PRESENTED BY :

PRESENTED BY :
PANKAJ AGARWAL
PANKAJ
AMRITA AGARWAL
SATWANI
AMRITA
RANJAY SATWANI
KR SINGH
RANJAY
UJJAL KRKR SINGH
CHANDRA
UJJAL
MILANKRKRCHANDRA
PANDEY
MILAN KR PANDEY
INTRODUCTION

The TATA group



•
• The TATA group is India's best-known industrial group in the
private sector with a turnover of around US $ 10.4 billion
(equivalent to 2.4% of India's GDP). It is India's most respected
private business group. With 219000 employees across 94
major companies, it is also India's largest employer in the
private sector.
• Founded by Jamshedji Tata in the 1860s, the Tata group's early
years were inspired by the spirit of nationalism. The Tata group
pioneered several firsts in Indian industry: India's first private
sector steel mill, first private sector power utility, first luxury
hotel chain and first international airline, amongst others. In
more recent times, the Tata group's pioneering spirit continues
to be showcased by companies like Tata Consultancy Services
(TCS), today Asia's largest software and services company, and
Tata Engineering, the first car maker in a developing country to
design and produce a car from the ground up.
INTRODUCTION TO AIG INC
• American International Group, Inc. (AIG) is the world's leading
international insurance and financial services organization, with
operations in approximately 130 countries and jurisdiction. AIG
member companies serve commercial, institutional and individual
customers through the most extensive world wide property-
casualty and life insurance networks of any insurer.
•
• In the United States, AIG is the largest underwriter of commercial and
industrial insurance and is one of the top three life insurers. AIG's
global businesses also include financial services, retirement
savings and asset management. AIG's financial services businesses
include aircraft leasing, financial products, trading and market
making.
•
• AIG's growing global consumer finance business is led in the United
States by American General Finance. AIG also has one of the
largest U.S. retirement savings businesses through AIG Sun
America and AIG VALIC, and is a leader in asset management for
the individual and institutional markets, with specialized
investment management capabilities in equities, fixed income,
alternative investments and real estate. AIG's common stock is
INTRODUCTION TO TATA AIG

• The non-life insurance arm, Tata AIG General Insurance

Company, which started its operation in India on Jan
22, 2001, offers the complete range of insurance for
automobile, home personal, accident, travel, energy,
marine, property and casualty, as well as several
specialized financial lines.
•
• OUR VISION
To be the fastest growing Life Insurance Company in
India, measured by annualized premium growth,
procuring persistent business, delivering first class
customer service, adding shareholder value by 2007.
•
 TATA AIG - HISTORY

• Joint venture company, formed by the Tata Group and

American International Group, Inc. (AIG).
• The Tata Group holds 74 per cent stake in the
insurance venture with AIG holding the balance 26
percent.
• started its operations in India on January 22, 2001,
provides insurance solutions to individuals and
corporates.
• offers a complete range of products including
insurance for automobile, home, personal accident,
travel, energy, marine, property and casualty as
well as several specialized financial lines.
• 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
and direct channels like Tele Marketing, Digital
Marketing, worksite management etc.
 BUSINESS MODEL

§ Tata AIG''s agency system is based on a two-tier

model.
§ The first tier agents and the second tier form the
business associates or agents who are
promoted to the next level based on
performance. These associates also get to
recruit new agents and manage them.
§ since market penetration is possible , individual
agents account for half the company''s total
premium, with the other half coming from other
distribution channels like banks, corporate
agents and brokers.
§ The company''s average premium per policy is
over Rs15,000. A substantial 55 per cent of the
 BUSINESS MODEL

• private life insurer to have adopted the zonal business

model unlike, the centralised model followed by
other companies.
• According to Neetasha Joshi, senior vice president and
South zone business head, most of the decisions
barring those relating to claims have been
delegated to the zonal offices. "This in turn has
resulted in faster turnaround time and increase in
business."
• Detailing the features of the company''s InvestAssure
Gold, Roy said, the policy offers full life cover till the
age of 100 years and offers flexible premium
payment options.
• A 0.25 per cent of units under the regular premium
account are also offered as assured loyalty benefits
at the end of every five years.
• In addition the policy allows policyholders to increase
the sum assured through top ups and offers a
5 CORE VALUES
 TA TA -A IG T O W A R D S T H E N O . 1 P O S IT IO N IN IN D IA
Priva te in su ra n ce co m p a n ie s p o rtfo lio p re m iu m ( 2 0 0 2 -2 0 0 3 )

FIRE  MARINE MOTOR ENGINEERING HEALTH OTHERS T 

%   %   %    %   %     % Rs.    %  Rs. in   %   %  Rs. in   %   O 
T 
Contr   All   Contr Rs. in  All   Contr   %   Contr in   %   Contri Crores All   Contri Crores All   A 
i    India  i    India i  Rs.  All   i  Crore All        India      India
bution Rs. in    bution Crore Contr bution in   India bution s   India bution Contri bution Contri L
Crore Contr s   i  Crore Contr Contri    
  bution bution
s   i  bution s   i 
Bajaj  18.96 55 13.22 2.75 8 9.63 59.31 172 46.36 6.21 bution 14.06 3.79 11
18 13.25 8.96 26 11.65 290
bution bution
Tata- 14.48 32 7.69 11.76 26 31.32 34.84 77 20.75 13.57 30 24.44 14.93 33 30.76 10.40 23 10.17 221
AIG 
ICICI 61.39 132 31.73 41.8 9 10.84 1.39 3 .81 10.61 23 17.97 65.12 14 16.87 15.81 34 15.04 218
-
Limit
ed 
IFCO 48.59 104 25 8.41 18 21.69 12.49 26 7 13.08 28 21.88 4.67 10 12.05 13.08 28 12.38 214
-
TOKI
O 
Relian 29.73 55 13.22 4.86 9 10.84 4.32 8 2.16 8165 16 12.5 2.70 5 6.02 49.72 92 40.70 185
ce 
Royal  20.87 38 9.13 7.14 13 15.66 46.70 85 22.91 7.14 13 10.16 5.49 10 12.05 12.63 23 10.17 182
Sunda
ram 
Total  416 83 371 128
 COMPANY PROFILE
• Tata AIG Life Insurance Headquarters Address
• 5th & 6th Floor Peninsula Towers Peninsula Corporate Park Ganpatrao
Kadam Marg
Mumbai, Maharashtra 400 013
India
Phone: 91 22 5651 6000
Fax: 91 22 5655 0711
• Headquarters
• Bombay Area, India
• Industry
• Insurance
• Type
Public Company
• Status
Operating Subsidiary
• Company Size
1001-5000 employees
• Founded
2001
• Website http
SEGMENTS OF AIG
 OBJECTIVE

To contribute to make TATA – AIG (Life



& Non Life) to become number 1

Insurance Companies in India by
offering all India services through our
proposed 50 offices and all India.
Computer Network “ Medilife
Intelligence Net".

Michael Porter ’ s Five Forces Analysis
BUYER / CUSTOMER POWER
Suppliers Power
RIVALRY AMONG COMPETITORS
BARRIERS TO ENTRY
THREAT OF SUBSTITUTE PRODUCTS
COMPETITION
THE 2 BIGGEST COMPETITORS ARE

LIC
LIFE IN S U R A N C E C O R P O R A T IO N

B IR LA S U N LIFE
A B IR LA G R O U P
INTERNAL STRUCTURE
VISION AND PURPOSE

Our Vision :


• To be India's most preferred General

Insurance Company.


Our Purpose :


• To create unmatched value for our

customers, employees, business partners
and shareholders by delivering
remarkable service that is consistent, fair
and transparent.
•
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
BUSINESS SECTORS

• The TATA Group operates business in seven key industry

sectors. The chart below illustrates how, in percentage
terms, TATA companies in each of these sectors
contribute to the overall makeup of the group. The table
follows the group's sector wise financial performance.
•
•
PRODUCTS


INDIVIDUAL



 DETAILS OF MOTOR AND
HOME INSURANCE
Motor Insurance


•
• Whether it's bad roads or unprecedented rainfall, your fleet of cars is
always at a potential risk that may
• arise from factors other than the ones from the road.
• Our Autosecure policy caters specifically to such potential risks, offering
various degrees of coverage, depending upon specific requirements.
• There are various features, such as a combined three-in-one auto, home and
personal cover.
• Or a three-month warranty on mechanical work and a six-month warranty on
paint and body work, which are some of the other unique features on
offer.


Home Insurance


• If home is where heart is, is yours protected? Truth of the matter is, that
the structure that protects usthrough various hazards of nature, itself
stands at risks from various onslaughts on numerous occasions.
 PRODUCTS
 SMALL BUSINESS
• Society Policy
• Office Policy
• Package Policy
• Educational Institutes Insurance
• Hotel & Restaurant Insurance
• Shop Insurance



 PRODUCTS


CORPORATE

PRODUCT DETAILS
 SOME INNOVATIVE PRODUCTS
• Golden NRI Policies
• Womb to Heaven Policies
• Pyara Beta, Pyara Beti Policies-
• 8 months of pregnancy- Before birth- 5% sum Assured
• 1st year = 10% sum Assured
• 2nd year = 20% sum assured
• 3rd year = 30% sum assured + Medical treatment
• 4th year = 40% sum assured
• 5th year = 50 % sum assured
• 5 years – 18 years = Medical + Education
• 18 years – 35 years = Medical + Education + Marriage
• No marriage , No job ( Life pension)

 SOME INNOVATIVE PRODUCTS

• Group Insurance – Hawkers, Nurses, Doctors, I.T. professionals

• Tour –Well insurance (Free Tours like free medical check up )
• Job Guarantee Insurance policies
• Medical Insurance – Hybrid Products, cosmetics surgery, Dentistry,
surgical treatment – medilife low premium.
• Pharma Sector
• I.T. Sector
• Bio-Tech Sector
• Research Sector
• BPO Insurance
• Key Men Insurance
• Business Profit Guarantee Policies
Tata AIG Life InvestAssure II
Tata AIG Life InvestAssure II(InvestAssure
II) is a unique, flexible insurance plan
which combines the security of a life
insurance policy with the opportunity to
exploit the upside of market returns by
investing in different kinds of securities
through multiple fund options. You can
direct the investments by creating your
own investment fund portfolio from a
range of options to suit your needs and
preferences.
Key features include

• Policy terms of 15, 20, 25 or 30 years.

• No penalty for surrendering the policy any time after the
6th year.
• The Sum Assured is a multiple of the Annualised Premium
payable. The multiple varies according to age at entry
and policy term. You have a choice of premium multiples
to choose from.
• Any premium not deducted for coverage and charges may
be invested in a wide range of investment vehicles,
including: an Equity Fund, Income Fund, Aggressive
Growth Fund, Stable Growth Fund, a Short Term Fixed
Income Fund and Select Equity Fund.
• InvestAssure II also offers the flexibility to switch between
funds, premium top-ups, partial withdrawal, premium
holiday, policy reinstatement, and multiple premium
Tax Benefits , Riders and Age
Eligibility

• Premiums paid under this plan are eligible for

tax benefits under Section 80C of the
Income Tax Act, 1961. Any sum received
under this plan is exempt from tax under
section 10(10D) of the Income Tax Act,
1961.*
•
• Attach Accident, Waiver of premium, Payor
Benefit (for juvenile policy) and Critical
Illness riders to this policy at a nominal extra
cost for added protection.
Tata AIG Life InvestAssure Care

An inspiration that translates into a host of innovative product

solutions for you. Tata AIG Life introduces Tata AIG Life InvestAssure
Care(InvestAssure Care), a unique investment linked insurance plan
with an in-built Critical Illness benefit for the first 5 years of the policy.
Given a choice, most people would like to increase the earning
potential of their insurance premium by deciding their own investment
and risk limits.

InvestAssure Care, a unique, flexible insurance plan combines the

security of a life insurance policy with the opportunity to exploit the
upside of market returns (however, with increased investment
volatility) by providing an option to invest in different kinds of
securities through a choice of five fund options.

What's more, you can direct the investments by creating your own
investment fund portfolio from a range of options to suit your needs
and preferences.
BENIFITS
• Provides security to your family in case of your unfortunate
demise.
• Gives you the flexibility to choose your funds based on your
risk profile.
• Gives you Return of Premium guarantee on maturity incase
you opt for Capital Guarantee Fund
• Enables you to enjoy market-linked returns with a potential
for higher growth.
• Provides Critical Illness cover for the first five years of the
policy.
Key features include :

• Initial Sum Assured: You have an option to choose either the

sum assured or premium you are willing to pay.
• Top-Up: Single Premium top up is allowed anytime during the
period. Minimum Single top-Up Premium is Rs. 5000/- and
will be allowed a maximum of four times in a policy year.
• Top-Up Sum Assured: You have an option to choose an
additional sum assured equal to 1.25 or 5 times Single Top-
Up Premium, subject to underwriting.
• Critical Illness (CI) Benefit: InvestAssure Care offers inbuilt
Critical Illness (Lumpsum) benefit equal to 50% of the basic
Sum Assured for issue ages 18-45 years. This benefit is an
integral part of the product and is mandatory. This benefit is
applicable for the first 5 years of policy term. This Critical
Illness covers the following Critical Illnesses and Surgeries:
(a) Cancer (b) Stroke (c) Heart Attack (d) Coronary Bypass
Graft Surgery (e) Kidney Failure (f) Major Organ Transplant
like Heart, Lung, Liver, Kidney or Pancreas or Bone Marrow
Transplant.
• Choice of Five Fund Options: Growth Maximizer Fund, Growth
Enabler Fund, Short Term Fixed Income Fund,Capital
Guarantee Fund and Select Equity Fund
 ELIGIBILITY

Term of Minimum Age Maximum Age Minimum

Policy at Issue at Issue Annual
Premium

15 years 30 days 45 years Rs.12,000

20 years 30 days 45 years Rs.12,000

TAX BENIFITS

• Premiums paid under this plan are eligible for tax benefits
under Section 80C of the Income Tax Act, 1961. Any sum
received under this plan is exempt from tax under
section 10(10D) of the Income Tax Act, 1961
 PRODUCTS & POLICIES
SOLD BY TATA AIG
• Rural and Social Policies Sold
• Policies sold by TBF through the partner-agent model between March 02 and Nov 03
10680

• Policies through CRIGS Dec 03 to June 05

5900

• Policies sold through other individual agents Dec 03 to Jun 05

17535
•
•
Policies by Product March 02 - June 05

Social Products
• Kalyan Yojana(With and average annual premium of US$ 2.5)
12300

• Karuna Yojana(With and average annual premium of US$ 7.5)

16400

• Jana Suraksha Yojana(With and average annual premium of US$16)

4900

•
•
• Rural Products
 TRAINING
• launched a training academy for the
employees of its corporate
agencies.
• offer a Certified Insurance Consultant
Programme (CICP).

 TATA AIG OFFERS TWO
PLATFORMS
• Traditional Fund & Unit-Linked Fund. Tata AIG Life is the only
Insurance Company in India that offers both, Traditional & Unit
Linked Schemes for Gratuity as well as Superannuation
Schemes.
• The Traditional Fund offers a steady and more disciplined growth,
whereas the Unit Linked Funds are market linked with options
to invest up to 60% in equity funds. Tata AIG Life offers a
transparent mechanism of Unit Linked Fund Management with
five types of funds – Bond, Growth, Balanced, Equity and
Short Term Fixed Income Fund.
• An employer can select any combination between Traditional and
Unit Linked plans - with or without exposure to equity funds. To
help clients capitalize on market variances, Tata AIG Life also
offers the option of switching between Unit Linked plans.
•
 PARTNERSHIP
• Tata-AIG has NGO partnerships with over 50 NGOs. Over
40% of its 35 000 social sector policies were sold through
the partner-agent model. In this model, the NGO/MFI
partner performs the sales and servicing functions,
primarily for its current microfinance clients.
• The two other models, the business associate model and
the CRIG model, account for the remaining 60% of the
new business
•
INVESTING PLANS
LIFE INSURANCE SEGMENT
HEALTH SEGMENT
 McKinsey 7 - S Framework

H A R D Ss

S tru ctu re
S tra te g y H a rd S s
S yste m s

S O FT S s

S ta ff
S kills
S tyle
S h a re d S o ft S s
-Values
 McKinsey 7-S framework
exemplifies…….

H A R D Ss
q Seven areas of an
S tru ctu re
S tra te g y organisation- must work in
S yste m s
harmony
S O FT S s q Elements- interlinked and

S ta ff affected by one another

S kills
S tyle q Growth- managing the
S h a re d interaction between all the
-Values
7 factors
•
Abbreviat
ions Application of the Framework
M.D – Structure
-Managing
Director
G.M
- S.P

S.O
General
Manager Z. M

A.G.M S.O

Reporting System
-

S .P
Assistan
t

Visible Aspect
A.G.M A.G.M
General
Z.M

Manager G.M G.M

Z.M
S .O
Z.M
S.P

M.D
-
Zonal
Manager G.M G.M

S.O S.O
A.G.M A.G.M
S.P
- Z.
M M
Sales Z.

Officer
S.P
S.P

S.O
 Application of the Framework –
Structure contd…

• Invisible Aspect
q Two-way constant
communication
q Delegation of responsibilities

§Role clarity in the reporting system

§No internal competition
§Economies of scale achieved
Application of the Framework
-
Strategy
The role
of HRD
Soft Ss Begin…
starts Application of the Framework -
from
here …
Staff

• Requirement
s:
D e d ica ti
on

Integri
Integr
ty
ity
 Application of the Framework - Skills

Core
C ompetence

Implementat
ion of best
practices
…..
That ’ s also
the shared
value
Components : Application of the Framework –
Style
-building
networks

-co-ordination  Distributed
for
competitiven
 &
ess  Exercised
(bureaucracy 

away and
autonomy to
the managers)

-technology
for
effectiveness
 BCG ( Boston Consulting
Group ) Matrix
• 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)
BCG Product Portfolio Matrix
Dimensions

Product
Sales
Growth
Rate

Relative Market Share (Log Scale)

 BCG Matrix ( cont ’ d )

• The horizontal axis is the Relative

Market Share shown in a log scale
• Vertical line is usually set as 1.0
Relative Market Share
• An SBU to the left of this line means
it is the market leader in the
industry or segment in which it
operates
• Conversely, an SBU to the right of
this line (1.o RMS) means it is not
 BCG Matrix ( cont ’ d )

The vertical axis is the growth rate



• 5 levels may be used: product, product

lines, market segment, SBU and
business growth rate
• Horizontal line is usually set as 10%
Growth Rate
• SBUs above the set value (10% line)
represents high growth rates
• Conversely, SBUs below this value depicts
slower growth rate
 Matrix Quadrants
Relative Market Share
High Low

High

Product
Sales
Growth
Rate

Low
 Key Assumptions of BCG
Matrix
• Stable cost/price relationship
– Not valid if the firm is pricing on
projected lower average unit costs
in the future
• Market leader influences the average
costs
• Profit margin is a function of market
share
– This ignores profitable niches
 Strategic Perspectives of
Products in Different
Quadrants
Four different strategic perspectives


• Investment
• Earnings
• Cash-flow, and
• Strategy Implications
•
 Question Marks
( Problem Children )

• Investment—heavy initial capacity

expenditures and high R&D costs
• Earnings—negative to low
• Cash-flow—negative (net cash
user)
• 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
 Example of a BCG Matrix for a
Fastener Supplier in South East
Asia
Relative Market Share
High Low

Anchoring
High Systems Cable Tray
Systems
Product Electric
Sales Power Tools
Growth
Rate

Low Powder
Actuated
Tools Concrete
Lifting
Systems
Note that the Anchoring System SBU is forecasted to move to new position
 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
GE ( General Electric )/ McKinsey
Multi - Factor Matrix
• Originally developed by GE’s planners drawing on McKinsey’s
approaches
• Market attractiveness is based on as many relevant factors as are
appropriate in a given context
• Business-position assessment also made on a many factors
– SBU needs to be rated on each factor
GE Multifactor Portfolio Matrix
( Cont ’ d )
Industry Attractiveness

High Medium Low

High
Business Strengths

Medium Invest/Grow

Selectivity
/earnings

Low Harvest
/Divest
GE Multifactor Portfolio Matrix
Industry Attractiveness

High Medium Low

Protect Invest to Build

Position Build selectively
High
Business Strengths

Selectively Limited
Build manage for expansion or
Medium selectively earnings harvest Invest/Grow

Selectivity
/earnings
Protect & Manage for
Low refocus earnings
Harvest
Divest /Divest
 ANSOFF MATRIX
• The Ansoff Matrix was first published in the Harvard
Business Review in 1957, and has given generations of
marketers and small business leaders a quick and simple
way to develop a strategic approach to growth.
• Sometimes called the Product/Market Expansion Grid, it
shows four growth options for business formed by
matching up existing and new products and services with
existing and new markets
 THE CORPORATE ANSOFF MATRIX

• Looking at it from a business perspective, staying with your existing

product in your existing market is a low risk option: You know
the product works, and the market holds few surprises for you.
However, you expose yourself to a whole new level of risk either
moving into a new market with an existing product, or
developing a new product for an existing market. The market
may turn out to have radically different needs and dynamics than
you thought, or the new product may just not work or sell.
And by moving two quadrants and targeting a new market with a
new product, you increase your risk to yet another level!
•
 OUTCOME
• If the company introduces new policies to enter into new market , i.e.
target new market, then it can know its result by placing itself into this
ANSOFF MATRIX.
• The company can know and find that whether its new policies are accepted
by the market or not.
• And finally the company can increase its level of new opportunities.
VALUE
DIFFERENCE AFTER MERGER
WITH TATA
TATA AIG ’ s SPEED
 MARKETING STRATEGY
• 1)
Doctors
• 2)
Call Center + Insurance Gallery
• 3)
SMS campaigns
• 4)
Help lines
• 5)
E- Commerce
• 6)
Network Marketing
• 7)
E- Insurance Port folio (Individuals) –
Insurance Department B.P.O. (Companies).
• 8) Wealth Port folio – Finance aggregation
• 9) Portal Services
• 10) Crystal claims services (Unsettled claims
+consumer court services)
 INSURANCE STRATEGY
• Insurance Aggregation.
• Total service + Insurance.
• Create Wealth – protecting wealth is
incidental.
• Innovative Products.
• 15 Domain based products.
• Group Policies.
• Money Back General Insurance.
• Universal Polices.
• Insurance Research.

 TATA AIG MAINTAINING LONG
SUSTAINABLE RELATIONSHIP WITH
BROKING HOUSES BY

• Creating general awareness and importance of this newly

developed channel across the company
• Arming them with knowledge of products offered by our
company
• Explaining them our processes, practices and underwriting
guidelines
• Supporting them in placing business with us
• Acting as a single point of contact for their queries with
respect to remuneration, policy issuance and products
• Recognizing and rewarding the top brokers on All India
Basis at regular intervals.

EXTERNAL RELATIONSHIPS
• Lobbying
•
• Much of the development activity in India is influenced by
the opinions of donors and other development agencies.
Lobbying such agencies thus has created good PR for the
programme and has opened doors by creating
favourable disposition of potential partners towards Tata-
AIG. With respect to parastatal development agencies,
Tata-AIG has lobbied the Small Industries Development
Bank of India (SIDBI), which funds several MFIs.
• Lobbying with SIDBI helped open doors with several
potential partners in Andhra Pradesh.
•
Obtaining Additional Funding


• There were multiple reasons for obtaining additional

funding aside from the obvious one of reducing the need
for in-house funding.
• The DfID grant acted as a catalyst in the development of
the micro-agent distributional model.
• The prestige associated with a grant from an international
development agency improved the status of the
microinsurance project within Tata-AIG.
• In addition, many NGOs reacted favourably to collaborating
with Tata-AIG once DfID was involved.
•
OUT SOURCING FRONT END PROCESSES

• In the micro-agent model used by Tata-AIG, the front-end

processes—mostly selling and servicing the product
—are done by partly by an NGO and partly by a
micro-agent.
• For example, the NGO might be responsible for
aggregating premiums from several agents and
depositing them in Tata-AIG’s accounts.
• The outsourcing of these front-end processes helped to
keep costs down.
•
SALES PROMOTION
 CONTRIBUTION
 Insurance +E-Commerce :
  
• 1. Risk Management + Profit Guarantee Policies
+Globalization +Modernization
• 2. Marine = Risk Management + Export
Management + Logistics
• 3. Motor = 80% Databank (Insurance Rating) +  
Life + Health
• 4. Engineering = Infrastructure Insurance
• 5. Health = Non- TPA Hybrid Products
• 6. Others = Agriculture- Agriculture Profit


•
GRAPH OF AIG WHEN COMPARED
TO OTHERS
 PROFIT ALLOCATION AND
DISTRIBUTION

• Tata-AIG is private company and all profits generated by

the company go to its owners (shareholders).
•
• The exception to this is with endowment policies where
regulations require that 90% of profits must be
returned to policyholders

REINSURANCE

• The sum assured of micro insurance has been deemed

too small to present any systemic risk to Tata-AIG and
hence no reinsurance has been sought on the micro
insurance portfolio.
• Tata-AIG typically seeks reinsurance on products with
sums assured from Rs 1 million ($22 222) and
upwards.
• The products sold by the rural and social team represent
less than 0.1% of the total possible liabilities of Tata-
AIG.
•
 WHY SELECT AIG?
• AIG Life is present in 24 states and 156 cities across the country.
• It covers over 22 life insurance products and has over 250 product
combinations.
• Over the next 12-18 months, the company plans to add 100 offices
and raise its employee strength to 9,000.
• Tata AIG Life has been voted No 1 in customer satisfaction*
among life insurance companies in India.
• well capitalised and fresh infusion of funds for the proposed
expansions will not be a problem.
• $85-billion revolving credit being extended by the Federal
Reserve to the American International Group (AIG) to pull it
out of a crisis.



 WHY TATA AIG?
• Tata AIG Life is the one of the most trusted Life
Insurance Companies in India. Since its inception in
2001, it has grown by leaps and bounds. Today, Tata
AIG Life is present in 24 states and 156 cities across
the country. It covers over 22 life insurance products
and has over 250 product combinations. It is hardly
surprising that Tata AIG Life has been voted No 1 in
customer satisfaction* among life insurance
companies in India.
•
• Reposes faith in foreign partner’s commitment on
capital infusion.
•
• Over the next 12-18 months, the company plans to add
100 offices and raise its employee strength to 9,000.
•
•
S.W.O.T Matrix
 STRENGTHS AND WEAKNESS
ANALYSIS
 1) Resources capability that your
organization has (i.e. human resource,
technological, infrastructural, financial etc.)
2) Managerial quality, enabling
smoothened & efficient flow of activities in
your organization
3) Depth of Market knowledge and
understanding by your organization
4) Your Product/Service quality as against
that of your competitors
5) Benefits that you organization have due
to years of experience in the business
6) Quality of your organization's culture,
helping in motivating your employees
•
 OPPORTUNITY AND THREAT
ANALYSIS
1 ) M a rke t p o te n tia lity o r sco p e a va ila b le fo r yo u r
o rg a n iza tio n to g ro w in te rm s o f m a rke t sh a re
o f yo u r o ffe rin g s, sco p e fo r to ta lm a rke t
exp a n sio n .
2 ) N e w te ch n o lo g ica lfin d in g s , w h ich ca n

e n h a n ce co m p e titive n e ss o f yo u r o rg a n iza tio n

a g a in st co m p e tito rs
3 ) G o ve rn m e n t p o licie s , ru le s a n d re g u la tio n s

a ffe ctin g yo u r b u sin e ss lin e .

4 ). D e m o g ra p h ic ch a n g e s , w h ich ca n e ffe ct

m a rke t p o te n tia lity.

5 ). C o m p e tito rs'q u a lity o f p ro d u ct/ se rvice , b ra n d

stre n g th , fin a n cia lp o sitio n e tc .

ORGANISATIONAL
STRUCTURE
INSIDE SAYINGS OF TATA AIG
SOME ANIMATIONS
 TATA AIG MAINTAINING LONG
SUSTAINABLE RELATIONSHIP WITH
BROKING HOUSES
• Creating general awareness and importance of this newly
developed channel across the company
• Arming them with knowledge of products offered by our
company
• Explaining them our processes, practices and underwriting
guidelines
• Supporting them in placing business with us
• Acting as a single point of contact for their queries with
respect to remuneration, policy issuance and products
• Recognizing and rewarding the top brokers on All India
Basis at regular intervals.

PIONEERS IN THE NEW ARENA
• Tata AIG General to its credit, has been associated with a
number of firsts in the insurance industry such as:
•
• • The first ever 24x7 Toll Free Helpline Number 1-600-
119966.
• • The first to introduce a mobile claim service.
• • The first to introduce claims registration and policy
renewals via SMS.
•
 CAREERS

•
Tata AIG offers exciting opportunities to learn, contribute and
build careers. As a leading name in the fast-paced insurance
industry, we are constantly growing and are always in search of
bright talent across all levels. The Company's philosophy is
strongly oriented to developing talent through larger and more
enriching assignments. We recognize potential and consistent
performance and our dynamic corporate culture can be
summed up as “Work hard, play hard”. This unique culture:
• gives you room to achieve, to grow and to seek new opportunities.
• believes opportunities will come from client needs. All we need to
do is be alert as people first and professionals later.
• seeks 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.
• takes on e-commerce and technology as high priority, with
intensified resources devoted to “the new economy” and
FINANCIAL ANALYSIS
 INCOME & EXPENSES
• Revenue
• Premium Income March 02 to Nov 03
$26 000
• Premium Income Nov 03 to Jun 05
$96 000
• Total premium Income March 02 to June 05
$122 000
•
•
• Expenses
• Rural and Social Channel expenses from March
02 to Nov 03 $234 000
•
SHARES AT BSE AND NSE
 Business and Financial Metrics [edit]

INCOME AND EXPENDITURE

AIG Financials 2006[9] 2007[9] 2008[9] 2009Q1[10]

(In Millions)

Total Revenue 113,387 110,064 11,104 20,458

Total Expenses 91,700 101,121 119,865 26,826

Net Income 14,048 6,200 -99,289 -5,133

TOP INSURANCE COMPANIES
 Innovation by tata aig
• Real innovation, be it in thoughts, processes, approaches or
strategies, has emerged as the key driver of economic
growth in every segment of the financial sector.
• "It is the mantra for success," says Ian Watts, the managing
director of Tata AIG Life, part of the private-sector
brigade that is redefining the rules of the game in India's
insurance business.
• For the second year in succession Tata AIG has achieved
100 per cent year-on-year growth, in no small measure
due to the emphasis it has placed on weaving innovation
into the fabric of the organization.


•
 TATA AIG TIES UP WITH GE
COUNTRYWIDE
• Tata AIG General Insurance Company entered into a strategic tie-up with
GE Countrywide Consumer Financial Services Ltd under which the
latter would offer a range of the former's general insurance products to
its customers.
• Dalip Verma, managing director, Tata AIG and Vishal Pandit, president and
CEO, GE Countrywide told that the insurance products would be
available first in 18 cities on a pilot basis which would be extended to
60 cities in the next 12 months

•
 NOTE ON AIG AND ITS WORLDWIDE
OPERATIONS
• Business Operations in 130 countries across the following lines of business – 2007 revenues were at $110
billion
– General insurance that includes Accident & Health of which Travel Insurance forms a major
part
– Life Insurance and Retirement Services
– Financial Services that include Aircraft Leasing ,Consumer Finance, Credit Cards, Real estate ,
Private Banking,
– Asset Management & Private Equity
• Tata AIG General Insurance (that includes Travel) operations of Tata AIG come under the AIU (American
International Underwriters) division of AIG which have the following financial highlights.
– $17.8 billion in revenue for 9 months 2008 which is estimated to touch $22 billion for the full
year 2008
– $1.07 billion in underwriting profit for the first 9 months(ending August ’08)( We have made
profits even after the issues surrounded AIG last year)
– Identifiable assets were at $48.7 billion in 2007. Out of this Cash reserves were at $6 billion
and Investments were at $23billion.The cash reserves of this division alone is bigger than
the Size of the entire General insurance market in India!!!
– Employs 21,000 people across 80 countries
– All individual insurance companies in various countries including India fulfill all statutory
regulations of the respective countries

THANK
YOU !