Birla Sunlife 3c Report

Submitted By:Kiran Kumar HS 8NBSA030 INC-SHIMOGA

A 3C Report of

Prepared By Kiran Kumar H.S 8NBSA030 MASTERS OF BUSINESS ADMINISTRATION SIP Centre – MANGALORE INC Centre- SHIMOGA

A report submitted in partial fulfillment of the requirements of MBA Program (2008-10) Under the Guidance of

Mrs. Sreelakshmi

Mr.Chandrakanth Bhat

Faculty Guide

Company Guide

Introduction:-

The Birla Sunlife Insurance Company was established in the year 2006, with a joint venture of two leading companies’ likely Aditya Birla group and Sunlife financials(USA). Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance Solutions in India. Within 4 years of its launch, Birla Sunlife Insurance has cemented its position as a leading player in the Private Life Insurance Industry. Birla Sunlife insurance has been focus on Investment Linked Insurance Products, supported with protection products to maintain leadership in product innovation. Multi distribution channels- Direct Sales Force, Alternate Channels and Group offering convenient channels of purchase to customers. It has established Web-enabled IT systems for superior customer services to have issued policies over the Internet. Corporate governance and a high degree of transparency in all business practices and procedures to have an operational Business Continuity Plan and all Strong fundamentals based on the Aditya Birla group's local insight and Sun Life financials's global expertise.

The head office is situated in below address, Birla Sunlife Insurance company ltd. 6th floor, Vaman center Makhwana Road, Off andheri-kurla Road Andheri(East),Mumbai-400059 The Branch office in Mangalore is located in:Birla Sunlife Insurance company ltd. 2nd floor, Premium Enclave Light House Hill Road Mangalore-575002

Vision:To create long term value along with market leadership Missions: To help people mitigate risks of life, accident, health and money at all stages and under all circumstances  Enhance the financial future of our customers, including enterprises. Values: Integrity  Commitment  Passion  Seamlessness  Speed BSLI has contributed significantly to the growth and development of the life insurance industry in India by introducing unique Unit Linked Life Insurance Solutions, pure term plan and a slew of innovative products. By adopting multi-distribution channels such as Direct Sales Force, alternate channels and convenient points of purchase, including selling its policies through the ban assurance route and through the internet, BSLI has revolutionized the entire insurance policy-buying experience. Corporate governance and a high degree of transparency in all its business

practices

and

procedures,

besides

world-class

processing

capabilities and well-prepared business continuity planning, have brought about the credibility that BSLI enjoys among its patrons. The process of getting sales illustrations signed by customers, offering a free look period on all policies, which are now standard norms followed by the insurance industry, were introduced by BSLI. BSLI offers a spectrum of products to meet the growing needs of individuals and group insurance through a multi channel distribution network. The company has quadrupled its distribution network to over 600 branches

and more than 100,000 advisors. With a rapidly growing national footprint, the company is now positioned to capture an increased market share in the fast growing life insurance market. Management :-

C.E.O (ADITYA BIRLA GROUP)

Mr.Kumar Mangalam Birla

Board of Directors

Investme nt Committ ee

Management Team:-

Audit Committ ee

Share Allotmen t

Finance Committ ee

Risk Review Committ ee

Products:For Individuals:-

For Groups:-

For Non-resident Indians:NRIs have played a very significant role in one way or other in helping our country's economy grow. We at Birla Sun Life Insurance (BSLI) appreciate the effort put in by you all in trying to make India a major economic power. BSLI offers insurance solutions keeping in mind the needs of individual. It can be an ideal gift from you to your loved and dear ones in India, because no matter where you are we will be there to take care of your concerns back home. Following are the plans offered to NRI: 

Birla Sun Life Insurance Prime Life Premier



Birla Sun Life Insurance Prime Life



Birla Sun Life Insurance Flexi Life Line Plan



Birla Sun Life Insurance Flexi Save Plus



Birla Sun Life Insurance Flexi Cash Flow



Birla Sun Life Insurance Classic Life Premier



Birla Sun Life Insurance Single Premium Bond



Birla Sun Life Insurance Simply Life

Awards & Recognitions:-

SWOT Analysis… Strengths:-

* Quality products * Large networks * Leading company in insurance sector * Strong brand name Aditya Birla * Over all market share 7% and above

Weakness:* Less awareness about all products of life insurance in market * Low advertising * Focus only on urban segments

Opportunities:* Scope for opening of new branches in state/country * More branches will help in expanding business * Increasing population will increase in insurance business * Recruiting candidates helps to increase the business

Threats:* Market uncertainty (Recession) * Consumers do not invest easily * Consumer perception about Birla Sunlife Insurance company”

is “purely private

About IRDA:-

After considering

the recommendations of the Malhotra Committee

report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders™ interests.

History of Life Insurance:In 1818 the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. In 1914, the Government of India started publishing returns of Insurance Companies in India The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country GDP. A well-developed and evolved insurance sector is a

boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

Customers:The customers of the company are below, Individuals:One who earns the monthly salary, Businessman,etc. Groups:HUF’s, Local committees, Co-operative societies..Etc NRI’s:Non-Resident Indians.

Competitors: Life insurance corporation  ING vysya life insurance  Max network life insurance  MetLife insurance  Aviva life insurance  Bharathi Axa life insurance  Bajaj Allianz life insurance

 Tata AIG life insurance  ICICI Prudential Life Insurance  Reliance life insurance  Kotak Mahindra life insurance

COMPETITORS IN DETAIL:-

♣ Aviva life insurance: Aviva Life Insurance Company India Pvt.

Ltd. is a joint venture between Aviva of UK and Dabur, one of India's leading producers of traditional healthcare products. Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share.

♣ Bajaj

Allianz: Bajaj Allianz is a joint venture between Allianz

♣ HDFC

Standard Life Insurance Co. Ltd: is a joint venture

AG one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz is into both life insurance and general insurance. Allianz Group is one of the world's leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries

between HDFC Ltd., India's largest housing finance institution and Standard Life Assurance Company, Europe's largest mutual life company. It was the first life insurance company to be granted a certificate of registration by the IRDA on the 23rd of October 2000.

♣ ING Vysya Life Insurance Company Limited: is a joint venture

between Vysya Bank and ING Group of Holland, the world's 4th largest financial services group, with presence across 50 countries, and a heritage of over 150 years.

♣ Kotak

Mahindra Old Mutual Life Insurance Ltd: is a joint

venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial institutions and offers a range of financial services such as commercial banking.

♣ Life

Insurance Corporation of India: (LIC) is an autonomous

body authorized to run the life insurance business in India with its Head Office at Mumbai. It has been established by an act of the Parliament and started functioning from 1/9/1956.

♣ ICICI Prudential Life Insurance: ICICI Prudential life insurance is a part of ICICI Bank.

♣ Max

New York Life Insurance Company Limited is a joint

venture between Max India Limited, a multi-business corporate, and New York Life International, a global expert in life insurance. New York Life is a Fortune 100 company that has over 160 years of experience in the life insurance business.

♣ MetLife

India Insurance Co. Pvt Ltd is a joint venture

between MetLife Group and its Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu.

♣ Reliance Life Insurance Company Limited is a part of Reliance

Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking over AMP Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a portfolio.

♣ SBI Life Insurance is a joint venture between the State Bank

of India and Cardiff SA of France. SBI Life Insurance is registered with an authorized capital of Rs 500 crore and a paid up capital of Rs 350 cores.

♣ Tata

AIG Life Insurance Company Limited is a joint venture

between Tata Group and American International Group, Inc. (AIG). Tata Group is one of the oldest and leading business groups of India. Tata Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalization of insurance. The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919.

♣ Shriram

Life Insurance Company Ltd is a joint venture

between the Chennai-based Shriram Group and the South African insurance major Sanlam. The company launched its operation in India in December 2005

Market Analysis:-

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