Risk Return analysis of Bharti AXA Products

Risk Return analysis of Bharti AXA Products

A Project Report OnRISK ANALYSIS AND RISK MANAGEMENTAT BHARTI AXA LIFE INSURANCE

Submitted to:YMCA University of science and technology, Faridabad,

In partial fulfillment of the requirements forAward ofMaster of Business Administration

Submitted by: SHIV VERMARoll NO.-

Under the Guidance of

Associate Professor

Department of Management Studies

YMCA University of science and technology, Faridabad

2014-2016

Declaration

I hereby declare that the project entitled CUSTOMER RELATIONSHIP MANAGEMENT undertaken at BHARTI AXA LIFE INSURANCE submitted in partial fulfillment of the requirement for the award of the degree in Master in Business Administration to the Indian Institute of Business Management, Pune. It is my original work and is not submitted for the award of any other degree or diploma.

Place Date SHIV VERMA

ACKNOWLEDGEMENTAs I look back after the completion of my project I feel it would not have been possible without the guidance. I am very grateful to all the people who have lent their precious time and advice for rendering this project successful. I take this opportunity to thank them all.Firstly, I am grateful to BHARTI AXA LIFE INSURANCE for giving me an opportunity to undertake this project in their organization.I sincerely express my thanks to my company project guide LALITA GULATI for his strong support and inspiration during my project period.I thankful to all the executives of the company for their valuable guidance and for sharing their experience in completing this project successfully,I am thankful to our Chairman for the strong inspiration during the project period.I would like thank our institute guide for having given me this opportunity and for his valuable ever-patient guidance support, timely help and constant encouragement and also I am thankful to all faculty members of my institution for their valuable guidance in completing this project successfully.I also express thanks to my parents, my family members, and all my friends for their valuable support in completion of this project successfully.Last but not least I am thankful to all those people who helped us directly and indirectly.Place:Date:SHIV VERMA

CONTENTS

Chapter 1Rationale for the study1

Chapter 2Objective of the study1. Title of the project1. Objective of the study1. Scope of the study2-3

Chapter 3Profile of the company4-50

Chapter 4Theoretical Perceptive51-59

Chapter 5Research MethodologyResearch DesignData collection methods / sourcesSampling plan which should include sampling unit, sampling size and sampling methods via questionnaire methods, interview methods, observations etc

60-62

Chapter 6Data analysis and interpretations using various charts and graphs63-77

Chapter 7Findings78-79

Chapter 8Limitations if any80

Chapter 9Expected contribution from the study81-82

Appendix and Bibliography 83-89

Rationale for the ProjectMonopoly of LIC has been broken to make Indian Insurance to change its face and pace to tap the market and to make the new challenges in it.Insurance in India is not about India only; it is an open sector for the private players.The name which we would see in Indian insurance market is something like: - Bharti (Indian company) + AXA(foreign player), BAJAJ (Indian company) + Allianz (foreign player), TATA (Indian company) + AIG (foreign player) and so many like them.Companies now are tapping a lot of ways to capture the market and hence adopting different ways to hold the large portion of the market and cover the market with their maintaining good relationship with their customer.Our project is to understand the different customer relationship strategies adopted by the companies to increase their market share and along with it meeting their own targets to achieve the position of no.1 in respective field of customer relationship.

CHAPTER I

INTRODUCTIONThe risk/return relationship is a fundamental concept in not only financial analysis, but in every aspect of life. If decisions are to lead to benefit maximization, it is necessary that individuals/institutions consider the combined influence on expected (future) return or benefit as well as on risk/cost. Return expresses the amount which an investor actually earned on an investment during a certain period. Return includes the interest, dividend and capital gains; while risk represents the uncertainty associated with a particular task. In financial terms, risk is the chance or probability that a certain investment may or may not deliver the actual/expected returns.

The risk and return trade off says that the potential return rises with an increase in risk. It is important for an investor to decide on a balance between the desire for the lowest possible risk and highest possible return.

OBJECTIVES:

1) To maximise the return by creating balance of risk.2) To study the risk involved in the investment3) To make comparative study of risk and return of different insurance products

SCOPE OF THE STUDYThe scope of the study is limited to only insurance & no other financial instruments were considered .The study will help us to know the perception of customers about insurance policies. The various risks involves in buying an insurance policy and how to tackle it. It will also help us to get a basic knowledge about need analysis calculation and its requirement.

Methodology:The case study method is selected as the data is collected and analyzed by taking existing cases (project). The overall method of risk return matrix followed at Bharti Axa is studied by taking few existing cases of Bharti Axa.

Research Design:Causal research: Research design in which the major emphasis is on determining cause-and affect relationships.Descriptive research: Research design in which the major emphasis is on determining the frequency with which something occurs or the extent to which two variables co vary.

Primary data: Primary datais theone which iscollected specifically forthe purpose of the project, and can be obtained from various people working in the organization. For this study the primary data was collected from following sources.

Questionnaires Discussion with manager.

Secondary data: It refers to the statistical material which is not originated by the investigator himself but obtained from someone else's records, or when Primary data is utilized for any other purpose at some subsequent enquiry it is termed as Secondary data. However, it plays a significant role in the project. For this study the secondary data was collected from the following sources. Books related to risk management and insurance Websites related to risk management and insurance

LITERATURE REVIEWTitle: INTERNATIONALOF INSURANCE AND RISKAuthor: Prof. Boston D. IonelPublication: Journal of the Academy of insurance,Volume 27,Issue 2,pp 226-240

Abstract: This paper was published byInternational Scholars Journals. The mission of International Journal of Insurance and Risk is to significantly broaden the knowledge base of its readers and in this sense , the journal shall focus on only those papers that fall within its scope.

Title: Information Security Risk Analysis, Author: Thomas R. PeltierPublication: Volume 17, Issue 8, pages 613632,October 1996

Abstract: Thomas says, the internet has changed the way we purchase many items and life insurance is no exception. The trend towards term life becoming a commodity was already starting but the internet gave it the final push over the cliff. What fell was lifeinsuranceratesand this has generally been good news for life insurance shoppers. In spite of the slogans, sayings, and product statements made bylifeinsurancecompanies, there has been a constant move towards commoditization in this industry.

Title: Information Security Risk Assessment: Practices of Leading OrganizationsAuthor: Sun TzuPublication: A book on risk assessment, Vol. 48, No. 3, summer, 1984Abstract: Term life insurance helps cover your financial responsibilities if you die. With term life insurance, your beneficiaries receive no payout if you live past your policy's term. Think of it like car insurance--if you're in an accident, the insurance covers medical care, car repair or replacement, and so on while your policy is in effect. Same with term life insurance--if something happens to you, your policy provides your family with money when they need it most. But if nothing happens to you, the insurance company simply keeps the money you paid--it's the price you pay for protection and peace of mind. But--here's the good part--the price of term life is lower than permanent. Much, much lower!

Title: Services of Insurance Plans Author: Peter john Publication: A book on insurance plan by bharti axa , Vol. 4 Issue: 2, pp.13 24Abstract: Peter john says, Insurance plans provides the individuals and groups to empower their insurances whether they may be smallor large group terms. Individual health insurance would suit people who want their own policy benefits. Good Health Quotes offer a variety of group health insurance plans. Normally group health insurance plans cost lessthan the individual plan, because there a more people in a group, the buying power of the group increases. Thegroup health insurance also provides you with certain extra benefits.

LIMITATIONS

The study is limited due to constraint of time and information available Possibility of error in data collection because many of respondent may have not given actual answers of questionnaire. This project only talks about risk analysis of life insurance products but there are some other non life insurance products where risk analysis can be done. The study had done only on 100 respondents.

CHAPTER II

INDUSTRY AND COMPANY PROFILE:

INDUSTRY PROFILEInsurance is a contract between the insurance company (insurer) and the policyholder (insured). In return for a consideration (the premium), the insurance company promises to pay a specified amount to the insured on the happening of a specific event. We all need insurance because it not only transfer the risk but also have other benefits like tax saving.

The first Indian insurance company was formed in the year 1818 which was oriental life insurance company and the Indian life assurance companys act 1912 was the first statutory measure to regulate life business which was finally amended in the year 1938. In the year 1999 Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate all the insurance companies in India which came in power in the year April 2000. Under the current regulation a foreign companies cannot have more than 26% of stake in joint venture.Top five companies in world in 2013 Japan post Insurance AXA Allianz Met life Prudential Financial

History of Indian Insurance Industry

Before 1950:

In 1818, Oriental Insurance company become the 1st company to start life insurance business in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1914, the Government of India started publishing returns of Insurance Companies in India. In 1928, the Indian Insurance Companies Act was enacted. In 1938, the earlier legislation was consolidated and amended by the Insurance Act.1950-1999

The Insurance Amendment Act of 1950 abolished Principal agencies. In 1956, an ordinance was passed to nationalize the Life Insurance sector and LIC was formed.Post 1999

In 2000, IRDA Act 1999 came into existence and exclusive business rights of LIC got abolished. Life Insurance Industry in India

+

List of Life Insurance Companies in India

Sr. No. Reg. No.Name of the Company

1512Life Insurance Corporation of India

2101HDFC Standard Life Insurance Company Ltd.

3104Max Life Insurance Co. Ltd.

4105ICICI Prudential Life Insurance Company Ltd.

5107Kotak Mahindra Old Mutual Life Insurance Limited

6109Birla Sun Life Insurance Company Ltd.

7110Tata AIA Life Insurance Company Ltd.

8111SBI Life Insurance Company Limited .

9114ING Vysya Life Insurance Company Private Limited

10116Bajaj Allianz Life Insurance Company Limited

11117Metlife India Insurance Company Ltd.

12121Reliance Life Insurance Company Limited.

13122Aviva Life Insurance Co. India Ltd.

14127Sahara India Insurance Company Ltd.

15128Shriram Life Insurance Company Ltd.

16130Bharti AXA Life Insurance Company Ltd.

17133Future Generali India Life Insurance Company Limited

18135IDBI Federal Life Insurance Company Ltd.

19136Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

20138AegonReligare Life Insurance Company Ltd.

Insurance Regulatory and Development Authority (IRDA)

Reforms in the insurance sector were initiated with the passage of the IRDA Bill in the parliament in December 1999.The IRDA since its corporation as statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies.The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDAs online service for issue and renewal of license to agents.The approval of institutions for institutions for imparting training to agents has also ensured that the insurance companies would have trained work force of insurance agents in place to sell their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body of IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies has been registered.

Insurance sector in India

1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta but in 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. But actually grow in the insurance sector in India begun from the year 2000 with the formation on IRDA. IRDA is a regulatory body to manage working of all the insurance company in India. Foreign companies were allowed ownership of up to 26% and invest in insurance policies 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 countrys GDP.

The various data which is represents the market share of top five insurance companies in India

Most of the Indian population are without life insurance cover and still a huge amount of growth is possible in Indian environment. At present people do not prefer to invest their saving in insurance policies but it is expected to change in future.

COMPANY PROFILEThe AXA GroupAXA group was originally founded in 1816 as Mutuelle de L'assurancecontreL'incendie (The AncienneMutuelle). Headquartered in Paris, the group was re christened as AXA in 1985.AXA is a world leader in financial protection and wealth management, with major operations in Western Europe, North America and the Asia/ Pacific area. AXA services 102 million customers throughout the world. In total the AXA group has approximately 160,000 employees and distributors, working in around 50 countries. The AXA group reported total revenue for the first half of 2013 of 37.8 billion. AXA group has a strong, long standing history. The group can trace its roots right back to the 18th century. After a successions of mergers, acquisitions and name changes involving some of the leading insurance companies in the UK and around the world.

AXA Credit Rating

Agency Rating Last Update

Standard & Poors AA- 27/01/2012

Moodys Aa3 16/02/2012

Fitch AA- 03/11/2011

AXA has earned high marks by independent companies that rate insurance companies for their financial strength, stability and ability to meet the obligations to its policyholders.

Bharti Enterprises

Bharti Enterprises is one of Indias leading business groups since 1976, with operations in over 21 countries across the globe with interests in telecom, financial services, retail, fresh and processed foods, and real estate.Bharti Enterprises is a pioneer in telecom sector and the group is widening its horizons by entering new business areas such as insurance and retail. Bharti Enterprises has created a vantage position for itself in the global telecommunications sector. BhartiAirtel Limited occupies good status in mobile telephony in India while its brand 'Beetel' is the largest manufacturer and exporter of world class telecom terminals.

Founder of Bharti Group is Sunil Mittal. In 1983, Sunil Mittal entered into an agreement with Germany's Siemens to manufacture the company's push-button telephone models for the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in India to offer push-button telephones, establishing the basis of Bharti Enterprises. This first-mover advantage allowed Sunil Mittal to expand his manufacturing capacity elsewhere in the telecommunications market. By the early 1990s, Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Sky cell Communications, in Chennai.

Bharti Group Facts

1) Bharti Group Operates In 21 Countries across the globe.2) Bharti Group has 19 different companies3) Airtel was founded in Year 19954) Airtel is 5th largest telecom company worldwide5) In India, Airtel holds 30% Market share 6) Airtel has a revenue of $ 7.8 billion.Bharti AXA life insurance Ltd:Bharti AXA Life Insurance is a joint venture between Bharti, India's leading private telecom company and AXA, world leader in financial protection and wealth management. Their philosophy is to build around the promise of making people "Life Confident"...Bharti Enterprises and AXA Asia Pacific Holdings Limited (AXA) signed an agreement to establish a joint venture named Bharti AXA Life Insurance Company Limited to carry on life insurance business in India.August 26, 2005, New Delhi : Bharti Enterprises and AXA Asia Pacific Holdings Limited (AXA) signed an agreement to establish a joint venture named Bharti AXA Life Insurance Company Limited to carry on life insurance business in India. Under the agreement AXA has a 26% equity interest in the joint venture, while Bharti holds the balance. AXA, a global leader in insurance business, enabled the company to have access to AXAs global life insurance and asset management expertise. Bharti brought its strong local market knowledge, reputation and India-wide retail presence.

The insurance sector in India provides a mega opportunity for private players like BhartiAxa Despite the strong growth witnessed by the sector in the recent years, nearly 80% of the Indian population is without life insurance coverage. This joint venture is an opportunity for AXA to enter the Indian life insurance market, one of the most attractive emerging insurance markets. India is a fast growing economy and a huge market with more than 1.1 billion people. This coupled with a large middle class and increasing income levels will drive growth in the insurance market. Bharti is a well-established and financially strong group whose capabilities and network will be of significant value to the joint venture. The joint venture commenced business in the first half of 2006, subject to IRDA, FIPB and other statutory approvals.

Bharti AXA Life Leadership :

MMmRoleName

Chairman Mr. RakeshBharti Mittal

MD & Chief Executive Officer Mr. Nitin Chopra

Chief Appointed ActuaryMr. Rajeev Kumar

Chief UnderwriterMr. A. S. Rajesh

Chief Operating OfficerMs. JyotiPunja

Chief Investment OfficerMr. Sandeep Nanda

Chief Finance OfficerMr. AlokRoongta

Chief Human Resource Officer Mr. UlhasDeshpande

Head of AgencyMr. APS Bhalla

Bharti AXA Life Distribution Model

Achievements of Bharti AXA Life :

Pioneer in introducing cutting edge product categories in Indian Life Insurance industry. Introduced 48 hrs TAT in fund value settlement for ULIP plans in Indian Life Insurance industry. Introduced 48hrs release of family care benefit in eProtect plan. Unmatchable support to its sales force through 24/7 dedicated Life Advisors connect centre. One of its kind life stage based training value proposition in the industry through Bharti AXA Life Learning University. One amongst the best in terms of brand recall, achieved after the 48 hrs branding campaign in 2010. High customer service standards through facilities like dedicated customer self service portal.

Insurance Products:

The Insurance market is broadly divided into two categories Life Insurance and Non Life Insurance. Life Insurance covers risks related to human lives. All other risks are covered under Non-Life Insurance or General Insurance.

Non Life Insurance MarketThe non- life insurance market is further divided into sub-categories

It is a continuously developing market with new products being introduced from time to time as society has a need for them. Insurance is given by the company to the movable and Immovable properties of the insurer, this takes place when two parties comes into the contract.

Life Insurance MarketThe main products offered under life insurance are shown belowThe business of insurance takes place when insurer pays for the premium and that company generates the policy henceforth the risk are covered by the company in case of uncertainity.

VISION, MISSION AND QUALITY POLICY

VISION:

To be a leader and the preferred company for financial protection and wealth management in IndiaMISSION:

To contribute to the socio economic objectives of the nation by being vibrant and viable organization catering to the growing insurance needs of the community. Towards this end we will strive for effective management of business operations.

QUALITY POLICY:

Bharti axa life strives to be the preferred company in financial protection and wealth management in India through its commitment to Quality, Dedication to customers and Continual Improvement in every aspect of business and customer relations.

PRODUCTS AND SERVICES PROFILE:The products of bharti axa Insurance Company limited are as follows Protection Plans :

Bharti AXA Life eProtect Bharti AXA Life Elite Secure Bharti AXA Life Family Income Secure Bharti AXA Life Premium Waiver RiderWealth Creation With ProtectionBharti AXA Life Guaranteed Plans Bharti AXA Life Flexi Save Bharti AXA Life Monthly Income Plan Bharti AXA Life AajeevanSampatti

Health Plans:

Bharti AXA Life Triple Health Insurance Plan Bharti AXA Life Hospi Cash Benefit Rider

Features of products:

Bharti AXA Life e-Protect

Plan which protects your family. A Unique{Family Care}Benefit. Reward forNon-Smokers. HassleFREEProcess. Tax[Benefits].

Bharti AXA Life AajeevanSampatti LifelongBenefits. DISCOUNTon opting Higher Sum Assured Guaranteed{Payouts}Benefit. CashBonuses. Tax[Benefits].

Bharti AXA Life Triple Health Insurance Plan Claim for up to a maximum of three times Waiver of Premium Sum Assured on critical illness Maturity[Benefit] Death[Benefit] Tax[Benefits]

Bharti AXA Life Triple Health Insurance Plan Claim for up to a maximum of three times Waiver of Premium Sum Assured on critical illness Maturity[Benefit]

Health Insurance Plan - Easy Health Plan Extremely affordable protection. Easy health covers you with a single premium at one go for 3 years. Daily Hospital Cash Benefit options. Get additional protection in case of hospitalization due to an accident and for hospitalization in an ICU. Get Well Soon benefit for continuous hospitalization of 7 days or more Tax benefits

AREAS OF OPERATION :International presence : Bharti axa insurance company operates in France and has a run off account in Paris. Overseas premium of 259.19 crores in 2012-2013Domestic presence: Four regional offices were opened during FY 2011-2012 in Raipur, Vizag and Guwahati taking the total organization strength to 26 regional offices and 145 divisional offices and 256 branch offices and 84 Extension counters.

Regional Office in Karnataka state:Bhartiaxa life Insurance Company LTD.#15,Upper Ground floor,Corporate court,Infantry road,Bangalore-560001Ownership pattern :The Bhart iaxa Insurance company limited is fully owned by government of India public sector undertaking unit. Major share holders and shares are held under government of India.

INFRASTRUCTURE FACILITY :The year 2008-09 was another eventful year for the Informational Technology department. The biggest achievement during this financial year was the complete roll out of core software (ONLIAS) across the country in all offices and extension counters. It is now possible for customers to make payment of their premium and also lodging of their claims at any offices. This has enabled concurrent users across all offices, access to a centralized system making it one of the largest centralised installations of core insurance applications processing over one crore policy documents and over six lakhs claim per annum.Other projects during the Year :INLIAS Support Functioning of HelpdeskProvides support from 8.00 AM to 6.00 PM on all working days and from 10.00 AM to 4.00 PM on Holidays. The results of the helpdesk have been extremely encouraging and the call resolution rate works out to cover 99 % at any point of time.Web Portal:Portal will extend the reach of core insurance application to various segments like potential customers, Agents, Brokers etc.Portal also provides for a full fledged grievance resolution module integrated with the required workflow.Office Renovation: To attract customers. To optimise use of premises.

COMPETITORS INFORMATION: There are 3 public sector life insurance companies in race with the 16 private life insurance companies. The paid up capital of each public sector life Insurance company is Rs.100 crore. Private companies with a minimum paid up capital of Rs 1billion should be allowed to enter the industry. No company should deal with both life and general insurance product through a single entity Foreign companies may be allowed to enter the industry in collaboration with the domestic companies and their share should not exceed 26 % as on date.

Major competitors: Public Sector Companies:National Insurance Company LimitedNew India Assurance Company LimitedUnited India Insurance Company Limited

Private Sector Companies:

LIC, ING VYSYA, BIRLA SUN LIFE, BAJAJ ALLIANZ, MAX NEW YORK, KOTAK MAHINDRA, AVIVA etc.

Achievements and Awards :2014:

IES Award: Excellence Award by the Institute of Economic StudiesBharti AXA General Insurance was awarded the Excellence award by the Institute of Economic Studies in March 2014. This award cuts across industries and is not restricted to the finance sector.BFSI: Best Insurance Company in the Private Sector - General 2014Bharti AXA General Insurance was proclaimed the 'Best Insurance Company in the Private Sector - General' by the World HRD Congress at the BFSI Awards, 2014.

2013:Finnoviti: Editor's choice award for service innovation 2013Bharti AXA General Insurance was awarded the 'Editor's Choice Awards for Service Innovation', at Banking Frontier's Finnoviti 2013.Outstanding Performance in Insurance Category Award 2013Bharti AXA General Insurance received "Outstanding Performance in Insurance Category for 2013" award at the Hyundai's CCS Vendor Conclave 2013.

FUTURE GROWTH AND PROSPECTS :Expansion :

Bharti AXA is one of the insurance companies in India showing competitive plans to expand and start enterprises throughout the country in a short time. The company is setting a robust architecture to suit various segments of the Indian population. Bharti AXA plans to roll and expand as it has other connected products such as future confident and wealth confident products. Bharti AXA is trying to prove its sales effectively emphasizing its telecommunications experience. Bharti is planning to get partnership in global insurance.

Benefits

Bharti AXA came into limelight in 2006 November and revealed its interest in insurance. The company is gaining popularity and being a joint business venture of Bharti and AXA it is working and already becoming famous in India for various avenues. The tie up of companies came up with new prospects and the success graph is commendable of Bharti AXA as within the short time period it has made its mark in the life insurance company and has spread its name in the Indian market. It globally has 4000 main branches that reveal fast growth. Owing to its reliable policies, more and more people are connected and connecting to Bharti AXA by opting to various life insurance plans as per their need.

Mckinseys 7s FRAME WORKThe 7s model is better known as Mckinseys 7s.This is because the two persons, who developed this model Tom peter and Robert Waterman, have been consulted at Mckinsey and company at that time .They published their 7-s model in their article structure not an organization in 1980 and in their books the art of Japanese management in 1981 and in search of excellence in 1982

Mckinseys 7s frame work of Bharti Axa Insurance company Ltd.

STRUCTURE :Astructuredefines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.

SYSTEM:It means a set of protocols which are identified to carry out the activities in a prescribed manner. This should be carried by the organization in all situations; system differs from organization to organization. There are various systems like performance management system, production systems. Here let we see the performance management system.

Performance management system:Considering the boom in the Insurance segment and growth possibilities it offered, Bharti AXA required a HRMS solution that would support fast expansion of business and be implemented quickly. The solution also had to be flexible in order to accommodate certain specific processes followed by the company.

The HRMS solution should support single Employee database access and support uniform processes across locations. The system is to be capable of rolling out Performance Appraisal with a quick turnaround time.The Adrenalin Solution:The solution offered by Adrenalin was an enterprise HRMS suite, which was used to capture employee information, with access to all employees through self service. The solution also included Performance Management system, Attendance integrated with leave management, Claims and Reimbursement and a standardized Separation module.Benefits:The benefits realized by Bharti AXA are as follows:- Access to distributed employee and HR (process owners) base with role based access control Better data management enabling quick access to data by process owners. Also, eliminating manual documentation. Accurate capture of attendance and leave data of all employees resulting in accurate payroll and cost savings

STYLE: Within the framework of 7s model style refers to patterns of actions,the way management behaves and collectively spends its time to achieve organization goals. Bharti axa followTransactional:

Managers using the transactional leadership style receive certain tasks to perform and provide rewards or punishments to team members based on performance results. Managers and team members set predetermined goals together, and employees agree to follow the direction and leadership of the manager to accomplish those goals. The manager possesses power to review results and train or correct employees when team members fail to meet goals. Employees receive rewards, such as bonuses, when they accomplish goals.Transformational :

The transformational leadership style depends on high levels of communication from management to meet goals. Leaders motivate employees and enhance productivity and efficiency through communication and high visibility. This style of leadership requires the involvement of management to meet goals. Leaders focus on the big picture within an organization and delegate smaller tasks to the team to accomplish goals.STAFF :

It refers to the quality of people in the enterprise and the socialization into organization culture. Traditionally staff is not treated in the above two ways .Firstly, there will be appraisal systems,payscale & formal training, secondly,the employee morale,attitude,motivation and behaviour are considered. In Bharti axa Insurance staff are handled in a nice & in a humanly manner. Employee recruitment policy and training is laid by head office and employees recruitment at certain level is also done at regional offices.Currently there are 250 employees in our branch.

SKILLS :Skills refers to core competencies of the company as well as that of its staff. It is the ability that a person requires to perform the tasks in the company.The skills differ from person to person, and also it is based on the work.In present situation there is more importance for multi skilled persons. Skills refer to distinctive capabilities of personnel or the organizations as a whole. Skills are that for which the staff will develop appropriate new skills in the setting of a learning environment.

Steps taken to impart necessary skills : Human Resource Department is responsible for arranging and coordinating the training programs to be conducted in the organization. The basic objective is to upgrade and improve the available skills and to train the human resource in specific skills areas in tandem with the demanding service standards, latest technologies and management principles.The HODs by providing the information on programs conducted by the institutes .On the job training :All the newly recruited employees will be trained and the existing employees are on continuous traing programs by the qualified staff of the companys training centres.

Off the job training : Regional training centres are working to their maximum capacity while imparting foundation training programs.Pre-promotion training for SC/ST employees apart from routine ,technical and IT programs.Mandatory Foundation Training course to impart employees were conducted at selected Regional Training Centres

STRATEGY :Company strategyis a term that is used to describe the combination of policies, processes, and procedures that are employed to help a company operate according to itsmission statementand achieve its short-term and long-term goals To achieve a market position among the top 5 in India through a multi-distribution, multi-product platform To adapt AXA's best practice blueprints as a sound platform for efficient and profitable growth To leverage Bharti's local knowledge, infrastructure and customer base To deliver high levels of shareholder return To build long term value with our business partners by enhancing the proposition to their customers To be the employer of choice to attract and retain the best talent in IndiaSHARED VALUES :Shared value is a management strategy focused on companies creating measurable business value by identifying and addressing social problems that intersect with their business. The shared value framework creates new opportunities for companies, civil society organizations, and governments to leverage the power of market-based competition in addressing social problems.Shared values Include : Professionalism Team Spirit Innovation Integrity

.

SWOT ANALYSIS :The overall evaluation of companys Strength , Weakness ,Opportunities , Threats is called SWOT analysis .

Internal Environment analysis ( Strengths / Weakness Analysis)Each business needs to evaluate its internal strengths and weakness.By that internal strength they can overcome their weakness and threats and utilize the stepping opportunities.Clearly,the business does not have to correct all its weakness, nor should it gloat about all its strengths.The question that arises it whether the business should limit itself to those opportunities where it possesses the required strengths or whether it should consider better opportunities where it might have to acquire or develop certain strengths.

External Environment Analysis (Opportunities and Threats Analysis)In general a business unit has to monitor key macro environment forces and significant microenvironment that affect marketing intelligence system to track trends and important developments. For each trend or development, management needs to identify the associates opportunities and threats.

STRENGTHS Use of brand affinity of Airtel to promote insurance sales. Bharti brought its strong local market knowledge, reputation and India. Associated with AXA world leader in financial protection and wealth management, ranked No 13 in the Fortune 500 list of global companies and has enabled the company to have access to AXAs global life insurance and asset management expertise. Strong partner Bharti - provides access to customer base of more than 20 million Higher market share growth.

WEAKNESS Late entrant in the insurance sector Thin distribution network all over the nation Very less number of product offering in comparison to its competitors Lack of confidence among the customers as parent company does not have a financial background. Lower believability than Lic Strong competition from other players OPPORTUNITIES Strong growth of unit linked market at the mass affluent end. Potentially with 20% insurance cross sale only to new telecom customers, this network can yield 48 lakh policies per year with sum assured of nearly Rs 58000 cores. Higher awareness of insurance products attracts customers to use insurance services and products. Higher foreign investment in insurance has increased technological development and branch expansion etc. Prospective customers has provided opportunity for the company to increase their operation to a wider customer base. THREATS Higher premium rates to the agents is one of disadvantages to company Higher inflation rate can affect the cost for the company in providing services Many more companies are lining up to enter into Indian Insurance Industry. Consumers preference is still more towards public sector insurance companies.

Financial Statement :

FormL-2-A-PLBharti AXA Life Insurance Company LimitedProfit & Loss Account for Quarter Ended 30 June, 2013Shareholders Account(Non-TechnicalAccount)(Rs.'000)

ParticularsFor the Quarter EndedFor the Quarter Ended

30 June, 201330 June, 2012

Amounts transferred from Policyholders' Account (Technical Account)(612,582)(589,713)

Income from Investments

(a) Interest, Dividends and Rent Gross25,42633,915

(b) Profit on Sale/Redemption of Investments6,2826,214

(c) (Loss on Sale/ Redemption of Investments)(2,264)(3)

Other Income--

Total (A)(583,138)(549,587)

Expense other than those directly related to the insurance business2,3668,985

Bad debts written off--

Provisions (Other than Taxation)

(a) For Diminution in the value of investments (net)--

(b) Provision for Doubtful Debts--

(c) Others--

Contribution to the Policyholders Account (Technical Account)--

Total (B)2,3668,985

Profit/ (Loss) before Taxation(585,504)(558,572)

Provision for Taxation--

Profit / (Loss) after Taxation(585,504)(558,572)

Appropriations

(a) Balance at the beginning of the period(18,675,893)(17,482,991)

(b) Interim dividends paid during the period--

(c) Proposed Final Dividend--

(d) Dividend Distribution on Tax--

(e) Transfer to Reserves/Other Accounts--

Profit/ (Loss) carried to the Balance Sheet(19,261,396)(18,041,563)

Earnings Per Share (in Rs.)

(Face Value Rs.10 Per share)

Basic and Diluted(0.21)(0.26)

Bharti AXA Life Insurance Company Limited Balance Sheet as at 30 June, 2013(Rs.'000)

ParticularsScheduleAs at 30 JuneAs at 30 June

20132012

Sources of Funds

Shareholders' Funds:

Share CapitalL-8&L-918,457,01017,186,510

Share Application Money Pending Allotment-300,000

Reserves and SurplusL-101,939,4421,859,942

Credit/(Debit) Fair Value Change Account (Net)(19,109)(2,967)

Sub-Total20,377,34319,343,485

BorrowingsL-11--

Policyholders' Funds:

Credit/(Debit) Fair Value Change Account (Net)(47,666)(3,934)

Policy Liabilities2,449,5331,284,231

Insurance Reserves--

Provision for Linked Liabilities16,927,74515,964,601

Sub-Total19,329,61217,244,898

Funds for Future Appropriations201,814116,326

Discontinuance Fund on account of non payment of premium740,073218,550

Discontinuance Fund others--

Total40,648,84236,923,259

Application of Funds

Investments

ShareholdersL-121,259,2161,606,952

PolicyholdersL-132,431,2121,283,218

Assets Held to Cover Linked LiabilitiesL-1417,667,81816,183,151

LoansL-15--

Fixed AssetsL-1685,371108,517

Current Assets

Cash and Bank BalancesL-17204,254156,866

Advances and Other AssetsL-181,098,2891,068,365

Sub-Total(A)1,302,5431,225,231

Current LiabilitiesL-191,277,0631,467,125

ProvisionsL-2081,65258,249

1,358,7151,525,374

Net Current Assets (C) = (A B)(56,172)(300,143)

Miscellaneous ExpenditureL-21--

(To the extent not written off or adjusted)

Debit Balance of Profit and Loss Account19,261,39718,041,564

Total40,648,84236,923,259

CHAPTER III

THEORETICAL BACKGROUND OF THE STUDY

RiskA person carries various types of risk in his life term and it can be classified in many ways. But first we need to understand the meaning of risk. It is difficult to give the exact definition of risk but it can be defined in the respect of insurance sector as the possibilities of unfavourable event happing like death or physical damage.The various types of the risks are following:

Market risk Interest rate risk Inflation risk Political risk Financial risk Pure risk Particular risk Out of all these risk the insurable risk are following: Financial risk: The outcome of risk which can be measured in financial term like loss of life etc. Pure risk: Pure risks are those risks where there is no possibility of making a profit. Particular risk: Exposuretolossfrom a situationassociatedwith specificindividualevents, such as a break-in,fire, orrobbery. Particular risk are usually insurable.

Risk analysis As there are different types of in insurance police in the market it becomes difficult for a customer to understand the actual value of its life i.e. Human Life Value. Before buyingan insurance police a person should to knowing the purpose for which he is buying the insurance and how to analyse its value.It might be confusing for many that for what value they should buy an insurance policies i.e. how they are worth for.

AXA Life AajeevanSampatti+Is there a plan that secures me for life and provides guaranteed payouts?Life CoverUp to 100 years.A plan that offers dual advantage of guaranteed* annual payouts and protection up to age 100 yearsLimited Pay Period:You may choose a Premium Payment Term of 10 years or 15 years at inception of your Policy.Guaranteed Annual Payouts:This plan assures Guaranteed Annual Payouts until Maturity (except in the policy year coinciding with maturity). Once you complete the 10th Policy year, you will start receiving an annual payout until maturity or death of Life Insured, whichever is earlier, subject to policy being in-force. Cash Bonuses:This Policy also offers non-guaranteed cash bonuses subject to the policy being in-force. The Policy participates in the performance of the participating insurance fund and surplus is distributed as bonus. This non-guaranteed benefit (as percentage of Sum Assured on Maturity) is paid out as a cash bonus every year starting from the 6th Policy year, until maturity or death, whichever is earlier. No bonuses shall be payable in the first 5 policy years.

Life Insurance benefit: Your coverage under the Policy will continue until you reach the age of either 100 or 85 years as per the Policy term selected. In case of unfortunate event of loss of life of Life Insured (applicable even in case of minor lives), subject to the Policy being in-force, the Sum Assured payable on death will be higher of: a) Sum Assured on Maturity OR b) 11 times Annualised Premium OR The death benefit payable shall be higher of Sum Assured payable on death or 105% of all premiums paid (excluding an underwriting extra premium). In case of death during the Grace period, the Death Benefit after deducting the unpaid due premium shall be paid..

Bharti AXA Life Monthly Income Plan+

A Plan that offers guaranteed* Monthly Income withthe upside of non-guaranteed bonuses

Annual Reversionary Bonuses:

This policy participates in the performance of the participating insurance fund and surplus is distributed as bonuses. The actual bonus rate declared by the Company is dependent on the performance of the participating insurance fund. Non-Guaranteed Bonuses are vested from end of 1st policy year onwards and are payable at Maturity or on death,whichever is earlier, subject to the policy being in force. Apart from this, Bharti AXA Life Monthly Income Plan+ is a Limited premium payment, traditional participating plan. You pay premiums for the chosen PremiumPayment Term. At the end of the premium payment term, you start receiving your Guaranteed Monthly Income until Maturity. On Maturity, you receiveNon-Guaranteed accrued Annual Reversionary bonuses and Non-Guaranteed Terminal bonus.

The Death Benefit:The Death Benefit payable will be the higher of thefollowing, subject to the policy being in force:a) The Sum Assured on Death Plus Non Guaranteed simple reversionary bonuses and non guaranteed terminal bonus paid as a lump sum Orb) 105% of all premiums paid (excluding underwriting extra).

Bharti AXA Life Secure Savings Plan

A plan that provides the twin benefits of guaranteed* additions and comprehensive protection for your familyMaturity Benefit:

On Maturity after 15 or 20 years you will get:- 100% of Sum Assured; plus Guaranteed AdditionsDeath Benefit:

In the unfortunate event of death of life insured, provided all due Premiums, till the date of death have been paid, the nominee shall receive Higher of Basic Sum Assured plus Guaranteed Additions on Premiums paid OR 10 times the base Annualised Premium OR 105% of Premiums paid till date of death (excluding any extra Premium)Annualised Premium does not include modal factors or underwriting extra

Bharti AXA Life Premium Waiver Rider

A rider that enables your family to enjoy the benefits ofthe base policy by waiving off the premiums, in case of an unfortunate event.Bharti AXA Life Premium Waiver Rider offers financial protection in case of death of the Life Insured.

Financial Protection for your loved ones:On death of the Policyholder, 100% of all the future base premiums at the original / current level when due towards the policy will be paid and the rider will cease to exist. Policyholder & the Life Insured under the base policy should be different.

Paying Rider Premium: The Life Insured will have to pay the Rider Premium for the Premium Waiver Rider as per the applicable Rider Premium rates. The Rider term will be the same as the premium payment term of the base Policy and the rider premium will be paid in the same mode as the premium for the base Policy. The Rider Premium payable by you would depend on the age at entry, gender of the Life Insured and the term chosen.

Bharti AXA Life Secure income Plan

A plan that provides the twin benefits of guaranteed* additions and comprehensive protection for your family. A traditional non participating non linked endowment life insurance plan Down payment for your dream house. Better education for your children. A secure post retirement period. Planning your life stages and assigning financial goals to them is imperative. You should be prepared for the demands that every life stage brings with it, by saving regularly. Along with this, you need to protect your family and loved ones against any eventuality.For Example:If you choose a policy term of 20 years and an Annualised Premium of 20,000, then the Guaranteed Addition percentage will be 10% (as given intable above) and the Guaranteed Additions will be calculated as follows :Guaranteed Additions at Maturity = 10%* (20,000 + 40,000 + 60,000+..+ 4, 00,000) = 4, 20,000

CHAPTER IV

ANALYSIS AND INTERPRETATION OF DATA

DATA ANALYSIS: 1. Returns are calculated by taking the Net Present Value From April 2012 to April 2013ASSUMPTIONS: 1. An investor wants to invest an amount of rupees 5000 every month in life insurance product of Aajeevan sampatti of Bharti Axa2. He is willing to invest only Aajeevan sampatti. Investors amount will be invested in aajeevan sampatti of that company after paying the company charges. After payment of charges, the remaining amount (contribution) will be invested in equity fund and it will be converted into units by dividing the contribution by the respective days NPV. Charges differ from company to company. After deducting all those charges annually fund management charges is deducted by cancellation of units.

After the lock in period, investor can do partial withdrawal or whole withdrawal. The returns of the investor is calculated by finding the total number of units and multiply it with the NPV value on the day of withdrawal to find the total value. Then the invested amount is deducted from the total value and the result is divided by the total investment. To find out the return multiply with 100.

Risk assessment Then we also calculated risk involved in each type of life insurance plan based on their return or NPV .The NPV on 1-4-2012 and the NPV on 1-04-2013.Volatility is calculated as under:-Highest NPV during the period Lowest NPV during the given

Volatility = --------------------------------------------------------------------------- Highest NPV during the period

Table 1: Net present value of AAjeevan sampatti for the year 2012-13

MonthNPV

APRIL 201223.4790

MAY 201223.3460

JUN 201221.9805

JULY 201221.9125

AUGUST 201222.324

SEPTEMBER 201221.7975

OCTOBER 201220.1290

NOVEMBER 201219.8400

DECEMBER 201219.9140

JANUARY 201319.8000

FEBRUARY 201319.6675

MARCH 201319.4175

APRIL 2013

20.7340

Graph 1: showing NPV of Aajeevan sampatti of Bharti Axa life insurance company for the year 2012-13

INTERPRETATION:

In the month April 2012 the NPV of the company was 23.4790 then in the month of Jun 2012 NPV of the company suddenly decreased to 21.9805 which is less compare to the NPV in the month April and later on in the month of August the value of the NPV increased to 22.324 later on it went on decreasing due do market slowdown till march 2013 .Due to decrease in the value of the NPV the Risk comes to 17.2984 and Returns comes to 39.4156%

Analysis Bharti Axa life insurance company ltd.

Table 1.1 Aajeevan sampatti Purchased by investor of Bharti Axa life insurance co.

MonthNPVPremiumContribution in %Monthly ChargesContributionRevenueRs.

Apr-1223.4790500073153635154.8192

May-1223.3460500073153635155.7012

Jun-1221.9805500073153635165.3739

Jul-1221.9125500073153635165.8871

Aug-1222.324500073153635162.8292

Sep-1221.7975500073153635166.7922

Oct-1220.1290500073153635180.8852

Nov-1219.8400500073153635183.2157

Dec-1219.9140500073153635182.5349

Jan-1319.8000500073153635183.5859

Feb-1319.6675500073153635184.8227

Mar-1319.4175500073153635187.2023

Apr-1320.7340500073153635175.3159

Total revenue2248.6354

Revenue Value46623.2064

Investment 65000

Returns39.4156

Calculation of Returns

Returns = (Total investment Total revenue value / Total revenue value ) 100 = (65000 46623.2064 /46623.2064) 100 = 39.4156

Risk Calculation

Risk =( Highest Net Present Value lowest Net Present Value / Highest Net Present Value )100 = (23.479 19.4175 / 23.479) 100 = 17.2984%TABLE 2: NPV OF MONTHLY INCOME PLAN OF BHARTI AXA FOR THE YEAR 2012-13Month NPV

APRIL 201256.3500

MAY 201256.6050

JUN 201248.9250

JULY 201248.8700

AUGUEST 201251.4450

SEPTEMBER 201249.1450

OCTOBER 201239.4450

NOVEMBER 201235.6850

DECEMBER 201236.4000

JANUARY 201334.8450

FEBRUARY 201334.2650

MARCH 201333.4050

APRIL 201439.9150

GRAPH 2: NPV OF Bharti axa life insurance company

INTERPRETATION:

Bharti axa has highest net present value compare to all other company its net present value in the month of April 2012 was 56.350 and the value is changed slightly in the month on may 2012 then in the month of Jun 2012 NPV of the company is decreased by 7.68 so in the month of Jun the NPV of the company was 48.9250 which went on decreasing till July to 51.4450 but then its decreased due to loss in the funds then its went on decreasing till April 2013 now the present net present value in the month of April is 39.9150. Due to the decrease in the net present value of the company the percentage change in the NPV is increased to 40.9858% which is high risk compare to other company and the return of the company is 44.5986% which is High compare to Bharti Axa life insurance company

Table 2.1: Monthly income Plan Purchased by the investor of Bharti Axa life insurance

Month NPVPremiumContribution in %Monthly charges ContributionRevenue Rs.

Apr-1256.350050007315353564.5075

May-1256.605050007315363564.2169

Jun-1248.925050007315363574.2974

Jul-1248.870050007315363574.3810

Aug-1251.445050007315363570.6580

Sep-1249.145050007315363573.9648

Oct-1239.445050007315363592.1536

Nov-1235.6850500073153635101.8635

Dec-1236.400050007315363599.8626

Jan-1334.8450500073153635104.3191

Feb-1334.2650500073153635106.0849

Mar-1333.4050500073153635108.8160

Apr-1339.915050007315363591.0685

Total Unit1126.1938

Unit value44952.0255

Investment 65000

Returns 44.5986

Returns = (65000 44952.0255 / 44952.0255) 100 = 44.5986

Risk = (56.605 33.405 / 56.605)100 = 40.9858 %

Analysis Bharti Axa Secure savings plan.

Table 3 : NPV of Bharti Axa Secure savings Plan .MonthNPV as on 2012-13

Apr-1218.0499

May-1217.7124

Jun-1217.5374

Jul-1218.1797

Aug-1217.9632

Sep-1215.9740

Oct-1215.7968

Nov-1215.6908

Dec-1215.5100

Jan-1315.4479

Feb-1315.1516

Mar-1315.1597

Apr-1316.4646

Graph 3: NPV of BHARTI AXA.

INTERPRETATION:

The Net present value of the Bharti Axa life insurance company was less compare to Bajaj Allianz and LIC of India its NPV start for 18.0499 in the month of April 2012 and it went on decreasing till July in the month of July the Net present value came to normal value which is 18.1797 slightly increased compare to previous month and then it went on decreasing due to Market less productivity because of less productivity net present value of the company decreased till the month of April 2013 so the present NPV of the company is 16.4646 Returns of the company is less compared to Bajaj Allianz and LIC the returns of the company is 37.2856 and the risk involved in the returns is 16.6565 which is Half of the Returns

Table 3.: Secure savings plan Purchased by investor of Bharti axa

MonthNPVPremiumContribution in %Monthly chargesContributionRevenue Rs

Apr-1218.0499500073153535201.3862

May-1217.7124500073153635205.2235

Jun-1217.5374500073153635207.2713

Jul-1218.1797500073153635199.9483

Aug-1217.9632500073153635202.3582

Sep-1215.9740500073153635227.5573

Oct-1215.7968500073153635230.1099

Nov-1215.6908500073153635231.6644

Dec-1215.5100500073153635234.3649

Jan-1315.4479500073153635235.3071

Feb-1315.1516500073153635239.9087

Mar-1315.1597500073153635239.7805

Apr-1316.4646500073153635220.7767

Total Unit2875.6570

Unit value47346.5422

Investment 65000

Returns 37.2856

Calculation of Returns = (65000 - 47346.5422 / 47346.5422) 100 = 37.2856Calculation of Risk = (18.1797 15.1516 / 18.1797) 100 = 16.6565

ANALYSIS OF life premium waiver raider of Bharti Axa

TABLE 4: NPV OF Bharti Axa Life premium waiver Raider

MonthNPV as on 2012-13

Apr-1222.2400

May-1222.1735

Jun-1221.0585

Jul-1221.0290

Aug-1221.4950

Sep-1221.1155

Oct-1219.5505

Nov-1219.3775

Dec-1219.6165

Jan-1319.613

Feb-1319.5395

Mar-1319.4795

Apr-1320.5715

Graph 4: NPV OF life premium waiver raider of Bharti Axa

INTERPRETATION Bharti axa NPV at the begging is 22.2400 and in the next month its slightly reduced and it went on reducing till the month of March 2013 in the month of March 2013 the NPV is 19.4797 then in the next month its value is increased by 20.5715 which is positive sign for the company and the returns of the company is 36.9065 and risk involved in the returns is 12.4258

TABLE 4.1 : life premium waiver raider Purchased by investors of Bharti Axa

MonthNPVPremiumContribution in %Monthly charges PremiumRevenue Rs

Apr-1222.2400500073153635163.442

May-1222.1735500073153635163.9344

Jun-1221.0585500073153635172.6144

Jul-1221.0290500073153635172.8565

Aug-1221.4950500073153635169.1091

Sep-1221.1155500073153635172.1485

Oct-1219.5505500073153635185.9287

Nov-1219.3775500073153635187.5887

Dec-1219.6165500073153635185.3032

Jan-1319.613500073153635185.3363

Feb-1319.5395500073153635186.0334

Mar-1319.4795500073153635186.6352

Apr-1320.5715500073153635176.7008

Total Unit2307.9334

Unit value47477.6519

Investment 65000

Returns 36.9065

Calculation of Returns = (65000 - 47477.6519 / 47477.6519) 100 = 36.9065

Calculation of Risk = (22.24 19.4765 / 22.24) 100 = 12.4258 %

ANALYSIS OF BHARTI AXA LIFE INSURANCE COMPANY Life secure income plan

TABLE 5: NPV OF Bharti Axa life secure Income planMONTHNPV AS ON 2012-13

Apr-1218.4099

May-1217.7124

Jun-1217.5374

Jul-1218.1797

Aug-1217.9632

Sep-1215.9740

Oct-1215.7968

Nov-1215.6706

Dec-1215.5100

Jan-1315.4479

Feb-1315.1516

Mar-1316.1597

Apr-1316.4646

GRAPH 5 : NPV OF life secure income plan

INTERPRETATION:

Net present value of the company was 18.4099 in the month of April 2012 which is equal to HDFC Standard life insurance company later on its went of decreasing till the date July 2012 in the month of July NPV raised to 18.1797 after that the NPV went on decreasing till March 2013 now the opening NPV of the company is 16.4646 in the month April 2013.

Month NPVPremiumContribution in %Monthly charges PremiumRevenue Rs

Apr-1218.4099500073153635197.4481

May-1217.7124500073153635205.2235

Jun-1217.5374500073153635207.2713

Jul-1218.1797500073153635199.9483

Aug-1217.9632500073153635202.3582

Sep-1215.9740500073153635227.5573

Oct-1215.7968500073153635230.1099

Nov-1215.6706500073153635319.0688

Dec-1215.5100500073153635234.3649

Jan-1315.4479500073153635235.3071

Feb-1315.1516500073153635239.9087

Mar-1316.1597500073153635224.9423

Apr-1316.4646500073153635220.7767

Total Unit2944.2851

Unit value48476.4765

Investment 65000

Returns 34.0857

Table 5.1: Life secure Income plan Purchased by Investors of bharti axa

Calculation of Returns

= (65000 - 48476.4765/ 48476.4765) 100 = 34.0857

Calculation of Risk = (18.4099 15.5100 / 18.4099) 100 = 15.7519%

Risk Return analysis of Bharti AXA Products

QUESTIONARIES:

1) Table showing the age of respondents Age below 20 years 25

20 40 years45

40 60 years15

60 80 years15

Interpretation:

The above table shows that out of 100 respondents 20 respondents are below the age 20 and 45 are between 20 40.

Question 2:

2) Table showing the respondent concern in buying insurance product.

Child education 25

Retirement

15

Childs marriage25

Medical illness35

Interpretation:

The above graph shows that respondents prefer to go for medical illness which is 35 % and they prefer least for retirement which is 15 %

Question 3:

Table shows factor which they will concern about when purchasing a product?

Allocation45

Fund management20

Fund administration15

All of the above20

Interpretation:

Graph shows that 45 % prefer to go for allocation and they prefer lest for fund administration .

Question 4:

Table showing the respondents opinion of bharti axa product compare to other insurance company product.

Bharti axa 8

Other insurance products 92

Interpretation:

Out of 100 respondents 8 % prefer bharti axa because of new in the insurance industry and 92 % go for other products

CHAPTER V

SUMMARY OF FINDINGS, CONCLUSIONS,RECOMMENDATIONS.FINDINGSBased on the data which is presented in Chapter 3 and the personal interviews of few respondents from the whole sample size here are the results which are drawn from the interpretation of data:

Majority of people recognized the Bharti AXA Life Insurance and recalled its advertisement but still there is a lot of scope of improvement, and the brand name of BHARTI associated with Bharti AXA Life Insurance gives customers more trust and I found out that many respondents were even not aware that Bharti AXA Life Insurance is a BHARTI product.

People perceive insurance as necessity and still a very large segment of middle class segment customers is to be tapped i.e. there is a large scope of expansion for companies.Among all the factors that initiate the customer to an insurance policy respondents have given the top priority followed by features.The findings drawn during the project are as follows:Most of the customers prefer to go for protection plans instead of going for other plans. Most customers aims at getting much return for their insurance with less risk Customers prefer to go for Aajeevan sampatti because in this plan the risk is less and return is more... Bharti axa company gets much of the customers who prefer to go for Aajeevan sampatti and Monthly income plan where there are more returns compare to other products

CONCLUSION

Based on the findings it can be said that there is a very bad response from the survey this survey shows that in the present scenario Bharti AXA life is very far away from his competitors. But there are lots of scope of growth in insurance market due to rising level of disposable income of individuals and unsecure future of customers and in addition to these factors the present climatic condition have made a perception among customers that insurance are necessity products just as bank account and loan or any financial scheme etc.

Bharti AXA Life in this scenario, has a fair image in the minds of customers, though some customers think that Bharti AXA Life was primarily concentrating on high class people and now they are concentrating on every level of market or mass market, but they still have a trust over the brand name of Bharti, and if it continuously upgrades its products and services then it can surely become the successful insurance policy provider company.

Insurance sector in India is growing at a very high rate and it is expected to grow more in future. This study had made an attempt to understand the various risk involves in investing in insurance an how to manage those risk.

I observed that most of the people buy an insurance police under someones influence and not according to their requirement. Also there is a very low awareness about need analysis calculation. Many people do not pay their premium as they did not purchase their policies according to their requirement. Customer satisfaction plays a very important role in increasing the market share of the company and it is very hard to get.

RECOMMENDATION

In the 2 years of existence in the market it has created a sensation by introducing its most profitable Unit-Linked Plans and products. The insurer needs to concentrate to make its products and company much more aware among the public to change the mindset of the people and attract them towards insurance sector. This can make the recruitment of the potential advisors very well. To create the awareness among the people,

Customers should be made more aware of need analysis as there is low awareness level among them. Insurance companies should take more effort in spreading awareness about need analysis calculation. Insurance companies should also give training to their advisors to explain about need analysis calculation to customer properly as customer how do need analysis are more satisfied with their policies. Insurance companies should have a reasonable premium rate as most of the customers prefer so. Insurance companies must advise the customers to go for the best products which suits them based on their income level, which is beneficial for both of them

BIBLIOGRAPHYOptions and Futures Vohra and Bagri , Second Edition , Tata Mcgrill Publication.

Research Methodology- C.R Kothari, edition-2004, reprint 2006 Publisher New Age International (P) Ltd, publishers Methods of Data Collection, page no- 95 Sampling Fundamentals, page no- 152.

Catalogues of Bharti AXA products.

WEBSITES

www.irdaindia.org www.bharti-axalife.com www.wikipedia.org www.iirm.in www.selling-well.com www.insurancejournal.com

Annexure NAME..

1) AGE; a)Below to 20 years [ ] b)20-40 years [ ] c)40-60 years [ ] d)Above to 60 years [ ]2) GENDER; a)Male [ ]b)Female [ ] 3)OCCUPATION;a)Govt. Employee [ ]b)Private Employee [ ]c)Self Employee [ ]d)Other [ ] 4) DO YOU LIVE IN JOINT FAMILY? a) Yes [ ] b) No [ ] 5)HOW MANY FAMILY MEMBERS ARE THERE IN YOUR FAMILY? a) 2-4 [ ] b) 4-6 [ ] c) Above 6 [ ]

6)WHICH IS YOUR BIGGEST CONCERN FOR FUTURE? a) Child education [ ] b) Retirement [ ] c) Childs marriage [ ] d) Medical illness [ ] 7) DO YOU HAVE ANY LIFE INSURANCE POLICY? a) Yes [ ] b) No [ ] 8)IF YES, IN WHICH COMPANY AND WHICH PRODUCT?

9) DO YOU LOOK AFTER COMPETITION WHEN YOU PURCHASE PRODUCT?a) Yes [ ] b) No [ ] 10)WHICH FACTOR OF THE FOLLOWING YOU WILL BE CONCERN ABOUT WHILE YOU ARE PURCHASING A PRODUCT? a) Allocation [ ] b) Fund management [ ] c) Fund administration [ ] d) All of the above [ ]

THANK YOU! FOR YOUR TIME!

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