History Of Birla Sun Life Insurance Commerce Essay

History Of Birla Sun Life policy Commerce EssayBirla Sun Life Insurance Comp some(pre no.inal) Limited (BSLI) is a joint venture between the Aditya Birla pigeonholing and Sun Life Financial Inc., a leading international fiscal run organization.The local fellowship of the Aditya Birla conference combined with the expertise of Sun Life Financial Inc., offers a formidable value proposition to nodes. Sun Life Financial and its partners forthwith have trading operations in key markets worldwide, including India, Canada, the United States, the United Kingdom, Hong Kong, Philippines, Japan, In through with(p)sia, China and Bermuda.It was the first player in the industry to sell its policies through and through the Bank assurance route and through the internet.It was also the first toffee-nosed Sector player to introduce a pure condition plan in the Indian market. This was supported by gross gross revenue practices, which brought a degree of transp atomic number 18ncy that was en tirely new to the market.Aditya Birla root word and currently in charge of BSLI expressed, The Birla Sun Life Insurance business distri moreoverion mesh is national in nature covering more than 1000 points across the country .We have made our entry in several tier I and tier II towns. It is therefore very important for the brand to connect at the grass root level and effect trust.They believe that our association with Kapil Dev as our brand ambassador lead help us create this connects in a shorter period of time. We therefore now have two strong connects our get up brand Birla and our brandOn 26 November 2006, Birla Sun Life hosted the annual golf tournament at the Chembur Golf Club in Mumbai where Kapil Dev participated.About the Aditya Birla GroupThe Aditya Birla Group has a turnover close to Rs.38, 000 crore (as on 31 March 2008) and is one of the largest business houses in India. It enjoys a leadership position in in all the sectors in which it operates. With over 75 busi ness units spanning the South East Asian belt, Africa, Canada and the UK among new(prenominal)s, it is reckoned as Indias first multinational corporation. The group is anchored by 72,000 employees and has seven lakh sh beholders, with a market capitalization of Rs.53, 400 crore.Introduction-When ever there is uncertainty there is pretend. We do non have every control over uncertainties which involves financial handoutes. The risk may certain events like death pension retirement or uncertain events like theft, fire accident, etc.Birla solarise life Insurance is financial services for collecting the savings of public and providing them with risk coverageThe main function of Birla sun life redress is to provide the protection against the possible lot generating losses. It eliminates the worries and miseries of losses by destruction of property and death. It also provided the capital to society as the stock certificate accumulated to be invested in productive heads.OBJECTIVESTo study and see the Market Potential of the Birla Sun Life Insurance federation.To determine whether the customers argon satisfied with the policies of the company.To know the customer cognizance regarding the Birla-sun life damages and its products.To study and determine the competitor position in the market.To know the future plans of the people for get the policies.Proper understanding and analysis of life damages industry.VISIONTo be a world-class of financial security to individuals and corporate and to be amongst the top three private sectors life indemnification companies in India.MISSIONTo be the first alternative of our customers by providing innovative need based life insurance and retirement solutions to individual as well as corporate. Well -trained professionals through a multi transmit distribution net oeuvre and superior technology leave make these solutions available. Our endeavor result be to provide constant value addition to customers throughout their b lood with us, within the regulatory framework. We will provide career development opportunities to our employees and the highest possible returns to our shareholdersProblems in the organization,It is clear that BIRLA SUN LIFE INSURANCE COMPANY is a unit- linked insurance, which is basically involved in the life insurance solutions. There are number of worry which are as follows-1) The main problem of the organization is that the it is not government organization like a life insurance solutions.2) The second main problem is that lack of believes on the organization by the people.3) The third problem assigned by the organization that there are the few branches of the BRILA SUN LIFE INSURANCE SOLUTION.4) Another problem is that the lack of steady-going quality, good scientific discipline insurance advisors.Competitors-Life insurance corporationMax network life insuranceMetLife insuranceAviva life insuranceBharathi Axa life insuranceBajaj Allianz life insuranceTata AIG life insurance ICICI Prudential Life InsuranceReliance life insuranceKotak Mahindra life insuranceMARKETING MIX-PRODUCTS-Life is unpredictable. But in pillowcase of adversity, our responsibilities towards our parents, children and loved ones need not be compromised. Insurance planning equips you to smooth out the uncertainties and adversities that life might send your way, so that the lift out that life has to offer, furbish up in the knowledge that your beloved ones are well provided for. BSLI offers a complete range of insurance products1. Protection Plans2. Savings Plans3. Child Plans4. Investment Plans5. Retirement Plans6. Group Plans7. Rural PlansPRICING POLICY OF THE COMPANYKEEP TRACK OF YOUR POLICY FUND Birla sun life insurance sends you an annual insurance policy statement on every policy anniversary to view as you completely informed on the performance of our various funds based on the unit expense will be available on our websiteELECTRONIC CLEARING SERVICE (ECS) The ECS is a conven ient and hassle- free method of paying premiums through an electronic debit to your buzzword account.INVESTMENT FUND PORTFOLIOUpper limit of %asset in protector builder parentrGovernment and government approved 85% 70% 55%SecuritiesRated corporate bonds (AA 30% 30% 30%and above)Money market and other 20% 20% 20%Liquid assetsInfrastructure sectors as 25% 25% 25%defined by the IRDAListed equities 10% 20% 35%FEES AND CHARGES The policy loading fee* is an up-front charge and varies as per the premium payment mode and the policy year as given under insurance policy year Single 5-pay 10-pay 15-pay or greater1 3% 29.9% 54.6% 65%2 N/A 5.0% 7.5% 7.5%3 N/A 5.0% 7.5% 7.5%4+ N/A 5.0% 5.0% 5.0%As a percentage of premium. The policy-loading fee for top up wills 2.0 percent.Charges-. Charges towards the cost of insurance will be deducted by cancellation of units at the prevailing unit price on a monthly flat coat. The annual insurance charges per thousand-face amount for sample ages for health y lives are as followsSex/age (yrs) 20 30 40 50 60Female 0.90 1.16 1.66 4.03 10.66Male 1.02 1.17 2.15 5.53 13.73An investment solicitude frees not exceeding 1.5% p.a. of the fund will be charged by adjustment of daily unit prices.Currently this fee is 1% p.a.The following administration fees will be deducted by canceling units on a monthly basis.(a) Rs. 22 per month(b) An annual charge of Rs. 2.88 per thousand face amount will be deducted in the first 10 years of the policy expect in the second year where it will be Rs. 15.24 per thousand face amount. From the 11the year onwards this annual charge will increase subject to a maximum of 3.75%per year.A monthly rider deduction will apply by cancellation of units on a monthly basis based on the equivalent monthly rider premium payable over the entire coverage benefit period. If rider deductions are not guaranteed, because the minimum policy values of your policy might be affected due to any change in the rates of the rider coverage.FU ND SWITICHING CHARGESIn a year, one switch between investment fund options is free. For every additional switch, a charge of Rs.100 will be levied.PromotionsBirla sun life promotes the sales through the marketing communications activities like face-to-face selling, advertising, or publicity. The object of sales promotions is to induce the desired result from authorization customers, trade intermediaries or the sales people.The Birla sun life provides-Training to employeesMore incentives to customers, gifts, rebates, direct mail, E-marketing and maintain public relations.PLACEWhere the agents of Birla sun life insurance is meet to customers and providing the knowledge related services like premium, interest, etc.SERVICES MARKETING ENVIRONMENT-POLITICAL LEGAL ENVIRONMENT-The services of Birla sun life is more closely regulated than goods like taxes, restrictions on promotions, price discriminations etc.Economic environment-Changing the life style, consumer needs, and advancements of technologies also affected the Birla sun life insurance because after changing the new technology the lot of accidents and deaths has perverse affect of insurance.Due to globalizations the lot of competitors in market so it is very difficult to attract the new customer and gaining the profits.Socio-culture environment-Due to change the income and higher precept change the mind of consumers then increases the investments in insurance sectors so the private players like Birla sun life insurance growth is very high relatively previous years.Technology environment-Due to change the technology the Birla sun life insurance pattern is also change like insurance of profit and loss account insurance of new machinery etc., Blue print of Birla sun lifePhysically visits customers-water coolerwashing roomExplain policy in detailwait for response registers to customers with insurance companycheck the premium paymentsChecks and verifies the portal addressesQuality concern-Hire the right people Develop the people through services quality. submitd the needed support to customerRetain the best employeeThe quality of customer servicing, responsiveness, a personal touch, making him feel special are some of the factors that will have a bearing on the relationship with the customer and a happy customer helps open more doors. Good offerings that meet the customer needs, good advice followed by good service will enhance the businessIntegrated marketing communication-1. AdvertisingThe instrumental role can get your messages to large audiences efficiently through such avenues as radio, TV, Magazines, Newspapers (ROP), Internet, Billboards and other mobile scientific communication devices. This method can efficiently r all(prenominal) a large number of consumers, although the costs may be somewhat expensive.2. Sales PromotionThis tool is used through coupons, contests, samples, premiums, demonstrations, displays or incentives. It is used to accelerate short-term sales, by building brand awareness and encouraging repeat buying.3. Public RelationsThis merged marketing communications tool is initiated through public appearances, news/press releases or event sponsorships, to build trust and goodwill by presenting the product, company or person in a positive light.4. Direct MarketingThe BIRLA SUN LIFE has direct marketing through email, mail, catalogs, encourage direct responses to radio and TV, in order to bump off targeted audiences to increase sales and test new products and alternate marketing tactics.5. Personal SellingSetting sales appointments and meetings, home parties, making presentations and any type of one-to-one communication, to reach the customers and strengthen relationship with Birla sun life,Employee role in service deliveryListen to customersObtain customer feedbackProvide virtue services to customersGetting closer to customerCustomer role in services deliveryWithout the contact of customers the services could not deliver so the customer is v ery important role for services delivery he physical presences and participation is required of customers .The customer as productive resource The customer as contributor to quality, satisfaction and value and The customer as competitor to the service organizationWord of mouth advertising. A happy and satisfied customer is more than more likely to send more customers your wayManagining waiting lines-When the demand exceeds the supply then the Birla sun life has managing the waiting lines through different ways-How bulky do your customers expect to wait? Set operational objectives based on what is acceptable.This is especially important when the waiting time will be longer than normal. order them why the waiting time is longer than normal and what you are doing to alleviate the queue f a group of customers needs something that can be done very quickly, give them a special line so they do not have to wait for the slower customersInform customers of times when they usually would not have to wait also tell them when the peak periods are-this may help to smooth the loadDevelop plans for alternative ways to serve your customers. Where appropriate, develop plans for automating or speeding up the process in some manner. This is not o say you want to eliminate personal attention some customers expect this. candidate of the consumersHence old as well as new insurers will have to offer innovative products to the consumers. The consumers are particularly expecting good pension plans, health insurance, and term insurance and investment products like unit-linked insurance, from the life insurers. Similarly the consumers expect innovative products from the general insurers for managing healthcare, property insurance, accident insurance and other products related to the personal line of insurance Increase exposure through media (TV, Radio and Internet). In this case, the traditional model is more generic and there is a need to reinvent the messages based on target groups t o achieve the businessDelivering Service through IntermediariesAn insurance intermediary is a person or a company that helps you in buying insurance. Insurance agents, insurance brokers and financial advisers are insurance intermediaries.On the other hand, a intermediary is someone who solicits tactful business or invites potential customers to enter into tactful disregards with operators. They are also known as tactful agents and tactful brokersReason of delivering services through intermediaries of Birla sun life.Exhibit good knowledge of the products and services offered by the insurance company or tactful operator. (In addition, insurance brokers and financial advisers are expected to exhibit good knowledge of products available in the market).Make an effort to understand your insurance or tactful needs and assist you in the choice of insurance or tactful products and services.Explain to you intelligibly the nature of data required in the proposal form and also the importance of disclosing material facts.Explain clearly the main terms and conditions of the proposed insurance pack together or tactful plan so as to help you understand what you are buying.Draw attention to any restrictions and exclusions applicable under the proposed insurance contract or tactful plan.Follow up and provides continuous service to you, such as renewal of policy and provide updates on relevant new products.Provide assistance when you are making claims against the insurance company or tactful operator.It Protect your interests and rights Deal only with registered/licensed intermediaries.Deal with intermediaries with proven track enroll or those with goodreferral from friends and relatives.Be truthful about yourself and declare material facts.Never be persuaded to sign on blank forms or anything you dont understand.Never be persuaded to lapse an existing policy to buy a new life policy.Ensure that you understand the products you are buying.Read the policy benefits and terms c arefully, and compare them with other similar products.Shop around to get value for money.Buy only what you need and what you can afford.Ask for sales materials, for example the sales illustrations, product pamphlets or customer fact find form (for life products only), and keep these documents safely.When in doubt, always ask for more information from the intermediaries or seek clarification from the insurance company or tactful operator that offers the insurance or tactful products.Ask for a receipt as the proof of premium payment and keep it safely.Services Recovery strategies must containobjective measurable criteria for delisting the speciessite-specific actionsEstimates of the time and cost for implementing the recovery plan.Under stand there relationship between customer expectation and services recovery actionsUnderstand the services recovery paradoxKnown the elements of an effective services recovery strategy manage the services hardship effectivelyFactor influences the cus tomer the customer response to services recoveryDesign a services recovery strategyLIMITATIONS OF INSURANCELack of awareness among the people This is the biggest limitation found in this sector. Most of the people are not aware about the importance and the necessity of the insurance in their life. They are not aware how useful life insurance can be for their family members if something happens to them.Perception of the people towards Insurance sector People still consider insurance just as a Tax saving device. So today also there is always a rush to buy an Insurance Policy only at the end of the financial year like January, February and March making the other 9 months dry for this business.Insurance does not give good returns Still today people think that Insurance does not give good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by most of the Private sector players. They are still under the perception that if they sign Insurance they will get only 5-6% returns which is not true now days. Nowadays most of the modern Unit Linked Insurance Plans gives returns which are many times more than that of bank Fixed deposits, national saving certificate, Post office deposits and Public provident fund.Lack of awareness about the earning opportunity in the Insurance sector People still today are not aware about the earning opportunity that the Insurance sector gives. After the privatization of the insurance sector many private giants have entered the insurance sector. These private companies in order to beat the competition and to increase their Insurance Advisors to increase their reach to the customers are giving very high commission rates but people are not aware of that.Increased competition Today the competition in the Insurance sector has become very stiff. Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market. This situation has created a scenario i n which to recruit Birla sun life insurance Advisors and to sell life Insurance Policy has became very- very difficult.FINDINGSTo be successful in marketing of insurance products, the entire business scenario has to be taken into account.During the study to be found that majority of people are aware of life insurance sector.During the survey it was observed that major source of information for consumer are television and newspaper and least preference are given to magazines, agents and friends.Attractive schemes and brand image are the most important factor that influences the buying behavior of the consumers. Majority of respondents will shift to any other insurance company.People are not satisfied with the opted insurance. It was found that the reason for the dissatisfaction of consumer is high premium, survive in claim settlement and poor after sale service.So to achieve a greater insurance penetration, insurance sector companies have to create a more vibrant and competitive ind ustry, with greater efficiency, choice of products and value for customers.SUGGESTIONS) Information regarding new product should be provided to the customers.2) The company should find out the no. of people who are not having any of the insurance plans through an intensive market research and motivate them to get insured.3) At some level Company should provide information to the customers about the charges of the policy.4) Company should target each and every class of the society.5) Charges should be low of the policies. 6) Annual premium should be reasonable.7) BSLI Company should work in systematic way.RECOMMENDATIONS1) Even though most of the policy holders are satisfied with policies, plans they have but some new attractive insurance plans should be introduce to bind them not to switch over to other companies insurance plans.2) The company should find out the no. of people who are not having any of the insurance plans through an intensive market research and motivate them to get insured.3) Leveraging technology to service customers quickly, efficiently and conveniently.4) Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders.5) Company should target each and every class of the society6) Company should provide full information to the customers in front targeting so they can take interest.CONCLUSIONThe market potential for private insurance companies is found to be greater in the long run as most of the Indians are of the opinion that, private insurance companies would be able to perform well in the future. The private and foreign insurance companies have to take immediate steps in appointing more number of agents and/or advisors in addition to the employees as it has been found out that agents are the best channel to reach the general public regarding selling of insurance products. The private and foreign insurance companies have to concentrate on the factors like Prevent ion of Loss, Assured Returns and Long term Investment. They can also focus on an insurance amount of Rs. 1 2 lakhs with money back policies. Hence, the market has potential. The private and foreign insurance companies that are taking immediate steps can tap it easily rapidly