A Project Report On

RISK ANALYSIS AND RISK MANAGEMENT

AT
BHARTI AXA LIFE INSURANCE

Submitted to:
YMCAUniversityofscienceandtechnology,Faridabad,

In partial fulfillment of the requirements for

Award of
Master of Business Administration
Submitted by:
SHIV VERMA
Roll NO.UndertheGuidanceof
AssociateProfessor
DepartmentofManagementStudies
YMCAUniversityofscienceandtechnology,Faridabad
20142016

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

ACKNOWLEDGEMENT
As 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 1
Chapter 2

Rationale for the study

Objective of the study

Chapter 3
Chapter 4
Chapter 5

Title of the project

Objective of the study
Scope of the study
Profile of the company
Theoretical Perceptive
Research Methodology

1
2-3

4-50
51-59
60-62

Research Design
Data collection methods / sources
Sampling plan which should include sampling unit, sampling
size and sampling methods via questionnaire methods, interview
methods, observations etc
Chapter 6

Data analysis and interpretations using various charts and

63-77

graphs
Chapter 7
Chapter 8
Chapter 9

Findings
Limitations if any
Expected contribution from the study
Appendix and Bibliography

78-79
80
81-82
83-89

Rationale for the Project

Monopoly 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

INTRODUCTION
The 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 investment
3) To make comparative study of risk and return of different insurance products
SCOPE OF THE STUDY
The 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 causeand 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 data is the one which is collected specifically for the 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 REVIEW
Title: INTERNATIONALOF INSURANCE AND RISK

Author: Prof. Boston D. Ionel

Publication: Journal of the Academy of insurance, Volume 27, Issue 2, pp 226-240
Abstract: This paper was published by International 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. Peltier
Publication: 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
life insurance rates and this has generally been good news for life insurance shoppers. In
spite of the slogans, sayings, and product statements made by life insurance companies,
there has been a constant move towards commoditization in this industry.

Title: Information Security Risk Assessment: Practices of Leading

Organizations
Author: Sun Tzu
Publication: A book on risk assessment, Vol. 48, No. 3, summer, 1984
Abstract: 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 24
Abstract: Peter john says, Insurance plans provides the individuals and groups to
empower their insurances whether they may be small or 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 less than the individual plan, because there a more people in a group, the
buying power of the group increases. The group 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 PROFILE
Insurance 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

512

Life Insurance Corporation of India

101

HDFC Standard Life Insurance Company Ltd.

104

Max Life Insurance Co. Ltd.

105

ICICI Prudential Life Insurance Company Ltd.

107

Kotak Mahindra Old Mutual Life Insurance Limited

109

Birla Sun Life Insurance Company Ltd.

110

Tata AIA Life Insurance Company Ltd.

111

SBI Life Insurance Company Limited .

114

ING Vysya Life Insurance Company Private Limited

10

116

Bajaj Allianz Life Insurance Company Limited

11

117

Metlife India Insurance Company Ltd.

12

121

Reliance Life Insurance Company Limited.

13

122

Aviva Life Insurance Co. India Ltd.

14

127

Sahara India Insurance Company Ltd.

15

128

Shriram Life Insurance Company Ltd.

16

130

Bharti AXA Life Insurance Company Ltd.

17

133

Future Generali India Life Insurance Company Limited

18

135

IDBI Federal Life Insurance Company Ltd.

19

136

Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

20

138

AegonReligare 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

Sales

7%

ICICI Prudential
7%
4%
2%

SBI Life
HDFC Standard
Bajaj Allianz
Lic

79%

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 PROFILE
The AXA Group
AXA 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 companies
3) Airtel was founded in Year 1995
4) Airtel is 5th largest telecom company worldwide
5) 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.

26%

Bharti AXA Life Leadership :

MMmRole

Name

Chairman

Mr. RakeshBharti Mittal

MD & Chief Executive Officer

Mr. Nitin Chopra

Chief Appointed Actuary

Mr. Rajeev Kumar

Chief Underwriter

Mr. A. S. Rajesh

Chief Operating Officer

Ms. JyotiPunja

Chief Investment Officer

Mr. Sandeep Nanda

Chief Finance Officer

Mr. AlokRoongta

Chief Human Resource Officer

Mr. UlhasDeshpande

Head of Agency

Mr. APS Bhalla

Bharti AXA Life Distribution Model

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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 Market

The non- life insurance market is further divided into sub-categories

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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 Market

The main products offered under life insurance are shown below

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he 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 India

MISSION:
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 Rider

Wealth Creation With Protection

Bharti 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 for Non-Smokers.

Hassle FREE Process.

Tax [Benefits].

Bharti AXA Life AajeevanSampatti

Lifelong Benefits.

DISCOUNT on opting Higher Sum Assured

Guaranteed {Payouts} Benefit.

Cash Bonuses.

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 2012-2013

Domestic 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-560001

Ownership 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 Helpdesk

Provides 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 Limited
New India Assurance Company Limited
United 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 Studies

Bharti 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 2014

Bharti 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 2013

Bharti 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 2013

Bharti 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 WORK

The 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 :
A structure defines 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 follow

Transactional:

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 strategy is a term that is used to describe the combination of policies,
processes, and procedures that are employed to help a company operate according to
its mission statement and achieve its short-term and long-term goals

To achieve a market position among the top 5 in India through a multidistribution, 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 India

SHARED 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 :
Form L-2-A-PL
Bharti AXA Life Insurance Company Limited
Profit & Loss Account for Quarter Ended 30 June, 2013
Shareholders Account (Non-Technical Account)

(Rs.'000)

Particulars

For the Quarter Ended

For the Quarter Ended

30 June, 2013

30 June, 2012

Amounts transferred from Policyholders' Account (Technical Account)

(612,582)

(589,713)

(a) Interest, Dividends and Rent Gross

25,426

33,915

(b) Profit on Sale/Redemption of Investments

6,282

6,214

(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 business

2,366

8,985

Bad debts written off

(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)

2,366

8,985

Profit/ (Loss) before Taxation

(585,504)

(558,572)

Income from Investments

Provisions (Other than Taxation)

Provision for Taxation

Profit / (Loss) after Taxation

(585,504)

(558,572)

(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)

(0.21)

(0.26)

Appropriations

Earnings Per Share (in Rs.)

(Face Value Rs.10 Per share)

Basic and Diluted

Bharti AXA Life Insurance Company Limited

Balance Sheet as at 30 June, 2013

(Rs.'000)

As at 30 June

As at 30 June

2013

2012

18,457,010

17,186,510

300,000

1,939,442

1,859,942

Credit/(Debit) Fair Value Change Account (Net)

(19,109)

(2,967)

Sub-Total

20,377,343

19,343,485

(47,666)

(3,934)

Particulars

Schedule

Sources of Funds

Shareholders' Funds:

Share Capital

L-8 & L-9

Share Application Money Pending Allotment

Reserves and Surplus

Borrowings

L-10

L-11

Policyholders' Funds:

Credit/(Debit) Fair Value Change Account (Net)

Policy Liabilities

2,449,533

1,284,231

Insurance Reserves

Provision for Linked Liabilities

16,927,745

15,964,601

Sub-Total

19,329,612

17,244,898

Funds for Future Appropriations

201,814

116,326

Discontinuance Fund on account of non payment of premium

740,073

218,550

Discontinuance Fund others

Total

40,648,842

36,923,259

Application of Funds

Investments

Shareholders

L-12

1,259,216

1,606,952

Policyholders

L-13

2,431,212

1,283,218

Assets Held to Cover Linked Liabilities

L-14

17,667,818

16,183,151

Loans

L-15

Fixed Assets

L-16

85,371

108,517

Current Assets

Cash and Bank Balances

L-17

204,254

156,866

Advances and Other Assets

L-18

1,098,289

1,068,365

1,302,543

1,225,231

Sub-Total (A)

Current Liabilities

L-19

1,277,063

1,467,125

Provisions

L-20

81,652

58,249

1,358,715

1,525,374

(56,172)

(300,143)

Debit Balance of Profit and Loss Account

19,261,397

18,041,564

Total

40,648,842

36,923,259

Net Current Assets (C) = (A B)

Miscellaneous Expenditure

L-21

(To the extent not written off or adjusted)

CHAPTER III

THEORETICAL BACKGROUND OF THE STUDY

Risk
A 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:

Exposure to loss from

situation associated with

specific individual events, such as a break-in, fire, or robbery. 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 years
Limited 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 Or
b) 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 family
Maturity Benefit:
On Maturity after 15 or 20 years you will get: 100% of Sum Assured; plus
Guaranteed Additions
Death 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 2013

ASSUMPTIONS:
11. An investor wants to invest an amount of rupees 5000 every month in life
insurance product of Aajeevan sampatti of Bharti Axa
12. 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
Month
APRIL 2012

NPV

MAY 2012

23.3460

23.4790

JUN 2012

21.9805

JULY 2012

21.9125

AUGUST 2012

22.324

SEPTEMBER 2012

21.7975

OCTOBER 2012

20.1290

NOVEMBER 2012

19.8400

DECEMBER 2012

19.9140

JANUARY 2013

19.8000

FEBRUARY 2013

19.6675

MARCH 2013

19.4175

APRIL 2013

20.7340

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

Bharti axa LIFE INSURANCE

25
20
15
NpV

10
5
0

41030
41091
41153
41214
41275
41334
41000
41061
41122
41183
41244
41306
41365
Month

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.

Month

NPV

Premium

Contributio
n in %

Monthly
Charges

Contributio
n

Revenue
Rs.

Apr-12

23.4790

5000

73

15

3635

154.8192

May-12

23.3460

5000

73

15

3635

155.7012

Jun-12

21.9805

5000

73

15

3635

165.3739

Jul-12

21.9125

5000

73

15

3635

165.8871

Aug-12

22.324

5000

73

15

3635

162.8292

Sep-12

21.7975

5000

73

15

3635

166.7922

Oct-12

20.1290

5000

73

15

3635

180.8852

Nov-12

19.8400

5000

73

15

3635

183.2157

Dec-12

19.9140

5000

73

15

3635

182.5349

Jan-13

19.8000

5000

73

15

3635

183.5859

Feb-13

19.6675

5000

73

15

3635

184.8227

Mar-13

19.4175

5000

73

15

3635

187.2023

Apr-13

20.7340

5000

73

15

3635

175.3159

Total revenue
Revenue
Value
Investment
Returns

2248.6354
46623.2064

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

65000
39.4156

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 2012-13
Month
APRIL 2012
MAY 2012
JUN 2012
JULY 2012
AUGUEST 2012
SEPTEMBER 2012
OCTOBER 2012
NOVEMBER 2012
DECEMBER 2012
JANUARY 2013
FEBRUARY 2013
MARCH 2013
APRIL 2014

NPV
56.3500
56.6050
48.9250
48.8700
51.4450
49.1450
39.4450
35.6850
36.4000
34.8450
34.2650
33.4050
39.9150

GRAPH 2: NPV OF Bharti axa life insurance company

Bharti Axa Monthly income plan

60
50
40
NAV

30
20
10
0

41030
41091
41153
41214
41275
41334
41000
41061
41122
41183
41244
41306
41365
Month

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

NPV

Premiu
m

Contributi
on in %

Contributi
on

Revenue
Rs.

73

Monthl
y
charges
15

Apr-12

56.3500

5000

3535

64.5075

May12
Jun-12

56.6050

5000

73

15

3635

64.2169

48.9250

5000

73

15

3635

74.2974

Jul-12

48.8700

5000

73

15

3635

74.3810

Aug-12 51.4450

5000

73

15

3635

70.6580

Sep-12

49.1450

5000

73

15

3635

73.9648

Oct-12

39.4450

5000

73

15

3635

92.1536

Nov-12 35.6850

5000

73

15

3635

101.8635

Dec-12

36.4000

5000

73

15

3635

99.8626

Jan-13

34.8450

5000

73

15

3635

104.3191

Feb-13

34.2650

5000

73

15

3635

106.0849

Mar-13

33.4050

5000

73

15

3635

108.8160

Apr-13

39.9150

5000

73

15

3635

91.0685

Total Unit

1126.1938

Unit value

44952.0255

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 .

Month

NPV as on 2012-13

Apr-12

18.0499

May-12

17.7124

Jun-12

17.5374

Jul-12

18.1797

Aug-12

17.9632

Sep-12

15.9740

Oct-12

15.7968

Nov-12

15.6908

Dec-12

15.5100

Jan-13

15.4479

Feb-13

15.1516

Mar-13

15.1597

Apr-13

16.4646

Graph 3: NPV of BHARTI AXA.

bharti Axa Secure Savings Plan

NPV

19
18
17
16
15
14
13

41030
41091
41153
41214
41275
41334
41000
41061
41122
41183
41244
41306
41365
MONTH

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

Month

NPV

Premium

Contribution
in %

Monthly
charges

Contribution

Revenue Rs

Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13

18.0499
17.7124
17.5374
18.1797
17.9632
15.9740
15.7968
15.6908
15.5100
15.4479
15.1516
15.1597
16.4646

5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000
5000

73
73
73
73
73
73
73
73
73
73
73
73
73

15
15
15
15
15
15
15
15
15
15
15
15
15

3535
3635
3635
3635
3635
3635
3635
3635
3635
3635
3635
3635
3635
Total Unit
Unit value
Investment
Returns

201.3862
205.2235
207.2713
199.9483
202.3582
227.5573
230.1099
231.6644
234.3649
235.3071
239.9087
239.7805
220.7767
2875.6570
47346.5422
65000
37.2856

Calculation of Returns
= (65000 - 47346.5422 / 47346.5422) 100
= 37.2856
Calculation 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

Month
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13

NPV as on 2012-13
22.2400
22.1735
21.0585
21.0290
21.4950
21.1155
19.5505
19.3775
19.6165
19.613
19.5395
19.4795
20.5715

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

bharti axa life premium waiver raider

25
20
NAV 15

41030
41091
41153
41214
41275
41334
41000
41061
41122
41183
41244
41306
41365
Month

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
Month

NPV

Premium

Monthly
charges
15

Premium

5000

Contribution
in %
73

3635

Revenue
Rs
163.442

Apr-12

22.2400

May-12

22.1735

5000

73

15

3635

163.9344

Jun-12

21.0585

5000

73

15

3635

172.6144

Jul-12

21.0290

5000

73

15

3635

172.8565

Aug-12

21.4950

5000

73

15

3635

169.1091

Sep-12

21.1155

5000

73

15

3635

172.1485

Oct-12

19.5505

5000

73

15

3635

185.9287

Nov-12

19.3775

5000

73

15

3635

187.5887

Dec-12

19.6165

5000

73

15

3635

185.3032

Jan-13

19.613

5000

73

15

3635

185.3363

Feb-13

19.5395

5000

73

15

3635

186.0334

Mar-13

19.4795

5000

73

15

3635

186.6352

Apr-13

20.5715

5000

73

15

3635

176.7008

Total Unit
Unit value
Investment
Returns

2307.9334
47477.6519
65000
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 plan
MONTH
Apr-12
May-12

NPV AS ON 2012-13
18.4099
17.7124

Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13

GRAPH 5 : NPV OF life secure income plan

17.5374
18.1797
17.9632
15.9740
15.7968
15.6706
15.5100
15.4479
15.1516
16.1597
16.4646

Bharti Axa life secure income plan

20
15
10
NAV

NAV

5
0

Month

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

NPV

Premium

Apr-12
May-12
Jun-12

18.4099
17.7124
17.5374

5000
5000
5000

Contribution
in %
73
73
73

Monthly
charges
15
15
15

Premium

Revenue Rs

3635
3635
3635

197.4481
205.2235
207.2713

Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13

18.1797
17.9632
15.9740
15.7968
15.6706
15.5100
15.4479
15.1516
16.1597
16.4646

5000
5000
5000
5000
5000
5000
5000
5000
5000
5000

73
73
73
73
73
73
73
73
73
73

15
15
15
15
15
15
15
15
15
15

3635
3635
3635
3635
3635
3635
3635
3635
3635
3635
Total Unit
Unit value
Investment
Returns

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%

199.9483
202.3582
227.5573
230.1099
319.0688
234.3649
235.3071
239.9087
224.9423
220.7767
2944.2851
48476.4765
65000
34.0857

Risk Return analysis of Bharti AXA Products

QUESTIONARIES:
1) Table showing the age of respondents
Age below 20 years
20 40 years
40 60 years
60 80 years

25
45
15
15

age
< 20 yers
20 - 40 years
40 - 60 years
60 - 80 years

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:
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Risk Return analysis of Bharti AXA Products

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

Child education
Retirement

25
15

Childs marriage
Medical illness

25
35

concern
childs education
retirement
childs marriage
medical illness

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 %

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Risk Return analysis of Bharti AXA Products

Question 3:
Table shows factor which they will concern about when purchasing a product?
Allocation
Fund management
Fund administration
All of the above

45
20
15
20

Factor
allocation
fund management
fund
administration
all of the above

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

Question 4:
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Risk Return analysis of Bharti AXA Products

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

Bharti axa

Other insurance products

92

opinion
bharti axa
others

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

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Risk Return analysis of Bharti AXA Products

CHAPTER V
SUMMARY OF FINDINGS, CONCLUSIONS,RECOMMENDATIONS
.
FINDINGS
Based 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
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Risk Return analysis of Bharti AXA Products

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
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Risk Return analysis of Bharti AXA Products

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

BIBLIOGRAPHY
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Risk Return analysis of Bharti AXA Products

Options 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..

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Risk Return analysis of Bharti AXA Products

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;

4)

a)

Govt. Employee

b)

Private Employee

c)

Self Employee

d)

Other

DO YOU LIVE IN JOINT FAMILY?

a)

Yes

b)

No

5) HOW MANY FAMILY MEMBERS ARE THERE IN YOUR FAMILY?

6)

7)

a)

2-4

b)

4-6

c)

Above 6

WHICH IS YOUR BIGGEST CONCERN FOR FUTURE?

a)

Child education

b)

Retirement

c)

Childs marriage

d)

Medical illness

DO YOU HAVE ANY LIFE INSURANCE POLICY?

a)

Yes

[
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Risk Return analysis of Bharti AXA Products

b)
8)

No

IF YES, IN WHICH COMPANY AND WHICH PRODUCT?

9)

DO YOU LOOK AFTER COMPETITION WHEN YOU PURCHASE

PRODUCT?

10)

a)

Yes

b)

No

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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