Transcript
Title of the Project
“Understanding The Cross sell of Products in Motor Channel”
InBajaj Allianz General Insurance Company Limited
Submitted By: Rahul Gandhi
IB1412154 BIIB-IB
About The Company
Bajaj Allianz General Insurance Company Limited It is a joint venture between Bajaj Finserv Limited (recently
demerged from Bajaj Auto Limited) and Allianz. Both enjoy a reputation of expertise, stability and strength.
Bajaj Allianz received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct various businesses (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs. 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.
Secondary Data AnalysisGeneral Insurance Market Share 14-15
General Insurance Market Share 2014-2015
Insurance Sectors
Market Share Ranking
Private Sector 43.63% 2
Public Sector 52.74% 1
Specialized Sector
3.63% 3
Pri-vate
Sector Sub
Total; 43.63
%Public Sector
Sub Total; 52.74
%
Spe-cialised Sector
Sub Total; 3.63%
General Insurance Market Share 2014-2015
Private Sector Sub Total
Public Sector Sub Total
Specialised Sector Sub Total
General Insurance Private Sectors Market Share 2014-2015
Royal
Sundar
am
Tata
AIG
Relia
mce
Gen
eral
IICO_T
okio
ICIC
I-Lom
bard
Bajaj
Alli
anz
HDFC
ERG
O
CHOLA
Futu
re G
ener
ali
Univer
sal S
ompo
Shrira
m G
ener
al
Bharti A
XA
Rahej
a QBE
SBI Gen
eral
L&T
Gen
eral
Mag
ma
HDI
Liber
ty V
ideo
con
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
1.95%
3.37% 3.37%4.21%
8.28%
6.49%
3.95%
2.35%1.79%
0.87%
1.86%1.80%
0.03%
1.96%
0.41%
0.59%
0.35%
Chart Title
General Insurance Private Sector Companies
Mark
et
Share
What is Cross sell ?
Selling an additional product to our Existing
Customers
Selling Insurance products with higher profit
margins
An effective way of marketing
Why Cross Sell?
Growth in Revenue Key driver of profitability Reduces acquisition costs per customer and
enhance per employee productivity Better customer experience and enhanced
customer loyalty leading to customer retention Protect the relationship with the clients Competitive differentiation
OBJECTIVES OF STUDY
Primary Objective: To understand existing customer profiling of motor insurance policy and the factors that drives sale of insurance product in vehicular segment.
Secondary Objective: To promote Home insurance (Cross sell) to motor policy customer.
Purpose of study with Objectives
Overview of the Study
The title of study is “Understanding the cross sell of the products in motor channel”. This study is carried out to evaluate
The Satisfaction level of the existing customer of motor policy and their feedback on their existing policy by Formalized and unconcealed questionnaire.
And to pitch (cross sell) “My Home insurance-All risk policy” to the existing customer of motor policy.
It mainly aims to know each customer individually and to do customer profiling and to “know the behavior of the customer while pitching the Home Insurance “ and to Turn them into a prospect customer for Home insurance”. In this way Cross selling has been done.
DATA ANALYSIS & INTERPRETATION
Research design for Primary data collection
Sampling Units – Existing Customers of motor policy
Sample Size – 100 Sampling technique – Random Sampling Research Methodology – Descriptive Research
Age
Frequency Percent Valid PercentCumulative
PercentValid 26-40 22 22.0 22.0 22.0
41-55 37 37.0 37.0 59.0
56-70 35 35.0 35.0 94.0
71-85 6 6.0 6.0 100.0
Total100 100.0 100.0
Q.1 Age wise distribution of respondents:
Interpretation (Out of 100 Respondent) - •Out of 100 respondent 37% fall within the age band of 41-55 case of renewal.•Minimum respondents belongs to the age band of 71-85.
Q2. Occupation Wise Distribution :
Occupation
Frequency Percent Valid PercentCumulative
PercentValid business 22 22.0 22.0 22.0
professional 33 33.0 33.0 55.0
retired 6 6.0 6.0 61.0
salaried 39 39.0 39.0 100.0
Total 100 100.0 100.0
Interpretation (Out of 100 Respondent) –
Out of 100 respondents, 39.00% fall in the Salaried class and 33.00% fall in the Professional class
This shows that majority of the customers belong to the service class.
Q3. Distribution of Satisfied and Unsatisfied customers :
Satisfied
Frequency Percent Valid PercentCumulative
PercentValid
No
29 29.0 29.0 29.0
Yes71 71.0 71.0 100.0
Total100 100.0 100.0
Interpretation (Out of 100 Respondent) –
71% of customers are completely satisfied with the company. 29% are totally unsatisfied. It is evident from the graph that the satisfaction level is very high.
Q4. Rating of Service from the customers :
Service
Frequency Percent Valid PercentCumulative
PercentValid average 33 33.0 33.0 33.0
bad 14 14.0 14.0 47.0
good 39 39.0 39.0 86.0
very bad 7 7.0 7.0 93.0
very good 7 7.0 7.0 100.0
Total 100 100.0 100.0 Interpretation (out of 100 respondents)- 46% (39% + 7%) of the customer are satisfied from the service of BAGIC. If good follow-up is given to 33% (Average) customers, then is would be beneficial for the company
in a long run. Company should provide customize services to the 21% (14% + 7%) customers who fall in the
category of bad and very bad.
Q5. Ratings of Premium Amount from customers :
Premium. Amount
Frequency Percent Valid PercentCumulative
PercentValid average 31 31.0 31.0 31.0
bad 13 13.0 13.0 44.0
good 45 45.0 45.0 89.0
very bad 5 5.0 5.0 94.0
very good6 6.0 6.0 100.0
Total 100 100.0 100.0
Interpretation (out of 100 Respondents) – Majority of the customers are satisfied with the premium amount. 18% (13% + 5%) are unsatisfied regarding premium amount. If good follow-up is given to 31% (Average) customers, then is would be beneficial for the company
in a long run.
Q6. Rating of Information from customers :
Information
Frequency Percent Valid PercentCumulative
PercentValid average 28 28.0 28.0 28.0
Bad 31 31.0 31.0 59.0
Good 30 30.0 30.0 89.0
very bad 6 6.0 6.0 95.0
very good 5 5.0 5.0 100.0
Total 100 100.0 100.0
Interpretation (Out of 100 respondents)- There is a mix response of customers on being provided Information regarding company’s product. 28% of the customers are neutral towards the information provided.
Q7. Rating of Ease of Claim from customer :
Ease of Claim
Frequency Percent Valid Percent
Cumulative Percent
Valid average 46 46.0 46.0 46.0
Bad 8 8.0 8.0 54.0
Good 37 37.0 37.0 91.0
very bad 6 6.0 6.0 97.0
very good 3 3.0 3.0 100.0
Total 100 100.0 100.0
Interpretation (Out of 100 Respondents) – Majority of respondents were neutral on the Claims part as many of the respondents do not even take
claims, so as to increase their NCB (No Claim Bonus). Very limited customers have experienced the claim issues.
Q8. Overall Ranking of BAGIC :
Rank.BAGIC
Frequency Percent Valid PercentCumulative
PercentValid average 32 32.0 32.0 32.0
Bad 12 12.0 12.0 44.0
Good 45 45.0 45.0 89.0
very bad 5 5.0 5.0 94.0
very good 6 6.0 6.0 100.0
Total 100 100.0 100.0
Interpretation (out of 100 respondents) – Majority of respondents have ranked good to BAGIC. A considerable percentage of people are neutral towards the overall ranking of BAGIC.
Q9. Factors which Motivated the customer to purchase BAGIC Insurance :
Motivation
Frequency Percent
Valid Percent
Cumulative Percent
Valid company name 20 20.0 20.0 20.0
ease of claim 9 9.0 9.0 29.0
information 15 15.0 15.0 44.0premium amount 36 36.0 36.0 80.0
Service 20 20.0 20.0 100.0Total 100 100.0 100.0
Interpretation (out of 100 respondents)- 36% were motivated by Premium amount. There is an equal amount of response (20%) on Service and Company Name. 15% were motivated by Information. 9% purchase policy on the basis of ease of claim.
Q10. Whether customer will Recommend BAGIC policy or not :
Recommend
Frequency Percent Valid PercentCumulative
PercentValid no 28 28.0 28.0 28.0
yes 72 72.0 72.0 100.0
Total 100 100.0 100.0
Interpretation (out of 100 Respondents)- 72% respondents will recommend BAGIC policy.
Q11. Areas of Improvement :
Improve
Frequency PercentValid
PercentCumulative
PercentValid Claim 17 17.0 17.0 17.0
Information 38 38.0 38.0 55.0
premium amount 19 19.0 19.0 74.0
Services 26 26.0 26.0 100.0
Total 100 100.0 100.0
Interpretation (out of 100 respondents) -
38% of respondents said that they need to improve on Information being provided to customers. This shows that communication lag is prevalent.
Claim and Premium amount have almost mix responses.
26% of respondents said that they need to improve in Services factor.
Q12. Whether they would opt for Other Policy :
Other Policy
Frequency Percent Valid PercentCumulative
PercentValid No 69 69.0 69.0 69.0
Yes 31 31.0 31.0 100.0
Total 100 100.0 100.0
Interpretation (out of 100 respondents) – 69% did not agreed to opt for any other policy of BAGIC.
Q13. Customer opting for Home Insurance policy :
Home Insurance
Frequency Percent Valid PercentCumulative
PercentValid No 69 69.0 69.0 69.0
yes 31 31.0 31.0 100.0
Total 100 100.0 100.0
Interpretation (out of 100 respondents) – • 31% agreed to opt for any Home Insurance policy.• These are the prospect generated.
Conclusion of the Study
71% percentage of respondents are satisfied with the overall performances of the company.
The Services, Premium Amount, and the Ease of claim ratings are on average good.
37% (31%+6%) respondents have rated information deliverables, bad.
Premium Amount was the main motivating factor to opt for BAGIC Policy.
72% of respondents will recommend BAGIC insurance policy to others.
The respondents wants the company to improve on Information factor.
69% of people are not interested to opt for any other policy of BAGIC.
Learnings & Findings of the Study
The company has potential customers of salaried and professional class. This shows that the company have a customized features for their particular customers.
The Services and the customized Premium Amount of the company is an effective factor for the sale of insurance product in the vehicular segment.
The customers are highly satisfied with the company’s Services.
The customers had a lot of complaints regarding the lack of Information delivered to them by company.
31% of respondents were interested in purchasing another policy of BAGIC.
One of the factor that helps in the sale of Motor policy is the Recommendation, as 72% of respondents have said that they would recommend BAGIC policy to others. This word of mouth helps in increasing the sale of policies.
Recommendations
The Company should improve on the information deliverables to their customers.
The company should take follow-ups and try to resolve the issues, of unsatisfied customers during the calling for Renewal.
The company should clear all the documentations in the process of selling of policies to the customers, to avoid 64VB and NB Ratio issues.
The company must entertain the particular dealers of dealerships with appreciation token, to encourage them to increase the sales.
Limitations of the Study
Customers who had renewed their policies were only interviewed. New customers interviewing was not allowed by company.
Limited responses had been obtained.
The research was based only on Pune Region.
Meeting with customers on daily routine was not possible.
Contribution to the Company
Out of 100 respondents 31 customers were interested in taking BAGIC Home Insurance policy. I’ve converted 14 customers to purchase “My Home Insurance-All Risk policy”.
Met with dealers all alone for clearing 64VB and NB Ratio issues, which helped in restarting their closed portals (restarting their stopped business).
Helped in achieving their target in both the months by routine visits to the dealers and frequent visits during month end.
The Maruti Suzuki, Hyundai, Ford dealership was taken care by me under the guidance of my associate mentor, dealers issues, customer’s payments, policy issuance, dealer’s payments, customer’s issues, sales, growth, target achievements.
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