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The general insurance business in India started with the establishment of
Triton Insurance company limited in 1850 at Calcutta. In 1907, the first
company, the mercantile insurance ltd. was set up to transact all classes of
general insurance business. General insurance council, a wing of the
insurance association of India in 1957, framed a code for ensuring fair conduct
and sound business practices. In 1968, the Insurance Act was amended to
regulate and to set minimum solvency margins. In the same year, the tariff
committee was also set up. In 1972, the general insurance business
(nationalization) act was passed to nationalize the general insurance business in
India with effect from 1st January 1973. For these 107 insurers was
amalgamated and grouped into four company’s viz., the national insurance
company ltd., the new india assurance company ltd., the oriental
insurance company ltd., and the united india insurance company ltd.
general insurance corporation of india was incorporated as a company.
IRDA( insurance regulatory and development authority) act 1999 paved
the way for the entry of private players into the insurance market which was
hitherto the exclusive privilege of public sector insurance
Following graph shows the market share holdings of private vis-à-vis public

Due to the effectiveness of private marketing strategies, the market share of

public insurers has consistently declined. Given a faster growth rate, the market
share of the private sector is catching that of the public sector and the two will
likely converge over the medium term. In the past, private insurers had
aggressively targeted the more profitable (and tariffed) corporate fire and
engineering businesses by combining them with discounted offers on de-tariffed
products, for example, personal accident and health, marine cargo and hulls.


1. The intense competition brought about by deregulation has encouraged
the industry to innovate in all areas; from underwriting, marketing, policy holder
servicing to record- keeping.
2. Aggressive marketing strategies by private sector insurers will buoy
consumer awareness of risk and expand the markets for products.
3. Competition in a deregulated environment will allow market forces to set
premiums that are appropriate for exposures and push insurers to differentiate
their products and services.
4. Innovations in distribution and improvements in market penetration will
follow as public and private insurers compete to market their products.
5. Allowing insurers to issue their own policy wordings and setting own rates
will enable underwriters to tailor products to meet client needs.
6. The Insurance Regulatory Development Authority of India’s (IRDA)
emphasis on quarterly reporting/monitoring of insurer solvency will enhance
capital adequacy and transparency. Licensed brokers are very much part of the
intermediary structure and only those with adequate capital, professional
experience and expertise will be licensed by IRDA.

1. Premium rates will remain under pressure due to intense competition on
the more profitable lines.
2. Private insurers need to raise more capital, otherwise growth could be
constrained since reliance on reinsurance for capital relief is not always viable
or available.
3. Traditional distribution channels, especially tied agents, need to be
improved to match the new product offerings.
4. There is general lack of transparency as financial and operational data for
insurers are not readily available as none of India’s insurers are directly listed
on stock exchanges.
5. Like all developing economies on a fast track, the shortage of trained
insurance professionals and technicians at all levels cannot be remedied in the
short term.
6. Natural catastrophes will always be present; the Indian sub-continent is
vulnerable to cyclones, floods, hurricanes and earthquakes, and until there is a
national capacity to manage losses, dependence on overseas reinsurers will


Bharti AXA General 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. Bharti Group holds 74% of equity and AXA holds 26% of the

With a vision to become the leader and preferred company for financial
protection in India, Bharti AXA General Insurance offers its customers -
individuals and businesses- a wide range of products and services that meet
their insurance needs. The values upon which its business practices are
based are availability, attentiveness and reliability. The company leverages
the Bharti Group’s large customer pool, and has developed a strong multi-
channel distribution network in both urban and rural markets.

The company was incorporated on 13th July 2007. Headquartered in

Bangalore, the company currently has 40 branches across India.
The Management team at Bharti AXA General Insurance consists of
experienced leaders who are passionate about their company’s vision and
goals and are committed to the development of Bharti AXA General
Insurance as the preferred company for Financial Protection in India.

Bharti AXA presents an array of protective plans to suit your personal and
business requirements. These embody our commitment to our system of

a) Reliable – prompt settlements, customer service and professionalism.

b) Attentive – to customer needs as they change with time, and actively

listening to our customers.

c) Available – easy customer access to money and to our company, and

that have built-in flexibility and convenience.


 Quality Policy - To provide fast, fair and friendly service to customers &
 To achieve a leadership position in India through a multi-distribution,
multi-product platform.

 To adapt AXA's best practice blueprints as a sound platform for


 To leverage Bharti's local knowledge, infrastructure and customer


 To deliver high levels of shareholder return.

 To build long term value with our business partners by enhancing the
proposition to their customers.

 To be the employer of choice to attract and retain the best talent in


 Strong distribution network & customer base of Bharti - provides

access to customer base of more than 60 million.


 Multi channel execution capability

 AXA's current Asia product range which is a strong match to products

sold to the masses

 Global scale of AXA providing cost effective and speedy re-use of

systems, products and business capability


AXA aspires to do business responsibly, and to build trust-based relationships

with its stakeholders:

 Clients: Consistently deliver efficient local service and adapted

solutions, while adhering to the highest standards of professional
 Shareholders: Create lasting value by achieving operating performance
that ranks among the best in the industry, and provide
transparency financial information.

 Employees: Ensure professional fulfillment by offering a supportive and

respectful workplace where people are empowered and the continuous
development of competencies is encouraged.

 Suppliers: Maintain excellent supplier relationships by adhering to a set

of clearly defined procurement guidelines and promoting ongoing


AXA's strategy is to combine organic and external growth to meet the

challenge of operational excellence in all of the following areas:

• Product innovation
• Core business expertise (underwriting, claims management, pricing,
investment performance)
• Distribution
• Quality of service
• Productivity
All AXA employees are champions of operational excellence. They are
supported in this aim by the AXA Way continuous process improvement

Leveraging the resources of the AXA Group, and in accordance with AXA's
values and commitments, 214 044 people are working daily to execute this
Group profile
In the financial markets, AXA is positioned as a global leader in Financial

Key figures:

• 80 million clients worldwide

• 216 095 employees (including exclusive sales associates) worldwide
(at December 31, 2009)
• 400,000 shareholders
• 90.1 billion euros in revenues (at December 31,2009)
• 3.5 billion euros in adjusted earnings (at December 31,2009)

Some attractive schemes provided by the bank to low credit rated customers to
attract them include-
 SEHKARI BIMA YOJANA- The co-operative banks in Punjab are pioneers
of starting this yojana w.e.f. 1.6.1999 in the country. Under this scheme, every
depositor who opens a saving bank with Rs. 1100/-or more is provided personal
accidental insurance cover for Rs. 1 lakh, during the period he keeps the
account with the bank, at a very nominal premium.
 KISAN CREDIT CARD SCHEME- this new scheme has been implemented
by the bank for the benefit of farmers. The scheme improves upon existing
scheme of crop loans by allowing the farmers flexibility and freedom of choice
to avail and repay loans as per requirements. Maximum credit limit of the
farmers has been raised from Rs. 70,000 per crop to Rs. 85,000 per crop.
been started by the bank particularly for the benefit of rural old farmers who
can enjoy pension facility in their old age by depositing Rs. 650/- month. If the
depositor dies before 10 years, the nominee of the deceased is allowed to
continue to deposit the money in the scheme and for the pension after 10

Bharti AXA general insurance has tie-ups with a number of district central co-
operative banks in Punjab. It is currently in the business of securing loans for
these banks, these include providing insurance cover for housing loans, cash
credit to customers and loans for to non-farm sector i.e., loans given to
people employed in work other than farming/agriculture.

Bharti AXA now aims to cross sell its line of General Insurance
products and now currently focusing on selling its products through
co-operative banks. Thus, going one step ahead of its current
business where it interacts only with co-operative banks, by
interacting directly with the Bank Managers and cross selling
insurance by obtaining leads from the bank.


Future Generali Life Insurance (FG) is a joint venture between the Kishore Biyani-led Future
Group and the Generali Group from Italy. Being the 22nd entrant in the market, it was keen on
enhancing its footprint across India.

Case Study Highlights

• Setting up 93 branches within a short span of five months is an incredible target by any
• IT quickly rolled out single sign-on, e-mail, Blackberry and other necessary infrastructure
for its employees.

The fledgling insurer needed to quickly reach out to remote areas and establish a large customer,
and service base. "We decided to adopt a multi-channel, multi-product and a pan-India approach.
The company planned to roll out 93 branches by December 2008," says Rajeev Shirodkar, CIO,
Future Generali.

He knew that IT would have to script the growth story of his company. Setting up 93 branches
within a short span of five months is an incredible target by any standard.

Shirodkar had to ensure that all 93 locations had proper connectivity and reliable communication
channels. But, the renowned implementation partners who were managing the project did not
provide him with much needed support.

Shirodkar realized that results his parners were delivering were falling short of the company's
expectations and, "we immediately terminated this relationship and an in-house team took over,"
he says. But that was just the beginning. "We decided to set up temporary branches to kickstart
the operation. This ensured that we did not lose any business opportunities while the permanent
branch setup was in progress," says Shirodkar.

Migrating from temporary to permanent branches was a hassle, especially in the first quarter
when business is at its peak. But with IT holding the reins, it wasn't difficult for the company to
pull out of trouble. IT quickly rolled out single sign-on, e-mail, Blackberry and other necessary
infrastrucutre for its employees.

A full-fledged helpdesk ensured 99 percent availability. Not only that, the project also aided in
delivering local servicing capabilities - even in rural areas.

It improved customer service as users don't have to depend on a single branch to attend to them.
"We conducted a user satisfaction survey and scored four on five," says Shirodkar

Future Generali is a joint venture between the India based Future Group and the Italy based
Generali Group. Generali Group ranks among the top three insurance groups across Europe and
is the 30th largest company in the Fortune 500 international ranking.

The ratings assigned by the international rating agencies include:


Standard & Poor’s →AA

Fitch →AA

Moody’s→ Aa3

Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading
business houses with multiple businesses spanning across the consumption space. While retail
forms the core business activity of Future Group, group subsidiaries are present in consumer
finance, capital, insurance, leisure and entertainment, brand development, retail real estate
development, retail media and logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of
retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai
(Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock
exchanges. The company follows a multi-format retail strategy that captures almost the entire
consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons,
a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee
brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian
bazaars with the choice and convenience of modern retail.

The group’s specialty retail formats include sportswear retailer, Planet Sports, electronics
retailer, eZone, home improvement chain, Home Town and rural retail chain, Aadhaar, among
others. It also operates popular shopping portal,

Future Capital Holdings, the group’s financial arm, provides investment advisory to assets worth
over $1 billion that are being invested in consumer brands and companies, real estate, hotels and
logistics. It also operates a consumer finance arm with branches in 150 locations.

Other group companies include, Future Generali, the group’s insurance venture in partnership
with Italy’s Generali Group, Future Brands, a brand development and IPR company, Future
Logistics, providing logistics and distribution solutions to group companies and business partners
and Future Media, a retail media initiative.

The group’s presence in Leisure & Entertainment segment is led through, Mumbai-based listed
company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling
Co. and family entertainment centres, F123. Through its partner company, Blue Foods the group
operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti
Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.

Future Group’s joint venture partners include, US-based stationery products retailers, Staples and
Middle East-based Axiom Communications. Future Group believes in developing strong insights
on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s
core value of ‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.’

The Generali Group

The Generali Group is a leading player in the global insurance and financial markets. Established
in Trieste in 1831, today the Group is one of Europe’s largest insurance providers and the
European biggest Life insurer. It is also one of the world’s top asset managers with assets
totaling more than € 300 billion. With an employed sales force of more than 100,000 people
serving 60 million clients in 65 countries, the Group occupies a leadership position in Western
Europe and an increasingly important place in Eastern Europe and Asia.
The Group strategy aims to consolidate Generali’s pre-eminence on its key markets and achieve
a premier position on markets with high growth potential, establishing its leadership in
profitability. The Group is not only the market leader in Italy, but also a primary player in
Germany, France, Austria, Spain, Switzerland, Israel and Argentina. Generali is a strong player
on markets offering high growth potential. In Central Eastern Europe, in particular, thanks to the
Generali PPF Joint Venture, it is one of the primary players. Generali also has Joint Ventures in
India and China, where, within a few years after its entrance, it has already become one of the
top foreign insurance providers.

Filteration and validation process

Company use various marketing strategies to attract customers and higher variouss other parties
to supply the details of the customers.

When there is a pool of customers the company filters those customers according to their needs
and their target.

In validation the company seeks which customers van be targeted and which strategy in needed
to target the selected customer.

As per the policies of both the companies, both companies helps in creating privacy of data of
their customers.

No exchange of personal details of customers.