EFU Insurance

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EFU INSURANCE

Mustufa NasirOmer NaushadAamir Mohsin

Mursul Rehman


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Company Background

Eastern Federal Union Insurance (EFU) was incorporated in1932 with its operations starting in CalcuttaLater in 1947 the company moved its operations to Pakistan,becoming the local pioneer in the insurance industryDuring Zulfiqar Bhuttos regime Life Assurance wasnationalized therefore the company started to operate inGeneral Insurance onlyIn 1972 the company was renamed to EFU General InsuranceLimitedIn 1992 EFU once again entered in Life Assurance after theapproval of the governmentListed in Karachi Stock Exchange and Lahore Stock Exchange.At present EFU General Insurance has 1236 employees


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Accolades for EFU

1) 1992: Launch of EFU Life2) 1993: A Billion Rupee Company3) 2000: Pakistans First Specialized Health Insurer joint

venture with Allianz AG of Germany, worlds largest insurancecompany

4) 2005: A Billion Rupee Branches SITE and Central Divisionsbecame billion rupee branches

5) 2008: Euromoney Award- Euromoney, an internationalfinancial journal adjudged EFU as Pakistans best insurancecompany

6) 2009: "Brands of the year Award, hat-trick" & "Brands ICON of Pakistan"


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Vision and Mission

VisionTo continue our journey to be better than the best.

MissionTo provide services beyond expectation with a will to go anextra mile. In the process, continue to upgrade technology,human resource and reinsurance protection.


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Industry

There are a total of 30 companies operating in the GeneralInsurance industryAs at 30th September 2012 total business underwritten in the

industry was of Rs. 34,884,602EFU General Limiteds contribution was of Rs. 9,578,340 The companys market share stood at 27.5% It also had the highest Earning Per Share of 10.54 and the

greatest number of Total Assets in the industry.


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Competition and Market Growth

EFU Gen. Ltd is the leader in the industry and competeswith another 29 companiesIts major competitors are:

1. Adamjee Insurance market share 20%2. Jubilee General Insurance market share 14.2%3. IGI Insurance market share 4.4%

The market growth in the General insurance sector hasbeen very low because it is contingent to the growth of other industries. 2-5% growth in the industry.


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Recruitment of Sales force

InterviewKey Traits:

PRDue to the changing situation, the market is

STAGNANT


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The Sales Force

What are development agents?Total 500 development agents in EFU

Approx. 125 in Karachi


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CLIENT CODE

The DEVELOPMENT agents can bringbusiness from all over Pakistan, there is noterritory system

A CLIENT CODE is issued by the head officeDEVELOPMENT AGENTS can only visit theorganization once they have the client code

for it.No other agent can then approach the buiness


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Once operational, then many otherinsurances pour in

ReinsuranceIncluding, installation insuranceFire or theft insurance

Machinery break down insuranceEmployees (life insurance)Vehicles insurance


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Further, our sales people bring relevantinformation from a potential client

Our underwriting department reviews itthoroughly in terms of profitability for EFUThen if it fulfills the criteria, the company isapproached for a possible dealing


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The quotations from both the sides areexchanged, if there is a agreement on thebasic elementsThen, the top management of EFU sits withthe upper management of the potential clientThis is done for confidence buildingmeasures.In the end, the head office of EFU gives a lastreview before a final agreement.


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Thus

ONE WINDOW OPERATION


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How to attract new

businesses

Through REFERENCES!


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Quit over's from other companies are now

hiredThe new employees bring business of othercompany with them

This gives the hiring company advantage interms of customer knowledge


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3 months probation period

In House training center3 months training and field work under assistanceCompetency of the sales person is assessed in this

periodCandidates who are able to demonstrate key traitsof successful sales agent are hired permanentlyInsurance based training programsNon-Insurance based training programs


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Ratios to Determine Success ofAgent

Value of Business brought inLoss Ratio

Future profitabilityExpense Ratio


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EFU is at RISK

They have to en sure the safety measures inthe company are satisfactory

Fire Prevention system and emergency exitsare in placeThe level of dangerous activity being carriedoutTraining of staff to deal with emergencysituation


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Market Development Hierarchy

Executive Vice presidentVice PresidentAssistant Vice PresidentSenior ManagerManagerDeputy ManagerChief Development OfficerSenior Development OfficerDevelopment Officer


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OBJECTIVES OF MARKETING &

DEVELOPMENT

DEPARTMENT

Open new branches in new territories in order to expandPunjab and Sindh and then in other provinces.Focus on encouragement and reward for best results.Appraisal performance on merit.Performance will be evaluated on regular intervals of

each marketer.Bank enlistment and limits arrangements mattersReinsurance arrangements of the CompanyCo-insurance arrangements of the Company, if any


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OBJECTIVES OF HUMAN RESOURCE

DEPARTMENT

To ensure that adequate and suitablyexperienced is recruited and provided, so thatthe Companys objectives can be achieve S moreefficiently & effectively.To ensure those policies that support humanresource department.To monitor performance and absenteeism, tolowering cost, to increase profitability, efficientlyand effectiveness of manpower.


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The staffing function

Recognition of need of manpower for theCompanyDefining job specification for fulfilling the need.Establishment of the recruitment criteria.Recruitment process

Training & Development functionsJob OrientationEmployee TrainingEmployee DevelopmentCareer Development


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MOTIVATION FUNCTIONS Outstanding performance incrementsThe best employee of the year award

Job rotationHigh SalaryMedical Allowance

Payment of Utility bills, mobile phones,laptops


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Being a company with the largest marketshare, EFU doesnt always need to approachits corporate clients at their door steps.

Rather businesses find the need to insurethemselves and so when they look into theinsurance industry, they find EFU as a reliablepartner.


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HOWEVER!

Insurance market is stagnantCompanies are fighting to get businesses for

the competitors


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They try to achieve first mover ADVANTAGEExisting customers are hesitant to switch overbecause of their long term relationship, usually of 15 to 20 yearsSales rep also contribute to the relationship asthey deal with a specific company for years


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Conclusion

Give authority to the sales forceMake the process simpler

Disintegration of the sales departmentPriority for nurturing huntersInfluenced hiring


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Documents

EFU Insurance