A STUDY  Awarness of custmor Bajaj Allianz Life Insurance Co Ltd
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

A STUDY Awarness of custmor Bajaj Allianz Life Insurance Co Ltd

on

  • 3,880 views

A STUDY Awarness of custmor Bajaj Allianz Life Insurance Co Ltd

A STUDY Awarness of custmor Bajaj Allianz Life Insurance Co Ltd

Statistics

Views

Total Views
3,880
Views on SlideShare
3,880
Embed Views
0

Actions

Likes
1
Downloads
281
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

A STUDY Awarness of custmor Bajaj Allianz Life Insurance Co Ltd Document Transcript

  • 1. SAAB MARFIN MBA“A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan”“A study on customer awareness to enhance market share of Bajaj 1 Allianz Unit Link Insurance Plan”
  • 2. SAAB MARFIN MBA“A study on customer awareness to enhance market share of Bajaj 2 Allianz Unit Link Insurance Plan”
  • 3. SAAB MARFIN MBA EXECUTIVE SUMMARY The project report on “A study on customer awareness to enhancemarket share of Bajaj Allianz Unit Link Insurance Plan” in Hubli city. Ithrough under took the project by the help of BAJAJ ALLIANZ LifeInsurance Ltd. Sales team manager Chandru. A.Kallanagoudar Objectives: 1. To study the awareness level of Bajaj Allianz ULIPs with view to recommend measure to improve market share. 2. To find vital communication media. 3. To know the factors that influence investors while taking investment decisions. 4. To find potential market for ULIPs.Scope of the study: The research was undertaken to gather information from the respondent to know exactly how many people aware of ULIPs in Hubli city and the study is restricted within the city. One of the fast growing city in Karnataka and represents huge market for scope with more than 90 lakhs people. Hubli is one of the commercial areas . “A study on customer awareness to enhance market share of Bajaj 3 Allianz Unit Link Insurance Plan”
  • 4. SAAB MARFIN MBA It is a place where the small and large industries are located .with the more increase population and there style more people are conscious about the their lives.LIMITATIONS OF THE STUDY Not single work is exception to the limitations every work has gotits own limitations, so due to time constraint my study confines only toHubli city and it is not possible to make extensive study. It is assumedthat the sample selected represents entire population. RESEARCH METHODOLOGY Primary (Filed Survey) Data source : Secondary data (internal) Area of Research : Hubli city Research : Questionnaires instrument Sample plan : Personal interview “A study on customer awareness to enhance market share of Bajaj 4 Allianz Unit Link Insurance Plan”
  • 5. SAAB MARFIN MBA Businessman’s, Sample unit : jobholders, professionals etc. Sampling method : Random sampling Sample size : 100 customers INDEXPARTICULARPage no Chapter-I 1) Introduction 09 2) Literature Review 18 3) Statement of the problem 19 4) Purpose of the study 19 5) Scope of the study 26 6) Objectives of study 27 Chapter-II 1) Organization Profile 29 2) Organization Chart 62“A study on customer awareness to enhance market share of Bajaj 5 Allianz Unit Link Insurance Plan”
  • 6. SAAB MARFIN MBA 3) Sampling 64 4) Research Design 64 5) Data Collection Methods 64 6) Measuring tools. 65 Chapter-III 1) Result & discussion with graphs & charts. 68 2) Summary, conclusion, & a proposed action plan with resource requirements and projected benefits to the organization. 84 Chapter-IV 1) Appendix Questionnaire 88 Weekly Reports 2) Bibliography 92“A study on customer awareness to enhance market share of Bajaj 6 Allianz Unit Link Insurance Plan”
  • 7. SAAB MARFIN MBA“A study on customer awareness to enhance market share of Bajaj 7 Allianz Unit Link Insurance Plan”
  • 8. SAAB MARFIN MBAIndustry overviewA brief history of the Insurance sectorThe business of life insurance in India in its existing form started in Indiain 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 “A study on customer awareness to enhance market share of Bajaj 8 Allianz Unit Link Insurance Plan”
  • 9. SAAB MARFIN MBA life and non-life insurance businesses1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public1956 By the mid-1950s, there were around 170 insurance companies in the countrys life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companiesAs a result, the government decided nationalizes the life assurancebusiness in India. The Life Insurance Corporation of India was set up in1956 to take over around 250 life companies. 245 Indian and foreigninsurers and provident societies taken over by the central governmentand nationalized. LIC formed by an Act of Parliament, viz. LIC Act.For years thereafter, insurance remained a monopoly of the public sector.It was only after seven years of deliberation and debate - after the RNMalhotra Committee report of 1994 became the first serious documentcalling for the re-opening up of the insurance sector to private players --that the sector was finally opened up to private players in 2001.The Insurance Regulatory & Development Authority, an autonomousinsurance regulator set up in 2000, has extensive powers to oversee theinsurance business and regulate in a manner that will safeguard the “A study on customer awareness to enhance market share of Bajaj 9 Allianz Unit Link Insurance Plan”
  • 10. SAAB MARFIN MBAinterests of the insured.INSURANCE SECTOR REFORMSDue to immense growth in the insurance sectors the regulations wereintroduced. In 1993,Malhotra Committee headed by former FinanceSecretary and RBI Governor was formed to evaluate the Indian insuranceindustry and give its recommendations. After this committee theregulatory body for insurance sector was formed with the name of IRDA.INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)IRDA has been formed as an authority to protect the interests ofinsurance policies, to regulate, promote and ensure orderly growth ofinsurance Industry and for matters connected therewith of incidentalthereto.Composition of Authority under IRDA Act, 1999As per the section 4 of IRDA Act of 1999, The Authority is a ten-memberteam consisting of.. 1) A Chairman 2) 5 Whole team Members 3) 4 part time members “A study on customer awareness to enhance market share of Bajaj 10 Allianz Unit Link Insurance Plan”
  • 11. SAAB MARFIN MBADuties, Powers and Functions of IRDASection 14 IRDA Act, 1999 lays down the duties, powers and functions ofIRDA 1. The Authority has the duty to regulate, promote and ensure orderly growth of the Insurance business and re- insurance business. 2. This Include - a) Issue to the applicant a certificate of registration, renew, modify, Withdraw, suspend or cancel such registration. b) Protection of interests of the policy holders in matter concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of policy and condition of contracts of insurance. c) Specifying the code of conduct and practical training for intermediary or insurance intermediaries and agents 3. Specifying the code of conduct for surveyors and loss assessors. 4. Promoting efficiency in the conduct of insurance business. 5. Promoting and regulating professional organization connected with insurance and reinsurance business. 6. Levying fees and other charges for carrying out the purposes of this act. 7. Calling from information from, undertaking inspection of, conducting enquiries and investigation including audit of the insurers, intermediaries and other organization connected with the “A study on customer awareness to enhance market share of Bajaj 11 Allianz Unit Link Insurance Plan”
  • 12. SAAB MARFIN MBA insurance business 8. Control and regulation of the rates, advantages, terms and condition 9. Specifying the form and manner in which books of accounts shall be maintained and statement of account shall be rendered by insurers and other intermediaries. 10. Regulating investment of funds by insurance companies. 11. Regulating maintenance of margin of solvency. 12. Adjudication of disputes between Insurers and intermediaries or insurance intermediaries. 13. Supervising the functioning of the Tariff Advisory Committee. 14. Specifying the % of Premium, Income of the insurer to finance schemes for promoting and regulating professional organizations 15. Specifying the % of Life Insurance Business and general Insurance Business to be undertaken by the Insurer in the rural or social sector.The IRDA since its incorporation as a statutory body has been framingRegulations and registering the private sector insurance companies. IRDAbeing an Independent statutory body has put a framework of globallycompatible regulations. “A study on customer awareness to enhance market share of Bajaj 12 Allianz Unit Link Insurance Plan”
  • 13. SAAB MARFIN MBA Indian Insurance SectorThe Insurance sector in India governed by Insurance Act, 1938, the LifeInsurance Corporation Act, 1956 and General Insurance Business(Nationalization) Act, 1972, Insurance Regulatory and DevelopmentAuthority (IRDA) Act, 1999 and other related acts.INSURANCE COMPANIES:In the private sector 12 life insurance and 6 general insurance companieshave been registered. LIFE INSURERS Public Sector Life Insurance Corporation of IndiaLIFE INSURANCE CORPORATION OF INDIA (LIC)An Act of Parliament, viz., Life Insurance Corporation Act, formed LifeInsurance Corporation of India (LIC) in September 1956, with capitalcontribution from the Government of India.The objective was: to conduct the business with the utmost economy, ina spirit of trusteeship; to charge premium no higher than warranted by “A study on customer awareness to enhance market share of Bajaj 13 Allianz Unit Link Insurance Plan”
  • 14. SAAB MARFIN MBAstrict actuarial considerations; to invest the funds for obtaining maximumyield for the policy holders consistent with safety of the capital; to renderprompt and efficient service to policy holders, thereby making insurancewidely popular.Since nationalization, LIC has built up a vast network of 2,048 branches,100 divisions and 7 zonal offices spread over the country. The LifeInsurance Corporation of India also transacts business abroad and hasoffices in Fiji, Mauritius and United Kingdom. CURRENT SCENARIO OF THE INSURANCE INDUSTRYInnovative products and aggressive distribution have become the say ofthe day. Indians, have always seen life insurance as a tax saving device,are now suddenly turning to the private sector that are providing themnew products and variety for their choice.PRIVATISATION: There were various reasons given by the government to nationalizethe insurance sector was to take insurance to the mass, facilitate the flowof long term funds (which insurance companies, by virtue of the businessthey are in, have ready access to) into development of infrastructure inthe country, and safe guard the interest of the policy holders. Towardsthis end, state insurers did develop the insurance sector, though most “A study on customer awareness to enhance market share of Bajaj 14 Allianz Unit Link Insurance Plan”
  • 15. SAAB MARFIN MBAexperts believe that these monopolies could have done much, much more. In the early nineties is, the government went on a reforms bingeand started loosing controls on Indian industry. In 1993 the governmentappointed the Malhotra committee headed former RBI governorR.N.Malhotra, to draw up a blue print for insurance sector reforms. Thepanel submitted its report a year later, recommending privatization,backed by stiff entry guidelines and stringent regulations, so as to avoidrepeat per nationalization free for all. The insurance regulatory and development authority (IRDA)was founded to regulate the sector and over see the process ofprivatization. In 2000, the IRDA started giving out licenses, and a yearlater, the first of the private players started operation. The wheel hadcome full circle. Under state control, the insurance sector, both life andnon-life ,grew steadily. Still, Indians are not adequately insured and lagbehind most countries. Total insurance penetration (insurance premiumas a percentage of gross domestic product) is dismal when compared toits economic standing. Just 2% of the population has some of lifeinsurance. “A study on customer awareness to enhance market share of Bajaj 15 Allianz Unit Link Insurance Plan”
  • 16. SAAB MARFIN MBA LIFE INSURANCE COMPANIES IN INDIA & THEIR MARKET SHARE (as per march-06): INDIAN FOREIGN COUNTRY INSURER WEBSITE MARKETPROMOTER PROMOTER SHAREBajaj Auto Allianz AG Germany Bajaj Allianz bajajallianz.co 7.56 Life Insurance .in ICICI Prudential USA ICICI iciciprulife.co 7.35 Prudential Life m Insurance HDFC Standard UK HDFC hdfcinsurance 2.9 Life Standard Life .com Insurance SBI Cardif (arm Canada SBI Life sbilife.co.in 2.3 of BNP Insurance paribas)Aditya Birla Sun Life Canada Birla Sun Life birlasunlife.co 1.9 Group Insurance m TATA USA tata_aig.com 1.3 “A study on customer awareness to enhance market share of Bajaj 16 Allianz Unit Link Insurance Plan”
  • 17. SAAB MARFIN MBA Internationa Insurance l Group Max India New York USA Max New York Maxnewyorklif 1.2 life life insurance e.comDabur India Aviva Plc USA Aviva Life avivaindia.co 1.1 Insurance m Kotak Old Mutual Australia Kotak Omkotakmahi 1.1 Mahindra Plc Mahindra Old ndra.com finance Mutual FundsVysya Bank ING Group Netherlan INGVysya Life ingvysyalife.c 0.8 ds Insurance om Reliance Amp Sanmar Australia Reliance life Relianceindia. 0.5 insurance com Jammu & Met life USA Met life Metlifeindia.c 0.4 Kashmir insurance om bankSahara India None India Sahara India Sahara India 0.1 Shriram Sanlam S.A Sriram life Sriramlife.com 0.0 insuranceGovernment None India Life insurance Licindia.com 71.4 corporation of India (LIC) “A study on customer awareness to enhance market share of Bajaj 17 Allianz Unit Link Insurance Plan”
  • 18. SAAB MARFIN MBALiterature Review: The project report on “A study on customer awareness to enhancemarket share of Bajaj Allianz Unit Link Insurance Plan” in Hubli. I throughunder took the project by the help of BAJAJ ALLIANZ Life Insurance Ltd.Sales team manager Chandru. A.KallanagoudarBody of the Report: Primary data was collected by administration questionnaire of 100customers. The questionnaire was specially framed to meet therequirement of the survey and the following details. Direct contact was made with the respondents through randomsample to collect the needful information with reference to our objectiveas per to meet the survey requirement.Interview technique: “A study on customer awareness to enhance market share of Bajaj 18 Allianz Unit Link Insurance Plan”
  • 19. SAAB MARFIN MBA Direct personal interview was conducted throughout project usingdirect structured and self-administrative questionnaire.Conclusion & Recommendation: Analysis was based on the result of the research conducted andthe recommendations are based on the analysis.Limitation : The major limitation of the project was time frame.STATEMENT OF THE PROBLEM “A study on customer awareness to enhance market share of Bajaj Allianz Unit Linked Insurance Products”. Management Problem:In the project the management problem is the ULIP’s is new in the market& the lot of people are don’t know about the ULIP’s the managementwants the improve market share of ULIP’s.Advantages of investing in ULIP: “A study on customer awareness to enhance market share of Bajaj 19 Allianz Unit Link Insurance Plan”
  • 20. SAAB MARFIN MBAULIPs have been selling like proverbial `hot cakes in the recent past andthey are likely to continue to outsell their plain vanilla counterparts goingahead. So what is it that makes ULIPs so attractive to the individual is, asfollows1.Insurace cover plus savings: ULIP serve the purpose of providing lifeinsurance combined with savings at market-linked returns. To that extent,ULIPs can be termed as a two-in-one plan in terms of giving an individualthe twin benefits of life insurance plus savings. This is unlike comparableinstruments like a mutual fund for instance, which does not offer a lifecover.2.Multiple investment options: ULIP offer a lot more variety thantraditional life insurance plans. So there are multiple options at theindividuals disposal. . ULIPs generally come in three broad variants: Aggressive ULIPs (which can typically invest 80%-100% in equities, balance in debt) “A study on customer awareness to enhance market share of Bajaj 20 Allianz Unit Link Insurance Plan”
  • 21. SAAB MARFIN MBA Balanced ULIPs (can typically invest around 40%-60% in equities) Conservative ULIPs (can typically invest up to 20% in equities)Although this is how the ULIP options are generally designed, the exactdebt/equity allocations may vary across insurance companies. Individualscan opt for a variant based on their risk profile. For example, a 30-Yr oldindividual looking at buying a life insurance plan that also helps himbuild a corpus for retirement can consider investing in the Balanced oreven the Aggressive ULIP. Likewise, a risk-averse individual who is notcomfortable with a high equity allocation can opt for the ConservativeULIP.3.FlexibilityMutual Funds also offer hybrid/balanced schemes that allow an individualto select a plan according to his risk profile. The difference lies in theflexibility that ULIPs afford the individual. Individuals can switch betweenthe ULIP variants outlined above to capitalize on investment opportunitiesacross the equity and debt markets. Some insurance companies allow acertain number of `free switches. This is an important feature that allowsthe informed individual/investor to benefit from the vagaries ofstock/debt markets. For instance, when stock markets were on the brinkof 7,000 points (Sensex), the informed investor could have shifted hisassets from an Aggressive ULIP to a low-risk Conservative ULIP. “A study on customer awareness to enhance market share of Bajaj 21 Allianz Unit Link Insurance Plan”
  • 22. SAAB MARFIN MBASwitching also helps individuals on another front. They can shift from anAggressive to a Balanced or a Conservative ULIP as they approachretirement. This is a reflection of the change in their risk appetite, as theygrow older.4. Works like an SIP: Rupee cost-averaging is another important benefitassociated with ULIPs. With an SIP, individuals invest their moniesregularly over time intervals of a month/quarter and dont have to worryabout `timing the stock markets. As a matter of fact, even the annualpremium in a ULIP works on the rupee cost-averaging principle. Anadded benefit with ULIPs is that individuals can also invest a one-timeamount in the ULIP either to benefit from opportunities in the stockmarkets or if they have an investible surplus in a particular year that theywish to put aside for the future.The chart below shows how ULIP can meet multiple needs at different lifestages. Integrated Financial Planning Starting a job, Recently Married, with Single married, no kids individual kids “A study on customer awareness to enhance market share of Bajaj 22 Allianz Unit Link Insurance Plan”
  • 23. SAAB MARFIN MBA Your Low Reasonable Higher Need protection, protection, still protection, still high asset high on asset high on asset creation and creation creation but accumulation steadier options, increase savings for child Flexibility Choose low Increase death Increase death death benefit, benefit, choose benefit, choose choose growth/balanc balanced growth/balanc ed option for option for ed option for asset creation asset creation. asset creation Choose riders for enhanced protection. Use top-ups to increase your accumulation“A study on customer awareness to enhance market share of Bajaj 23 Allianz Unit Link Insurance Plan”
  • 24. SAAB MARFIN MBAKids going to Higher studies for child, Children independent,school, college marriage nearing the golden years Higher Lump sum money for Safe accumulation for theProtection, high education, marriage. golden yrs.Considerably on asset Facility to stop premium lower life insurance as the creation but for 2-3 yrs for these dependencies have steadier extra expenses decreased options, liquidity for education expenses Withdrawal Withdrawal from the Decrease the death from the account for higher benefit-reduce it to theaccount for the education/marriage minimum possible. Choose education expenses of the child. the income investment expenses of Premium holiday-to stop option. Top-ups form the the child premium for a period accumulation (with without lapsing the policy reduced expenses) for the golden yrs cash accumulation “A study on customer awareness to enhance market share of Bajaj 24 Allianz Unit Link Insurance Plan”
  • 25. SAAB MARFIN MBABecause of their flexibility to adjust to different life stage needs, ULIPs fitin very well with financial planning efforts.Limitation:1. It is prudent to make equity-oriented investments based on anestablished track record of at least three years over different marketcycles. ULIPs may not fulfill this criterion in near future.2. Insurance and savings are two different goals and it is better toaddress them separately rather than bundle them into a single product. Acombination of a term plan and a mutual fund could give better resultsover the long term.3.The free hand given to ULIPs might prove risky if the timing of exithappens to coincide with a bearish market phase, because of theinherently high equity component of these schemes. “A study on customer awareness to enhance market share of Bajaj 25 Allianz Unit Link Insurance Plan”
  • 26. SAAB MARFIN MBA4. An initial allocation charge is deducted from investor premiums forselling, marketing and broker commissions. These charges could be ashigh as 65 per cent of the first year premiums. Premium allocationcharges are usually very high (5-65 per cent) in the first couple of years,but taper off later. The high initial charges mainly go towards fundingagent commissions, which could be as high as 40 per cent of the initialpremium as per IRDA regulations.The charges are higher for a linked plan than a non-linked plan, as theformer require lot more servicing than the latter, such as regulardisclosure of investments, switches, re-direction of premiums,withdrawals, and so on. Insurance companies have the discretion tostructure their expenses structure whereas a mutual fund does not havethat luxury. The expense ratios in their case cannot exceed 2.5 per centfor an equity plan and 2.25 per cent for a debt plan respectively. The lackof regulation on the expense front works to the detriment of investors inULIPs.5. The front-loading of charges does have an impact on overall returns asinvestors lose out on the compounding benefit. Insurance companiesexplain that charges get evened out over a long term. Thus investors areforced to stay with the plan for a longer tenure to even out the effect ofinitial charges as the shorter the tenure, the lower will be the investor real “A study on customer awareness to enhance market share of Bajaj 26 Allianz Unit Link Insurance Plan”
  • 27. SAAB MARFIN MBAreturns.6. In effect, when investor lock in their money in a ULIP, despite thepromise of flexibility and liquidity, investor will stuck with one fundmanagement style. This is all the more reason to look for an establishedtrack record before committing investor hard-earned money.7. Investor life cover charges would depend on the accumulation ininvestor investment account. As accumulation increases, the amount atrisk for the insurance company decreases. However, with increasing age,the cost per Rs 1,000 sum assured increases, effectively increasing policyholder overall insurance costs.8. It would deal with the fact that expenses on ULIPs were on the higherside in the initial years and therefore; the exit option would hardly proveto be beneficial for the investors.9. ULIP face tough competition from mutual funds, which are short-terminstruments. Hence, a liquidity option makes ULIPs as attractive butbecause of the high front-end charges on policy, investor may not be leftwith much to withdraw at the end of 3 years. “A study on customer awareness to enhance market share of Bajaj 27 Allianz Unit Link Insurance Plan”
  • 28. SAAB MARFIN MBAScope of the study: The research was undertaken to gather information from therespondent to know exactly how many people aware of ULIPs in Hubli cityand the study is restricted within the city. The reason for confining the scope of the research in Hubli were. 2) One of the fast growing city in Karnataka and represents huge market for scope with more than 90 lakhs people. 3) Hubli is one of the commercial areas . 4) It is a place where the small and large industries are located .with the more increase population and there style more people are conscious about the their lives. Objectives: 1. To study the awareness level of Bajaj Allianz ULIPs with view to recommend measure to improve market share. 2. To find vital communication media. “A study on customer awareness to enhance market share of Bajaj 28 Allianz Unit Link Insurance Plan”
  • 29. SAAB MARFIN MBA 3. To know the factors that influence investors while taking investment decisions. 4. To find potential market for ULIPs.“A study on customer awareness to enhance market share of Bajaj 29 Allianz Unit Link Insurance Plan”
  • 30. SAAB MARFIN MBA 1. ORGANISATION PROFILE: Bajaj Group A STRONG INDIAN BRAND- HAMARA BAJAJ One of the Largest 2 & 3 wheeler manufacturer in the world . 21 million + vehicles on the roads across the globe managing funds of over Rs5200crore“A study on customer awareness to enhance market share of Bajaj 30 Allianz Unit Link Insurance Plan”
  • 31. SAAB MARFIN MBA Bajaj Auto finance one of the largest auto finance companies in India Rs5934cr turnover and profits after tax of 732cr in 2004-05 Bajaj group ,a Rs. 8,000 crore group ,a household name in India with a strong brand image and brand loyalty. Bajaj Group is synonymous with quality and customer focus. Bajaj Auto is a Rs.4,000 crore auto giant. 4th largest in the world. Has over 15,000 employees.Allianz Group Allianz Group is one of the worlds leading insurers and financial services providers Founded in 1890 in Berlin, Allianz is one of the leading global insurance companies headquartered in Munich, Germany .“A study on customer awareness to enhance market share of Bajaj 31 Allianz Unit Link Insurance Plan”
  • 32. SAAB MARFIN MBA Established in 1890 ,more than 110 years of experience in insurance. Allianz has over 700 subsidiaries and approximately 1,81,000 employees worldwide. Allianz global network extends to over 70 countries in: o Europe . o South and Northern Americas. o Africa. o Middle East. o Asia Pacific. World largest insurance company by revenue 520353cr worldwide 2nd gross written premium 477930cr 3rd largest assets under management(AUM) and largest insurance companies AUM of Rs9594200cr. 11th largest corporation in the world 50% global business from life insurance close to 60 million lives insured globally. Allianz’ shares are treated at the 5 leading international stock exchanges: Frankfurt. London .“A study on customer awareness to enhance market share of Bajaj 32 Allianz Unit Link Insurance Plan”
  • 33. SAAB MARFIN MBA Paris. Zurich. New York. Insurance to almost half of the Fortune 500 companies. Bajaj Allianz life Insurance“A study on customer awareness to enhance market share of Bajaj 33 Allianz Unit Link Insurance Plan”
  • 34. SAAB MARFIN MBA“A study on customer awareness to enhance market share of Bajaj 34 Allianz Unit Link Insurance Plan”
  • 35. SAAB MARFIN MBA Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj AutoLimited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability andstrength. Bajaj Allianz General Insurance received the Insurance Regulatory andDevelopment Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 toconduct General Insurance business (including Health Insurance business) in India. TheCompany has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74%and the remaining 26% is held by Allianz, AG, Germany.Key Achievements in FY 2005-06 :• No.1 Pvt Life Insurer FY 2006-06. Leading by Rs. 78 Cr.• No.1 Pvt Life Insurer in Retail Business. Leading by Rs. 339 Cr.• Whopping growth of 216% for the FY 2005-06• Have sold over 13,00,000 policies to satisfied customers “A study on customer awareness to enhance market share of Bajaj 35 Allianz Unit Link Insurance Plan”
  • 36. SAAB MARFIN MBA• Is backed by a network of 550 offices spanning the country• Accelerated Growth Fiscal Year No of policies sold in FY GWP in FY 2001-2002 (6mths) 21,376 Rs 7 cr. 2002-2003 1,15,965 Rs 69 cr. 2003-2004 1,86,443 Rs 221 cr. 2004-2005 2,88,189 Rs 1002 cr. 2005-2006 7,81,685 Rs 3134 cr. Assets under management Rs 3,324 cr. Shareholder capital base of Rs 500 cr.Company punch line “A study on customer awareness to enhance market share of Bajaj 36 Allianz Unit Link Insurance Plan”
  • 37. SAAB MARFIN MBAMission: As a responsible customer focused market leader, we will striveto understand the insurance needs of the consumers and translate it intoaffordable products that deliver value for money.Why Bajaj Allianz Life Insurance:The Bajaj Allianz Difference Business strategy aligned to clients’ needs and trends in Indian and global economy / industry. Internationally experienced core team, majority with local background. Fast, decentralized decision-making. Long-term commitment to market and clients. Shareholder in Bajaj Allianz life insurance company: “A study on customer awareness to enhance market share of Bajaj 37 Allianz Unit Link Insurance Plan”
  • 38. SAAB MARFIN MBA Bajaj Auto LimitedBajaj Auto Limited is the largest manufacturer of two and three –wheelersin India and also one of the largest manufacturers in the world. Bajaj Autohas been in operation for over 55 years. As a promoter of Bajaj AllianzGeneral Insurance Company Ltd., Bajaj Auto has the following to offer. Vast distribution network. Knowledge of Indian consumers. Financial strength and stability to support the insurance business. CHANNEL PARTNERS Bancassurance Vantage “A study on customer awareness to enhance market share of Bajaj 38 Allianz Unit Link Insurance Plan”
  • 39. SAAB MARFIN MBAUNIT LINKED INSURANCE PLAN OR MARKET LINKED INSURANCE PLAN (ULIP).INTRODUCTION TO ULIPULIP came into play in the 1960s and became very popular in WesternEurope and Americas. The reason that is attributed to the wide spreadpopularity of ULIP is because of the transparency and the flexibility whichit offers. As times progressed the plans were also successfully mappedalong with life insurance need to retirement planning. In today’s times,ULIP provides solutions for insurance planning, financial needs, financialplanning for children’s future and retirement planning. Features of ULIPdistinguish itself through the multiple benefits that it provides to theconsumer. The plan is a one-stop solution providing: Life protection·Investment and Savings· Flexibility- Adjustable Life Cover- InvestmentOptions· Transparency· Options to take additional cover against- Deathdue to accident- Disability- Critical Illness- Surgeries· Liquidity.ULIP distinguishes itself through the multiple benefits it provides to thepolicyholders. These plans are designed with a view to help thecustomers to utilize the market opportunities by investing in the share “A study on customer awareness to enhance market share of Bajaj 39 Allianz Unit Link Insurance Plan”
  • 40. SAAB MARFIN MBAmarket, capital market and at the same time have the facility of DeathBenefit and Maturity Benefit.Meaning It is a plan, which provides Life Insurance, and here policy value at any time varies according to the value of the underlying asset at that time.It is a plan that provides the client with the benefit of protection andflexibility.An ULIP plan works as a one-stop advantage for the policyholder. It givesthe policyholder a wholesome advantage of integrated financial planning. STRUCTURE OF ULIP: - ULIP CONTRIBUTION LESS- CHARGES “A study on INVESTMENT customer awareness to enhance market share of Bajaj 40 LIFE COVER AllianzAS REPRESENTED Unit Link Insurance Plan” NAV
  • 41. SAAB MARFIN MBANAV CONCEPTIt exhibits the value (or the price) that one has for his investment or onewill have to pay for his investment.As, the investment made by different people are different, the value (orthe price) is the expressed in per unit terms. It helps in knowing the valueof Insurance at any point of time.Technical Calculation of NAV: -UNIT Value = (Total market Value of all assets invested less expensesrelated to Investment management / Total no. of outstandingunits)Factors affecting NAV:Market Value of investment portfolio, Number of Units, Expenses andInvestment Income. “A study on customer awareness to enhance market share of Bajaj 41 Allianz Unit Link Insurance Plan”
  • 42. SAAB MARFIN MBAEx: If 2,00,000 /- has been accumulated in the equity fund and the no. ofunits issued is 10,000 /- then the NAV of the equity fund is: - 2,00,000 / 10,000 = Rs 20 / -As the equity market develop the fund grows from 2,00,000 / - to220,000/-Now the NAV = 2,20,000 / 10,000 = Rs 22 / -If among these 10,000 units the policyholder has 5000 units then thevalue of investment as of now is Rs 1,10,000.Thus a unit linked plan actually tells, what is the value of the fund.BASIC FEATURES OF ULIP 1. Life protection 2. Investment and savings 3. Flexibility 4. Transparency 5. Added Benefits a) Death due to accident b) Any kind of disability c) Critical illness d) Surgeries 6. Liquidity 7. Tax Planning 8. Adjustable Life Cover 9. - Investment Options “A study on customer awareness to enhance market share of Bajaj 42 Allianz Unit Link Insurance Plan”
  • 43. SAAB MARFIN MBA- 1) LIFE PROTECTION“A study on customer awareness to enhance market share of Bajaj 43 Allianz Unit Link Insurance Plan”
  • 44. SAAB MARFIN MBA The graph shows the various needs of the customer at different point of time, individuals needs differ and his need for life protection fluctuates. ULIP satisfies the varying needs of the customer providing him with more and more protection as and when he requires, by allowing the policyholder to increase or decrease the death benefit. It is usually multiple of the contribution being paid, which ensure that the contribution is adequate enough to provide life protection. And is also able to maintain a sem balance between protection and savings. 2) INVESTMENTS AND SAVINGS ULIP provides the client with option of investing as per his risk appetite and gets returns accordingly. These various options available for an individual to make investment in comparatively high risks instruments and get high returns. Below shown is a graph illustrating the various investment options for a client.“A study on customer awareness to enhance market share of Bajaj 44 Allianz Unit Link Insurance Plan”
  • 45. SAAB MARFIN MBA Risk Example 1: Here are four types of funds in which a client can invest. In each case the risk goes on increasing with the type of fund. The client has an option to shift as the risk and return orientation changes (Switch). 3) FLEXIBILITY The client has an option to choose the amount of sum assured and the premium amount he is capable of paying. In case of certain plans of ULIP the client is allowed to choose the premium.“A study on customer awareness to enhance market share of Bajaj 45 Allianz Unit Link Insurance Plan”
  • 46. SAAB MARFIN MBA Eg: Lifetime and Lifetime I the client has a flexibility to decide the life cover according to his financial needs, independent of premium selected. Following points enumerate the flexibility feature of ULIP a) Increase in death benefit. As life cycle changes of a client he passes through various risks and responsibilities. He can increase or decrease the death benefit accordingly. b) Decrease in death benefit. If the client is unable to pay the same amount of premium he can decrease the death benefit with certain conditions applying according to the particular plans. c) Premium holiday After paying the premium regularly for 3 years from the starting date of the policy the client can take a premium holiday if he is unable to pay a particular premium due. On returning from the premium holiday the client can pay the previous premiums if he desires or continue from that date. d) Choice of fund.“A study on customer awareness to enhance market share of Bajaj 46 Allianz Unit Link Insurance Plan”
  • 47. SAAB MARFIN MBA There are four kinds of funds available for a client of ULIP. He has an option to switch between these four funds. He can either choose only one or invest in all four depending on his risk tolerance. Plan Plan objective Risk Investment pattern Maximiser High growth and High Equity and equity (Growth) capital related securities: appreciation over Max 90%, Debt, a long terms money market and cash: Min 10% Balancer Balance of capital Average Equity and equity (balanced) appreciation and related securities: study returns Max 40%, Debt, over a long money market and terms cash: Min 60% Preserver Equal balance of Low Debt instrument: capital Max 50% appreciation and Money market and study returns cash: Min 50% over a long term Protector Study returns Moderate Debt instrument: (Income) over a long term. Max 100% Money market and cash: Max 25% e) Switch between the funds The policyholder has a choice two reallocate the premium paid by him on every premium policy anniversary. He can switch between the above four funds to avail the advantages“A study on customer awareness to enhance market share of Bajaj 47 Allianz Unit Link Insurance Plan”
  • 48. SAAB MARFIN MBA of market fluctuations. f) Top ups Some times the client may have surplus amount after his expenses. ULIP allows him to save that amount by investing in the insurance he can avail the benefit of top up by paying extra premium, which will be invested in the share market by the insurer company. The client gets expert fund management. The policyholder is allowed to do as many top ups in the tenure of plan. g) Premium redirection The policyholder is allowed to reallocate the premium paid each time to different fund structure. Thus whenever the premium is due (As per the premium payment mode), he can redirect the current premium into different asset allocations than the previous time. This helps the policyholder to optimize the funds in accordance to market with out using the switch option. e) Assignment option The policyholder can assign the policy to any of the nominees or any bank in case he has taken a loan on the title of the policy. Unfortunately if something happens to the policyholder then the insurer will repay the loan taken by the client to the extent of premium paid. 4) Transparency“A study on customer awareness to enhance market share of Bajaj 48 Allianz Unit Link Insurance Plan”
  • 49. SAAB MARFIN MBA ULIP products are transparent in terms of, the policyholder is aware of where his contribution is being allocated. The policyholder is aware of the various charges charged to him. The Various charges of the ULIP are: - a) Contribution related Charges- Running expenses of the policy b) Administrative Charges- Issuance cost, distribution costs etc c) Fund Management Fee- cost of being and selling the various financial instruments for various funds. d) Mortality Charges: cost of providing life protection. e) Rider charges: cost of other protection charges. f) Surrender charges: cost to cover initial expenses. g) Bid offer charges: difference between the offer price of units and the selling price i.e. bid price of units. It covers the cost of selling the policy. h) Transaction specific charges: cost of changing funds, toping up the investment component or withdrawals Daily NAV: A feature that lets us know on a daily bases, how the money in insurance plan is growing. 5) ADDED BENEFITS To get extra protection ULIP provides the policyholder the advantage of rider attachments. a. Death due to accident (ADBR) b. Disability (ABR) c. Critical Illness (CIBR) d. Surgeries (MSAR) (Now discontinued) 6) LIQUIDITY“A study on customer awareness to enhance market share of Bajaj 49 Allianz Unit Link Insurance Plan”
  • 50. SAAB MARFIN MBA The feature makes ULIP a marketable plan. The policyholder has an option of withdrawals in case if need arises. ULIP provides easy access to the money as and when the policyholder may requires. There are two types of withdrawal options. a) Partial b) complete The value of withdrawal reduces the death benefit by same amount. This facility can be avail only after three full premium payment years are completed. The minimum worth of this units and a maximum where in at least Rs. 10000/- worth units remain in all the funds put together. 7) TAX PLANNING This is another feature of ULIP that motives the policyholder to invest in the insurance plans. They usually invest to avail the tax benefit. Regulation in India allows tax benefits in the contribution paid under section 88, contribution paid for health riders critical illness and major surgical is allowed tax benefits under section 80D, as per the prevailing tax laws. Maturity benefits are tax free under section 10(10) D, provided life come is at least 5 times of the annual contribution paid. Death benefit is tax free under section 10(10) d. With so many tax benefits available in one instrument ULIP tends to be an intelligent tax-planning tool. Working of a ULIP Plan Life rime regular Premium Allocated Part of the Premium Premium towards“A study on customer awareness to enhance market share of Bajaj 50 Allianz Unit Link Insurance Plan” This goes Allotment of Insurance to the
  • 51. SAAB MARFIN MBAFor ExampleA client put in regular contribution of Rs.20, 000 /-. From this amounta % is deducted as contribution.Therefore if the contribution related expense is 40% - Rs.8000/- will bededucted as contribution charges.The amount that is now available is Rs.20000-8000=12000/-Now, if the client who is available is aged 30 years were to take a lifecover of 500,000/- then mortality (1.50/- per thousand at the age of 30)charge of 750 /- will be deducted.This amount will provide life cover to the policy. The remaining amountof –11250/- will be invested in any one of them or all of them.The Investment is shown in terms of units. Thus if client invests in debtfund and the NAV of the debt fund is Rs. 15/-(market price) then the no.of units that the client will get is 11,250/15=750. For this “A study on customer awareness to enhance market share of Bajaj 51 Allianz Unit Link Insurance Plan”
  • 52. SAAB MARFIN MBAinvestment-fund management fee will be charged and the charges formaintaining the policy an administrative charge are levied. Are ULIPs similar to mutual funds?. In structure, yes; in objective, no. Because of the high first-year charges, mutual funds are a better option if you have a five-year horizon. But if you have a horizon of 10 years or more , then ULIPs have an edge. To explain this further a ULIP has high first –year charges towards acquisition (including agents commissions). As a result, they find it difficult to outperform mutual funds in the five years. But in the long term, ULIP managers have advantages over mutual funds managers. Since policyholder premium come at regular intervals, investments can be planned out more evenly. Mutual fund managers cannot take a similar long term view because they have bulk investors who can move money in and out of schemes at short notice. Which is better, unit-linked or ‘Traditional plan’? The two strong arguments in favor of unit-linked plans are that –the investor knows exactly what is happening to his money and two ,it allows the investor to choose the assets into which he wants his funds invested. “A study on customer awareness to enhance market share of Bajaj 52 Allianz Unit Link Insurance Plan”
  • 53. SAAB MARFIN MBA A traditional ‘with profits,’ on the other hands, is a black box and a policyholder has little knowledge of what is happening. An investor in a ULIP knows how much he is paying towards mortality, management and administration charges. He also knows where the insurance company has invested the money. The investor gets exactly the same returns that the fund earns, but he also bears the investment risk. The transparency makes the product more competitive .So if you are willing to bare the investment risk in order to generate a higher return on your retirement funds, ULIPs are for you. Traditional ‘with profits’ policies too invest in the market and generate the same Returns prevailing in the marker. But here the insurance company evens out returns to ensure that policyholders do not lose money in a bad year. In that sense they are safer. ULIPs also offer flexibility. For instance, a policyholder can ask the insurance Company to liquidate units in his account to meet the mortality charges if he is unable to pay any premium installment. This eats into his savings, but ensures that the policy will continue to cover his life. Why do insurers prefer ULIPs?“A study on customer awareness to enhance market share of Bajaj 53 Allianz Unit Link Insurance Plan”
  • 54. SAAB MARFIN MBA Insurers love ULIPs for several reasons. Most important of all, insurers can sell these policies with less capital of their own than what would be required if they sold traditional policies. In traditional ‘with profits’ policies, the insurance company bears the investment risk to the extent of the assured amount .In ULIPs, the policyholder bears most of the investment risk. Since ULIPs are devised to mobilize savings, they give insurance companies an opportunity to get a large chunk of the asset management business, which has been traditionally dominated by mutual funds. Are unit-linked insurance plans good? Most insurers in the year 2004 have started offering at least a few unit-linked plans . Unit-linked life insurance products are those where the benefits are expressed in terms of number of units and unit price. They can be viewed as a combination of insurance and mutual funds. The number of units that a customer would get would depend on the unit price when he pays his premium. The daily unit price is based on the market value of the underlying assets (equities, bonds, government securities, etc) and computed from the net asset value. The advantage of unit –linked plans is that they arte simple, clear, and easy to understand. Being transparent the policyholder gets the entire upside on the performance of his fund .Besides all the“A study on customer awareness to enhance market share of Bajaj 54 Allianz Unit Link Insurance Plan”
  • 55. SAAB MARFIN MBA advantages they offer to the customers, unit-linked plans also lead to an efficient utilization of capital. Unit –linked products are exempted from tax and they provide life insurance. Investor welcome these products as they provide capital appreciation even as the yields on government securities have fallen below 6 percent , which has made the insurers slash payouts. According to the IRDA, a company offering unit-linked plans must give the investor an option to choose among debt, balanced and equity funds. If you opt for a unit-linked endowment policy, you can choose to invest your premiums in debt, balanced or equity plans. If you choose a debt plan, the majority of your premiums will get invested in debt securities like gilts and bonds. If you choose equity, then a major portion of your premiums will be invested in the equity market. The plan you choose would depend on your risk profile and your investment needs. The ideal time to buy a unit-linked plan is when one canexpect long term growth ahead . This is especially so ifone also believes that current market values (stock valuations ) arerelatively low. So if you are opting for a plan that invests primarily in equity , thebuzzing market could lead to windfall returns. However , should the buzzdie down , investors could be left stung. “A study on customer awareness to enhance market share of Bajaj 55 Allianz Unit Link Insurance Plan”
  • 56. SAAB MARFIN MBA If one invests in a unit-linked pension plan early on , say whenone is 25, one can afford to take the risk associated with equities , atleast in the plan’s initial stages. However ,as one approaches retirementthe quantum of returns should be subordinated to capital preservation.At this stage , investing in plan that has an equity tilt may not be a goodidea. Considering that unit-linked plans are relatively new launches, theirshort history does not permit an assessment of how they will perform indifferent phases of the stock market. Even if one views insurance as along term commitment, investments based on performance over such ashort time span may not be appropriate. Allianz Bajaj launches its first unit linked policy. Allianz Bajaj Life Insurance Company has launched Unit Gain , thecompany’s first unit linked policy. Unit Gain allows customers to combinethe benefits of life insurance with higher investment returns from equityand debt markets. Unit Gain was launched with a choice of four funds to thecustomer- equity, debt, balanced and cash funds. The cash funds comeswith the guarantee that the value of units in the fund will not go down. Unit Gain is one of the most flexible unit linked plans in the market,and allows the customer to change the sum assured during the term ofthe policy to match their changing life insurance requirements. Also the “A study on customer awareness to enhance market share of Bajaj 56 Allianz Unit Link Insurance Plan”
  • 57. SAAB MARFIN MBAplan offers a premium holiday feature, where the policy is kept in-forceeven when premiums are not paid as long as there are enough units tocover charges. The policy provides customers flexibility in paying additionalpremium through single premium top-ups, as well as in increasing thelevel of regular premium in later years (along with increase in income). Inaddition, the facility of cash withdrawals allows the Bajaj Allianz ULIP’Sproducts.Bajaj Allianz ULIP’S products:1) Unit Gain Regular Premium: The Bajaj Allianz unit comes with a host of features to allow you tohave the best of all words –protection and investment with flexibility likenever before. Some of the features of this plan are: Guaranteed death benefits. Choice of 6 investment funds with flexible investment management you can change funds at any time. Attractive investment alternative to fixed investment securities. Provision for full/partial withdrawal any time after 3 full years premiums are paid. Unmatched flexibility –to match tour charging needs. “A study on customer awareness to enhance market share of Bajaj 57 Allianz Unit Link Insurance Plan”
  • 58. SAAB MARFIN MBAHow does the plan work: The premiums paid are invested in fund/funds of your choice(depending on the allocation rate) &unit are allocated depending on theprice of units for the fund/funds.The value of your policy is the value of units that you hold in thefund/funds. The insurance cover charges are deducted through monthlycancellation of units . The funds administration charge and fundmanagement charge are priced in the unit value. Minimum sum assured= 5 times the annual premium. Maximum sum assured =y times the annual premium where y will be as per the following table.Age 0-30 31-35 36-40 41-45 46-55 56-60GroupY 125 105 75 55 30 20Important details of “Bajaj allianz unit gain RP” plan Minimum age at entry: 0(risk commences at age 7, and ceases after age 70) Maximum age at entry :60 The minimum age at entry for all additional benefits is 18 years. The maximum age at entry for all additional benefits is 50 years. “A study on customer awareness to enhance market share of Bajaj 58 Allianz Unit Link Insurance Plan”
  • 59. SAAB MARFIN MBA All additional benefits are available till age 65. 2) Unit Gain Single Premium: The bajaj allianz unit gain SP comes with a host of features to allow you to have the best of all worlds- protection and investment with flexibility like never before.Some of the feature of this plan areConvenient single premium payment, with option to pay top-ups later.100% of the single premium/top ups are allocated.Guaranteed death benefits.Choice of 6 investment funds with flexible investment management youcan with between funds at any time .Attractive investment alternative to fixed interest securities.Provision for full/partial withdrawal any time after the single premium ispaid.Unmatched flexibility – to match your changing needs.How does the plan works? 100% of the single premium is invested in a fund/funds. Thevalue of your choice and unit are allocated depending on the price ofunits for the fund/funds the value of your policy is the total value of unitsthat you hold in the fund/funds . The insurance cover changes arededucted through monthly cancellation of units. The fundsadministration charge and fund management charge are pried in the unitvalue. “A study on customer awareness to enhance market share of Bajaj 59 Allianz Unit Link Insurance Plan”
  • 60. SAAB MARFIN MBA Minimum sum assured =1.01 times the single premium. Maximum sum assures =y times the single premium where y will be as per the following table. Age 0-30 31-35 36-40 41-45 46-60 61-67 Group Y 45 40 25 15 5 1.01 Important details of the “Bajaj allianz unit gain SP” plan:- Minimum age at entry :0(risk commences at age 7, and ceases after age 70) Maximum age at entry :67 Minimum single premium :Rs .25000. Minimum top-up :Rs 10000.3) Unit Gain Plus Regular Plan: The Bajaj allianz unit gain plus RP comes with a host offeatures to allow you to have the best of all words – protection andinvestment with flexibility like never before.Some of the key feature of this plan are “A study on customer awareness to enhance market share of Bajaj 60 Allianz Unit Link Insurance Plan”
  • 61. SAAB MARFIN MBA Guaranteed death benefit. Choice of six investment funds with flexible investment management you can change funds at any time . Attractive investment alternative to fixed –interest securities. Provision for full/partial withdrawals any time after 3 full years premium are paid Unmatched flexibility –to match changing needs. How does the plan work? The premium paid are invested in a fund or funds of your choice (depending on the allocation rate) and units are allocated depending on the price of the units for the fund or funds. The insurance cover and administration charges are deducted through cancellation of units. The fund management charge is prices in the unit value. Minimum sum assured = 5 times the annual premium. Maximum sum assured = y times the annual premium where y will be as per the following table. Age 0-30 31-35 36-40 41-45 46-55 56-60 Group Y 125 90 60 40 20 15“A study on customer awareness to enhance market share of Bajaj 61 Allianz Unit Link Insurance Plan”
  • 62. SAAB MARFIN MBA Important details of the “Bajaj Allianz Unit Gain Plus RP” plan Minimum age at entry :0(Risk commences at age 7 and ceases after age 70) Maximum age at entry :60 Minimum age at entry for all additional benefits is 18 years. The maximum age at entry for additional benefits is 50 years. All additional benefits are available till age 65.4) Unit Gain Plus Single Premium Plan: The bajaj allianz unit gain plus Sp comes with a host of feature toallow you to have the best of all words – protection and investment withflexibility like never before. Some of the key feature of this plan are Convenient single premium payment, with option to pay top-ups later. 98% of the single or top-ups are allocated. Guaranteed death benefit. Choice of five investment funds with flexible investment management you can change funds at any time. Attractive investment alternative to fixed –interest securities. Unmatched flexibility – to match your changing needs. Provision for full or partial withdrawal any time after the single premium is paid. “A study on customer awareness to enhance market share of Bajaj 62 Allianz Unit Link Insurance Plan”
  • 63. SAAB MARFIN MBA How does the plan works ? 98% of the single premium is invested in a funds or funds of your choice and units allocated depending on the price of units for the fund or funds . The value of your policy is the total value of units that you hold in the fund or funds. The insurance cover and fund administration charges are deducted through cancellation of units. The funds management charge is priced in the unit value. Minimum assured =1.01 times the single premium. Maximum sum assured = y times the single premium where y will be as the following table. Age 0-30 31-35 36-40 41-45 46-60 61-69 Group Y 45 35 20 10 5 1.5 Important details of the “Bajaj Allianz Unit Gain Plus SP” Plan Minimum age at entry :0(Risk commence at age 7,and ceases after age 70) Maximum age at entry :69 Minimum single premium :Rs. 25000. Minimum top-up :Rs .5000.“A study on customer awareness to enhance market share of Bajaj 63 Allianz Unit Link Insurance Plan”
  • 64. SAAB MARFIN MBA5)Unit Gain Life Pension plan: With Bajaj Allianz ,you can take control of your future and ensurea retirement you can look forward to. This plan has been be signed totake of your retirement and insurance needs, there by providing you witha comprehensive solution for life time.There are two packages choose from: 1. Unit gain life pension regular premium. 2. Unit gain life pension single premium.Defending on the amount of premium you want to pay, you choose sumassure as per the condition given below: 1. Minimum sum assured =5 times annual/1.01 times single premium. 2. maximum sum assured =y times the annual/single premium where y will be as per the following table: “A study on customer awareness to enhance market share of Bajaj 64 Allianz Unit Link Insurance Plan”
  • 65. SAAB MARFIN MBA Age 18-30 31-35 36-40 41-45 46-55 55-60 61-65 group Y for 125 90 60 40 20 15 10 regular premium Y for 45 35 20 10 5 5 1.5 regular premiumHow does the Bajaj Allianz Unit Gain Life Pension Plan Work? The premium paid are invested in funds of your choice(depending on the allocation rate) and unit are allocated depending onthe price of unit for the fund or funds. The value of your policy is thetotal value of units that hold in the fund or funds. The insurance coverand administration charges are deducted through cancellation of units.The fund management charge is priced in the unit value.Important details of the “Bajaj Allianz Unit Gain Life Pension” Plan: Minimum Maximum Age of entry 18 65 Deferment period 5 40 Age at vesting 45 70 “A study on customer awareness to enhance market share of Bajaj 65 Allianz Unit Link Insurance Plan”
  • 66. SAAB MARFIN MBA6) Unit Gain Easy Pension Plan: With bajaj allianz , you can take control of your future and ensure aretirement you can look for word to. There are two packages to chooseform: 1. Unit gain easy pension regular premium. 2. Unit gain easy pension single premium.How does the Bajaj Allianz Unit Gain Easy Pension Plan works? The premium paid are invested in a fund/funds of your choice(depending on the allocation rate) and units are allocated depending onthe price of units for fund/funds. The value of your policy is the totalvalue of units that you hold in the fund/funds. The administration arededucted through cancellation of units. The fund management is pricedin the unit’s value.Important details of “Bajaj Allianz Unit Gain Life Pension” Plan: Minimum Maximum Age of entry 18 65 Deferment period 5 40 Age at vesting 45 70 “A study on customer awareness to enhance market share of Bajaj 66 Allianz Unit Link Insurance Plan”
  • 67. SAAB MARFIN MBA ORGANISATION CHART 2.ORGANISATION CHART Bajaj Allianz Life Insurance Company Bajaj Allianz Life Insurance Agency Channel Bancassurance Group and Alternate“A study on customer awareness to enhance market shareChannel of Bajaj 67 Allianz Unit Link Insurance Plan” Branches Standard Chartered Group Employee Benefit Bank
  • 68. SAAB MARFIN MBA ORGANISATION CHART OF THE BRANCH BAJAJ ALLIANZ LIFE INSURANCECHANNEL BANC ASSURANCE CORPORATEZONAL SENIOR customer awareness to enhance market share of Bajaj 68 “A study on MANAGER Allianz Unit Link Insurance Plan”
  • 69. SAAB MARFIN MBA3. SAMPLING:Sampling: we are taken random sampleSample size: 100 consumersSample unit: collection of data was made from customer that isrespondents4. RESEARCH DESIGN: “A study on customer awareness to enhance market share of Bajaj 69 Allianz Unit Link Insurance Plan”
  • 70. SAAB MARFIN MBA The research design chosen was exploratory in nature as itinvolved effectives study to determine the awareness of ULIPs and itsproducts since the population in Hubli city is very vast. It is difficult tocarry out 100% with in a limited time period. Hence sample surveytechnique was adopted for the study. Fieldwork was carried out to collectthe necessary data (through schedule questions /personal interview ).5. DATA COLLECTION METHODS: a) Primary data : A structural interview schedule/ questionnaire was used as a tool for primary data collection from respondent. b) Secondary data: Books Journals, magazines and websites.6.MEASURING TOOLS:Data code sheetS/no Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 1 D H A A A A D E A B A - 2 C E D A A B B D D C B B D 3 D G D A A C C D B A D B D 4 C H D A A D C C C B B A “A study on customer awareness to enhance market share of Bajaj 70 Allianz Unit Link Insurance Plan”
  • 71. SAAB MARFIN MBA5 D E D A A A A C B D A -6 A A D A A A A B B A A -7 C E A A B A B B A8 D C A A B F B A9 D B E B A B A A10 C B B B B A A11 D D D B B A B A12 C B A A A A A C A A13 B B B A B B B C E A14 D B B B B A A15 D G D A A A C C A B C16 D E B A B A A B A A A17 D E A A B A E B A A B D18 C C E A A A B B A B C19 C C E A A C C A A F B A20 C B B B B A B A A B A21 C B C A A A D B A A A22 B H E A A B C B A A A23 D H E A A B C A B A B C24 D E E A A D C A B A A25 D E B A A A C B D C B D26 D H E A A B C D D B D A27 C E E A A B D A B A A28 A H A A A B C D A A B A29 D E D A A B C A C F B D30 D E E A B D C C D B E31 A G E A A C D B B A A32 D E A B B F B A33 C A B A A C B A A A34 D E E A A A B B A A A35 D C D A A B E C A F A36 D B B B B B A37 D F B B B A B B38 D E D A B A B A B A39 D B B A B D E B A B B B40 D B A B B A B A41 D B B B A D E E B C A42 D F A A B A C A A B C43 D F E B B C F A“A study on customer awareness to enhance market share of Bajaj 71 Allianz Unit Link Insurance Plan”
  • 72. SAAB MARFIN MBA44 D E B A A A E D C A A B A45 D H C A B C E B C F B C46 A H E A B A A A C B D47 B B D B B D B A48 C G E A A D A B A D A49 B D B A B A A A A B A50 B E B A B C A B A A B A51 C E D A B A A A A D B A52 A E B A B A B B A B B A53 C G D A A B B B A A A54 B D A A B A A B B F A55 D G B B B A A56 D B A A A A B C B A A57 C C D B B B B C58 D E E A B A A A A C A59 C A A A A A A C C A A60 B D D A B A C C A D A61 D B A B B A A62 D B B B A D A A63 C E B A B A A A D B B64 D A B A A C A C A A A65 B D A B A A B A66 C H E A A A B B C B B A67 A D E A A A C B D A68 C F E A B A A A A B A69 D D B B B A B A70 C A B A B A A A B B A71 D B A A B A C A A A72 C A B A A A B C A A B A73 D B B B B A B B74 D A D B B A B A75 C D B A A B B A A A A76 D E A A A B A B B B77 B B C A A B D C B D A78 C D B A A A D C C D B C79 A H E A A A C E B B A80 C B C A A A B B B A A81 A D E B B A A82 C A B A A B B D A C B B D“A study on customer awareness to enhance market share of Bajaj 72 Allianz Unit Link Insurance Plan”
  • 73. SAAB MARFIN MBA 83 C H C A A A D B C F A 84 D A D A A B B A B A B C 85 B E E B A A B A 86 C C C A B A A C C A 87 D D B B A A B B A 88 C D B A A A B A B A A 89 D F A A A B B D A D C B D 90 C H E A A B A B B A A 91 B B C B B B A D 92 A D B A B A E B D A 93 B G A A A D B B A B A 94 D A C A B A B A A B A 95 D C E B A A A B D 96 C H E A A C B D A D B A 97 D E A A B A A A A B D 98 D E D A B D B A C B A 99 C G D A A A E B A B B D100 B C A A A D C B A D A “A study on customer awareness to enhance market share of Bajaj 73 Allianz Unit Link Insurance Plan”
  • 74. SAAB MARFIN MBA1.What is your ratio of saving of the total income? a) More then 60% b) 60% - 50% c) 50% - 25% d) Less then 25%> 60% 9%60%-50% 13%50%-25% 31%<25% 47% “A study on customer awareness to enhance market share of Bajaj 74 Allianz Unit Link Insurance Plan”
  • 75. SAAB MARFIN MBATotal 100Interpretation: From the above graph it is clear that 9% of peoplesaving more than 60%, 13% of people saving less than 60%, 31% of peoplesaving less than 50%, 47% of people saving less than 25%.2.Your saving consist of. a) Post office b) Bank F . D c) Shares d) Land / Building e) Life insurance f) Gold g) Mutual fund h) All the abovePost Office 10% “A study on customer awareness to enhance market share of Bajaj 75 Allianz Unit Link Insurance Plan”
  • 76. SAAB MARFIN MBABank FD 20%Shares 8%Land &Building 13%Life Insurance 23%Gold 5%Mutual Fund 8%All the above 13%Total 100Interpretation: From the above graph it is clear that, 10% of people saving in postoffice, 20% of people savings in Bank FD, 8% of people savings in shares,13% of people saving consist land and building, 23% of people savings inLife Insurance, 5% of people saving consist in gold,8% of people saving inMutual Fund, 13% of people saving consist all the above option. “A study on customer awareness to enhance market share of Bajaj 76 Allianz Unit Link Insurance Plan”
  • 77. SAAB MARFIN MBA3. What factor consist while making the policy. a) Returns b) Safety c) Liquidity d) Risk cover e) All the aboveReturns 20%safety 29%Liquidity 8%Risk cover 19%All the above 24%Total 100Interpretation: From the above graph it is clear that 20% of people wants returns, 29%of people wants safety,8% of people wants liquidity, 19% of people wantsrisk cover, 24% of people wants all the above option. “A study on customer awareness to enhance market share of Bajaj 77 Allianz Unit Link Insurance Plan”
  • 78. SAAB MARFIN MBA4. Have you invested money in life insurance? a) Yes b) NoYes 75%No 25%Total 100Interpretation: From the above graph it is clear that 75% respondents invested theirmoney in life insurance, 25% respondents are not invested. “A study on customer awareness to enhance market share of Bajaj 78 Allianz Unit Link Insurance Plan”
  • 79. SAAB MARFIN MBA5. Are you aware of ULIP a) Yes b) No (If no,skip to q no 11)Yes 55%No 45%Total 100Interpretation:Above graph 55% of respondents are aware of ULIP,45% of respondentsare not aware of ULIP.6. In which company you have invested your money? a) LIC b) Bajaj Allianz “A study on customer awareness to enhance market share of Bajaj 79 Allianz Unit Link Insurance Plan”
  • 80. SAAB MARFIN MBA c) ICICI d)Others .LIC 42%BAJAJ ALLIANZ 17%ICICI 8%OTHERS 9%BLANK 24%TOTAL 100%Interpretation: Above graph shows 42% respondents invested their money in LIC, 17%in Bajaj Allianz,8% in ICICI prudential, 9% in others and 24% ofrespondents are not responded well. “A study on customer awareness to enhance market share of Bajaj 80 Allianz Unit Link Insurance Plan”
  • 81. SAAB MARFIN MBA7. How do you come to know ULIP? a) Friends b) Agents c) Newspapers/Magazines d) Bankse) Others .Friends 17%Agents 18%Newspaper/magazines 15%Banks 8%Others 7%Blank 35%Total 100% “A study on customer awareness to enhance market share of Bajaj 81 Allianz Unit Link Insurance Plan”
  • 82. SAAB MARFIN MBAInterpretation: The above graph shows that 17% of respondents know the ULIPSthrough friends,18% of respondents through Agents,15% of respondentsthrough News paper and Magazines, 8% of respondents know throughbanks, 7% of respondents know through others and 35% of respondentsare not respondents well.8. Which plan you have taken? a) Endowment b) Money Back c) Term Plan d) ULIP e) All the aboveEndowment 17%Money Back 29%Term Plan 16%ULIP 8%All the above 4%BLANK 27%Total 100% “A study on customer awareness to enhance market share of Bajaj 82 Allianz Unit Link Insurance Plan”
  • 83. SAAB MARFIN MBAInterpretation: The above graph shows that 17% of respondents have takenEndowment policy,29% of respondents have taken money back policy,16%of respondents have taken term plan,8% of respondents have takenULIP,4% of respondents have taken others, 27% of respondents not taken.9. Why you have chosen ULIP? a) Higher Returns b) Liquidity “A study on customer awareness to enhance market share of Bajaj 83 Allianz Unit Link Insurance Plan”
  • 84. SAAB MARFIN MBA c) Life cover d) All the aboveHigher returns 4%Life cover 1%Liquidity 2%All the above 2%Blank 91%Total 100%Interpretation: The above graph shows that 4% respondents wants Higherreturns,1% liquidity, 2% life cover, 2% all the above and 91% ofrespondents are not responded well.10. What is the premium you are paying per annum? “A study on customer awareness to enhance market share of Bajaj 84 Allianz Unit Link Insurance Plan”
  • 85. SAAB MARFIN MBA a) 10000 b) 10000-25000 c) 25000-50000 d) 50000-100000A 38%B 17%C 11%D 3%BLANK 31%Interpretation:The above graph shows that the 38% of respondents paying premium perannum less than 10,000, 17% respondents paying per annum between10,000- 25,000, 11% respondents paying per annum between “A study on customer awareness to enhance market share of Bajaj 85 Allianz Unit Link Insurance Plan”
  • 86. SAAB MARFIN MBA25,000-50,000, 3% respondents paying per annum between50,000-100,000, blank is 31%. 1. What will influence your Financial Planning? a) Discussion with Family Member b) Tax Consultant/ C. A c) Insurance consultant /Agents d) Finance Magazines. e) Web site of insurance or Finance company. f) Any other Specify .Discussion with FM 47%Tax consultant/CA 22%IC /Agents 7%Finance Magazine 14%Websites 1%Others 9%Total 100% “A study on customer awareness to enhance market share of Bajaj 86 Allianz Unit Link Insurance Plan”
  • 87. SAAB MARFIN MBAInterpretation: The above graph factors influencing financial planning 47% influencingdiscussion with family members, 22% tax consultant/CA, 7% InsuranceConsultant/ Agents,14% through finance magazines, 1% through websites of insurance/ Finance Company,9%through others. “A study on customer awareness to enhance market share of Bajaj 87 Allianz Unit Link Insurance Plan”
  • 88. SAAB MARFIN MBA12.In future are you interested investing money on ULIP? a) Yes b) NoA 52%B 48%Interpretation:The above graph 52% respondents are interested investing money onULIPs in future, 48% respondents are not interested to invest money inULIPs. “A study on customer awareness to enhance market share of Bajaj 88 Allianz Unit Link Insurance Plan”
  • 89. SAAB MARFIN MBA13. If no why? a) No Interest. b) Lack of Advertisement. c) Busy schedule. d)Others .A 23%B 6%C 8%D 12%BLANK 51%Interpretation: “A study on customer awareness to enhance market share of Bajaj 89 Allianz Unit Link Insurance Plan”
  • 90. SAAB MARFIN MBA The above graph 23% of respondents are no interested, 6% lack ofadvertisement, 8% busy schedule, 12% of respondent says others and 51%of respondents are not responded well. Findings Through all this survey and analyzing what we found isthat In the survey it was found that 47% of the respondents are saving less than 25% income this indicates that nearly half of respondent in hubli city are coming under middle class. As our research we found that 55% of people are aware of ULIP’s and 45% of respondent are not aware of ULIP’s so company has to give more advertisement about the ULIP’s . Through Friends 17% of people are come to know about the ULIP’s ,through Agents 18%, 15% through Newspaper / Magazine , 8% through Banks, Others 7% of respondent are come to know 35% of people are not aware of ULIP’s so compare to all agents are playing important role & company has to increase more number of agents. 52% of respondent are interested to invest money in ULIP’s and 48% of respondent are not interested to invest money in ULIP’s so 52% is a potential customer so company can utilize that opportunity. “A study on customer awareness to enhance market share of Bajaj 90 Allianz Unit Link Insurance Plan”
  • 91. SAAB MARFIN MBA 42% of respondent are invested their money in LIC, 17% in Bajaj Allianz, 8% in ICICI Prudential , 9% in others and 24% of people not at invested. 23% of respondent are not interested to invest their money in ULIPs , 6% lack of advertisement, 8% busy schedule,12% of respondents said others and blank 51%. LIMITATIONS The limitation of the project was that the study and the survey were conducted in Hubli city only, the analysis and recommendations may not be fully applicable to other cities. The time was not enough to study the vast and growing Life insurance sector in Hubli cityConclusion :From the over all project and market survey it is clear that Bajaj AllianzLife Insurance Co .Ltd is doing well but most of the people are not awareof ULIP’s . But in the present threading competition they should do more then thepresent efforts in the following fields. “A study on customer awareness to enhance market share of Bajaj 91 Allianz Unit Link Insurance Plan”
  • 92. SAAB MARFIN MBA 1. Advertising campaign. 2. Trade promotion activity. Recommendations Most of the respondents are not aware of Unit Linked Insurance Plan so company has to give more advertisement about the ULIP’s.45% of respondents are not aware, which should be increased by different medias like TV, Magazines, & News Paper. The company has to provide proper training or marketing skills to improve the marketability of products. Complete information should be provided regularly to the advisor as well as to the investor. Bajaj Allianz Co should come out with more and more innovative schemes to meet the requirement of every investor Company has to conduct meeting of their agents periodically to access the results and progress of the agents efforts.“A study on customer awareness to enhance market share of Bajaj 92 Allianz Unit Link Insurance Plan”
  • 93. SAAB MARFIN MBA“A study on customer awareness to enhance market share of Bajaj 93 Allianz Unit Link Insurance Plan”
  • 94. SAAB MARFIN MBADear Sir / Madam, I am pleased to introduce myself as MBA student of PES&T’s Belgaum Institute Of Management Studies (MBA) Belgaum . As a partof curriculum I have undertaken a research study on “CustomerAwareness Level To Improve Market Share Of ULIP”. The informationprovided by you will be kept confidential & used for academic purposeonly . QUESTIONNAIRE1.What is your ratio of saving of the total income? a) More then 60% b) 60% - 50% c) 50% - 25% d) Less then 25% “A study on customer awareness to enhance market share of Bajaj 94 Allianz Unit Link Insurance Plan”
  • 95. SAAB MARFIN MBA2.Your saving consist of. a) Post office b) Bank F . D c) Shares d) Land / Building e) Life insurance f) Gold g) Mutual fund h)All the above3. What factor consist while making the policy. a) Returns b) Safety c) Liquidity d) Risk cover e) All the above4. Have you invested money in life insurance? a) Yes b) No5. Are you aware of ULIP a) Yes b) No If no, skip goto Q no11)6. In which company you have invested your money? a) LIC b) Bajaj Allianz [ c) ICICI d) Others .7. How do you come to know ULIP? a) Friends b) Agents c) Newspapers/Magazines d) Banks e) Others .“A study on customer awareness to enhance market share of Bajaj 95 Allianz Unit Link Insurance Plan”
  • 96. SAAB MARFIN MBA8. Which plan you have taken? a) Endowment b) Money Back c) Term Plan d) ULIP e) Any others, Specify .9. Why you have chosen ULIP? a) Higher Returns b) Liquidity c) Life cover d)All the above10. What is the premium you are paying per annum? a) 10000 b) 10000-25000 c) 25000-50000 d) 50000-10000011. What will influence your Financial Planning? a) Discussion with Family Member b) Tax Consultant/ C. A c) Insurance consultant /Agents d) Finance Magazines. e) Web site of insurance or Finance company. f) Any other Specify .12.In future are you interested investing money on ULIP?“A study on customer awareness to enhance market share of Bajaj 96 Allianz Unit Link Insurance Plan”
  • 97. SAAB MARFIN MBA a) Yes b) No13. If no why? a) No Interest. b) Lack of Advertisement. c) Busy schedule. d) Others . Please provide the below mentioned information:Name : .Address : . .ContactNo : .Age : .Gender : .Income : .“A study on customer awareness to enhance market share of Bajaj 97 Allianz Unit Link Insurance Plan”
  • 98. SAAB MARFIN MBAOccupation : . THANK YOU BIBLIOGRAPHYMarketing Research : Hawkins & Tull.Websites : www.google.com www.bajajallianz.co.inMaterials : Journals & Magazines“A study on customer awareness to enhance market share of Bajaj 98 Allianz Unit Link Insurance Plan”
  • 99. SAAB MARFIN MBANewspaper : Economic Times. Business Line.“A study on customer awareness to enhance market share of Bajaj 99 Allianz Unit Link Insurance Plan”