Chapter 01

1 INTRODUCTION
1.1 Overview
 Industry Life Insurance
 Founded 1992
 Headquarters Karachi Pakistan
 Key people Rafique R. Chairman, Taher G. - Managing Director
 Products Unit-Linked, Conventional and Group
 Website wwweefulife.com

Insurance in Pakistan is regulated utter the Insurance Ordinance, 2000. In the past few
years, it has transformed into a developing and fist growing market that is generally
divided into three components:

• Life insurance,

• General insurance and

• Health insurance.

The Government of Pakistan established the Department of insurance in April 1948 a

department of the Ministry of Commerce; the aim of this department is to take care of
affairs related to the insurance industry. Out of the 54% that Pakistan's service sector
contributes to the national GDP. insurance, along with transport, storage,
communications and finance occupy 24% of the sector.
1.1 List of notable insurance corn panics in Pakistan:
 EFU Life
 Jubilee Life Insurance Company Limited
 Stale Life

EFU Life originally Eastern Federal Union Insurance Company Limited. is a Pakistan.
based life insurance company. It was the first insurance company in India founded in
1932 convened by the Muslims based in Calcutta. After the independence of Pakistan in
1947 the company moved to Pakistan and opened in East and West Pakistan. The
company ceased to exist in East Pakistan after it became Bangladesh. Pusan
subsequently reorganized the company to EFU Life Assurance Ltd.

1.4 Insurance v/s Assurance

The specifies uses of the terms "insurance" and "assurance" are sometimes confused. In
general, in these jurisdictions’ "insurance" refers to providing cover for an event that
might happen (fire, theft, flood, etc. while i4assuntnee" is the provision of cover for an
event that is contain to happen. "11ßurance't is the generally accepted term; however,
people using this description are liable to be coveted. In Pakistan. both forms of
coverage are called "insurance", principally due to nutty companies offering both types
of policy, and rather them refer to themselves using both insurance and assurance titles,
they instead just one.
1.2 4 I's of Insurance
The 4 I's refers to the different dimensions/ characteristics of any seem. Unlike pure
product, services have its own characteristics and its related problems, So the service
provider needs 10 deal with these problems ordinally. serve provider lush to design
different strategies according the valuing feature of the service. These 4 I's not only
represent the characteristics of different services but also the problems and adVü1itages
attached to it.

1.2.1 Intangibility
Insurance is a guarantee against lick and neither the risk not the guarantee is tangible.
Hence insurance rightly come under services which are intangible, Efforts have been
made by the insurance companies to make insurance tangible to some extent by
including letters and forms.
1.2.2 Inconsistency
Service quality is one and inconsistent, This is because service personnel have different
capabilities, which vary in performance from day to day. TIIES problem of
inconsistency in service quality can be reduced through standardization, training and
mechanization.
1.2.3 Inseparability
Services are produced and colliquated simultaneously. Consumers cannot and do not
separate the deliverer of the service from the service itself [ Interaction between
consumer and the services provider varies based on whether cons tiler be physically
present to receive the service.
1.2.4 Inventory
No inventory can be maintained for service Inventory' carrying costs are more
subjective and lead to idle production capacity, and overhead remains contestant even
though the people are not required to pride services due to lack of demand, In the
insurance sector however, commission is paid to the agents on each policy that they
sell. Hence, not much inventory cost is wasted on idle inventory', As the cost of agents
is directly proportionate to the policy sold.
1.3 History
The company officially staffed as a general insurance company, In 1 936, life business
of the company stated with a paid-for business of about Rs.5,0 million. By 1946 the
company started to move ahead steadily but major upheaval of the century had
occurred, in which Muslims all over the sub continent sustained immense loss, both of
life and properly after creation of Pakistan. The EFU management transience its
registered office to Chittagong. The company completed a new Life Business of Rs.4.5
million by 1947 and during 1948 tracked a total business of IQs, 13„9 million. In
Pakistan, after 1972 the EFU operated solely as a general insurance company. In 1992,
the Government of Pakistan opened up life insurance to the private sector and EFU was
reorganized and EFU Life Assurance Ltd. was introduced in 1992 as the first private
sector life insurance company.

1.4 Functions
Life Insurance a contract between the policy holder and the insurer, where the insurer
promises to pay a designated beneficiary a sum of money (the "benefits") upon the
death of the insured person. Depending on the contract, other events such terminal
illness of critical illness also trigger payment, In return, the policy holder agree; to pay
a stipulated amount at regular internals or in lump sums. I n some countries, death
expletives such as funerals are included in the premium; however, in the United States
the predominant
1.5 Objectives
 Retain leadership position in the market.

 Explore opportunities by introducing new products and diversifying current product

portfolio-

 Pursue continuous improvement and technological advancement

 Enhance corporate capabilities and motivation through skill enhancement, management

development and reward programs

1.6 Vision
 To continue our journey to be better than the best.
1.7 Mission
 To provide services beyond expectation with a Will to go an extra mile In the
process, continue to upgrade technology, human resource and reinsurance
protection.

1.8 Core Values

Our philosophy is to be the leading company with services above par, with integrity,
excellence and professionalism. Following are the core values:
1.8.1 Integrity & Ethics
 Conduct business with ethics. dignity, fairness and transparency.
1.8.2 Excellence
We measure our performance by results but more by quality of service.
1.8.3 Professionalism
We believe professionalism is perfection. Business resources are utilized in a manner to
achieve optimum returns on resources.
1.8.4 Our People
In EFU we W01k like a family. Everyone is treated with respect and without any
discrimination.
1.8.5 Corporate Social Responsibility
We donate to various institutor’s in health and education sectors, for improving the
lifestyle of common nun,
1.9 Purpose of Internship
My purpose of internship is to complete the requirement of my study that necessary for
completion of MBA. The other purpose of internship was to acquire skills and
knowledge about finance and information technology. Il a great chance for me to apply
my skills and knowledge which I have learned during MBA to the workplace.
1.10 Research Methodology
I have both data collection methods. Primary well as Secondary.
1. Primary Methods:

• Interviews

• Observations

2. Secondary Methods:
• Intermit
1.11 WHY THIS TOPIC??
The most significant measure of an industry or an activity is its contribution towards
employment generation, strengthening linkages with other sectors of the economy in
providing grotV1h and stability, and creating a sizeable impact on the national income
of a country. In developed countries, the insurance industry is a necessary part of daily
life and serves all the above-mentioned purposes.
1.12 Limitations
In starting of my internship, I had faced problem interviewing the employees because I
was new there and it takes time to adjust in new environments and the second reason is
that of the time employees are busy because of too much workload.

The other problem which I faced there is the environment was too hot sometimes
because air conditions were not working properly and it result in tiredness and it
became hard for me to concentrate on work,
 Chapter 02
2 ORGANIZED STRUCTURE SETUP
2.1 Functions of Management
As in every organization Management function are needed to achieve the organization
and individual goals through a predefined way and in this way through following the
procedure of the management functions that makes us easy to achieve the organizational
Mission as well.
PLANNING function need to be made specific strategies with the given resources to
get that lead to achieve targets.

ORGANIZING Function in life insurance sector it to organize the Plan that goes to be
as a second step for planning.

COORDINATING Function of leadership controls all Ille organizing, planning and

staffing activities of the company and ensures all activities function together for the
good of the organization.
CONTROLLING function or management is useful for ensuring all other functions of
the organization are in place and are operating successfully. Controlling involves
establishing performance standards and monitoring output of employees to ensure
each employee's performance meets those standards.

2.2 Chart of Management

Chairman

 Rafique R. Bhimjee

Managing Director & Chief' Excecutive

 Taber G. Sachak
Directors
 Saifuddin N. Zoomkawala
 Johangir Siddiqui
 Muneer R. Bhimjee
  H asanali Abdullah
 Heinz Walter Dollberg
 Syed Salnun Rashid
 Kamal Afsar
Corporate Secretary
 Syed Shahid Abbas
Appointed Actuary
 Omer Morshed FC.A
Legal Advisor

Mohammad Ali Sayeed. M A.B.I.

 Chapter 03

3 FUNCTIONS OF VARIOUS DEPARTMENTS

3.1 Underwriting Department
Insurance underwriters evaluate the risk and exposures of potential clients. They decide
IV)W much coverage the client should receive, how much they should pay it. or
whether even to accept the risk and insure them. Under writing involves measuring risk
exposure and determining the premium that needs to be charged to insure that risk. The
function of the underwriter is to acquire or to " business that will make the insurance
company money. and to protect the company’s book of business from risks that they
feel will make a loss. In simple term it is the process of issuing insurance policies, Each
insurance company has its set of underwriting guidelines to help the underwriter
determine whether any should accept the risk. The information used to evaluate the risk
of an applicant for insurance will depend on the type of coverage involved. For
example, in underwriting automobile coverage, an individual's driving record is critical.
As part of the underwriting process f01' life or health insurance, medical underwriting
may be used to examine the applicant's health status (other factors may be considered
as well, such as age & occupation).

The factors that insurers use to classify risks should be objective, clearly related to the
likely cost of providing coverage, practical to administer, consistent with applicable
law, and designed to protect the long. term viability of the insurance program. The
underwriter may cither decline the risk or may provide a quotation in which the
premiums have been loaded or in which various exclusions have been stipulated, which
restrict the circumstances under which a claim would be paid. Depending on the type of
insurance product (line of business), insurance companies automated underwriting
systems to encode these rules and reduce the amount of manual work in processing
quotations and policy issuance This especially the case forcertnain simpler life or
personal lines (auto, homeowners) insurance.
3.2 Marketing Department:
EFU Life has a marketing team which focuses on providing lite insurance coverage to
corporate entities and bank clients. EFU Life recently launched a mass media campaign
after a gap of almost years.

The campaign was launched with a thematic ad-. this followed by three additional ads
for the marriage plan, education plan and retirement plan, which according to EFU are
its most important products.

On the objective of the compaign: "The purpose of the new campaign is to educate
costumers about the numerous; benefits of life insurance that they can avail during their
lifetime as well as about talk* financial security it offers to one 's family when one is
not around. We want to tell our consumers that life insurance, because of all its
benefits, should be an essential part of everyone's life, Our [three print I ads are focused
on the different needs of our market starting from savings 10 financial planning fot
children in tens of education and matriarch its well as financial stability for when one
retires."

On launching n mass media campaign after almost 5 years; "We launched a

campaign for EFU Life at the end of 2008', following this we have promoted the brand
through selective mediums, primarily print and radio with short bursts of our TVC
every year in selected months. With the significant annual growly that the life insurance
industry has seen over the last five years, we thought this was an apt time to come up
with a fresh appealing message that highlights financial protection and insurance in a
way that will connect with the audience. "We also felt that after 20 years of existence
and being the leader in the private life insurance. our brand at this stage could do with a
refreshed look and feel while keeping the original brand values intact new tagline. “Life
mei kamal karna zarori" is an attempt in that direction which elaborates on out earlier
tagline zaroori hai which was launched in 2008.

On adopting a lighthearted and humorous tone: 'Customers generally perceive life

insurance as a very and complicated proposition. A common misconception that it
only provides support at the time of death. and as market leader, this is something that
we wanted to change. We wanted to present the concept in a celebratory mode as we
think that any Individual that takes the decision to protect his family with life
insurance deserves 10 be applauded and his decision 10 be celebrated. We have
consciously moved away from the traditional methods of life insurance advertising
'that promote fear-appeal and rather we are focusing entirely on the positives and
celebrations in life.
On linking life insurance with success and achievement: "Life Insurance is deemed
as a negative term which associated mostly with death. Insurance Companies are seen
as the bad guys when in essence they are selling you a level of future security.
Therefore, it all boils down to what’s in it for the costumer? Simple. If an individual is
prudent and has '"hat it takes to defy the majority's perception about life insurance,
he/she deserves to be applauded, By his/her family, friends well as the world at large.

3.3 Claims Department

It quite tough and complicated process in which insured do not have any participation
other than providing the exact information of claim. Staff should treat it with full
attention claim procedure of insurance establishes its goodwill in market, and helps to
generate more and more business. Guidance. Expertise Knowledge of when to bring
someone else in, all provide an imponent service to client.
3.4 Human Resource Department
Human resource Department is the most important department on which the intimal
system of whole organization is based. It motivates the employees and takes in
account the incentives and tactics required to keep the qualified and experienced
employees with them and to make them in the way organization wants HR
Department have to perform the following duties:

 Resource hunting and Recruitment

 Coaching the employees i.e. Training, Development etc
 Motivation and Performance appraisal
 Salary and Payroll Negotiations
3.5 ACCOUNTS Department
The function of an accounting department is to look after the finances of a company. This can
be anything from paying bills 10 making sure that employees that work for the company get
paid, The four main accounting functions are:

• Making Payments

• Payroll

• Receiving Payment

• Budgets

Accounts department of EFU insurance have divided its duties into different sections.
• Cash Collection Section
For the collection of cash, account department has a cash counter. When a policyholder
comes to pay his premium, they check whether the policyholder is able to pay his premium
or not. If the policyholder comes within 30 days earlier the due date, then he is considered
as able 10 his policy otherwise he is not able.
• Cash Disbursement Sect ion

For cash disbursement, first the voucher is prepared, signed and prepared by authorized
officers for the person to whom the payment is made. After these the cashbook is
maintained, cheques are prepared, and these cheques are sent to concerned party. Bank
Statement is prepared daily by the authorized banker regarding total collection and
payments of cheques i.e. realization of cheques. These banks Statements arc punched into
the computer.
• Salary Preparation Section
In Account Department Salary of the employees is calculated. Different allowances
are offered to the employees. Loan facilities are available for the employees. Tax is
deducted from salary, A provision of recoveries of the loan is made.

• Budget Preparation Section

Budget is prepared annually, Proposed budget sent to principal office. The funds
of different heads of proposed budget are transferred to zonal office.
• Agents Commission Section
The commission of business brought by agents is calculated in the Commission
Section. The function of an accounting department is to look after the finances of a
company. This can be anything from paying to making sure that the employees that
work for the company get paid, The four main accounting functions are:

Making Payments

Making sure that all bills and claims arc paid by' the company, on time and also at the
least cost possible. If there is a discount for paying quickly, the accounts department
will usually pay the bills as soon as possible so that the company spends as little
money as they possibly can. They are responsible for all outgoing payments and
making sure that what they arc paying is correct.

Payroll

The accounts department has to ensure that the employees are all paid correctly and
on tine. They also have to make sure that all of the employees are paying the right
amount of tax and that they have not made any mistakes with tax brackets and
government payments on behalf of the employees.

Receiving Payments
The accounting department must also receive payments and make sure that these are
all processed correctly. These will all be payments for the services or products the
company has provided and they must ensure that they have paid all relevant tax.
There will also be an element of chasing up payments and making sure that all of the
payments are received when they should be.

Budgets
They are also responsible for giving budgets and estimates of what they feel the
company should be spending. These may' be split by department or function and they
must also predict budget figures for years to come so that the company kre0'.ys what it
should be spending and more importantly, charging to customers.

Chapter 04
 4 PRODUCTS AND SERVICES
4.1 Noor Plan
EFU Life brings you "Noor Plan” complete financial planning solution you to plan for
your children's future education and marriage. The plan helps you accumulate a fund
over a savings period which can be used to finance your children •s college or
university education, or marriage expenses.

The two distinguishing features of the plan are:

New unit linked fund with "interest free investments'% The investments include
Islamic mutual funds, approved equities, term deposits in Islamic Banks and Sukuk
Bonds. This new fund has been named "EFLI Aitemad (Growth Fund" (AGE). As the
name suggests, Aitemad (meaning Tlust) outlines the basic philosophy of EFU Life's
business and all its financial planning solutions.

Allocation of Bonus Units based on experience of the product At the end of each year.
EFU Life will review the mortality experience of the product, and in of a surplus
the amount will be distributed bock to the clients in the form of "Bonus Units". These
Bonus Units will be credited to the EFIJ Aitetnad Growth Fund to enhance the cash
value of the plan.

4.2 Asaasa Plan

EFU Life brings you "Asasa" — a high value saving and protection product that
ensures you achieve your dreams for your loved ones.

The two distinguishing features of the plan are:

1. New unit linked fund with free investments". The investment includes Islamic
mutual funds. approved equities, term deposits in Islamic Banks and Sukuk
Bonds. This new fund has been named 'EFU Ailejnad Growth Fund" (AGE). As
the name suggests, Aitemad outlines the basic philosophy of EFU Life's business
and all its financial planning solutions.
2. Allocation of Bonus Units based on experience of the product: At the end of
each year, EFU Life will review the morality experience of the product, and in
 case of a surplus the amount will be distributed back to the clients in the form of
"Bonus Units, These Bonus Units will be credited to the EFU Aitemad Growth
Fund to enhance the cash value of the plan.

4.3 Prosperity for Life:

EFU Life brings you "Prosperity for Life" — a flexible and high value savings and
protection product that ensures that your dreams become a reality at all stages of
life. throughout your life!

Main features of the plan:

 Choose different levels of life insurance protection for the same amount of premium
 Change your level of life cover as your circumstances change
 Get loyalty rewards through Guaranteed Loyalty' Bonus
 Accelerate the build-up of your fund through Fund Acceleration Payments
 Benefit from the plan's high investment allocation
 Access your saving when you need il
 Add supplementary' benefits to tailor the plan to your needs.
4.4 Educational Plan
With EFU's Education Plan, you can nuke sure that unlike other parents your dreams
for your children will a reality. Guarantee their education even if you should die in the
unfortunate event of your death prior to the maturity of the Plan you would to make
sure that your education plans for your children will still be fulfilled.

The Continuation Benefit, which built into the Plan will ensure that all future
contributions will be paid by FFU following your death until the Plan maturity date,
This means that the education funds you had 0riginally planned for will still be
available for your children.

To deal with the problem of funding school fees after your death, the Education Plan
also provides an Income Benefit. This benefit, which is optional, provides a fixed
amount, payable quarterly in to ensure that the school fees continue to be met. The
quarterly income you choose will be on your current school fee; requirements.
Guarantee their education even if you should fall sick This optional Waiver of
Premium
Benefit provides that if you are unable to follow any occupation for at least six months
due to sickness or accident, the present contribution to your Plan will continue to be
paid in full by EFU. This means that whether or not you continue to enjoy good health,
your education plans for your children will succeed.

4.5 Marriage Plan

EFU Marriage Plan helps you save systematically so that you can give '*our child the much-
needed financial security tor the years to come. The Plan provides a complete financial
planning package for you to plan for expenses associated with your children's marriage
Planning in advance through the Marriage Plan for your child 's or even grandchild's wedding
celebrities now allows you to spread the cost over time, giving your savings a chance of
significant growth.

The Plan provides high value savings, coupled with a guaranteed level of life assurance
protection and flexibility, with various options to customize the benefits according to your
needs. Simply put, EFU Marriage Plan gives you the freedom to enjoy every moment with
your children today, without worrying about their future tomorrow.

4.6 The Saving Plan

The Savings Plan a high value unit linked life insurance product with a substantially higher
unit allocation in the early' policy years providing rapid accumulation of cash values. The plan
is specifically designed for group schemes where there is a need for such higher cash values
and fund accumulation. The fund accumulated through the plan may be used for education and
marriage of children, purchase of a house. expanding business, retirement income or any Other
purpose.

The Savings Plan is ideal for individuals and groups where the employees would prefer to pay
their contribution through withdrawals from their Provident Fund balances. The plan makes
use of the provisions of the Income Tax Rules 2002 under which member of Recognized
Provident Funds can withdraw funds from from their provident fund balances and pay towards
the contribution of life insurance platys.
  The opportunity for Growth

The contributions to the Plan will buy units in the one of the EFU Growth Funds. TIR
Savings Plan is designed 10 provide a large cash sum at the end of your selected period.

 The Payment of contributions

As mentioned above, the plan is funded by contributions from the employees' Provident Fund
balance. Each covered employee needs to give a written auth01inti011 to the trustees of the
Provident Fund to nuke permanent withdrawals and pay the premium to EFU Life. The
trustees on an annual basis, would take the necessary deductions from the employees
Provident Fund balance and make the payment.

4.7 Security Plan

The to provide high life cover at a minimum cost may arise tor a number of reasons.

For example you need:

 To provide a replacement income for your family on your death,

 To ensure that your early death does not jeopardize Your future platys for your
children in terms of their education, wedding etc.
 To protect the continuity of your business by ensuring that funds are available for your
beneficiaries. EFU Security Plan is a term assurance contract which allows you to
provide protection against the financial consequences of death al a very low cost.

High Cover for a Nominal Cost

Example: Male aged 35 next birthday'. To provide a lump sum payment of 500,000 on death
during a 20year term the annual premium would be Rs. 3,960 i.e. just over Rs. 10 per day

Inflation Protection

Under the Inflation Protection, the contribution will increase every year by 74%, of the
original premium with an appropriate increase to benefits, any medical evidence.

Additional Benefits
The basic objective of the Security Plan is to pay a lump sum if you die within the
term of the Plan. The Plan can also be arranged on a joint-life basis so that both
husband and wife are covered. The benefit (Sum Assured) would then be payable on
the first 'claim' of either partner.

You also have the flexibility to tailor the Plan to suit your circumstances by being able
to choose from a range of additional benefits.

• Family Income Benefit

• Accidental Death and Disability

• Accidental Death and Disability PILLS

• Waiver of Premium
 Chapter 05

5 SWOT ANALYSIS
5.1 Strengths
 We are a Company with broad customer base.
 We work as a family. with loyalty and contentment to the Company and generations of
families are associated with us.
 We two prominent buildings in Karachi and Lahore.
 We have team of Technical Officers and our quality of Technical as well as Marketing
Team is considered as the best in the country.
Strengths of EFU Insurance can determine the competition ability in the market with other
Insurance Companies. The more the strength of the company, comparing to its competitors the
more superior it is on its competitors After having a detailed research on the EFU Insurance
and using the marketing strategies to analyze. The Following Strengths are determined.
• Pioneer of General Insurance
EFU GENERAL INSURANCE LIMITED is Pakistan's pioneer general with industry's
highest premium growth in 2003 of Rs.S6 crores. EFU established in 1932 under the
inspiration of the Quaid-e-Azam Mohammad Ali Jinnah, company was originally registered at
Calcutta and opened in India (undivided) and Buna. In 1 947, on birth of Pakistan EFU found a
new home to develop, Jn Pakistan, EINJ rapidly established itself as a progressive and
innovative insurer. It gave the emerging insurance industry the leadership, the manpower and
the drive needed 10 grow in a situation where at one time, three founds of insurance was held
by foreign companies. Traditionally the EFU name has synonymous will progressiveness and
prompts claim settlement and now the EFU being the largest insurance group provides a frill
range of general, Life and health insurance services. Eastern Federal Union Insurance
Company has an advantage of being the pioneer of the Insurance Industry in Pakistan. Because
of the experience and market share they had gained, made the leader in General Insurance in
Pakistan. more over it is the nature of the customer that preference is for the older and stable
company. And as EFU has been providing its service; since 1 947, people are more intend
towards EFU.
 • Wide Variety of Insurance Policies
EFU has a wide variety of Insurance policies, Main categories are:
l. Life
2. Health
3. General Insurance
• Specifically, Insurance Industry

Comparing to EFU competitors, Easter Federal Union Insurance is specifically the Insurance
Industry. ILS focus is totally on the development of Insurance sector. All the investment of
this company is for the betterment and progress of insurance company. Having focus 011 the
Insurance, EFU has gain professionalism in providing Insurance services to its customers
.Major of F.FU is Adamjee insurance Limited. This is not specifically for Insurance. It is the
group of industries, and one of their industries is the Insurance service providers.

• Easy Access for Customers

Customers can have the access to EFIJ very easily. One can contact to the EFU through one of
the 64 branches spread all over the Pakistan. From which 23 along the Head office in Karachi,
the city of business in Pakistan. And 14 branches are in the Lahore the largest city of Business.
Rest all are di5tributed in the country according to the demand of the customers. And it is still
growing. Customers can also have an access through Internet. The widely used media, in the
customers of EFU, No other insurance company is presiding the facility to submit policy
online. This easy and fast way of submitting Insurance Policies saves the time for the customer
and for the EFU to process the policy Another easy and efficient way to access to the EFU is
the agents in the market. EFU agents step by step guides the customers deciding for the right
policy which fulfill the needs of the customer more efficiently.
5.2 Leasing Contracts with Banks
In Pakistan auto leasing is growing day by day. Banks [lave an agreement with the lassie that
the auto should be insured. Banks have different contracts with Insurance company
EFU also have contracts with Banks. Those banks which have agreements with EFU, makes it
compulsory for the lassie to insured their vehicle from EFU Auto insurance.
5.3 Opportunities
 As soon as Takaful Business Window operations are allowed by SECP, we will
commence Takaful business,
 Expected growth in Economic Sector of Pakistan due to recent change in economic
policies, preattention platy; and implementation of GSP PILE; in 2014 and beyond.
 Customer Trust
Customer trust is the one of the foremost priority of the EEU. Customer trust means
customer will prefer EFU then other insurance companies. will increase the sales and will
helps in achieving the goal. EFU insurance is struggling to have the customer trust by
providing the excellence in service, the quality of the service, and by reducing tine of
processing the policy.

 Increase in growth
In growth by having more market share, by having more sales and by increasing the quality
and in line services will result in the increase in the overall growth of the EFU insurance.
Moreover, the increase in the point units or Volume is also the factor of growth increment.
And EFU planning for it. Increase in growth needs a long term strategic planning. The broader
view of the market and demand. The capability to utili7C the recourse more efficiently to the
competitors.
• More Bank Contracts

The bank agreements on the insurance company specification on the auto leasing are the one
of the major opportunity for EFU to increase its sales. The more the auto leasing banks agree
to have contracts with EFU. the more will be the sales of EFU insurance. To achieve this
opportunity EFU is making its repute in the market by providing quality service to its
customers.

• Devotement in Education and Information

Development in Information and Education about the Insurance affect directly to the EFU
insurance. the more the qualified and with more knowledge the employees will, The more will
be the profit. Recently' Halley College of Banking & Finance Lahore, has started the MBA
related to Insurance services. And EFU Insurance provided Rs. 15 lac for the development of
this discipline.
5.4 Threats
• Emergence of Captive insurance Companies by Group and or Financial Institutions.
• Continued law and situation increases cost of operations and reduced growth in certain
geographical areas.
• Country's law and order situation restricts new re-insurance to look at Pakistan
market.
• Loss of technical hands to Middle Eastern markets due to economies revival there.
• Foreign Insurance Companies

Foreign Insurance Companies are investing here in Pakistan. And Government of Pakistan is
also supporting them and planning for more foreign investment. And many other Insurance
companies will also invest. And staff providing their services herein Pakistan, with new
technologies, more improved methods and more investment. This Increases the competit01S to
EFU insurance. And increase the number of competitors.
• Undercutting Pricing Strategy of Competitors

The price cutting strategy of the competitors of EFU insurance produces many hurdles. When
competitors lower their prices of premiums, then the customers intend towards More over the
people which are already the customer of the EFU also attracted to other companies. And that
lower the sales. This is the very tactical threat, Sometimes it may effects a lot . the same
quality of service is being provided by another company but on the lower price. So there is
always a threat for EFU Insurance.

• Natural Disasters
Natural Disasters are one of the big threats for the EFU insurance, In Pakistan floods,
earth quack and many other natural disturbances occurs periodically. When this happen
the heavy amount of claims occurs which cannot be easily' settled, And thus sometimes
gives a heavy loss- Recently on 8" October earth quake, man claims occurred. Same
was happened in the Sialkot flood.
• Religious and Cultural Resistances

Pakistan is an Islamic country and the culture here is based on Islamic principles. (he
Ilk' controversy in the Insurance company services and the Religion is that the Islam
doesn't allow the Insurance. And people resist for insurance, and avoid the advertising
of Insurance, leads in lack of knowledge and benefit about the EFU insurance.
5.5 Weakness
• People of Pakistan are not so much policy conscious
People of Pakistan are not so much policy conscious. Pakistan is an underdeveloped country.
People are Intending to Invest, from where they can have a proper Income source rather than
to secure the income source.

• Awareness about Insurance Benefits Is Ven- Less

People in Pakistan are not very much risk conscious. Literacy factor is also involved for less
awareness of Insurance benefits between the people of Pakistan. The insurance is the long term
planning and is very helpful, that person further plate; risk free. Proper know how about the
insurance policy and less advertisement through the channels easily access to the people is
very poor. This is the reason that the awareness of the benefits of insurance arc very less in
Pakistan.
 Chapeter 06
6 CONCLUSION, SUGGESTIONS & PROCEDURE
6.1 Conclusion
• Inflexible Policies

• Temporary Hiring

• Less Job Trainings

Less Allowances for employees

6.2 Suggestions
• The EFU should adopt flexible policies, especially in the areas of the
recruitment, promotions, evaluation of the employees otherwise the high
turnover observed in the EFU will continue t0 create problem for the EFU now
and in the future. Because not being satisfied in many experienced employees
will leave the Organization.

• The fresh hiring should be made permanent so that they are secured of their
future. Further the allowances and perquisites attached with the permanent jobs
will also increase the m0tivation level of the employees. As I observed there one
hiring was made during my internship, and the guy appointed was not
permanent.

• The EFU should place emphasis on the organization of effective training and
development programs for its new well as existing employees so that these are
gradually updated regarding the recent developments in the field of Insurance.

• The number of allowances and prerequisites for the employees should be

increased to ensure that they put their body and soul in the jobs assigned to
them. As far as I observed they were not being awarded as they should. Their
basic salary was very low.
References

http://en.wikipedia.org/wiki_Insurance_ in Pakistan
www.efulife.com