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Abstract

The initiative of this project is to do a research about the operation and the organizational
behaviour of a larger organization in Sri Lanka under different topics. Through this research it
is expected to develop the skills such as Identifying essential key concepts in Industrial
Management, Application of theory in a practical organizational environment and Presenting
theoretical knowledge in an effective manner. Here, as the organization I have selected AVIVA
NDB insurance Private Limited which is a very popular insurance company in the global
insurance industry.We gather the information about the organization under several categories
and do a literary study about how the organization uses the industrial management concepts
for the operation of the organization with the purpose of achieving the goals. Here, we find the
information about the type of the products and services provided by the organization and its
history, the cooperate culture of the organization including visions, core values, practices,
human resources, and physical environment, and also the effect of external forces on the
organization such as political, economical, demographical, natural, technical, socio-cultural
and internal factors such as customers, employees, competitors etc. We also study about the
processes that are in operation for the achievement of organizational targets and their plans
for getting the maximum contribution of the employees for the success of the company. In an
any kind of organization, there is a special procedure for making business decisions.
Employees in each level of the company has their responsibilities in decision making process,
and we try to get a clear view of this special criteria of AVIVA NDB. Finally we find how the
organization has contributed for the welfare of the society by organizing cooperate social
responsibilities.

Acknowledgement
My special thanks goes to Mr. Sarath Wikramanayake who worked as an independent NonExecutive Director of AVIVA NDB Insurance company, for helping me to get information for
my Industrial management and marketing individual assignment.
I would like to express my gratitude towards our dear lecturer, Miss. Thesara
Jayawardhana,who delivered the lectures clearly in order to make to make sure we understand
the marketing and management concepts and apply them practically.Without her supervision
and guidance this assignment would be impossible to achieve.

Contents
Abstract .................................................................................................................................. 1
Acknowledgement ................................................................................................................. 2
1. Background of the AVIVA- NDB Insurance Company .................................................... 4

The history of AVIVA NDB ....................................................................................... 4

The services provided by AVIVA NDB .................................................................... 5

2. The corporate culture and environment of the organization ......................................... 6

Vision ......................................................................................................................... 6

Mission ...................................................................................................................... 6

Core values of AVIVA NDB ...................................................................................... 6


Trust and transparency ...................................................................... 7

3. The impact of the internal and external market elements upon AVIVA- NDB .............. 8

External factors ........................................................................................................ 8

Internal factors ........................................................................................................ 10


Customer relationship management .............................................. 10

4. Planning and goal setting and pertaining to the organizational function to which the
selected managerial level employee belongs ................................................................... 11
Performance Governance ............................................................... 12
Training and development. ............................................................. 12

5. The decision making process in the organization ........................................................ 13

Division of responsibilities in decision making ................................................... 13

Managing directors duty ....................................................................................... 13

Chairman's function in the Board ......................................................................... 13

Corporate Governance and Internal Controls ...................................................... 14

Directors' Responsibilities on Financial Statements ......................................... 14

Board of the committee.......................................................................................... 15

Obtaining of independent professional advice .................................................... 15

6. CSR activities carried out by the organization.............................................................. 16

Safety awareness programs .................................................................................. 16

Educational programs ............................................................................................ 16

Scholarship for insurance studies ........................................................................ 17

Poson Vandana Train ............................................................................................. 17

AVIVA NDB hands over Aviva School Village to the children ............................ 18

Free Life Cover for fathers of newborns............................................................... 18

Conclusion ........................................................................................................................... 19
References ........................................................................................................................... 20

1. Background of the AVIVA- NDB Insurance Company

The history of AVIVA NDB


Originally Ceylon Tobacco Company founded Eagle Insurance as CTC Eagle. For a long time
eagle insurance company survived in Sri Lankan insurance field competing with other leading
companies. 07th February on 2010 the company owners decided to change the Eagle insurance
PLC into Aviva NDB insurance PLC after selling some of the shares to the AVIVA and NDB
companies. After this change, the organization became much more powerful, innovative, by
the combined strengths of the global Aviva group, UKs biggest and the worlds sixth largest
insurance group with the high financial power of NDB, one of the biggest financial companies
in Sri Lanka . Aviva is designed to benefit customers with worldwide expertise, and on the
other hand the NDB gives a high financial power for the Aviva NDB insurance PLC.

During the past years, Aviva had brought together several different brands around the world
under the Aviva name. Moving towards a single global brand is a major part of the companys
"One Aviva" vision to provide the best products and services to customers around the world.
The decision which was taken to combine Aviva and the NDB names to transform Eagle
Insurance into Aviva NDB Insurance PLC involves the use of the name of the companys
second largest shareholder in the title of the business.

The services provided by AVIVA NDB


Avivas principal business activities are long-term insurance & savings, fund management and
General insurance.AVIVA NDB Insurance PLC provides life and general insurance for both
individual and corporate customers in Sri Lanka. They offer the customers a wide range of
products and services which include the retirement savings plans,financial protection plans,
life insurance and accident and health insurance, motor insurance policies and travel
insurance.Their

business

solutions

include,

employees

life

insurance,

workmen's

compensation insurance , surgical and hospitalization insurance for employees and eMarine
insurance services for importers and exporters such as marine cargo insurance. Providing
industrial risk management advice and services such as loss investigations,property risk
assessments,hazard analysis, risk management communications, occupational health and
safety management, and safety training programs is one of their tasks.
In addition, AVIVA NDB Insurance PLC also offers the asset protection insurance that
includes, engineering class insurance which is meant by the protection against fire/lightning, ,
malicious damage, floods, explosion, inundation, , burglary and theft, storms, accidental
damage, riot and strike, , clearance of debris, terrorism and the third party liability for life and
property.

2. The corporate culture and environment of the organization

Talking about the coorperate culture in AVIVA NDB their vision, mission and core values are
very important.
Vision-To be a world class provider of financial solutions for protection and wealth creation
Mission-To be the most sought after Insurer in Sri Lanka for security,having excellence
in services,achieving leadership in identified segments of the market

Core values of AVIVA NDB


Integrity-Behave in a way consistent with professional and ethical standards, which means
being open,honest,keeping commitmments,personal responsibility,trust and respect.

Teamwork-Teamwork is their life blood.Being committed to a common vision and


objectives,sharing knowledge and learning.

Performance-having clear targets and achieving them by everyone working in an efficient


manner.

Progressiveness-leading the industry by listening and responding to the customers and


keeping ahead the competition.

The have the concept of insurance advisors becoming wealth planners to satisfy the needs
of the customers.They are also called as the team the customers can trust.Their initiative is
to provide better service with advanced technology to serve customers more efficiently.

The organization culture of AVIVA NDB is based on Family oriented . Every employee in the
AVIVA NDB insurance company is considered as a member of the AVIVA NDB family They
believe that their strength depends on family oriented culture and their core values,because
these core values reflect what is important to them.There are several aspects can be seen in
the corporate culture of this organization including,

Accepting risk with responsibility

Innovation

Dedication to customers

Being ethical and social responsibility

Encouraging everybody to contribute

Trust and transparency-

They want their customers to have complete trust in them, that they will always act fairly and
with integrity. Being transparent in the things they do, is one of the important value of AVIVA
NDB. They make available the information about their activities to international bodies, and
customers. This is part of a process that ensures they keep improving the way in which they
perform.
In their words they say,
In a world of me first! were putting our stakeholders at the center of everything we do. We
put people before policies. And where others see a policy, we see a person. You will see this
attitude at AVIVA NDB every day, in the little things we do differently that bring people and
personal concerns back into the insurance transaction. It is our way of reinforcing trust,
improving services and most of all, increasing value.So whoever you are, our mission remains
steadfast. We build our business around you
(AVIVA NDB annual report 2010)

3. The impact of the internal and external market elements upon AVIVA- NDB
External factors
Political factors
Changes in government policy and legislation affects to AVIVA NDB.The changes in
government

has a great effect to the tax treatment of financial products and services,

government pension arrangements and policies, the regulation of selling practices and
solvency standards. These changes may also change the existing and future business. They
are exposed to various local political, regulatory conditions, and business risks which may in
turn affect the demand for their products and services.

Economic conditions

.The complex conditions in the economies of major European markets has led to lower demand
for savings products. During 2011, there was a slowing economic growth. Longer-term low
interest rates in developed markets and inflationary threats increased the volatility in the
financial markets. The customers gave their preference for less complex products and reduced
their exposure for investment markets.
Considering Capital and credit market conditions
AVIVA NDB invest funds across various financial investments, including equities, fixed income
securities and properties. The company has to seek for the volatility in the market value of
these investments.Investment market factors also affect the demand for life insurance
products. As an example, increasing equity price levels effect have a positive effect on the
demand for equity-linked products, like unit trusts and unit-linked life insurance products.But,
this has a negative effect on the demand for products that offers fixed minimum rates of return.

Exchange rate fluctuations

The company is exposed to translation risk that arises from fluctuations in the values of the
foreign currencies such as euro and US dollar. These Movements in exchange rates affect
the value of the consolidated shareholders equity.
Demographic trends
The companys profits are affected by the demographic factors such as the aging population
and the focus on education.They were the key factors behind the introduction of the new
retirement benefit products and products that cater to education in 2010. , If there is a a high
proportion of older people, there will be a good demand for pre- and post-retirement planning.
Lower mortality rates, will increase the profitability of life insurance products but also will
reduce the returns on annuity product.
Natural factors
The profits of the insurance company are highly affected by the amount of claims they have
to pay out, in turn, for natural disasters which occur from adverse weather conditions,
earthquakes and other such natural phenomena. AVIVA NDBs exposure to large disasters
has been reduced through their focus on personal lines business and also small to medium
sized commercial risks in general insurance business.

Technological factors
The company has to explore new markets and products with new technologies to sustain
continuous growth. As a consumer need, AVIVA NDB Insurance launched Unit-linked or
Investment- linked products using their technical skills, for retirement and cater to education.

Internal factors
Customers

AVIVA NDB build their business around the customer.

Customer relationship management

AVIVA NDB offers best value to its customers including both individuals and business
customers.They provide many services to the customers such as

practicing the call center customer problem resolution methods

resolving online customer queries

using procedures which aim to resolving complaints within 15 days

providing customer guidance counselling

providing facilities to download policy statements and premium renewal receipts


through internet

Competitors
Competitors are the organizations in the same industry that provides same types of goods or
services to the same set of customers.The competitors of AVIVA NDB Insurance are

Allianz Insurance Lanka Ltd

Amana Takaful PLC

Ceylinco Life Insurance Limited

HNB Assurance PLC

Janashakthi Insurance PLC

LOLC Insurance Ptd etc

Employees
The engagement of the employees within the Company is measured by 4 factors advocacy,
pride, satisfaction and commitment.
There are training programmes to enhance the skills of the workers to make them easier to
adopt for changes and also the advancement of technology.
Aviva NDB has created an environment that is engaging, energising, challenging, and
rewarding for employees. There is a Sports Club, a voluntary staff committee to organize fun
events matching the demographical mix of the employees in the Company.

4. Planning and goal setting and pertaining to the organizational function to


which the selected managerial level employee belongs
AVIVA NDBs key competencies are,

Working in multi-disciplinary or multicultural environments

Providing the effective leadership which inspires, develops, motivates, and builds
capability among the team members.

Strategically or competitively located branch network development

Event Management

Entrepreneurial Leadership

Team building and also Team work through relationship management

Strategic Planning

Management of the Cost effective distribution network

Training and the development of all field management or staff

They achieve their goals by developing their skills as,

Planning, and monitoring Company objective

Work within the given budgets

Managing the supply chain efficiently and effectively and also keeping cost at a
minimum.

Implementing change management without affecting moral or the efficiency of the value
chain.

Proactive to the changing market or customer needs and working very closely with
marketing to full fill the product or service gaps.

Proactive to the prevailing Market competition and conditions

Performance Governance
AVIVA NDB has a framework for monitoring the business profit and performance in all financial
and non-financial areas, in an effective manner. There is a well-developed structure of planning
of a 3 year rolling plan that is approved by the Board of Directors. According to the plan the key
performance indicators (KPI) have been established for each kind of business unit with the
defined targets. The levels of the achievements of the KPIs are reviewed on a weekly or
monthly basis by the senior management team. Solvency and liquidity are some of the key
elements of focus and the performance is reviewed by a team from Aviva's Asia Pacific
Regional Office.

Training and development.

According to the top management view,the most valuable resource of the company is their
work force.Therefore, they have a great interest on human resource development.To achieve
the goals ,they have to build a highly motivated team.They believe that, through HR
developments,they can reach to the success of the company.
Aviva NDB has empowered their sales force in order to meet both life and general insurance.
They are also called as wealth planners.The company expects to provide all the insurance
solutions to their customers by a single wealth planner.These trainees are given continuous
training programmes through their centre for excellence.They receive training for
professionalism,integrity and dedication to their customers.

In the companys plans for the achievement of goals , they have a proposal to employ their
wealth planners with laptops.This gives advantages of utilizing advanced technology, through
providing effective and efficient services to customers.Aviva NDB provides motivational
schemes not only for wealth planners,but also for their entire workforce such as regular reward
schemes for recognizing excellence.The main reason behind that is they want to build a
commited and motivated team, so they can achieve their targets easily.

5. The decision making process in the organization


Division of responsibilities in decision making
The responsibilities of the Chairman and the Managing Director are separated to make a
balance of power and division of duties in strategic and important operational decisions of the
Company.

Managing directors duty


The Managing Director's duty is the management of the Company according to the board
statements They are also accountable for the achievement of both financial and non-financial
goals stated in the Company plan.

Chairman's function in the Board


The Chairman has the responsibility for leadership of the Board, managing of Board Meetings
and the business undertaken thereat. The Chairman, and the Company Secretary are
responsible in making sure that all relevant issues are on the Board agenda and Directors
receive important information and documentation at the correct time.

Corporate Governance and Internal Controls

In AVIVA NDB, The Board of Directors, have the responsibility of conducting the business
activities of the Company with accepted governance practices. Furthermore, the Board of
Directors, whose responsibilities are delegated to management, are accountable for the overall
management of the Company.
For the Executive responsibilities of the Company there are two Directors
Managing Director - directly responsible for day-to-day business operations of the Company.
Non-Executive Directors- do not have any business interest which could interfere with the
exercise of their independent judgement

Directors' Responsibilities on Financial Statements


Selection of accounting policies and applying them consistently
Present information in a relevant manner
State that the Company goes with the given Sri Lanka Accounting Standards, subject to any
material deviations explained in financial statements.

In decision making process, Management's responsibility is

to develop policies for the

requirements .The Boards duty is to approve the developed policies and to monitor the
performance of the management.

Board of the committee


The Board of committee is accountable to the stakeholders that the business is operated in an
appropriate manner and the financial and non-financial goals of the Company are being
achieved. The specific duties of the Board are,

Company strategy and business plan

Financial reporting and controls

Financial performance

Shareholder dividends

Policyholder dividends and surplus transfers from the Life fund

Changes to the Companys capital structure

Company's risk profile and risk map

Board Appointments

Board Meetings

At least 1 Board meeting is held weekly and if necessary additional meetings are held. And
sometimes decisions are approved through circular resolutions.

Obtaining of independent professional advice


The members of the board are allowed to get independent professional advice from other third
parties including, Company's external lawyers and auditors, at the expense of the Company,
when it is necessary.

6. CSR activities carried out by the organization

AVIVA NDB has designed its CSR projects strategically to benefit all its stake holders,
customers, employees and society. The company has given its cooperate commitment to the
area of safety and education through their CSR projects.

Safety awareness programs


The company organized safety awareness programs for individuals/families like preschool
teachers seminar on safety, use of fire crackers and fireworks, road safety, poster
competition on safety and gave sponsors on safety awareness.
In order to initiate the corporate safety, the company introduced National safety awards for
the safest work place in collaboration with labor department and employee trust fund.

Educational programs
To promote their cooperate commitment on education they organized several CSR projects
such as Guru Pubuduwa seminars, Developing adults by positive thinking through
seminars,offering placement opportunities to university students,developing entrepreneurial
skills,recognizing excellence in arts-AVIVA-NDB Excellence Awards, sponsoring National
Civilian Bravery Award.

Scholarship for insurance studies


AVIVA NDB Insurance launched a scholarship scheme for students who excel in insurance
studies. The student with the most outstanding academic performance in the Department of
Insurance and Valuation is selected by the University to be awarded the scholarship. The
student selected receives a monthly allowance during the final year of study and a six-month
career guidance training opportunity at AVIVA NDB Insurance.

Poson Vandana Train

AVIVA NDB organized the Poson Safety Campaign and made arrangements for a special free
shuttle service between Anuradhapura and Mihintale. Also the volunteer lifeguards who were
the employees of AVIVA NDB saved the lives of many people who were going to be drowned
in the lakes.

AVIVA NDB hands over Aviva School Village to the children


Under the Street to School agenda in Sri Lanka,AVIVA NDB completed the first phase
development work of the Aviva School Village in Rathugala Monaragala district. The
Company completed the development of a tube well; providing drinking water to all villagers, a
school play ground, and a shrine room. Employees of AVIVA NDB donated 380 books to the
children , whilst the Company donated school supplies packs to all the children of the school
and plants for the school.
Renovations were done to the school at Ihala Hevessa, adopted as the Aviva Green village.
Renovations included building toilets for the children and repairing the schools roof. A
computer was donated to the school library.

Higher Education Scholarships are awarded to grade 5 students who get the heighest marks
from scholarships in each district since 1994.

Free Life Cover for fathers of newborns


Fathers of all the babies born between February 21 and March 21 in 2010 were qualified
to apply for the Rs. 200,000 free life cover offered by AVIVA NDB Insurance.

Conclusion
From this research we can see that AVIVA NDB organization operates according to the
management and marketing concepts we have learned.The organizational structure and the
processes are based on giving priority for the customers needs.Customer is the main concern
of them.There is a motivating, encouraging environment in the company for the
employees.They are given special benefits to make them satisfied workers, so that they will
give their full contribution towards the success of the company by working under their
visions,missions and core values.In decision making process, even in executive level ,each
level is accountable for the superior levels for their decisions and everything they do.They can
not make decisions according to their own wish.The concepts such as division of
responsibilities,performance governance

and cooperate governance are used in the

organizational operation.After the transformation of Eagle Insurance to AVIVA NDB , the


organization has gained more power and success.Not only providing the insurance services to
the customers, but AVIVA NDB also contribute in various cooperate social responsiblility
projects for the development of education and health sectors.As an insurance company they
specially give a contribution for improving the health of the people.
According to these factors, we can see that AVIVA NDB Insurance company is an organization
that operates within the accepted management and market concepts and it also provides a
great service for the customers.

References

AVIVA NDB A Life with Insurance. 2015. AVIVA NDB A Life with Insurance.
[ONLINE] Available at: http://www.manthrirathne.org/aviva-ndb/. [Accessed 21 July
2015].

Read Aviva NDB. 2015. Read Aviva NDB. [ONLINE] Available


at:http://www.readbag.com/avivandb-pdf-aviva-ndb-ar-2010. [Accessed 21 July 2015].

Investor relations - Reports - Aviva plc. 2015. Investor relations - Reports - Aviva plc.
[ONLINE] Available at: http://www.aviva.com/investor-relations/results-andreports/reports/. [Accessed 21 July 2015].

Transformation aviva ndb. 2015. Transformation aviva ndb. [ONLINE] Available


at: http://webcache.googleusercontent.com/search?q=cache:46GbOoK_AoJ:www.slideshare.net/gayansrinath/transformation-aviva-ndb9051308+&cd=8&hl=en&ct=clnk&gl=lk. [Accessed 21 July 2015].

Eagle Insurance Transforms Into AVIVA NDB Insurance | The Sunday Leader .
2015. Eagle Insurance Transforms Into AVIVA NDB Insurance | The Sunday Leader .
[ONLINE] Available at:http://www.thesundayleader.lk/2010/03/07/eagle-insurancetransforms-into-aviva-ndb-insurance/. [Accessed 21 July 2015].