PART A INDUSTRY PROFILE

History of insurance sector in India

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London

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Globe Insurance and the Indian offices were up for hard competition from the foreign companies.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies 245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the
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New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra. The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 where in, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a

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national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.

Today there are 23 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country s GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crore from the Government of India.

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1912:

The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928:

The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938:

Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956:

245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crores from the Government of India.

Some of the important milestones in the general insurance business in India are: 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.

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COMPANY PROFILE
Bharti AXA Life 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. The joint venture company has a 74% stake from Bharti. The company launched national operations in December 2006. Today, they have over 8000 employees across over 12 states in the country and a national footprint of distributors trained to provide quality financial advice and insurance solutions to the large Indian customer base. As they further expand their presence across the country with a large network of distributors, they continue to provide innovative product and service offerings to cater to specific insurance and wealth management needs of customers. Bharti enterprises Bharti Enterprises is one of India s leading business groups with interests in telecom, agri business, insurance and retail. Bharti Airtel Limited, a group company, is one of India s leading private sector providers of telecommunications services with an aggregate of 60 million customers, spanning mobile, fixed line, broadband and enterprise services. Bharti Airtel was ranked amongst the best performing companies in the world in the BusinessWeek IT 100 list 2007. Bharti Teletech is the country s largest manufacturer and exporter of telephone terminals. Bharti has a joint venture with ELRo Holdings India Ltd. Field Fresh Foods Pvt. Ltd -

for global distribution of fresh fruits and vegetables. Bharti also has a joint venture - Bharti AXA Life Insurance Company Ltd. - with AXA, world leader in financial protection and wealth management. Bharti has recently forayed into the retail business under a company called Bharti Retail Pvt. Ltd. It also has a joint venture Bharti Wal-Mart Private Limited with Wal-Mart,

for wholesale cash-and-carry and back-end supply chain management operations. Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal6 ACHARYA INSTITUTE OF TECHNOLOGY, BANGALORE

Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management. . Bharti Enterprises and AXA Asia Pacific Holdings Limited (AXA) signed an agreement to establish a joint venture named Bharti AXA Life Insurance Company Limited to carry on life insurance business in India. August 26, 2005, New Delhi : Bharti Enterprises and AXA Asia Pacific Holdings Limited (AXA) signed an agreement to establish a joint venture named Bharti AXA Life Insurance Company Limited to carry on life insurance business in India.

Under the agreement AXA has a 26% equity interest in the joint venture, while Bharti holds the balance. AXA, a global leader in insurance business, enabled the company to have access to AXAs global life insurance and asset management expertise. Bharti brought its strong local market knowledge, reputation and India-wide retail presence.

The insurance sector in India provides a mega opportunity for private players like Bharti Axa Despite the strong growth witnessed by the sector in the recent years, nearly 80% of the Indian population is without life insurance coverage. As one of Indias leading business conglomerates having an established brand and a significant presence in the retail space, Bharti has inherent advantages in being a part of this growth story. In AXA, Bharti has a global leader as its partner, one that is known for its expertise and best practice across the world. More importantly, this new venture also fits into our strategy of taking on projects that make a difference to the society at large.

This joint venture is an opportunity for AXA to enter the Indian life insurance market, one of the most attractive emerging insurance markets. India is a fast growing economy and a huge market with more than 1.1 billion people. This coupled with a large middle class and increasing income levels will drive growth in the insurance market. Bharti is a well-

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established and financially strong group whose capabilities and network will be of significant value to the joint venture.

The joint venture invested in the region of Rs. 500 crores (115 Million USD) over the first three to four years of operations, reflecting both partners commitment to quickly establish a strong foothold in the Indian market. The joint venture commenced business in the first half of 2006, subject to IRDA, FIPB and other statutory approvals.

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Vision
To be a leader and the preferred company for financial protection and wealth management in India

Values
y y y y

Professionalism Innovation Team Spirit Pragmatism

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PRODUCTS Individual Plans : Bharti AXA Life Future Advantage Pension

Bharti AXA Life Future Advantage- a wealth creation plan where you pay premium for a limited period and get the assurance of a secured future. With a promise of exclusive benefits, this plan ensures that you enjoy a tomorrow that s as comfortable as your today. Bharti AXA Life Swarna Bhavishya (Alternate channels - affinity ONLY) It is limited premium unit-linked Insurance Policy, which offers the twin benefit of protecting your loved ones & creating wealth for them over the desired period. You can plan & invest in a systematic manner through this product for very important events (financial goals) in your life like your child s higher education / marriage or buying a houseBharti AXA Life Merit Plus EDGE. At Bharti AXA Life Insurance, we understand the worth of your hard earned money, and that's why; we don't want you to part with it, even if it's borne by you as premium allocation charges. With Bharti AXA Life's unit-linked insurance policy Merit Plus EDGE, you get Guaranteed Additions, which gives back 100% of the First Year's Premium, and more, as additional interest.

Bharti AXA DREAM LIFE PENSION PLUS

Bharti AXA Life presents DreamLife Pension PLUS, a unit-linked pension plan that maximize returns and continue living a comfortable lifestyle, even when you have chosen to retire from work.

Bharti AXA Life Express Secure

Express Secure, a unit-linked insurance product, which offers you the advantage of faster insurance protection and benefit of wealth creation in the long-term.

Bharti AXA Life AspireLife PLUS

A unique product which not only offers up to 250% of your annual premium, in case the market returns are better, you will get 7% of the average fund value. Now you can reach what you aspire for.

Bharti AXA Life Bright Stars Plus

Bharti AXA Life Bright Stars PLUS provides a launch pad for childs bright future.

Bharti AXA Life Future Secure Pension

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Bharti AXA Life Future Secure Pension is a plan that gives freedom, flexibility and much more. It assures a dream retirement life by giving options like long-term investment, partial withdrawal options and many other features to suit your needs. In other words, it ensures a life that you truly deserve.

Bharti AXA Life WealthConfident

Your wealth, your status ensures that you get preferential status wherever you go. So why shouldn't your money get the same?

Bharti AXA Life SaveConfident

Traditional money back insurance product for long term savings..

Bharti AXA Life SecureConfident

A Long Term Life Insurance. All of us desire to maximise the happiness for our family at all times, irrespective of the circumstances. The thought of unfortunate events befalling us may cause us anxiety about providing a secured happiness to our loved ones.

Bharti AXA Life Elite Secure

Bharti AXA Life presents Elite Secure, a simple long-term life insurance product available at a very affordable cost. This plan ensures that well-protected against any eventuality.

Group Plans

Bharti AXA Life - CreditSecure

Bharti AXA Life CreditSecure

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OWNERSHIP PATTERN

Nitin Chopra (49) is the Chief Executive Officer (CEO) of Bharti AXA Life Insurance Company Ltd (Bharati AXA). An engineer from Indian Institute of Technology (IIT) Kanpur and an MBA from Indian Institute of Management (IIM) Ahmedabad, Nitin brings with him 24 years of rich experience in the corporate world, of which the last 15 years have been in the financial services industry.

Chief Operating Officer Tim Thomas is the Chief Operating Officer of Bharti AXA Life Insurance. A Bachelor of Commerce and Bachelor of Laws from the University of Melbourne, Tim has over 12 years of experience in financial services. Tim's first assignment was with the chartered accounting and management consulting firm Coopers and Lybrand (now PWC). He then moved to Colonial Group as Corporate Counsel before taking key corporate finance

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Director Human Resources Priya Ranjan is Director - Human Resources at Bharti AXA Life Insurance Company. He brings to the business over 15 years of HR experience in diverse fields spanning financial services, information technology and manufacturing. He specialises in building large scale businesses .

Shyamal Chief Distribution and Marketing Officer the banking and financial services sector. Before joing us in October 2007, he was with HDFC Bank as Executive Vice President Retail Banking. He joined the Bank in 1999, after a seven year stint in various retail banking capacities at Bank of America. Shyamal is a management graduate from Jamnalal Bajaj Institute of Management Studies. Shyamal Saxena is the Chief Distribution and Marketing Officer of Bharti AXA Life Insurance. Shyamal Saxena brings to the business over 15 years of experience in

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COMPETITORS

ICICI Prudential Life Insurance Company:-

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. LIC :Life Insurance Corporation (LIC) came into existence on 1st September 1956 through the amalgamation of 154 Indian insurance companies, 16 non-Indian companies and 75 provident. The amalgamation was achieved with the help of Life Insurance Act passed by the Parliament in the same year. The LIC was created with the goal of reaching all the insurable people in the country and providing them financial coverage at a reasonable price. In the year 1956, LIC had 5 zonal offices, 33 divisional offices and 212 branch offices. With time there was a need for a branch office at every district headquarter and many branches were opened, which raised the pace of the organization. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. HDFC Standard Life Insurance Company Ltd:HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2008 holds 72.38 per cent of equity in the joint venture.

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Standard Chartered:-

Standard Chartered offers you a wide range of Life Insurance Products from Bajaj Allianz Life Insurance Company, one of India's leading Insurance companies. At Standard Chartered, you can avail of the services of trained & certified professional consultants from Bajaj Allianz Insurance company, who can guide you in ascertaining your insurance needs, and assist you in making an insurance plan that is just right for you. ING VYSYA BANK LIMITED: It is one of Indias premier private sector banks with a heritage of over 70 years. With 1.5 million customers 480 outlets and 6000 employees it is known for its innovative banking services and for pioneering several products and services .ING Vysya Bank has a longstanding relationship with its customers ad deep understanding of the Indian market. GMR GROUP: It has a solid track record of over two decades of growth and has wide ranging interests in fields such as power generation, infrastructure, manufacturing, software and banking .GMR group has an excellent reputation of being able to successfully develop ventures from scratch.

OM KOTAK MAHINDRA LIFE INSURANCE:

Established in 14985 as Kotak Capital Management Finance promoted by uday kotak the company has come a long way since its entry into corporate finance. Its has dabbled in leasing auto finance, hire purchase, investment banking, consumer finance ,broking etc., The company got its name Kotak Mahindra as industrialists Harish Mahindra and Anand Mahindra picked a stake in the company. Kotak Mahindra is today one of Indias leading Financial Institutions. OLD MUTUAL: Old Mutual plc is an international financial services group based in London with expanding operations in life assurance, asset management, banking and general insurance. Old Mutual is listed on the London stock Exchange (where it is included on the FTSE 100 Index) and also on the South African, Namibian Malawi and Zimbabwe stock exchanges. It has 156 years of experience in the life insurance business.

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OM KOTAK MAHINDRA: OM kotak Mahindra is the coming together of kotak Mahindra Finance Ltd., and Old Mutual plc to enter the Indian insurance arena to offer a wide range of innovative life insurance products. The joint venture Om Kotak Mahindra Life Insurance started of with and initial net worth of Rs:150 crore with 74:26 stakes between KMBL and OM. Life insurance business offers KMBL with an opportunity to leverage its crore strengths of Wealth Management and retail distribution.

AVIVA LIFE INSURANCE INDIA:

Aviva Life insurance India is joint venture between Dabur, on of Indias oldest and largest groups of companies and Aviva. Aviva plc is UKS LARGHEST INSURER. In accordance with government regulation, Aviva holds a 26 percent stake in the new venture and Dabur holds a 74 percent share. AVIVA: Aviva is the worlds seventh-largest insurance group (Based on gross worldwide premiums) and the biggest in the UK. It is one of the leading providers of life and pension products to Europe and has substantial businesses elsewhere around the world. Its main activities are longterm savings, fund management and general insurance.

MAX NEW YORK LIFE INSURANCE:

Max New York Life is a partnership between Max India Limited, one of Indias leading multy-business corporations and New York Life, a fortune 100 company. The paid up capital of the Venture is Rs.250 crores. MAX INDIA: Max India Limited is a multi- business corporation that has business interests in telecom services, bulk pharmaceuticals, electronic components and specialty products. It is also the service oriented businesses of healthcare, life insurance and information technology. NEW YORK LIFE: New York Life grown to be a Fortune 100 company and an expert in life insurance. It was the first insurance company to offer cash dividends to policy owners. In 1894,New York life pioneered the then unheard-of concept of insuring women at the same rate as men. Thereafter, it

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continued to introduce as series of firsts-a disability benefit clause in 1920 unemployment insurance in 1992 and complete customer care on the Web in 1998. Today New York Life has over US billion in assets under management and over 30000 agents and employees world wide. The October 2000 Fortune Survey named New York Life amongst the top three most admired life and health insurance companies worldwide with over 3 million policyholders, New York Life is a leading provider of insurance in a host of countries worldwide.

ALLIANZ BAJAJ LIFE INSURANCE:

Allianz Bajaj Life Insurance Company is joint venture between Allianz AG and Bajaj Auto Limited. Characterized by global presence with a local focus and financial strength Allianz Bajaj Life Insurance Co ltd. was incorporated on 12th March 2001.The company received the certificate from IRDA on august 2001 to conduct life insurance business in India.

FOREIGN PARTNER:
Allianz Group is one of the worlds leading insurers and financial service providers. Funded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174000 employees. At the top of the international group is the holding company, Allianz AG, with its head office in Munich. Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of y y y Property and Casualty Insurance. Life and Health Insurance. Asset Management and Banking.

TATA AIG LIFE INSURANCEE:

Tata AIG Life Insurance Co. Ltd. is capitalized at Rsss.185 Crores of which 74 percent has been brought in by Tata Sons and the American Partner brings in the balance 26 percent. Tata AIG plans to provide broad array of life insurance plans to cover to both individuals an groups.

BIRLA SUNLIFE INSURANCE:

Birla Sunlife Insurance Company is a 74:26 joint venture between Aditya Birla Group and sun Life Financial services of Canada. As on 1st March 2003 the company has an equity
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capital of Rs.180 Crore. Birla Sun Life has Mr. Nani B Javeri as its CEO. The company plans to focus on rural segment by leveraging the network of the Aditya Birla Center for community initiative and rural development in rural areas. The company distribution set up comprises insurance advisors for life and marketing team for group products. AWARDS

y y y y

Bharti Axa wins the loyality award NDTV profit leadership award in 2007 CNBC awaz consumer award in 2007 Outlook money profit award in 2007 .

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ORGANIZATION STRUCTURE:

CHIEF EXECUTIVE OFFICER (CEO)

DIRECTOR OF HUMAN RESOURCE

CFO & ACTUARIOL

CHIEF OPERATING OFFICER

VP TELCASSURANCE

ACHARYA INSTITUTE OF TECHNOLOGY, BANGALORE

CHIEF MARKETING OFFICER

CHIEF DISTRIBUTION OFFICER

APPOINTED ACTUR

MANAGERS

MANAGERS

MANAGERS

MANAGERS

MANAGERS

MANAGERS

MANAGERS

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MCKINSEYS 7S MODEL FRAME WORK

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7S MODEL AS COMPARED TO BHARTI AXA : STRATEGY:

The strategy in the 7s framework includes purposes, missions, objectives, goals and Major action plans and policies of the company. Through out the past decade, the corporate world has given close attention to the interplay between strategy and structure. Certainly clear ideas about the strategy make the job structural design more rational. By "strategy" we mean those actions that a company plans in response to ur anticipation to or changes in its external environment-its consumers, its competitors. Strategy is the way a company aims to improve its position vis--vis competition perhaps by providing low cost services, perhaps by providing better value to the customer, perhaps by achieving sales and service dominance. Strategy is what formulated from what worked and did not work in the past, and shows what the management must do in present to acheive the desired future. Strategic effectiveness comes from the way the activities align and reinforce each. Adding together an activity randomly is not a strategy. Strategic thinkers must, therefore, organize the right mean of strategic activities assure they reinforce each other and align all animals of the culture to reinforce the strategy.

Strategy would have these main ingredients to make it more effective and efficient.

 Consistency  Realistic  Carefully executed

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The principles of the strategy in that the more strategies clearly understood and implemented, the more consistent and effective will be the framework for the enterprises. Strategic leaders of management must have foresight about today's context and the dynamics that are shaping it, in order to extrapolate what the likely future to be.They must define, with the stakeholders a vision of the ideal future and maintain goals that cumulatively create the future. Strategy formulation is the deciding in which direction to go and strategy implementation is deciding how the organization is going to get them internally.

STRATEGIC PLANNING IN BHARTI AXA :

Bharti Axa strategy is to look for what make sense for the customers and try to deliver maximum value. Whether it is distribution, service, or products, it does what it think is in the customer's best interest. So they went multi- channel virtually on one day. Bharti axa went multi-products with a full suits of products because every customer does not need the same product. Although it was a young company, they invested in the web and in call centres so customer's can contact them easily. The company empowered our agents with technology so that they had the information they needed when they are talking to customers.

Bharti axa also pursued an innovative human resource strategy. The company recruited from a mix of sectors, and interestingly barely 5% of its staff had prior experience in the life insurance industry with a completely fresh approach. Thus the company's strategy to be significant player in Indian life insurance industry has been highly successful. Since its reestablishment, Bharti axa has become the number one private life insurer.

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STRUCTURE: Structure refers to the organizational arrangements for performing tasks and activities. The structure could be give, functional, regional and product wise etc. An organizational structure is of the strategic management variables. It is the framework of reporting relationships note definitions and accountabilities that are intended to assist the firm in meeting its mission and objectives. Definition of structure: A Structure is formulizing of relationships, roles and responsibilities in order to organize and perform work. Structure is one of the most important variables in the organization. How will the now Organization structure look like? If decentralization was the trend of the past what is next? Is it matrix organization? The central problem in the structuring today is the most of the organization designers spend their time giving more emphasizes on how to make whole thing work rather than giving emphasizes of dividing task.

Bharti Axa more focus should be given on those dimensions, which are currently important to the organization's evolution and to be ready to refocus as the crucial dimensions shift.

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STRUCTURE OF BHARTI AXA LIFE INSURANCE

SALES

OPERATION

SALES MGR

SALES MGR

SALES MGR

REGIONAL HEAD OPERATOR

ZONAL MGR

ASM

ASM

ASM

STATE MGR
AGENCYMGR AGENCYMGR AGENCYMGR

BRANCH MGR
UNIT MGR UNIT MGR UNIT MGR

TEAM LEADER FINANCIAL ADVISORS FINANCIAL ADVISORS FINANCIAL ADVISORS

EXECUTIVE

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SYSTEM: The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.

DISCUSSION OF SYSTEM IN BHARTI AXA : Bharti axa has a LIFE ASIA SOLUTIONS GROUP TEAM managing Life Asia, company s core policy system. Life Asia is a proven, reliable system operating on robust software, and on a hardware platform providing ease of use. It provides the flexibility in designing better product offerings to end-users. This solution group also, managers the group solutions software package. A critical aspect of company s every day work lives is IT infrastructure, and that is managed by another sub group in the Life Asia solution group. All the forward thinking businesses are headed for web, as web presence integrated with back end systems allows for strong self-service paradigm to be built for customers and partners. Company has a Solutions Group Web system which is constantly trying to provide real-time information to company s customers, enabling customer to track company s leads and helping sales force to focus on best prospects & customers anytime anyplace. This group also manages company s CRM initiative using the Goldmine package, catering to the sales Force for lead management, and to customer service, for handling queries/complaints/requests. Company s group also has an architect who is in charge of developing and maintaining a blueprint for the enterprise as a whole. This team works as an in house R&D Solution Group, exploring various tech initiatives for the future. Finally, company s Corporate Solution Group caters to the information needs of the corporate function functions like HR and Finance. This team also works towards running initiatives to drive up usage and derive returns on company s IT investments

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. STYLE:

Style has been observed in the organist ion that the behaviours of superior towards the subordinators in please\ant or hard. All firm develop a style and culture How things are done This can related to how people work together, how they dress, in the organization need to be familiar to the style, which is adopted in the organization for achieving the goals.

DISCUSSION OF STYLE IN BHARTI AXA LIFE INSURANCE :

In Bharti AXA we can find dynamic and challenging behaviour of the employees. The targets are fixed in the beginning of the month and monitored in each day. Regularly in the morning all employees will sit together according their team and will discuss about the plan for the day. The territory manager makes important decisions consultations with Assistant sales manager. Assistance sales managers communicate this decisions to the unit managers through Intranet or orally. Finally the style of management is more concerned to the target based rather than Task oriented. No body in the office will ask how you perform. But they will ask what you perform?

STAFF:

DEFINITION OF STAFF:

Staff mean that the company has hired able people trained them well and assigned them to the right job. Selection, training reward and recognition, retention, motivation and how their concerns are managed.

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DISCUSSION ABOUT STAFF IN BHARTI AXA :

Bharti axa introducing several progressive and employee friendly HR production, performance management system, 360 degree feedback and leadership development initiative. Bharti axa has vision is to create a world-class atmosphere within the organization by providing employees opportunities to learn through a comprehensive and contemporary framework of continuing education.

TRAINING:

One of the key elements of HRD plan of the company is a comprehensive training programmed. Once the selection completes the employees undergo a series of training programmers. This type of training is termed as ON THE JOB TRAINING.

SKILL:

DEFINITION OF SKILL:

Skill is a properly of subconscious part of human mind, rather than being, in any sense, conceptual. it taken the form of awareness and can be required only from the experience, not from conceptual learning.

Skills refer to the fact that employees have the skills needed to carry out the company's strategy. Training and development in are of the mode used to ensuring people know how to do their jobs and stay up to date with the latest techniques. The major problem with semiskilled and unskilled people in the organizational contest is the awareness with conceptual knowledge.

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DISCUSSION OF SKILL SET IN BHARTI AXA :

The Bharti axa unit has five departments, which has personnel with variety of skills. The sales department needs personnel with technical skill, marketing department needs sale skill and actuary department needs planning the program of insurance etc. The general manager should have managerial skill. They should have the ability to take right decisions. they should manage the personnel and make them carry out their responsibility.

It is a participative democratic system so every decision is taken after discussion with personnel. Hence the personnel have good communication skills.

SHARED VALUES:

DEFINITION OF SHARED VALUES:

It means that, employees share the same guiding value. Values are thinks that would strive for even if they were demonstrably not profitable. Shared values are the significant meanings or guidance concepts that an organ includes in members. Long-term vision is all that values stuff, which shapes the destiny of the organization.

Shared values that originally called super ordinates goals ; The guiding concepts and principles of the organizational values and aspirations that go beyond the conventional statements of corporate objectives the fundamental ideas around which a business is built; the things that influence a group to work together for a common goal.

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DISCUSSION OF SHARED VALUES IN BHARTI AXA :

To make Bharti axa the dominant life and pensions player built on trust by world-class people and service.

This is hoped to achieve by: y y y Understanding the needs of customers and offering them superior product Leveraging technology to services customers quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to its policyholders. y Providing an enabling environment to faster growth and learning for its employees, And above all, building transparency in all its dealings.

The success of the company will be founded in its unflinching commitment to 5 core values integrity, customer first, boundary less, Ownership, Passion. Each of the values describes what the company stands for, the qualities of its people and the way company work.

Bharti axa do believe that it is on the threshold of an exciting new opportunity, where it can pay a significant role in redefining and reshaping the sector. Given the quality of its percentage and the commitment of the team, there are no limits to its growth.

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SWOT analysis of Bharti AXA Life insurance

Strength y y y y y Bharti AXA gives the special training to the agents Joint venture between the good financial protection company AXA Use of brand affinity of Airtel to promote insurance sales. Bharti brought its strong local market knowledge, reputation and India. Associated with AXA world leader in financial protection and wealth management, ranked No 13 in the Fortune 500 list of global companies and has enabled the company to have access to AXAs global life insurance and asset management expertise. y Strong partner Bharti - provides access to customer base of more than 20 million

Weakness y y y y y Less awareness about Bharti AXA life insurance Among people Late entrant in the insurance sector Thin distribution network all over the nation Very less number of product offering in comparison to its competitors Lack of confidence among the customers as parent company does not have a financial background.

Opportunities y y Strong growth of unit linked market at the mass affluent end. Potentially with 20% insurance cross sale only to new telecom customers, this network can yield 48 lac policies per year with sum assured of nearly Rs 58000 crores.

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Threats y A large competition in the market with 23 life insurance companies which they are giving the life insurance services. y y Many more companies are lining up to enter into Indian Insurance Industry. Consumers preference is still more towards public sector insurance companies.

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ANNUAL REPORT OF BHARTIAXA LIFE INSURANCE BHARTIAXA LIFE INSURANCE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH,2009 Particular INCOME Interest income Other income 17394.87 3621.19 21016.06 16780.62 2581.67 758.22 174.57 155.81 20450.89 565.17 39.00 526.17 526.17 -60315.92 -60315.92 RS IN CRORE 2008-09

EXPENDITURE Interest, and Personal expenses Administration Depreciation Bad Debt Written off

other

financial

expenses Expenses

Profit Before Tax Less Provision for Fringe Benefit Profit After Tax Less Adjusted towards Dividend deficit account Less Brought forward loss form previous year Surplus / Deficit carried to Balance Sheet

Notes & Significant Accounting Policies forming part of Accounts

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BHARTIAXA LIFE INSURANCE BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH, 2009 Particular CAPITAL AND LIABILITIES Share Capital Loan Pending Conversion to Share Capital Reserve Fund and other Reserves Term Borrowings Current Liability & Provisions PROPERTY AND ASSETS Cash & Bank Balances Investment Loans & Advances Fixed Assets Current Assets Profit and Loss Account Balance As at 31-3-2009
Rs in crores

As at 31-3-2009
Rs in crores

12467.55 917.69 425.00 176808.8 12417.41 203036.48 11563.87 331.86 107049.4 821.85 22953.55 60315.92 203036.48

12467.55 917.69 425.00 177458.2 10623.72 201892.20 12401.70 287.36 121247.1 1022.14 6617.90 60315.92 201892.20

Notes & Significant Accounting

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LEARNING EXPERIENCE: I had a great experience in BHARTI AXA. It was a great knowledge base and an excellent training program we had in BHARTI AXA. The staff of BHARTI AXA is so co-operative and friendly in their approach of training. Whenever we visit to any department the authorities of that department have allotted their precious time in explaining us how that particular department works.

In every department may be at lower level or at the higher level the concerned people have given us all the necessary information we required. A batch of 8 students was made to visit the departments.

SCHEDULE:

The schedule we had in BHARTI AXA is from morning 8:30 am to 4:30 pm. The reporting time was strict and we have to be there before 8:30 am. Which was very essential for a MBA student to follow the rules, which we have to follow in the later part of our career? From 8:30 am to 12:00 noon we used to visit department and 12:00 noon to 1:00 pm we had lunch break and 1:00pm to 4:30pm we used to visit another departments.

We are provided with identity cards and whenever we enter the organization or going out of the plant we were suppose to show the ID card to the security in the main gate. Then only we were allowed to cross the main gate. This shows the security aspect of the company. The mobiles with camera were not allowed inside the company and we were suppose to all other general rules which are followed by the staff. Our guide in the plant was Mr. Amit kumar singh, he was much concerned and co-operative through out our training period. He guided us well in understanding the company from a close view. He planned all our activities in the plant and helped us to relate what we studied in our

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graduation with the actual working of the organization. He explained us how each department is important to the organization and how they relate to other departments.

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PART - B

36 ACHARYA INSTITUTE OF TECHNOLOGY, BANGALORE

GENERAL INDRODUCTION
STATEMENT OF THE PROBLEM

The study has been undertaken to study customers attitude towards life insurance products at bharti axa life insurance .For this purpose market survey has been done through questionnaire. Customers attitude towards life insurance product is an unique topic which helps to understand What is the attitude of the customers towards the products of bharti axa life insurance is they are Satisfied from the products of bharti axa life insurance or not . Keeping above in mind, the study has been conducted to judge the customers attitude towards life insurance products. The study analyses the customers perception about life insurance products of Bharti AXA, which will be useful for the company in understanding the needs and expectations of the customers and also in knowing about the awareness level of their products. This understanding will facilitate the company in designing the suitable and competitive insurance plans and to gain the competitive advantage over its competitors, which will contribute in increasing the sales of the company and ultimately increasing the market share. .

Further, the study is also useful for the readers to understand the life insurance product of the company.

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SCOPE OF THE STUDY

Study of customer attitude towards life insurance products at Bharti Axa life insurance

RESEARCH METHODOLOGY
NATURE OF RESEARCH: Research Design is descriptive & exploratory in nature because descriptive research deals with present and it is related with why, what, where, how.etc. And exploratory we have to explore the data. It constitutes the blueprint for collection, measurement and analysis of data. RESEARCH TYPE: The design used for carrying out this research is descriptive in nature.

DATA TYPE: In this research the type of data collection is: y y Primary data Secondary data

DATA SOURCE: The sources of collection of secondary data are: y y y y Books Websites Magazine Brochure

Data source: the source of collection of primary data y y Questionnaire Interview

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UNIVERSE: The universe is dhanbad city.

SAMPLING SIZE & DESIGN: Sample of 100 was taken the sample size of 100 individuals were selected on the basis of Convenient sampling technique.

OBJECTIVES OF THE STUDY

1. To understand the insurance business and products of Bharti Axa life insurance Co. ltd. 2. To know about the customers perception and preferences about life insurance. 3. To examine the satisfaction level of the customers. 4. To analyses the customers awareness about life insurance companies.

LIMITATIONS OF THE STUDY y y Some respondents were not willing to give any answer to the questions. Time was the biggest limitation. The project requires a thorough study which requires a considerable amount of time.

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APPENDIX QUESTIONNAIRE NAMEADDRESSOCCUPATIONINCOME LEVELQ.NO 1- Age of respondents ? a) 20-30 b) 30-40 c)40 -50 d) 50 and above

Q.NO 2-Occupation of the respondents ? a) student b) business c) service d) other Q.NO 3- According to you , what you consider when you purchase the life insurance policy ? a) investment b) security c) future perspective d) all of above Q.NO 4-Which plan do you prefer ? a) traditional b) modern c) ULIP

Q.NO 5- According to you , what is your perception towards insurance ? a) to help pay for your childerns education b) to replace lost income c) to cover final expenses d) all of the above Q.NO 6-Are you satisfied with the returns which are given by life insurance company ? a)yes b) no

Q.NO 7-Are you aware about the competition between the life insurance companies ? a) yes b) no
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Q.NO 8- Which factor of the following you will be concern about while you purchasing a product ? a) allocation c) fund administration b) fund management d) all of above

Q.NO 9- Which is your biggest concern for future ? a) child education c) child marriage b) retirement d) medical illness

ANALYSIS AND INTERPRETATION: Data collection through questionnaire and personnel interview resulted in availability of the desired information but these were useless until there were analyzed. Various steps required for this purpose were editing, coding and tabulating. Tabulating refers to bringing together similar data and compiling them in an accurate and meaningful manner. The data collected by questionnaire was analyzed, interpreted with the help of table, and pie chart.

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Ques1. Age of the respondents:a) 20 30[ ] b) 30 40[ ] c) 40 50[ ] d) Above 50 [ ]

AGE
8% 20%

40 - 50 32% 30 - 40 20 - 30 40% above 50

AGE (yrs) 20 to 30 30 to 40 40 to 50 Above 50 TOTAL a) b) c) d)

NO.OF.RESPONDENT 40 32 8 20 100

PERCENTAGE 40% 32% 8% 20% 100

40% of the respondents are between 20 to 30 years old. 32% of the respondents are between 30 and 40 years of age. 8% of the respondents are between 40 and 50 years of age. 20% of the respondents are more than 50 years of age

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Ques2. Occupation of the respondents:a) Student [ ] b) Business [ ] c) Service [ ] d) Other [ ]

OCCUPATION
12%

40%

12%

student business service 4th Qtr

36%

PARTICULARS Student Business man Service Other TOTAL

NO.OF.RESPONDENT 12 12 36 40 100

PERCENTAGE 12% 12% 36% 40% 100%

a) b) c) d)

12% of the respondents are businessmen. 12% of the respondents are students. 37% of the respondents are service. 40% of the respondents are in others category.

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Ques3. According to you, what you consider when you purchase the life insurance policy?

a) Investment. [ ] c) future perspective [ ]

b) Security. [ ] d) all of the above [ ]

CONSIDER ABOUT THE LIFE INSURANCE POLICY

30% 50% 10% 10%

y y y y

10% respondents said about investment. 10% respondents said about security. 30% respondents said about future perspective. 50% respondents said all of the above.

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Ques4. Which plan do you prefer?

a) Traditional [ ] c) ULIP [ ]

b) Modern.[ ]

PREFERANCE

25% 50%

25%

y y y

25% respondents want to prefer traditional plan. 25% respondents want to prefer modern plan. 50% respondents want to prefer ULIP plan.

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Ques5. According to you, what is your perception about life insurance?

a) To Help Pay for Your Children's Education. [ ] c) To cover final expenses [ ]

b) To Replace Lost Income.[ ] d) all of the above [ ]

PERCEPTION ABOUT THE LIFE INSURANCE

30% 50% 10% to cover final expenses 10% all of the above To Help Pay for Your Children's Education. To Replace Lost Income.

y y y y

50% respondents said life insurance is to help pay for your children education. 10% respondents said life insurance is to replace lost income. 10% respondents said life insurance is to cover final expenses. 30% respondents said life insurance to all above the features which we discuss above.

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Ques6. Are you satisfied with the returns which are given by the life insurance company?

a) Yes [ ]

b) No [ ]

SATISFACTION
20%

yes no 80%

y y

80% are satisfied with the service given by the company. 20% are dissatisfied with the company.

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Ques7. Are you Aware about the competition between the life insurance companies?

a) Yes [ ]

b) No [ ]

CONCERN ABOUT THE COMPITITION

10%

yes no 90%

y y

10% are not concern about the competition in the market. 90% are aware about the competition in the market.

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Ques8. Which factor of the following you will be concern about while you are product?

purchasing a

a) Allocation [ ] b) Fund management [ ] c) Fund administration [ ] d) All of the above [ ]

CONCERN WHILE YOU ARE PURCHACING A PRODUCT

15% 10% Allocation 60% 15% Fund management Fund administration All of the above

y y y y

15% are concern about allocation when purchasing the product. 10% are concern about fund management when purchasing the product 15% are concern about fund administration when purchasing the product 60% are concern about all of the above when purchasing the product

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Ques10. Which is your biggest concern for future?

a) Child education [ ] c) Child s marriage [ ]

b) Retirement [ ] d) Medical illness [ ]

BIGGEST CONCERN

20% 45% 15% Child education Retirement Child s marriage 20% Medical illness

y y y y

45% respondent s future concerned was child education. 2O% respondents future concerned was retirement. 15% respondent s future concerned was child marriage. 20% respondent s future concerned was medical illness.

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FINDINGS

The respondents in the age group of 20-30 are more inclined towards the life insurance products.

While invest in the life insurance policy 90% are aware about the company in the market.

The 50% respondent s perception that child education is the biggest benefit of life insurance is.

y y

The 80% respondents are satisfied with the returns which are given by the company. Some respondents are dissatisfied due to the not proper information in beginning and long term time process.

y y

The 50% respondents prefer the ULIP plan. The 80% respondents aware about the competition in the market between life insurance companies.

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RECOMMENDATIONS

Emphasis should be laid more on advertisement and building brand awareness through different modes of communication. This will facilitate in creating more awareness about the product of the company.

To provide all types of benefits to the customers to make their perception positive, this in turn will increase their satisfaction level.

Company should require encouraging the customer for more invest in the life insurance policy.

Company can enhance its competitive position by focusing more on better customer services as compared to the competitors.

Proper product training should be given to the financial advisors of the company so that they may be able to explain about the various positive aspects of the product to the prospective customers. That will increase to their selling skills and eventually increase the sales.

Focus on need of children

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CONCLUSIONS

The study has been conducted on Bharti AXA Life Insurance Company Limited and the main objective of the study was to examine the customers perception and satisfaction level towards the products of the company. A descriptive and exploratory research design has been adopted and a sample of 100 respondents was taken from the Dhanbad city. Convenient sampling technique has been used to choose the sample unit. It was found that the most of the respondents are aware about the benefits of insurance and have high preference towards life insurance products. They invest in these products due to a number of reasons, viz., child education, and retirement benefit, safety of their family in case of death and also for return. The majorities of the respondents are aware about the company s name but may not find it suitable as it is a new company and still required to build-up trust amongst the customers. Thus it is suggested that the company should invest more in advertising and brand building to build the trust and to reach to the customers.

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BIBLIOGRAPHY BOOKS
 Kothari, C.R. (2005), Research Methodology, New Age International (P) Ltd.  Kotler, Philip (2005), Marketing Management, Pearson Education.  Parsuram A, Grewal Dhruv, Krishnan R (2004), Marketing Research, Biztantra.  Ramaswamy and Namakumari, Marketing Management-Global Prospective, Macmillan Business Books.

NEWSPAPER  Paramita Chatterjee (2009), Lifeless premium collections upset coverage , The

Economic Times of India, July 29

MAGAZINES & JOURNALS  Business Today  Economics Times WEBSITES  www.bhartiaxalifeinsurance.com  www.lic.com

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