recruitment of advisors and sales of financial products through them and collection of desirable...

8/4/2019 Recruitment of Advisors and Sales of Financial Products Through Them and Collection of Desirable Premium

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SIP Report /Sterling Institute of Management studies, Navi Mumbai 1

The opening up of Insurance sector was a part of the on-going liberalization in the financial

sector of India. The changing face of the financial sector and the entry of several companies in

the field of life and non-life Insurance segment are one of the key results of these

liberalization efforts. Insurance business by way of generating premium income adds

significantly to be the GDP. Over the past three years, more than thirty companies have

expressed interest in doing business in India. The IRDA (Insurance Regulatory Development

Authority) is the regulatory authority, which looks over all related aspects of the insurance

business. The provisions of the IRDA bill acknowledge many issues related to insurance

sector. The IRDA bill provides guidance for three levels of players - Insurance Company,

Insurance brokers and Insurance agent. Life Insurance sector is one of the key areas where

enormous business potential exists. In India currently the life insurance premium as a

percentage of GDP is 1.3 % against, 5.2 per cent in the US.

Meaning of insurance

Insurance can be defined as a legal contract between two parties whereby one party calledinsurer undertakes to pay a fixed amount of money on the happening of a particular event,

which may be certain or uncertain. The other party called insured pays in exchange a fixed

sum known as premium.

Insurance is desired to safeguard oneself and ones family against possible losses on account

of risks and perils. It provides financial compensation for the losses suffered due to the

happening of any unforeseen events.

INDUSTRY OVERVIEW


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History of life insurance

Risk protection has been a primary goal of humans and institutions throughout history.

Protecting against risk is what insurance is all about. Over 5000 years ago, in China, insurance

was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent,

that as a way of spreading the risk, a number of ships would carry a portion of another ship's

cargo so that if one ship was captured, the entire shipment would not be lost.

In another part of the world, nearly 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. It formalized concepts of bottom referring to vessel bottoms and respondent

referring to cargo. These provided the underpinning for marine insurance contracts. Such

contracts contained three elements: a loan on the vessel, cargo, or freight; an interest rate; and

a surcharge to cover the possibility of loss. In effect, ship owners were the insured and lenders

were the underwriters.

Life insurance came about a little later in ancient Rome, where burial club were formed to

cover the funeral expenses of its members, as well as help survivors monetarily. With Rome's

fall, around 450 A.D., most of the concepts of insurance were abandoned, but aspects of it did

continue through the Middle Ages, particularly with merchant and artisan guilds. The security

provided forms of member insurance covering risks like fire, flood, theft, disability, death, and

even imprisonment.

During the feudal period, early forms of insurance ebbed with the decline of travel and long-

distance trade. But during the 14th to 16th centuries, transportation, commerce, and insurance

would again reemerge Insurance in India can be traced back to the Vedas. Forinstance,Yogakshema, the name of Life Insurance Corporation of India's corporate

headquarters is derived from the Rig Veda. The term suggests that a form of" community

insurance" was prevalent around 1000 BC and practiced by the Aryans And similar to ancient

Rome, burial societies were formed in the Buddhist period to help families build houses, and

to protect widows and children


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Insurance companies in INDIA

Name of the company Nature of Holding

Allianz Bajaj Life Insurance Co Private

Aviva Life Insurance Private

Birla Sun Life Insurance Co Private

HDFC Standard Life Insurance Co Private

ICICI Prudential Life Insurance Co Private

ING Vysya Life Insurance Co. Private

Life Insurance Corporation of India Public

Max New York Life Insurance Co. Private

MetLife Insurance Co. Private

Om Kotak Mahindra Life Insurance Private

Reliance insurance Private

SBI Life Insurance Co Private

TATA- AIG Life Insurance Company Private


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NAME OF THE PLAYERAND MARKET SHARE (%)

Graph no.1(market share)

Name of the Player Market share (%)

LIFE INSURANCE CORPORATION OF INDIA 82.3

ICICI PRUDENTIAL 5.63

BIRLA SUN LIFE 2.56

BAJAJ ALLIANZ 2.03

SBI LIFE INSURANCE 1.80

HDFC STANDARD 1.36

TATA AIG 1.29

MAX NEW YARK 0.90

AVIVA 0.79

OM KOTAK MAHINDRA 0.51

ING VYSYA 0.37

MET LIFE 0.21

Series 1

MET LIFE

ING VYSYA

MO KOTAK MAHINDRA

AVIVA

MAX NEW YORK

TATA AIG

HDFC STANDARD

SBI LIFE INSURANCE

BAJAJ ALLIANZ

BIRLA SUN LIFE

ICICI PRUDENTIAL


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Industry statistics

The health portfolio continues to grow at a healthy pace. As per statistics released by the

Insurance Regulatory and Development Authority (IRDA), the industry recorded 33.1 per cent

growth in health insurance premiums collected in FY2010-11, with most non-life insurance

companies recording double-digit growth rates in the health segment.

An indication of growing maturity of the industry is the upward revision in the premium rates

by all players to make up for the high claims ratio, especially in the group health segment, and

the double digit medical cost inflation. Further premium increases are expected in the year. In

order to contain costs, some employers have withdrawn insurance benefits for elderly parents

under group cover, or introduced co-payment arrangements for meeting parental claims;

some have introduced sub-limits on expense categories while others have scrapped maternity

cover. The IRDA Chairman has also indicated that policyholders may gradually have to pay

more for health insurance in a market driven industry.

At the same time, the overall service levels and customer management standards are

improving. The cashless claim facility is making a gradual comeback. The key development

this year is going to be the health insurance portability, which is expected to offer more

convenience to customers and make the industry more competitive.

Industry Performance For The Year Ended 31March 2011 (table no.1)

((


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Mission of the Company

India has 130crore population but only 16 crore people are insured till now. Still

86 crorePeople are yet to be insured. Also in broader perspective, company

wants to make every person get benefited through investing in Bajaj Allianz Life

Insurance.

The Company is focusing on improving employee productivity, policy

persistency, operational processes and service le

Vision of the Company

1) To be the first choice insurer for customers.

2) To be the preferred employer for staff in Insurance industry.

3) To be the number one insurer for creating shareholder value

4) To aspire to be a world class organization.

5) To encourage organizational transparency.

6) To value integrity.

COMPANY OVERVIEW


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History

ALLIANZ AG JOINED FORCES WITH BAJAJ Auto Ltd. to offer both general and life

insurance products. Allianzs joint venture partner is Bajaj Auto, a respected Indian

conglomerate with a strong market presence and an excellent distribution network. Their two

joint ventures are Bajaj Allianz for General Insurance and Bajaj Allianz for Life Insurance

Bajaj Auto Ltd. founded in 1942 by (Late) ShriJamnalal Bajaj, is Indias largest two & three -

wheeler Manufacturer & Exporter producing 1.2 million units, with Market Capitalization of

Rs.8000Crore. Bajaj Auto has an existing network of over 375 dealers across India & a

Distributor network in 60 cities.

Allianz AG is a Leading Global Insurance company Headquartered in Munch, Germany,

established in 1890, with a Global network extends to over 73 countries across Europe, South

& Northern America, and Africa& Middle East, Asia pacific, with over 700 subsidiaries &

119,000 employees Worldwide. At current level company have assets under management of

USD 1000 billion, with global ratings-AA+-Standard & Poors.

Allianz links with India started in the 1919s. Allianz first arrived in India in 1928 when it

opened a branch in Delhi. In September 2001, Bajaj Allianz received the license from the

IRDA to start selling life products.

Bajaj Allianz Life Insurance Company Limited takes this opportunity to welcome you our

commitment to meet the needs of customer through quality products, dependable service and

ethical business standards. Trusted over decades, both Allianz AG and Bajaj Auto have

experienced substantial growth in demanding environment.


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Organization Structure

Organization structure of BAJA ALLIANZ LIFE INSURANCE is as follows,

CEO

HOD Sales

Zonal Manager

RegionalManager

Senior BranchManager

Branch Manager

assistant BranchManager

Sales Manager

Assistant salesManager

Agents/Insurance

Consultants


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CSR activity

The CSR activities of Bajaj Group are guided by the vision and philosophy of its Founding

Father, ShriJamnalal Bajaj, who embodied the concept of Trusteeship in business and laid

thefoundation for its ethical, and value-based and transparent functioning. The core elements

of CSR activities include ethical functioning, respect for all stake-holders, protection of

human rights and care for the environment. Bajaj Group generally implements the above

initiatives through its Employees Welfare Funds and Group NGOs / Trusts / Charitable

Bodies operating at various locations in the country. It also enlists the help of non-Group

NGOs, Local Authorities, Business Associations, Social & Philanthropic Organisations of

repute and Civil Society, wherever deemed necessary. Some of the major initiatives taken up

/continued during the year under review are summarized below:- A. Through Group Trusts

1. Jamnalal Bajaj Foundation (JBF Foundation)

Awards

The Foundation gives 4 Awards annually - each of the value of ` 5 lakh. Of these, three are

given to individuals in India for outstanding contribution in the fields of constructive work on

Gandhian lines, application of science and technology for rural development and uplift and

welfare of women and children. The fourth one is an International Award - given to

individuals other than Indian citizens from foreign countries for their contribution to the

promotion of Gandhian values outside India.

Financial Assistance

During the year, financial assistance was provided to wives and families of farmers, who have

committed suicide in WardhaDistrict for their subsistence and also for educational assistance

to their children.


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Rural Development

The Foundation has been undertaking rural development workin select villages of Wardha

District, Maharashtra (since 1987) and in Shikohabad, Dist. Firozabad, U.P. (since 1992). The

activities are undertaken on the basis of the need of the local people. Special emphasis is given

on health, family welfare, and immunization, supply of potable drinking water, sanitation and

alternative source of renewable energy.

Community Awareness Campaign & Health Camp

The Foundation carried out people-to-people base awareness programmes about population

control, usage of toilet, health hygiene etc. and organized health camps for women and

handicapped persons.

2. Jankidevi Bajaj Gram VikasSanstha (JBGVS)

Rural and Community Development Activities and Empowerment of

Womenempowerment.

Education

Economic development

Environmental development

Social development


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Product

At present, Bajaj Allianz is offering seven life insurance products, namely Invest gain(an

Endowment plan), Cash gain(Money Back plan), Lifetime Care(A Whole life plan), Risk

Care(Pure Term Insurance plan), Term Care(Term plan with return of premium), Child

gain(Children plan) and SwarnaVishranti(Deferred Pension Plan) Unit gain & Loan protector.

All these plans are available in combinations with additional benefits packages to match every

individuals need.

For each plan category, an individual can choose from among four benefit packages

namely,

Economy: Basic plan, with no additional benefits

Protect: Basic plan along with cover against accidental risk- Accidental Death Benefit,

Accidental Permanent Total/Partial Disability Benefit, Waiver of Premium.

Health: Basic plan along with cover against health related risks- Critical Illness,

Hospital Cash Benefit.

Total: Basic plan with cover against both accidental and health related risks i.e. Both

Protect & Health Pack.

These packages are structured keeping in mind the varying needs of insurance and the value-

add that to match the flexibility for the policyholder. These benefits can be attached to all

plans offered by Bajaj Allianz Life.

Bajaj Allianz Life Insurance Co Ltd is a unique joint venture among the global giants Allianz

Group (AG) and Bajaj Auto. Allianz AG's world ranking establishes it among the top

insurance companies in the world. Bajaj is the biggest two and three wheeler manufacturer in

the world. Bajaj Allianz Life Insurance Company boasts of a nationwide presence with 876

offices and over 4 million satisfied customers. The various insurance products include .


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Individuals Plans

Unit Gain Insurances

Term Care Plans

Lifetime Care Insurance Policy

Business Insurance Policies

Savings And Security Policies For You And Your Family

Rural Insurance Plan

Healthcare Insurance

Financial Insurance

Pension Plus

Retirement Plans

Children's Policies

Endowment Plans and many more.


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Group Insurance Schemes

Insurance For Employee-Employer Groups

Insurance For Non-Employer - Employee Groups

Employees Deposit Linked Insurance

New Group Superannuation Scheme

New Group Gratuity Care Scheme

Special Insurance Policies for NRI's

Investgain Endowment Plan

Cashgain Money Back Plan

Childgain Kids Special Plan

SwarnaVishranthi

Bajaj Allianz India offers convenientpremium payment and receipt options.

The payments can be direct through

cheques, DD's or directly from your

accounts or through credit card. The

premiums can also be paid online. The

insurance policy holders who also

have an account with Standard Chartered Bank can avail the direct debit mandate facility.


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SWOT

STRENGTHS:

I. Financial Acumen - Holds a stable and diversified portfolio and has received some of

the highest ratings in financial strength from industrys independent rating agencies.

II. Disciplined fund management - Years of experience in asset management, and a

strong track record in managing funds

III. Innovativeness- Known for being an innovator in providing world-class pragmatic

financial solutions, with a constant focus on customization and flexibility

IV. Unrelenting Customer Focus - A highly committed sales force, with customer

satisfaction as the key driving force - a major differentiator

V. Transparency in Services - Daily declaration of fund performances, regular

performance benchmarking, well regulated asset management, and monthly newsletter

on market updates

WEAKNESSES:

Industry in nascent stage.

Rural areas still not covered.

Not very known among Indian population.

Lack of credibility among the people because bajaj being a private player.

Premiums are high as compared to its competitors.

Very few branches in the country.

Products:.

Plan does not offer any guarantee or assured return.

Product profile is not very comprehensive.

Mortality, management and administrative charges are sky scrapping as

compared to its competitors.


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OPPORTUNITIES

Liberalization of Indian economy.

As the industry is growing the whole market is virgin.

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies.

Its a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold.

Products:

Preserver funds look good due to comfortable liquidity in the economy andthere is little chance hike in short-term rate by RBI.

Finance minister unveiled a budget favoring consumer spending, boosting

demand and therefore higher economic growth.

THREATS

The government players will become aggressive thus growth is going to be tough.

Entry of other players is not ruled out.

Apprehension towards bajaj being a private life insurance company..

Products:

Past performance of these plans is not indicative of the future performance of the plan.

The sum invested in the funds is subject to market risks and there can be no

assurance that the objective of plan will be achieved.

All benefits payable under the policy are subject to tax laws and other financial

enactment, as they exist from time to time.


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Advisors are the backbone of any life insurance company. They play the most important and

key role for company to cashing the revenue through selling the insurance policies.Some years

ago Advisors were known as Agents. In India, ever since the insurance industry has opened

up, opportunities for insurance companies have become limitless. To tap this opportunity, they

require insurance agents because agents are one of the most significant modes of bringing in

much-needed business to the company.

Bajaj Allianz Life Insurance, you will not merely be an insurance agentyou will be a

insurance consultant. You will have an important role to play because you have to give

valuable advice to prospective customers about their financial planning.

The candidate who wants to work as insurance consultant must fulfill following requirements:

1. Age above 18 years

2. 12th pass in case of urban area or 10th pass in case of rural area.

After fulfilling the requirement candidate have to give an exam of IRDA THE INSURANCE

REGULATORY AND DEVELOPMENT AUTHORITY.

The candidates who pass in examination award a license from IRDA to work as an insurance

agent.

RECRUITMENT OF ADVISOR


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The organization must decide about the homogeneous group which will constitute the market

for the said product. The process of deciding about the particular part of the total market

which is primary target for a given product is called the process of market segmentation. Most

of the organizations normally market a number of products and, therefore, have to decide

about the market segments for each one of their products. Moreover any one of such articles

or products manufactured by the organization may have different users in the eyes of the

consumers and may, thus, be marketed differently to different market segments. Market

segmentation can also be made on the basis of some important characteristics of consumer

groups such as their requirements, buying habits, etc. thus a market segment does not denote a

group of people having, say, common age or income or staying in a given area but is deemed

to be constituted of persons to whom a particular product appeals for the fulfillment of a

similar need and who are amenable to similar communication or promotional appeals.

Market segmentation for consumer goods and services can be made on the basis of

either consumer goods or services can be made on the basis of either consumer characteristics

or consumer characteristics or consumer responses.

Multi attribute Grid to help identify the Target Market for life insurance

Higher

Middle

Low

Wage Agriculturists Traders Professionals

Grid shows income level and Profession of consumers

After identifying the target market segments in a suitable manner, an organization should

formulate appropriate specialty tailored marketing programs suited to the identified needs of

different markets being served or proposed to be served.

MARKET SEGMENTATION


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Research topic of my summer internship project is Identifying the cause of

dominance of life insurance Corporation in rural and urban area. The

maximum market share in insurance industry is with LIC. So my duty is to study the mentality

of consumer and insurance advisor in rural as well as urban place regarding insurance

industry. My research is to provide the information on mentality of consumer during buying

the insurance policy.

In the research I studied on following points:

1) Private players Versus LIC.

2) Buying behavior of consumers.

3) Efficiency of insurance adviser of Bajaj Allianz lifeinsuance.

4) Motivation in organization.

5) Awareness of people regarding insurance in rural areas.

RESEARCH TOPIC


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Gjertsen, Lee Ann (2002). Insurance Agents Thrift Seeks OK to Widen Reach. The

American Banker, May 13, 2002.

Insurance agents of New Jersey, Connecticut and Massachusetts founded an association as

Independent Insurance Agents and Brokers and have applied for a charter for an association

savings bank. The bank products are to be sold by the independent insurance agents that own

their own agencies. The bank is to be named Insurance Bank.

McDaniel, David (1995): Agents worst nightmare: Banks are gaining the edge to sell

insurance in a big way. Bests Review [Property/Casualty], Vol. 96, 2, June, 28-33.

The article explains that insurance agents are afraid of banks cutting into their business as they

have in Europe where banks are far more efficient than agents. The article lays out how to

make the proposed legislation ineffective, by warning of unsubstantiated tie-ins and bank

coercion, proposing 10-day waiting periods, state legislation, and tough fire walls.

Satish Bhatt (2004) financial advisor Bangalore. Agents are the back bone for the success of

any insurance company, the network of efficient agent across the country determines the sales

volume of company.

The article explain the importance of insurance agent which are deeply penetrate in the

population, more the number of insurance agents more sales will be generated.

SagarikaSaxena (2005) People have more confident on government run organization in

insurance sector rather than private one.

Article explains the reasons why LIC enjoy monopolistic market in some regions, instead of

many private players are in market.

Sanjay Mishra (2005) Sales Manager Bajaj Allianz Life Insurance, Pune. Marketing

strategies adopted by Bajaj Allianz Life Insurance has a fruitful result at the year ended 2004

to 2005

LITERATURE REVIEW


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The article shows the data which shows the percentage increase in sales volume of Bajaj

Allianz Life Insurance due to attractive marketing through digital and print media.

Komal ShahStudent of Amity University makes a research on The buying behavior of

consumers in case of insurance.

Many people show their interest to buy the insurance from LIC because it is one of the oldest

layer in insurance industry and governing body is relates with central Government. For the

existence of LIC in the market for so long time people have blind faith on it, so for other

insurance companies it is very difficult to find place in the market.

Sameer Sindher student of D.A.Vcollege Chandigarh make an market research on the title of

A study of strategy and functioning of field force in Bajaj Allianz life insurance.

According to him sales promotion process was very much satisfying. The company

image in market is good because Bajaj motors which is one of the oldest player in

automobile industry. People know about the company. Brand name helps Bajaj Allianz

life insurance to penetrate in the market.


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Consumers are prefers life insurance policy or Investment option from LIC.

All the insurance consultants are satisfied with companys policies.

The acceptation of consumer from the insurance policy or investment.

Activeness of insurance consultants during attaining the customer.

Perception of consumers toward Bajaj Allianz Life Insurance.

Efficiency of staff toward achieving the sales target.

Consumer trust more on LIC than the private players.

Insurance consultants use right technique while approaching the customer.

Motivation level in staff.

Research Problem


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The objective of the study was to gain maximum information about the life insurance products

offered by various insurers and gain an insight into the prevailing market conditions. For this

purpose, I met the sales managers and agents of various life insurance companies. I

interviewed them extensively to have thorough knowledge of the products offered by them to

help me in making a comparative study of the products.

The market survey attempted to acquire maximum information about the life insurance

status of the people in GADCHIROLI. An attempt was made to cover a mix of people from

various income groups and occupations. Only insurable individuals were interviewed, i.e.

earning individuals in the age group of 20-45 years. A fair mix of both male & female

occupation was included.

The research attempted to find out the preference of the people towards a particular

type of insurance policy. It was also attempted to find out the preference of people towards a

particular insurer. The objective of the research was to enable me to compile the data collected

and help me in a valid interpretation. It was also attempted to analyze and interpret the data tofind out the market potential of life insurance.

Tools used in study

Methodology is of vital importance in any project report. Here the study aims finding

consumer preference and also a comparable analysis of the Life Insurance Products of various

insurance companies in GADCHIROLI.

For gathering information about the life insurance policies offered by the insurers I

used the methods of interviews & discussion. I met the Sales Managers and agents of various

life insurance companies & gathered the information about the policies offered by them. I

inquired about their plans their selling methodology.

The market survey of the individual was done with the help of a questionnaire prepared by

me. I met individuals at their offices and interviewed them extensively- about their market

preference. Observation Technology was also used to understand the facts in their full gambit

Research Objectives


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Consumer may not aware about the private players in insurance sector.

Consumer may not aware about the products of Bajaj Allianz Life Insurance.

Consumers are May or may not know about the ULIP (Unit Linked Insurance Plan).

Consumer may prefer policy from LIC rather than Bajaj Allianz life insurance.

Consumer may think that investing or buying policy from private players i.e. Bajaj

Allianz Life insurance may cause loss or do not give accepted benefits from claims.

Insurance consultants are May not fully aware about the policies offered by Bajaj

Allianz Life Insurance.

Insurance consultants may not able to fully convey the product information to

customers.

Sales promotion of Bajaj Allianz Life Insurance may not satisfactory.

Sales technique adopted by Insurance Consultant may not proper.

Consumer may have more interest in investing his money in Fixed Deposits

RESEARCH HYPOTHESIS


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Research design

The research design for the comparative study is ofexploratory type and the focus is given to

discover the possible measures, by detailed analysis, for the company which would be helpful

up to some extent to retain a good position in the competitive market. The research design is

not formal and rigid one as the focus depends upon the availability of new ideas and

relationship among variables.

Sampling

As per the sampling procedure is concerned, the finite universe is taken into consideration.

Two type of survey are done in project one is internal and second is external. Internal survey

includes discussion and questionnaire with insurance advisors.50 insurance advisors take as a

sample during the survey.

In Secondary survey sampling units include- businessmen, government employees, and

private employees bounded Gadchiroli only.

The sampling is based upon probability sampling methods. The reason is- it is the only

sampling method that provides essentially unbiased estimates having measurable precision.

The sample size was 50

Data collection

Primary data sources

Through interaction with insurance care consultant

Through questionnaires filled from the insurance care consultant.

Through interaction with customers, public.

Surveys

Questionnaire filled from the customers.

RESEARCH METHODOLOGY


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Analysis of primary data(Internal)

(Based on survey conducted for 50 insurance care consultants)

Q.1 Which technique of sales promotion you prefer?

Options Response in %

Display 40%

Door to Door Demo 14%

Exhibition 16%

Catalogue 20%

Price Off 10%

Interpretation:

According to the study 40% insurance care consultants prefer display technique,20%

insurance care consultants prefer catalogues, 16% to the exhibition, 14% to the door to door

demo and 10% insurance care consultants prefer price off technique.

0%

5%

10%

15%

20%

25%

30%

35%

40%

Display Door to DoorDemo

Exhibition Catalogue Price Off

DATA ANALYSIS AND INTERPRETATION


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Q.2 Which technique is giving good response from customers?


Display 18%


Exhibition 18%

Catalogue 16%

Price Off 12%

Interpretation:

According to the study 36% insurance care consultants say door to door demo techniques

giving good response, 18% insurance care consultants say to the display & exhibition, 16% to

the catalogues & 12% say to the price off technique.

0%

5%

10%

15%

20%

25%

30%

35%

40%




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Q.3 Which technique is economically beneficial?


Display 10%


Exhibition 10%

Catalogue 46%

Price Off 12%

Interpretation:

According to the 46% insurance care consultants, catalogue technique is economically

beneficial. 22% to the door-to-door demo and 12% insurance care consultants prefer price off

technique.10% to the exhibition & display technique.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%




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Q.4 Which technique requires less time in sales promotion?


Display 22%


Exhibition 10%

Catalogue 16%

Price Off 14%

Interpretation:

According to the study 38% insurance care consultants say display technique requires less

time in sales promotion. 22% to the display technique, 16% insurance care consultants vote to

the catalogues, 14% insurance care consultants vote to the 10% to the exhibition.

0%

5%

10%

15%

20%

25%

30%

35%

40%




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Q5 Which technique is easily manageable?


Display 18%


Exhibition 10%

Catalogue 34%

Price Off 8%

Interpretation:

According to the study 34% insurance care consultants say that the catalogues is easily

manageable, 30% to the door to door demo,18% insurance care consultants prefer display

technique 10% to the exhibition, and 8% insurance care consultants say to the price off

technique.

0%

5%

10%

15%

20%

25%

30%

35%




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Q.6 Which technique requires less knowledge to execute?


Display 14%


Exhibition 12%

Catalogue 22%

Price Off 40%

Interpretation:

According to the study 40% insurance care consultants vote to the price off technique is

require less knowledge to execute.22% insurance care consultants prefer catalogues, 14% to

the display and 12% to the exhibition & door to door.

0%

5%

10%

15%

20%

25%

30%

35%

40%




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Q.7 Which technique requires more knowledge to execute?


Display 20%


Exhibition 24%

Catalogue 10%

Price Off 4%

Interpretation:

According to the study 42% insurance care consultants vote to the door-to-door technique that

it requires more knowledge to execute than others. 24% to the exhibition, 20% to the display

technique, 10% insurance care consultants give vote to the catalogues and 4% insurance care

consultants prefer price off technique.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%




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Q.8 Price off are necessary for sales promotion?

Options Responses in %

Yes 46%

No 40%

Cant say 14%

Interpretation:

According to the study 46% insurance care consultants say yes that the price off are necessary

for sales promotion. 40% say no and 14% say cant say.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Yes No Cant say


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Q.9 Do you think that sales promotion program that is presently undertaken by Bajaj

Allianz are satisfactory?


Yes 34%

No 46%

Cant say 20%

Interpretation:

According to the study 46% insurance care consultants say No that the sales promotion

program that is presently undertaken by Bajaj Allianz are satisfactorily 36% say Yes and 20%

say cant say.

Q.10 Should Bajaj Allianz take up new sales promotion program?


Yes 72%

No 22%

Cant say 6%

Interpretation :

According to the study 72% insurance care consultants say yes installment offers are 22% say

no and 6% say cant say.

0%5%

10%15%20%25%30%35%40%45%

50%

Yes No Cant say

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No Cant say


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1 2

3 4

1 2

3 4

ANALYSIS OF PRIMARY DATA (External)

Q1. What is your Annual income? (In lakhs)

(1) 5

INTERPRETATION

(1) 5 - 30%

Q2. Where do you want to invest your surplus money?

(1) Fixed deposit

(2) Mutual funds(3) Stocks

(4 Real Estate

INTERPRETATION

(1) Fixed deposit 40%

(2) Mutual funds 30%

(3) Stocks 10%

(4 Real Estate 20%


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1 2

3 4

1

2

3

4

Q3. What benefits do you want from your Investments?

(1) Savings

(2) High returns

(3) Tax rebates

(4) Risk cover

INTERPRETATION

(1) Savings 40%

(2) High returns 35%

(3) Tax rebates 15%

(4) Risk cover 10%

Q4. What do you expect from the life insurance companies?

(1) High return

(2) Liquidity

(3) Security

(4) Low premium

INTERPRETATION

(1) High return 20%

(2) Liquidity 15%

(3) Security 50%

(4) Low premium 15%


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1

2

3

4

Q5. Do you know about the product of these Companies?

(1) LIC

(2) ICICI

(3) TATA AIG(4) BIRLA

(5) OMKM

(6) HDFC

(7) Bajaj Allianz

INTERPRETATION

(1)YES 75 (2) NO 25

Q6. At what age have have you taken Life Insurance Policy?

(1) 2030

(2) 3140

(3) 4150

(4) Above 50

INTERPRETATION

0

(1) 2030 10%

(2) 3140 15%

(3) 4150 35%

(4) Above 50 40%

1

2


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1

2

3

4

1

2

Q7. What is your occupation group?

(1) Government Employee

(2) Private Employee

(3) Business Professional

(4) Others

INTERPRETATION

(1) Government Employee40%

(2) Private Employee 35%

(3) Business Professional 15%

(4) Others10%

Q8. Are you aware about ULIP?

(1) Yes(2) No

INTERPRETATION

(1) Yes 40%

(2) No 60%


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1

2

3

4

1

2

3

Q9. Which companys ULIP have you taken?

(1) ICICI Prudential

(2) HDFC Standard Life

(3) KLI

(4) BAJAJ

INTERPRETATION

(1) ICICI Prudential 30%

(2) HDFC Standard Life 30%

(3) KLI 20%

(4) BAJAJ 20%

Q10. Are you interested in investing in BAJAJ?

(1) Interested

(2) Semi-interested

(3) Not-interested

INTERPRETATION

(1) Interested 40%

(2)Semi-interested35%

(3) Not-interested 25%


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Throughout the project work I have tried to my extent to learn more and more so that I

enable myself to deliver the best services from my part. I always focused my services to full

satisfaction whether it would for employer or for customer. So during this practical learning

process whatever I have realized to improve the division of the company is as follows:

Tapping the upcoming market - Semi Urban Market as there is a lot of opportunity. Most of

the Life Insurance companies are operating in the metros and big cities as per their present

branch office locations. If they have to increase their market size they have to open moredistribution centers at the various urban and semi-urban markets.

The company always should have proper communication with its front office as well

as back office workers to increase the morale and productivity.

The company should always have proper planning for gifts/incentives for employees

on various occasions or on competitions.

Premium and economical class of services should be launched by the company to

serve the varied nature of customers.

Service awareness camps should be run by the company in remote areas.

Distribution channel needs more strength.

Improvement in services through feedbacks from customers is recommended.

RECOMMENDATIONS AND SUGGESTION


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LIC has played a major role in the field of insurance, while Bajaj Allianz and other

private players stay behind it.

In making strong public base by advertisement LIC is not behind anyone in the race

despite private players are generally supposed to deliver comparatively more

advertisements.

A majority of private employees, government employees, and businessmen are

insured with LIC which is a tough challenge for private players especially Bajaj Allianz

and other private players. Majority of people still trust a lot in LIC despite its gradually loosening grip over the

insurance market. They hope it will recapture the market share lost by it.

Majority of people would like to get insured with LIC despite of the fact that private

players like Bajaj Allianz and ICICI Prudential are equipped with a lot of beneficial

products, not less than LIC. Its really a matter of consideration.

Talking about private players, majority of people hope and are confident for the

comparatively brighter future of Bajaj Allianz than any other private player, which is a

good indication and response for the company.

When the insurance care consultant is asked why they are dealing in this particular

insurance policies (product) they mostly stressed on companys image. They also said

that all income and age group of customers are attracted towards their product but

buyers are mainly from higher and middle-income group

I have come to know about the importance of marketing especially with regard to

Sales Promotion on the most renowned organization like Bajaj Allianz. Especially

because of emergence of many competitor with excellence in services & competitive

product. The base of this chapter conclusion is on the data analysis or what we say

findings.

.

OBSERVATION AND FINDINGS


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Most of investors not fully aware about Life insurance policies and their advantage.

It was found most of the investor prefer, less risk taking saving scheme or fixed

deposits.

Some of the people, who were related to rural area, did not know about facility for

investment of money in Life Insurance Policy schemes.

The proportion of investor and non-investor 20% & 80%.

The investors were interested more in Policies of LIC because it is a Government

body.

Some of the investors were pleased to know about New Family Gain and said that it is

a very good plan and is very much affordable by middle class people.

Marketing strategies adopted by Bajaj Allianz Life Insurance are good In rural areas.

CONCLUSIONS


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Following limitations were faced during the study:

1. While designing the questionnaire it was kept in mind to gather more and more

information from each target person. For the neither present nor descriptive questions

could have served the purpose. Therefore the questionnaire contained in the open-

ended questions.

2. The study was conducted in Bajaj Allianz in GADCHIROLI city, which has 127 to

170 insurance care consultants only. The sample size was of 50 insurance care

consultants only so that accuracy of data so collected could be absurd covered by

circulation of questionnaire.

3. The accuracy of indications given by the respondents may not be consider adequate as

whether the language used in the questionnaire is understood by the respondent cannot

be taken for granted.

4. The study is based on the information gathered from the insurance care consultants.

Therefore in such case it is possible that the information supplied might be biased

because the insurance care consultant might have shown partiality towards their

insurance policies.

5. Since the survey was limited to 60 insurance care consultants it is rather difficult to

give a precise conclusion but I have tried to the best of my capability to give the

conclusion on a comprehensive manner.

Limitations of the Study


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Through all the research I have made in my Summer Internship program I have found that the

consumers from rural areas are not fully aware about the products offer by Bajaj Allianz life

insurance so the Bajaj Allianz life Insurance use this information while formulating the sales

strategy for rural areas.

Buying behavior of consumer is mainly depending on economic, social and occupation of

consumer. So when insurance consultant approach customer he must aware or know about the

background of customer in the sense he will attain the customer with right policies and

investment options.

The data collected from internal survey i.e. questioner made with insurance consultants gives

views and opinions, company use this information while training the new and old one and to

motivate the insurance consultants.

The data collected from external survey i.e. questioner made with peoples explain the

behavior, needs, thinking, awareness of product. This information is useful to company while

segmenting, targeting the consumers.

Implication of the Project for the Company


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Web sites:

www.bajajallianz.com

www.indiainfoline.com

www.insurance.ind.in

www.irda.com

www.Marketresearch.com

BOOKS:

Sales Management by S.L Gupta.

Life insurance by Mc. GILL.

Research Methodology Kothari C.R.

BIBLIOGRAPHY
http://www.bajajallianz.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.bajajallianz.com/


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General information

1. Name:_________________________________________

2. Address:-_______________________________________________

_______________________________________________

Phone No.__________________

3. Age:______

4. Gender: M/F

5. Marital Status: Married/Single.

6. Educational Qualification:

Matriculate/Intermediate/Graduate/P.G./Any other

7. Occupation: Govt.Service/Private Service/Self Employed.

8. Income per month:

17500

10. Family size (if married)

a) Spouse: Working/Housewife

If working, where?

b) No. of children & their age

c) Any other dependants:

ANNEXTURE


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Research specific information

1.Doyou have any Insurance policy? Yes/No

a) If yes,then what type of policy and from which insurer?

b) What was your purpose of taking that policy?

Risk coverage/Savings/Investment/Tax rebate/Special event Management

c) If no, then dont you feel the need of taking a policy?

2. Are you planning to take a life insurance policy in near future? Yes/No

a) If yes, please specify the type of the policy.

Term/Endowment/Whole life/Money back/Child care/Pension

b) While taking a policy, what are the essential features you will keep in

mind?

Risk coverage/Tax benefit/savings/Loan coverage/Premium charged

3. Have you heard about Bajaj Allianz Life Insurance Co. Ltd.Yes/No

4. Which of the Bajaj Allianz policies have you heard about?

Lifetime Care/Invest Gain/Child Care/Cash Care/Risk Care/Term Care/

SwarnaVishranti

5. Have you subscribed to any of these?Yes / No

6. If yes, which one?

Policy term/Policy cover/Riders (if any)

7. Are you satisfied with the Bajaj Allianz Policy Yes / No

Date: Signature:

recruitment of advisors and sales of financial products through them and collection of desirable...

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