance?

Need for Insu rance

History of ins urance in India

Imp or tance of Insurance

Abou t Aviva

Products and serv ices

Unit l inked Plans

Financial instruments Vs ULIP

Competi t ive analysis

Financial An alysis

Find ings f rom the study

Recommendat ions

In ternsh ip at A viva


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What is Insurance?

Concerned with the

protect ion of the econom ic

value of assets

It com pensates the economic

or f inancia l loss resul t ing to

the asset f rom damage or

destruct ion

Al l assets, including the

hum an l ife have economicvalue


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Need For Insurance

As sets are l ikely to be destroy ed

or made non funct ion al due to

accidental occu rrences cal led

per i ls

Risk and unc ertainty

Consequences of r isk are

di f f icu l t to be borne by an

indiv idual


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Insu rance Industry in Ind ia

The f irst Indian insurance com pany was

the Bomb ay Mutual Assurance Society

form ed in 1870

1s tSeptember 1956 Nationalizat ion of lifeinsurance comp anies form at ion of theLife Insuranc e Corp oration o f India (245

companies)

Insurance industry w as privat ized in the

year 1999

On Decemb er 1999 IRDA was form ed

whic h regulated insurance com panies in

India

At p resent there are 14 priv ate part iesICICI Prudential, HDFC Standard, Bi rla Sun

life, Tata Aig, Bajaj Al l ianz to n ame a few


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Impo rtance of Insurance

Acts as a social secur i ty tool

Mobi l izes publ ic s avings

Compulsory s av ings

Compensates loss es

Econom ic Developm ent


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About Av iva

UKs largest and the worlds 5th

largest insurance grou p

Custom er base of over 35 mi l l ion

customers

364 bi l lion pou nds o f assetsund er management

In Ind ia - joint ventu re between

Dabur and A viva Plc

Pioneered concept of B anc assurance

Av iva has 113 branc hes in India

suppor t ing i ts d is t r ibu t ion network

Offers Unit l inked Plans apart from

Tradi t ional insurance prod ucts

Over 16000 financ ial plannin g

advisors


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Produc ts & Services

Easy Life Plus

Save guard

L i fe Bond 5

Li fe Lon g

Young achiever

Freedom Life Plan

Pension Plus


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Unit l inked plans How do they work?

GIVE UNITS WITH NAV INVEST IN FUND FUND VALUE INCREASES

NAV INCREASESCOLLECT PREMIUM DISTRIBUTE


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Financial Instruments Versus ULIPs

Parameters RBI Bonds Fixed Deposits Mutual Funds Unit linked

Safety High High Medium High

Liquidity None High High HighReturns Low Low High High

Life Cover 1 time amount 1 time amount 1 time amount 10 timesTax benefits Tax free Taxed Taxed Tax free


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Compet i tive Analysis

St if f Competi t ion from LIC

Competi t ion from other

pr ivate p layers

Market share of 5.1% in

Ind ia (accord ing to ann ual

premiums col lected

survey)

Current ranking fo r theyear 2006 7th


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Financ ial Analys is

Stock pr ice of A viva as on May 1, 2007

Rs . 33.5

Earnings p er share have fal len from Rs.

7.12 to Rs . 0.13

Operating p rof i t is down to Rs. 0.3

m il l io n from Rs. 10.67 m il l io n (2004

2005)

Aviva is no t comparable with otherpr ivate players as they h ave highly

divers i f ied por t fo l ios


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Findings from the study

ANNUAL PREMIUM PAYED BY RESPONDENTS

The study w as cond ucted most ly fo r males below the age of 35 years

39%

25%

17%

10%

4% 2% 3%

Rs. 5000 - Rs. 10000

Rs. 10001 - Rs. 15000

Rs. 15001 - Rs. 24900

Rs. 25000 - Rs. 50000

Rs. 50001 - Rs. 60000

Rs.60001 - Rs. 80000

Rs. 80001 - Rs. 100000


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AWARENESS OF UNIT LINKED INSURANCE PLANS

57%

43%

Yes

No


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WILL INGNESS TO SPEND ON L IFE INSURANCE PREMIUM

0

10

20

30

40

50

60

Less than Rs.

6000

Rs. 6001 - Rs.

10000

Rs. 10001 - Rs.

25000

Rs. 25001 - Rs.

50000

Rs. 50001 - Rs.

100000


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PREFERRED COMPANY TYPE

0

10

20

30

40

50

60

70

80

Government Owned

Company

Public Limited

Company

Private Company Foreign Company


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IDEAL POLICY TERM

19%

15%

35%

14%

9%

2%

1%5%

3 - 5 years

6 - 9 years

10 - 15 years

16 - 20 years

21 - 25 years

26 - 30 years

More than 30 years

Whole life Policy


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EXPECTED RETURN ON INVESTMENT

2%

15%

17%

18%

17%

10%

8%

5%

8%

Less than 5%

5% - 10%

11% - 15%

16% - 20%

21% - 25%

26% - 30%

31% - 40%

41% - 50%

More than 50%


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Recommendat ions

Ad vert ise about the company and i ts produ cts

Showc ase associat ion with Daburbuild trust

Use modern s ales techniqu es

Divers i fy prod uct port fo l io

Reduce premiums on certa in pol ic ies

Offer g eneral insurance t ravel insu rance, f i re insurance, shop in surance

Imp rove o perational ef f ic iency

Tap the rural market better


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Internship at Aviva

Prospect ing customers

Seeking an appo intment

Presentat ion abou t var iou s plans

Fil l ing an app l icat ion form

Medical and Financia l documents

Age proof , address p roof and p an card

Market Segm entat ion stu dy


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in su a rance project for mba

Documents