Bajajallianz

PGPBA 2011-13
ANALYSING CONSUMER PERCEPTION
OF BAJAJ ALLIANZ LIFE INSURANCE
BY :
POULAMI MITRA
SANKHADIP CHATTERJEE
AVIK CHAKRABORTY

INTRODUCTION
The Life Insurance sector in India is primarily dominated by
The 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 70
countries and Bajaj Auto is the most trusted name in the Indian market
for over 55 years together are committed to offering financial solutions
that provide all the security one need for ones family and oneself

PURPOSE OF STUDY
Bajaj-Allianz Life Insurance Company is required to know the customers
perception 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 ANALYSIS
Strengths
 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 ANALYSIS
Weaknesses
 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.

Opportunities
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 ANALYSIS

SWOT ANALYSIS
Threats
 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.

USERS
91%
NON USERS
9%
9% of the
respondents did
not have any life
insurance.
91% had life
insurance.
72%
28%
MALE FEMALE
Among the
respondents
28% were
female & 72%
were female
36%
24%
18%
12%
10%
18-25
25-30
35-45
45-55
>55
SEGMENTATION

DEMOGRAPHICS
35%
56%
9%
Post Graduate Graduate Undergraduate
14%
54%
25%
7%
Business
Professional
Self Employed
Others
Among the respondents 56% were Graduates while 54% were Professionals.

30%
20%20%
30%
TAX BENEFIT
SAVINGS
RISK COVER
RETURN/YIELD
37%
33%
16%
14%
OWN FAMILY EMPLOYER INSURANCE
Purpose of 30% respondents
was primarily obtaining
Return/Yield on the investment
& another 30% bought insurance
mainly for Tax Benefit
The decision to buy Life Insurance was
largely self-propelled, (37%) also a
substantial number of customers were
influenced by their family
(33%)
PURPOSE & INFLUENCERS

0
2
4
0
10
20
30
29
8
7
7
50% of the respondents got aware
of insurance companies from
Advertisements
Most customers look at how
reliable an Insurance Company is
before investing. The Brand Image
also plays a major role. A company
with Flexible Plans can also boast
of a good customer base.
ASPECTS - 1

0
0.5
1
1.5
2
2.5
3
3.5
REIMBURSEMENT
DELAY
HIDDEN CHARGES LONG VREIFICATION MISLEADING ADS POOR AGENTS
The most dissatisfying factor about a life
insurance company is its Misleading
Promotions & the Delays in
Reimbursement
ASPECTS - 2

LIC 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
POLICY HOLDERS

CUSTOMER
INTERCATION
PAYMENT REMINDERS
ADVISORY
PLANS
OFFICES
PROMPTNESS
PREMIUM COLLECTION
PAYMENT OPTIONS
0
5
10
15
20
25
STRONGLY AGREE AGREE
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 greater
awareness. The customer interaction sessions & advisory provided by Bajaj
Allianz is appreciated. Even the Insurance plans of Bajaj Allianz are among
its strengths. On the other side the business offices are one of its weakness.
BAJAJ ALLIANZ: OWNER’S VIEWS

0
5
10
15
20
25
STRONGLY
AGREE AGREE
NEUTRAL
DISAGREE
STRONGLY
DISAGREE
WORKFORCE
PROMOTION
TECHNOLOGIES
PRODUCT KNOWLEDGE
While digging on the improvement areas for Bajaj Allianz it was observed
that 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.
BAJAJ ALLIANZ: OWNER’S VIEWS

0 1 2 3 4 5 6
LIC
Bajaj Allianz
SBI Life
HDFC STD LIFE
TATA AIG
ICICI Prudential
When the respondents were asked to choose which one was the
best Life Insurance company most agreed that LIC was the leader
while Bajaj Allianz was the second best. So they are pretty ahead
of the other private players.
OVERALL PERCEPTION

PERCEPTION AMONG GROUPS
ACCORDING TO QUALIFICATION:
41%
31%
6%
6%
3%
13%
LIC
BAJAJ ALLIANZ
SBI LIFE
HDFC STD LIFE
TATA AIG
ICICI
PRUDENTIAL
49%
25%
8%
5%
5%
8% LIC
BAJAJ ALLIANZ
SBI LIFE
HDFC
STANDERED LIFE
TATA AIG
ICICI PRUDENTIAL
POST GRADUATES GRADUATES
NOTE: 100% of the respondents who were undergraduates were
insured only with LIC

0
1
2
3
4
5
6
7
8
9
CUSTOMER
INTERACTION
PAYMENT
REMINDERS
ADVISORY
PROVIDED
INSURANCE
PLANS
BUSINESS
OFFICES
PROMPTNESS
OF SERVICES
PRIMIUM
COLLECTION
PROCESS
PAYMENT
OPTIONS
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
PERCEPTION ABOUT VARIOUS ASPECTS OF BAJAJ ALLIANZ AMONG
POST GRADUATES

0
10
20
30
40
50
60
70
80
90
100
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY
DISAGREE
PAYMENT OPTIONS
PRIMIUM COLLECTION PROCESS
PROMPTNESS OF SERVICES
BUSINESS OFFICES
INSURANCE PLANS
ADVISORY PROVIDED
PAYMENT REMINDERS
CUSTOMER INTERACTION
PERCEPTION ABOUT VARIOUS ASPECTS OF BAJAJ ALLIANZ AMONG
GRADUATES

ACCORDING TO OCCUPATION:
53%
14%
26%
7%
Professional Business Self Employed Others
Among Businessmen Bajaj Allianz is almost equally preferred as LIC
0 1 2 3 4 5 6
LIC
BAJAJ ALLIANZ
SBI LIFE
HDFC STANDERED LIFE
TATA AIG
ICICI PRUDENTIAL

0 1 2 3 4 5 6
LIC
BAJAJ ALLIANZ
SBI LIFE
HDFC STANDERED LIFE
TATA AIG
ICICI PRUDENTIAL
Among Professionals Bajaj Allianz is second preference after LIC.
Here its greatest competitor is SBI Life

0
1
2
3
4
5
6
0
1
2
3
4
5
6
7
>55 45-55
0
1
2
3
4
5
6
0
1
2
3
4
5
6
35-45 25-30
PERCEPTION AMONG VARIOUS
AGE GROUPS

HYPOTHESIS TESTING
• While buying a Life Insurance the following factors are not considered:
1. Tax Benefit
2. Savings
3. Risk Cover
4. Return on Investment
To conclude where Bajaj Allianz can focus to enhance their market share, a
test was conducted where the following NULL HYPOTHESIS was considered:
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 & promotions
Chi-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 insurance
company in India.
• The study reveals that the company has achieved this position
because of its efficient market operation & the ethics and transparency
policies adopted by it.
• The company should concentrate more on advertisement, technology
up gradation & also improve the efficiency of its workforce & has to
have better offices.
• The Marketing Communication of Bajaj Allianz has to focus on
creating knowledge of the company and its products.
• The study also reveals that misleading advertisements, hidden
charges etc are some of the aspects with which
Customers do not prefer.
• So Bajaj Allianz has to work on these areas to maintain its position &
grow further.

Bajajallianz

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