ANALYSING CONSUMER PERCEPTION OF BAJAJ ALLIANZ LIFE INSURANCE BY : POULAMI MITRA SANKHADIP CHATTERJEE AVIK CHAKRABORTY PGPBA 2011-13
INTRODUCTION The Life Insurance sector in India is primarily dominated byThe Life Insurance Corporation of India. But Bajaj Allianz has made its presence felt in the recent past .Bajaj Allianz Life Insurance Company Limited is a union between Allianz AG, the world’s largest insurance companies and Bajaj Auto, one of the biggest 2- & 3-wheeler manufacturers in the world.Allianz AG is a leading insurance conglomerate globally and the largest asset manager in the world, managing assets worth over 996 Billion Euros. Allianz AG has 115 years of financial experience in over 70countries and Bajaj Auto is the most trusted name in the Indian marketfor over 55 years together are committed to offering financial solutions that provide all the security one need for ones family and oneself
PURPOSE OF STUDYBajaj-Allianz Life Insurance Company is required to know the customersperception towards their product. Insurance industry is one of the fastest growing sectors. Recently many private Multi National Life Insurance Companies have entered the Indian market. This has increased the competition to a great extend. So the company has to know the present demand for Insurance so that they can adjust their market presence & performance accordingly. The study covers the people from different parts of Kolkata. The study was conducted over a span of four weeks
SWOT ANALYSISStrengths Bajaj Allianz is the largest private player in the insurance industry in India. Excellent services. Customization of Products as per customer’s needs. Brand Image. Business Experience. Strong Financial Base. Innovative products, Technology, organization culture and climate. The company has a large network of branches which is helpful to customer for the payment.
SWOT ANALYSISWeaknesses Lot of competitors are in the market offer same product by the title difference in the premium and offerings. Target only higher income group whereas other companies are trying to catch middle-lower level people. Higher premiums as compared to the other companies Clients face problems to get insured due to large number of formalities. High targets for financial advisors and for the sales department.
SWOT ANALYSISOpportunities Huge market is literally untapped. Out of estimated 320 million insurable markets only 20% of the population is insured. In a conservative society of India where people are more inclined towards risk free investments such as Bank FD’s and savings rather than equity and high risk investments insurance offers the best of both worlds – The security with high returns. So there exists high potential for insurance company like BAJAJ ALLIANZ. In the pension field where people want good life after their retirement. Indian people are more emotional towards their children that’s why children plans are selling like hot cakes. Health insurance and pension Schemes, an estimated market potential of approximately $15 billion.
SWOT ANALYSISThreats Weak perception of private players in the minds of Indian people due to frequent financial scams. Large number of insurance players. Players like ICICI PRUDENTIAL and Birla sun life with low premium for the similar plans. Entry of many other private companies with equally strong experience and financial strength of foreign partners making the competition difficult and saturating the urban markets. For the Insurance sector Government set the authority that is IRDA (Insurance Regulatory and Development Authority) which is undertaken to track record of all the companies and change rules day by day more rigid which is very difficult for the companies.
SEGMENTATION MALE FEMALE NON USERS 9% 28% USERS 72% 91% 9% of the Among therespondents did respondentsnot have any life 10% 18-25 28% were insurance. female & 72% 12% 36% 25-30 91% had life 18% 35-45 were female insurance. 45-55 24% >55
DEMOGRAPHICS Post Graduate Graduate Undergraduate 7% 14% Business 9% 35% 25% Professional 56% Self Employed Others 54%Among the respondents 56% were Graduates while 54% were Professionals.
PURPOSE & INFLUENCERS OWN FAMILY EMPLOYER INSURANCE 14% 30% 30% TAX BENEFIT 37% 16% SAVINGS RISK COVER 20% 20% RETURN/YIELD 33% Purpose of 30% respondents The decision to buy Life Insurance was was primarily obtaining largely self-propelled, (37%) also aReturn/Yield on the investment substantial number of customers were& another 30% bought insurance influenced by their family mainly for Tax Benefit (33%)
ASPECTS - 1 29 430 320 210 8 7 1 7 0 0 50% of the respondents got aware Most customers look at how of insurance companies from reliable an Insurance Company is Advertisements before investing. The Brand Image also plays a major role. A company with Flexible Plans can also boast of a good customer base.
ASPECTS - 23.5 32.5 21.5 10.5 0 REIMBURSEMENT HIDDEN CHARGES LONG VREIFICATION MISLEADING ADS POOR AGENTS DELAY The most dissatisfying factor about a life insurance company is its Misleading Promotions & the Delays in Reimbursement
POLICY HOLDERSLIC BAJAJ ALLIANZ SBI LIFE HDFC STD LIFE TATA AIG ICICI PRUDENTIAL Out of all the respondents 63% were customers of LIC while 35% were having Bajaj Allianz Life Insurance
BAJAJ ALLIANZ: OWNER’S VIEWS 25 20 15 10 PAYMENT OPTIONS PREMIUM… PROMPTNESS 5 OFFICES PLANS 0 ADVISORY PAYMENT… STRONGLY AGREE AGREE CUSTOMER… NEUTRAL DISAGREE STRONGLY DISAGREE Here we see that most respondents are mostly Neutral about the various aspects of Baja Allianz life insurance. Thus there is a scope for greaterawareness. The customer interaction sessions & advisory provided by Bajaj Allianz is appreciated. Even the Insurance plans of Bajaj Allianz are amongits strengths. On the other side the business offices are one of its weakness.
BAJAJ ALLIANZ: OWNER’S VIEWS 25 20 15 10 5 0 WORKFORCE STRONGLY AGREE AGREE PROMOTION NEUTRAL DISAGREE TECHNOLOGIES STRONGLY PRODUCT KNOWLEDGE DISAGREE While digging on the improvement areas for Bajaj Allianz it was observedthat there is still a high degree of "Neutral" opinion. This points to the fact that people are less aware of the aspects in question. The general opinion was that the workforce needs to be better and the agents need to have better product knowledge.
OVERALL PERCEPTIONICICI Prudential TATA AIGHDFC STD LIFE SBI Life Bajaj Allianz LIC 0 1 2 3 4 5 6 When the respondents were asked to choose which one was thebest Life Insurance company most agreed that LIC was the leaderwhile Bajaj Allianz was the second best. So they are pretty ahead of the other private players.
PERCEPTION AMONG GROUPSACCORDING TO QUALIFICATION:LIC 8% LIC 13% 5%BAJAJ ALLIANZ BAJAJ ALLIANZ 3% 5% 6%SBI LIFE 41% SBI LIFE 8% 6% 49%HDFC STD LIFE HDFC STANDERED LIFE TATA AIGTATA AIG 25% 31% ICICI PRUDENTIALICICIPRUDENTIAL POST GRADUATES GRADUATES NOTE: 100% of the respondents who were undergraduates were insured only with LIC
PERCEPTION AMONG GROUPS9876543210 CUSTOMER PAYMENT ADVISORY INSURANCE BUSINESS PROMPTNESS PRIMIUM PAYMENT INTERACTION REMINDERS PROVIDED PLANS OFFICES OF SERVICES COLLECTION OPTIONS PROCESS STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE PERCEPTION ABOUT VARIOUS ASPECTS OF BAJAJ ALLIANZ AMONG POST GRADUATES
PERCEPTION AMONG GROUPS1009080 PAYMENT OPTIONS 70 PRIMIUM COLLECTION PROCESS60 PROMPTNESS OF SERVICES50 BUSINESS OFFICES40 INSURANCE PLANS ADVISORY PROVIDED 30 PAYMENT REMINDERS20 CUSTOMER INTERACTION 10 0 STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE PERCEPTION ABOUT VARIOUS ASPECTS OF BAJAJ ALLIANZ AMONG GRADUATES
PERCEPTION AMONG GROUPSACCORDING TO OCCUPATION: ICICI PRUDENTIAL Professional Business Self Employed Others TATA AIG 7% HDFC STANDERED LIFE 26% SBI LIFE 53% BAJAJ ALLIANZ 14% LIC 0 1 2 3 4 5 6 Among Businessmen Bajaj Allianz is almost equally preferred as LIC
PERCEPTION AMONG GROUPS ICICI PRUDENTIAL TATA AIGHDFC STANDERED LIFE SBI LIFE BAJAJ ALLIANZ LIC 0 1 2 3 4 5 6 Among Professionals Bajaj Allianz is second preference after LIC. Here its greatest competitor is SBI Life
PERCEPTION AMONG VARIOUS AGE GROUPS6 75 64 5 43 32 21 10 0 >55 45-556 65 54 43 32 21 10 0 35-45 25-30
HYPOTHESIS TESTINGTo conclude where Bajaj Allianz can focus to enhance their market share, atest was conducted where the following NULL HYPOTHESIS was considered:• While buying a Life Insurance the following factors are not considered: 1. Tax Benefit 2. Savings 3. Risk Cover 4. Return on Investment On conducting the Chi-Square Test on the acquired data the NULL HYPOTHESIS was rejected. Hence it was concluded that the above four factors are of prime importance form the Customer’s point of view. Thus Bajaj Allianz has to primarily focus on these factors while coming up with new plans & promotionsChi-Square calculated was 7.19 & Chi-Square tabulated was 7.81 at d.o.f = 3
CONCLUSION• Bajaj Allianz Life Insurance Company is the second largest insurancecompany in India.• The study reveals that the company has achieved this positionbecause of its efficient market operation & the ethics and transparencypolicies adopted by it.• The company should concentrate more on advertisement, technologyup gradation & also improve the efficiency of its workforce & has tohave better offices.• The Marketing Communication of Bajaj Allianz has to focus oncreating knowledge of the company and its products.• The study also reveals that misleading advertisements, hiddencharges etc are some of the aspects with whichCustomers do not prefer.• So Bajaj Allianz has to work on these areas to maintain its position &grow further.