Overview of Distribution Channels Of TATA AIG

Introduction
The winds of liberalization initiated vast changes in the functioning of the industry
today. Increasing number of multinational partnership with private insurers paved
the way for a radical shift in insurance selling- through a number of new
distribution channels besides bringing about more awareness on the need for
insurance and also stressing on the important role technology can play.
In the developed markets, many insurers have a preferred mode of distribution
(e.g., agents, brokers or banc assurance, DSA). In India, many players are
hedging their bets because the need for scale outweighs considerations of focus
and because non-agency distribution, which is presently operational for the last
two

years forms a basis for study.

Tata AIG has a corporate agency channel, which handles its corporate agents and
have tie-ups with 38 corporate houses.
Insurers want to lower distribution costs by finding more efficient channels. The
new private players are developing multiple channel models; many insurers use or
plan to use several banks as distributors. Because most banks have strong
regional bias, in this regards Tata AIG has

agreement with HSBC( corporate

agency distribution) through that it is doing both life insurance and general
insurance business..
Because most banks have a strong regional bias, Insurers can use several banks
without creating large overlap. Many larger banks are sourcing products from

several insurers acting as manufacturers.

An important distribution challenge facing insurers is the need to meet the rural
and social sector legislative requirements stipulated in terms of market opening.
For Tata AIG, it takes rural insurance as an opportunity and not an obligation.
For

achieving objective in rural area it has also tie with NGOs(Bridge stone for

Karnataka and Kerala).

In this project mainly focus is distribution
AIG

and little bit of

distribution of

channel of Life Insurance of Tata

General Insurance of Tata AIG also. So

as the whole topic of distribution can be known for the both company of Tata
AIG ( Life and General insurance). Gradually channels are incorporating day by
day for the growth of business.
In the span of two to three years Tata AIG achieve much more business growth
what it expected at the time of entrance in Indian market. It happened because it
has quality people, innovative management, be able to employ technology
effectively besides having right product.

EXECUTIVE SUMMARY
This project has been a great learning experience for me; at the same
time it gave me enough scope to implement my analytical ability. Tata
Group is one of the India's largest and most respected business groups.
Tata Group's name is synonymous with India's industrialization. Tata AIG
Insurance Solutions is one of the leading insurance companies that provide both life
insurance as well as general insurance. ThSis pioneer company is a joint collaboration
between the American International Group, Inc. (AIG) and Tata Group.
They own the company in the ratio of 26:74. It is a leading financial
institution that has carved a niche for itself all over the world. Tata AIG
Insurance Company is having different insurance policies. At the end of
the

project

organizations.

people
Project

will
is

be
on

knowledgeable
the

market

about

potential

various
study

of

insurance
Tata

AIG

Insurance Company in. To get to know a questionnaire has been prepared

which contains open ended and close ended questions.

RESEARCH METHODOLOGY
In this project descriptive research use. The research methodology adopted for
carriying out the study was at the first stage theoretical study is attempted and at the
second stage observedin an internet.

OBJECTIVE OF THE STUDY

To find out various channel of Tata AIG operating in India (mainly Life
Insurance little bit of General Insurance also).
To find out contribution in distribution of Agents and Other channel.
To find out contribution of new distribution channel as: Corporate Direct Sales Associate (DSA)
Bancassurance

LIMITATION OF THE STUDY

Research work has been done in Mumbai so recommendation may differ from
the other place of the country. Variation is expected due to population,
business environment and culture of the particular region.
Secondary Data is obtained from different source. There is a possibility of
occurrence of bias. So it can influence our inferences.
At the time of interviews precaution should be taken for unbiased point of
opinion to the responders. But 100% perfection cant be possible. But in our
project we consider all the data 100% right and whatever they have given that
are directly consider for analysis.
They have given data in comparative form or percentage. It would be more
perfect if we get the data in absolute (discrete or exact value) term.

SOURCE OF DATA COLLECTION

Consists of primary data and secondary data. Primary data was collected by
holding semi- structured and focused individual interviews of sales Agent,
executive, Consultant and Personnel associated with Corporate Direct sales
associate.
For the primary data Interviewed 35 insurance personnel, out these 15 were
Executives

including

Consultants,

Executive

(Managerial),

and

associated

Executive from other tied organization.

Where as secondary data was obtained by different records, magazines,
newspapers, inter nets and various pamphlets of Tata AIG.