Tata AIG General Insurance (1)-1

TATA AIG GENERAL INSURANCE COMPANY

 INTRODUCTION Tata AIG General Insurance Company Limited (Tata AIG General) is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG).. Tata AIG General Insurance Company, which started its operations in India on January 22, 2001, provides insurance solutions to individuals and corporates. It offers a complete range of general insurance products including insurance for automobile, home, personal accident, travel, energy, marine, property and casualty as well as several specialized financial lines. The Company believes in offering innovative and relevant insurance solutions in the retail and commercial space. Each product offering is backed by expertise and an unparalleled claims service. The Company's products are available through various channels of distribution like agents, brokers, banks (through banc assurance tie ups) and direct channels like Tele Marketing, Digital Marketing, worksite etc.

OBJECTIVE OF STUDY  To find out how political, economic, socio-cultural, technological factors affecting this industry by PEST analysis.  To find out how the market condition and what level of competition is there by five force analysis.  To analyze driving forces and key success factors of the industry  To analyze various threats and opportunities for the industry  To focus on current trends and future of the industry.

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TATA AIG GENERAL INSURANCE COMPANY

 COMPANY OVERVIEW

 VISION

To be India's most preferred General Insurance Company.

 MISSION To be the most preferred Insurer for the Brokers in India To be the First Port of Call and the Final Destination for the Brokers

 GOAL To create unmatched value for our customers, employees, business partners and Shareholders by delivering remarkable service that is consistent, fair and transparent.  VALUES We share a set of 6 core values: Customer First, People, Passion, Performance, Integrity and Empathy.

 PRODUCT OFFERING The various general insurance products offered by TATA AIG General Insuarnce are as follows: Personal      

Motor Home Health Travel Lifestyle Customer Service Page | 2

TATA AIG GENERAL INSURANCE COMPANY

Small Business      

Shop Insurance Office Insurance Education Institutes Insurance Hotel & Restaurants Insurance Housing Society Insurance Package Insurance

Corporate       

Motor Health Travel Fire & Engineering Marine Cargo Financial Liability Casualty

Rural     

Motor Property Livestock Health About Rural Insurance

Private Client Group    

Motor Insurance Home & Contents Fine Art & Valuables About PCG

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TATA AIG GENERAL INSURANCE COMPANY

 INTERNAL ENVIRONMENT-SWOT ANALYSIS

 Strengths      

TATA AIG has a strong brand name with TATA & AIG with it. It offers good career oath to advisors (Advisor to Business associate to senior business associate and finally to managerial business associate) TATA AIG has good reputation among customers. TATA AIG has strong training support. It ensures long term growth for insurance advisors. Products with emphasis on social aspects.

 WEEKNESS   

TATA AIG is conservative in context to advertising. Small Agent Strength as compared to competitors Cases of fraud agents have caused problems to the brand

 OPPORTUNITIES 



Insurable population –According to ING only 10% of the population is insured, which represents around 30% of the insurable population. This suggests more than 300m people, with the potential to buy insurance, remain uninsured. General insurance industry in india is goin at the rate of CAGR in terms of gross premium collection.

 THREATS  

Because of mushrooming of private insurance, there is increased competition. The training periods of 18 working days/100 hrs. and the fee of 1000 also stand as hindrance for people who are interested to become insurance advisors.

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TATA AIG GENERAL INSURANCE COMPANY

 BCG MATRIX BCG provides a framework for senior management in allocating resources across business units in a diversified firm by – Balancing cash flows among business units, and – Balancing stages in the product life-cycle (PLC)

MATRIX QUADRANTS

Strategic Perspectives of Products in Different Quadrants Four different strategic perspectives •

Investment

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Earnings

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Cash-flow, and

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Strategy Implications

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TATA AIG GENERAL INSURANCE COMPANY

Question Marks (PROBLEMS OF TATA AIG GENERAL INSURANCE) •

Investment—heavy initial capacity expenditures and high R&D costs

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Earnings—negative to low

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Cash-flow—negative (net cash user)

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Strategy Implications – If possible to dominate segment, go after share. If not, redefine the business or withdraw

 STARS     

Investment—continue to invest for capacity expansion Earnings—Low to high earnings Cash-flow—Negative (net cash user) Strategy Implications Continue to increase market share—even at the expense of short-term earnings

 COWS    

Investment—Capacity maintenance Earnings—High Cash-flow—Positive (net cash contributor) Strategy Implications-Maintain market share and cost leadership until further investment becomes marginal.

 DOGS    

Investment- Gradually reduce capacity Earnings-High to low Cash-flow- Positive (net cash contributor) if deliberately reducing capacity Strategy Implications-Plan an orderly withdrawal to maximize cash flow

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TATA AIG GENERAL INSURANCE COMPANY

RECOMMENDATIONS FROM BCG Matrix (Three Paths to Success)  Continuously generate cash cows and use the cash throw-up by the cash cows to invest in the question marks that are not self-sustaining  Stars need a lot of reinvestments and as the market matures, stars will degenerate into cash cows and the process will be repeated.  As for dogs, segment the markets and nurse the dogs to health or manage for cash.

 EXTERNAL ENVIRONMENT

PESTEL ANALYSIS

POLITICAL FACTORS  In Tata Aig, Political Factors are influence by how and what degree a government intervenes in one company.  Specifically, political factors of Tata Aig includes as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability.  It may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads).  Business environment is adversely affected by the absence of political stability. The workers’ union may demand higher wages, may indulge in frequent strike etc., which affect the normal functioning of business.  The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses.

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TATA AIG GENERAL INSURANCE COMPANY

ECONOMICAL FACTOR 

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The tataaig insurance market is about Rs.11000crores and with the expected growth in the Indian economy and new players moving in, the market for general insurance is expected to grow at 18% per annum. Over the last ten years, the compounded average growth rate for the industry works out to more than 15%. The five major categories - fire, marine (hull), engineering, motor (both ownerdriven and third party) and workers compensation (clubbed either with engineering or miscellaneous) comprised 62.41% of non-life business in the year 1999-2000.

SOCIO-CULTURAL FACTOR  

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Tata AIG has a performance based culture. Your career progression is determined by your experiences, your interests and the results you deliver. TATA AIG also seek to be the most innovative, the most tenacious in opening new markets and the most creative in developing new products and offering state-of-the-art services to clients, brokers and agents around the world. Indeed, our pace and result-orientation defines us in the marketplace. Culture@ Tata AIG enables its employees to collaborate with people and draw from experience around the country. Tata AIG not only enables you to work with dynamic people, but also enables you to keep a healthy work-life balance. You will find the time and the organizational encouragement to enhance your interests and share them with others. Surrounded by smart, resourceful people, you will notice positive-ness in the atmosphere. Tata AIG employees actively contribute to various community-based initiatives and you can be a socially responsible citizen through our Corporate Social Responsibility Programme.

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TATA AIG GENERAL INSURANCE COMPANY

TECHNOLOGICAL FACTOR      

Technology, wage inequality and the demand for skilled labor Aggregate data suggest IT is behind the labor demand shifts Internet-Speed of network access the internet – much more than just another distribution channel Online distribution of insurance policies will grow E-business lowers market entrybarriers.

ENVIRONMENTAL FACTOR 

The Tata ethos places a special emphasis on environmental and ecological issues.

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Its efforts to preserve and regenerate the environment find expression in the slew of projects and programmes it has undertaken in and around its facilities and operations. The Tata group's beliefs on sustainability have led to a corporate policy that emphasises environment preservation. Tata companies work on projects that include repairing green cover, reducing effluents and emissions, maintaining local ecologies and improving long term corporate sustainability.

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LEGAL FACTOR  

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Employees of a Tata company, in their business conduct, shall comply with all applicable laws and regulations, in letter and spirit, in all the territories in which they operate. If the ethical and professional standards of applicable laws and regulations are below that of the Code, then the standards of the Code shall prevail.Directors of a Tata company shall comply with applicable laws and regulations of all the relevant regulatory and other authorities. As good governance practice they shall safeguard the confidentiality of all information received by them by virtue of their position.

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TATA AIG GENERAL INSURANCE COMPANY

 GRAND STRATERGIES of TATA AIG General Insurance Company: 

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Tata AIG currently has six completely networked branches, one each in Mumbai, Delhi, Chennai, Kolkata, Hyderabad and Bangalore. The company plans to add six more branches, in Chandigarh, Pune, Ahmedabad, Cochin and Guwahati,. The six branches already established have a staff strength of about 160 people; the next six will need an additional 30 to 40 people only. Tata AIG has a wide range of products in its basket and it is the simplicity and customisation of these products that the company hopes will attract customers. Tata AIG General Insurance has added some 14-150 add on products to the existing range of services out of which 70 per cent have been approved. 60 – 70 per cent belong to the property sector, 40 per cent deal with the engineering sector and a dozen on the motor insurance segment. As and when policies will get renewed the company will start offering these products. With the new services included the company aims at growing at a rate of 14-15 per cent in the coming years. Tata AIG General Insurance is planning to launch a slew of motor insurance products in the next few months, a top company executive said. "We have filed 10-12 products in the motor insurance segment with the regulator. We hope by April 1 this year, our products will be in the market,

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TATA AIG GENERAL INSURANCE COMPANY

Bibliography

http://www.tataaigwellsurance.com/wellsurance/portal/AboutUs/About us.html

http://www.tataaiginsurance.in/taig/taig/tata_aig/corporate/trade_credi t/ http://www.tata.com/company/profile.aspx?sectid=owGvSueU2Ac=

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