A

Live Project Report

On

BAJAJ ALLIANZ LIFE INSURANCE CO. LTD.

1

INDEX

Serial No. Chapters Page No

1. Company Profile 4

2. Conceptual Discussion 6

3. Research Methodology 9

4. Data Analysis 10

5. SWOT Analysis 15

6. Conclusion & Recommendations 18

Bibliography 21

Questionnaire 22

2

CHAPTER 1

COMPANY PROFILE

Bajaj Allianz Life Insurance Company LimitedBajaj Allianz Life Insurance is a union between Allianz SE, one of the largest InsuranceCompany and Bajaj FinServ Ltd.

Allianz SE:

Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over 119 years of financial experience and is present in over 70 countries around the world.

Bajaj FinServ:

The financial services and wind energy businesses were transferred to Bajaj FinServ Limited (BFS) as part of the recently concluded demerger of Bajaj Auto Limited, approved by the Hon. High Court of Judicature at Bombay by its order.

The company is currently engaged in life insurance; general insurance and consumer finance businesses. Apart from financial , BFS is also active in wind-energy generation.

At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our business philosophy is to ensure excellent insurance and investment solutions by offering customised products, supported by the best technology.

COMPANY VALUES:

– Customer delight the guiding principle

– Ensuring world class solutions & services

– Offering customised products

– Transparent benefits.

3

LIFE INSURANCE PLANS offered by Bajaj Allianz :

Bajaj Allianz offers 26 Life Insurance Plans in 6 different categories :-

1. Unit linked insurance plans:

Guaranteed-maturity.jsp

iGain lll

Max-advantage

Wealth-insurance plan

Shield-insurance plan

Money-secure

Assured-protection plan

Smart-insurance-plan

2. Traditional insurance plans

Invest-gain

Save-care-economy

Life-time-care

Super-saver

Cash-rich

Super-cashgain-insurance-plan

Cash-gain

Child-gain

3. Pension plans

Swarna-vishranti

Pension-guarantee

4. Term plans

Protector-plan

Term Care

New Risk Care ll

iSecure Loan

iSecure More

5. Women Insurance

Women life insurance

6. Life + Health Insurance

Health Care

4

Family Care First

CHAPTER 2

CONCEPTUAL FRAME WORK

LIFE INSURANCE ADVISORS/AGENT

Persons who sell insurance policies, for a single insurance company, in return for

commissions are called “ADVISORS/AGENT.”

The Insurance Act, 1938 defines Agent as “one who is licensed under the act & is

paid consideration of his soliciting or procuring insurance business including

business relating to continuance, renewal or revival of policies of insurance”.

The importance of advisors:

Provides Complete & diversified product portfolio.

Faster & more accurate service.

Multi-channel distribution systems.

Highly trained professional sales people offering quality pre & post sales

service.

It is in the above mentioned areas of personal specialization where the importance

of an advisor clearly stands out the advisor not only contribute in bring in new

business for the company, but also plays an important part in offering world-class

pre & post sales service to the clients to the clients with the support of the

organization.

But the company in its principles clearly states out that an advisor to means “much

more than a salesman or a saleswoman, we at Bajaj Allianz recognize out advisors as

5

the ambassadors of our organization in the market place & we consider the advisor

force would be our biggest differentiating factor in the coming years”.

The advisor is an important asset not only for the organization from the business

point of view but also to the society on the whole as he/she is someone who provide

valuable service to the community be helping people attain financial security & build

funds for their future needs thereby assisting them in getting their financial freedom.

THE PROFILE OF AN ADVISOR (Qualifications)

1. Age should be ideally between 18- 60 years.

2. Minimum education qualification:- Urban areas 12th Class

-Rural areas 10th Class.

3. Good & convincing communication skills.

4. Capacity to build an impressive network.

5. Engaged in gainful business or corporation.

6. Willing to undergo extensive training & development programs.

7. Pleasing personality.

BENEFITS TO AN ADVISOR

There are some reasons and parameters to be an advisor of the insurance company

which are mentioned below:

Money

Status

Prestige

Honor

6

Mitigate human hardship

Contribute to the nation

ADVISOR’S ROLE

I. Identify future client

II. Making appointments

III. Conduct financial review with clients

IV. Close sale

V. Get referrals

I. Provide service to the client.

Motivating Factors For The Advisors

Every time only money might not be the motivator to the advisor. Bajaj Allianz

believe that there are many other things that advisors aspire to achieve-fame and

recognition. Some of the benefits and club membership are mentioned below which

give the advisors fame and recognition.

Achiever’s club

Job Profile

Benefits & Support Provided

Rewarding career

Successful Team

Attractive Remuneration

Independence

Extensive Product Portfolio

Sales & Marketing Support

7

CHAPTER 4

RESEARCH METHODOLOGY

RESEARCH METHOLOGY is the process, which guide the researcher during the

whole course of research. Hence it is, very much necessary for the researcher that

he / she has to adopt the design best suited to them.

DATA COLLECTION:

1. PRIMARY DATA: The primary data are those which are collected a fresh and

for the first time and thus happen to be original in character.

2. SECONDARY DATA: The secondary data on the other hand, are those which

have already been collected by someone else and which have already been

passed through the statistical process.

For collecting primary data, method adopted was focus group method.

Source of primary data

1. Natural Market

Relatives

Friends

Neighbors

2. Survey

Source of Secondary Data

1. Company website

8

2. Reference data

Sample Size: - 50 respondents

CHAPTER 5

DATA ANALYSIS & INTERPRETATION

Q1. For how long are you working with Bajaj Allianz?

Less than 1 year 18

1-2 years 12

2-3 years 15

More than 3 years 05

Q2. How many products have you sold as an advisor?

Less than 10 26

10-20 15

20-30 06

9

More than 30 03

Q3. What’s the purpose of buying an insurance product by

customers?

Tax benefit 21

Investment 19

Security 06

Any other 04

Q4. Products which are sold most?

Unit link plan 37

Smart kit Plan 07

Annuity Plan 06

10

Q5. Products which are sold least?

Term plan 23

Endowments plan 17

Group Insurance 10

Q6. Rate the products of Bajaj Allianz in comparison to its

competitors?

Best 19

Good 16

Average 11

Poor 04

11

Q7. What motivates you to stay in this business?

Money 21

Recognition 17

Motivation by co./UM 07

Any other 05

Q8. Are you satisfied with the commission provided by the co.?

Yes 32

No 18

Q9. Are you satisfied with the facilities provided by the co. to its

advisors in comparison to other players?

12

Yes 34

No 16

Q10. How Bajaj Allianz Life Insurance is better than other

companies?

Commission 20

Recognition 17

Better Products 13

CHAPTER 6

13

SWOT ANALYSIS

STRENGTH

Bajaj Allianz Life Insurance Company Limited is right now the market leader in

Private Insurer segment.

Good Brand name

Bajaj and Allianz are one of the market leaders in their respective sectors.

Moody has rated Bajaj Allianz as BA1 above Indian democracy in terms of

investment security.

Handsome deposit with IRDA

Bajaj Allianz has a deposit of total 230 crores with IRDA (Insurance Regulatory

Development Authority) as against the minimum cap of Rs. 100 crore. This will

assure that the claimants will get their money back on time without any delay.

A Complete and diversified Product portfolio

The company has a total number of 24 products in 5 categories on offer to the

general public, keeping in mind the requirements of the public at different age

levels. This is one of the vital strengths of the company.

Fast and Accurate Service to the customer

The mission statement of the company promises to provide superior products

and services to the customer by understanding their needs. The use of latest

technology helps the company to give to its customer fast and accurate service.

A Highly Trained and Professional Sales Force

All the employees who are associated with Bajaj Allianz are highly trained and

professional in attitude. This quality staff ensures high quality pre and post sales

services.

14

Leader in Terms of Premium Collected

The company was the leader in terms of collection of premium that amounted to

a sum total of Rs. 122 crores in the last financial year ahead of New York max

(43 crores) and HDFC Std. (36crores)

Investment in Secured Sector

The company has invested 85% of that amount in Government Security and has

kept the remaining 15% as a reserve for pre claim settlements.

WEAKNESS

The company right now has lesser number of agents (i.e. financial advisors) than LIC

of India, which affects their sales in comparison to LIC of India.

Low Reach

Since the company has started its operations recently its reach is very limited

while its rival LIC has a reach in almost every part of the country.

Too Much Dependent On Government

The main reason behind the general public to buy insurance is the tax benefits

that the assesses gets. If the government reduces the exemption given under

different sections the general public may think it otherwise to buy the policy.

Though the company aims to change the mindset of the public but still it is the

biggest weakness in all insurance companies.

OPPURTUNITY

Bajaj Allianz Life Insurance Company Limited can give LIC of INDIA agents an

opportunity to join Bajaj Allianz Life Insurance Company Limited as Bajaj Allianz

15

has got more incentive packages & servicing quality better than LIC of INDIA.

Doing this they can reduce their cost of training and can exploit their experience.

Majority of the Market Still Untapped.

Under the survey that was carried out it was discovered that only 22% of the

total insurable public has taken some or the other insurance. Thus, it is a great

opportunity for the company to capture a good market share.

Capping in RBI bonds

The Reserve Bank of Indian Offers a medium returns tax saving bonds. But

from this financial year in the recent amendments there has been a capping on

maximum amount i.e. 2 lack that a person can invest. This is a good opportunity

for the company to sell its investment products that also promises insurance with

tax benefits.

THREAT

Competition

Other big brand names like BIRLAS, TATA, HDFC, SBI and AVIVA etc.

POLITICAL

Right one Bajaj Allianz Life Insurance Company Limited, can go for opening up

more & more offices, as the present political environment is business friendly.

ECONOMIC

Currently economy is not stable, so people want to invest in Govt. sector.

SOCIAL

16

CHAPTER 7

CONCLUSION &

RECOMMENDATIONS

CONCLUSION

The following are the conclusive evidences framed after completion of the necessary

training report mentioned here under as follows:

1) Bajaj Allianz has interested and profitable planes for different age group.

2) There are lots of scopes of life insurance in Indian only 2.5 people are secure

with life insurance so the insurance sector is its booming stage this boom will

more increase in 2 or 3 years.

3) Good profile insurance advisor could do the better job. If Bajaj Allianz

mentions the level of advisor them they may give great sales to the company.

4) Bajaj Allianz has tuff competition with LIC as well as TATA AIG, ICICI

PRUDENTIAL, BIRLA SUNLIFE INSURANCE, SAHARA, ING VYSYA,

OM KOTAK MAHINDRA, HDFC INSURANCE, SBI LIFE AND

RELIANCE LIFE INSURANCE, PNB LIFE INSURANCE.

5) BAJAJ ALLIANZ LIFE INSURANCE COMPANY has great goodwill in

market in liberalized Indian market there are approximately 13 big companies

17

in Indian market and BAJAJ ALLIANZ is the No.1 private insurance

company. I found this fact in my recent survey.

6) If the company starts to concentrate on village segment market. Then

company can get great business.

7) I got the good profile people near by bank and share market. When I

concentrated on the 20-25 year age group people I found good result.

8) Within 20-25 year age group the sincerity level is high. They are career

oriented and want to earn more.

9) In the age group people made interest to purchase the kids plan and pension

plan and money back plan.

10) In the age group of 30-35 years the people who earning more then 3 lakh p.a.

made interest to purchase ULIP.

11) I found that in insurance sector a person should have great communication

and convenience skill.

12) People made interest in the business opportunity of Bajaj Allianz because

there are lots of chances to increase earning and make high place in the

company.

13) People took interest in CUG programme and also life the professional

environment of the company.

14) In my survey I found that low percentage of people is aware with the life

insurance.

15) It was great experience to communicate with different people. I learnt

through cross-question by peoples.

18

RECOMMENDATIONS

After going table regarding market share of various companies in the financial year ,

there is no reason why Bajaj Allianz should rejoice of being the number one

company in the country.

The growth that companies like BIRLA SUNLIFE, SBI LIFE INSURANCE,

TATA-AIG, ICICI PRUDENTIAL, MAX NEWYORK, AVIVA, , METLIFE

have produced that can be quite a big unseen threat for the company in the

coming years.

The company should start thinking of what they want from the market & where

they want to see themselves after a span of 10 years because if the popularity of

these companies continues then one day they will become good competitors of

Bajaj Allianz & then the consequences can be quite disturbing for the company.

19

BIBLIOGRAPHY

Books:

Mathew, M.J., Risk Management & Insurance , RBSA Publishers , Jaipur ,

2008

Gulati, Neelam C., Principles of Insurance Management, Excel Books, New

Delhi,2009.

Websites:

www.bajajallianz.com

www.google.com

http://www.bajajallianz.com/Corp/aboutus/life-insurance-company.jsp

20

QUESTIONNAIRE

PURPOSE: To get a better insight about the advisor’s satisfaction level

the various improvements to be done in the Bajaj Allianz’s product.

NAME:...……………………………. QUALIFICATION:………………AGE:………………………………... PROFESSION:…………………..TEL No.:…………………………….

Q1. For how long are you working with Bajaj Allianz?o Less than 1 yearo 1-2 yearso 2-3 yearso More than 3 years

Q2. How many products have you sold as an advisor?o Less than 10o 10-20o 20-30o More than 30

Q3. What’s the purpose of buying an insurance product by customers?oTax benefitoInvestmentoSecurityoAny other_______________________________

Q4. Products which are sold most?oUnit link planoSmart kit PlanoAnnuity Plan

Q5. Products which are sold least?o Term plano Endowments plan

21

o Group Insurance

Q6. Rate the products of Bajaj Allianz in comparison to its competitors?

(Best = 4 pointsgood = 3 points average = 2 points poor = 1 point)o Besto Goodo Averageo Poor

Q7. What motivates you to stay in this business?o Moneyo Recognitiono Motivation by co./UMo Any other___________________

Q8. Are you satisfied with the commission provided by the co.?o Yeso No

If no, why___________________________

Q9. Are you satisfied with the facilities provided by the co. to its advisors in comparison to other players?o Yeso No

If no, why_____________________________________________

Q10. Bajaj Allianz Life Insurance how to better other companies?oCommissionoRecognitionoBetter Products

22

23