TATA AIG LIFE INSURANCE

Company profile

LIFE INSURANCE:

Life insurance is a contract providing for payment of a sum of money to the person assured or failing him to the person entitled to receive the same on happening of certain event uncertainty of death is inherent in human life. It is this risk, which give raise to necessity for some form of protection against the financial losses arising from death. Insurance substitutes this uncertainty by certainty.

THE OBJECTIVES OF INSURANCE IS TO PROVIDE:

q Family protection and / or

q Provision for old age

WHY LIFE INSURANCE?

Life insurance cover is essential for it provide the following benefits:

q A lump sum payment to the nominees in the time of the death of the policy holder

q A regular payment to the nominee in the time of the death of the policy holder

q Tax benefits, as premiums paid reduce the liability of tax

q Relieves economic hardship in the family on the uneventful death of the sole income holder

q Inculcate the habit of saving

NEED FOR LIFE INSURANCE:

Life insurance has come a long way from the earlier days when it was originally conceived as a risk-covering medium for short periods of time, covering temporary risk situations such as sea voyages. As life insurance become more established, it was realized what a useful tool it was for a number of situations, including.

A. TEMPORARY NEEDS/THREATS

The original purpose of life insurance remains an important element, namely providing for replacement of income on death etc.

B. REGULAR SAVINGS: Providing for one’s family and oneself, as medium to long-term exercise (through a series of regular payment of premiums). This has become more relevant in recent times as people seek financial independence for their family.

C. INVESTMENTS: Put simply the building up of savings while safeguarding it from the ravages of inflation. Unlike regular saving products, investment products are traditionally lump sum investments, where the individual makes a one off payment.

D. RETIREMENT: Provision for later years becomes increasingly necessary, especially in a changing cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in one’s old age.

HISTORY AND PRESENT STATUS OF INSURANCE MARKET IN INDIA

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of Oriental Life Insurance Company in Calcutta.

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the development in Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.

Insurance is a federal subject in India and has history dating back till 1818. Life and general insurance in India is still a nascent sector with huge potential for various global players with the life insurance premiums accounting to 2.5% of the country's GDP while general insurance premiums to 0.65% of India's GDP. The Insurance sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up the insurance sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with every other global insurance company wanting to have a lion's share. Currently, the largest life insurance company in India is still owned by the government

Who’s going with whom? (International Collaboration)

INDIAN COMPANY	FOREIGN PARTNER
Kotak Mahindra	Chubb
Tata Group	AIG
Sundram Finance	Winterthur
Sanmar Group	GIO of Australia
Spic	MetLife
ILFS	Cigna
BAJAJ AUTO	Allianz AG
20th century	Canada Life
Vyasa Bank	ING
Cholmandalam	Axa
SBI	Alliance capital
HDFC	Standard Life
ICICI	Prudential
Hindustan Times	Commercial Union
IDBI	Principal
Max India	New York

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken to provide the supporting systems to the insurance sector particularly in the life insurance companies was the launch of the IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

Government control and regulations: The insurance business in many countries comes under some degree of government regulation. Insurance is complex, takes in money for something not delivered at the time of sale, and is poorly understood by many consumers. Regulation assures that insurers deal fairly with clients and can actually pay out on all valid claims.

TATA AIG Life Insurance Company Limited is a joint venture between Tata Group and American International Group, Inc. (AIG). Tata Group is one of the oldest and leading business groups of India. Tata Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalization of insurance. The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919.

American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. AIG has one of the most extensive life insurance networks in the world.

“Most Companies sell goods & services ….

At TATA AIG Life we sell Peace of Mind”

TATA AIG Life Insurance Company Limited (TATA AIG Life) is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG). TATA AIG Life combines the Tata Group’s pre-eminent leadership position in India and AIG’s global presence as the world’s leading international insurance and financial services organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent. TATA AIG Life provides insurance solutions to individuals and corporate. TATA AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001

Management
Trevor Bull–Managing Director

Mr. Trevor Bull joined TATA AIG Life as Managing Director in January 2006. Prior to this, Trevor was Senior Vice President and General Manager at American International Assurance in Korea. Trevor has over 28 years of experience in the life insurance industry and has spent considerable time working in Japan and Britain. His experience covers an array of skills at various authority levels including Director, Regional Executive, Senior Line Management and Project Management. Additionally, Trevor has acquired keen insights into Unit Linked, conventional life and health insurance/ reinsurance and all major products & distribution channels.

A proud father of two boys and one girl, he aligns his hobbies with theirs and connects with them through a game of tennis or football regularly. Developing and implementing superior risk management and investment strategies.

AIG

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the Operations in more than 130 countries and jurisdictions. Approximately 92,000 employees worldwide

THE TATA GROUP

Over 2,60,000 employees

India’s largest forex earner serving India for 123 years. A family of over 90 diversified companies accounting for 1.9% of India’s GDP and trusted by over 3m shareholders.

The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2007-08 of $55 billion or Rs221,320 crore (not including Corus financials), the equivalent of about 3.2 per cent of the country's GDP, and a market capitalization of $65.16 billion as on May 22, 2008. Tata companies together employ some 289,500 people. The Tata Group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries.

Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 (un-audited) are estimated in excess of $55 billion (around Rs231,000 crore), of which 65 per cent was from business outside India. The Group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics.

The business operations of the Tata Group currently encompass seven business sectors: Communications and Information Technology, Engineering, Materials, Services, Energy, Consumer Products and Chemicals. The Group's 27 publicly listed enterprises have a combined market capitalization of $57.61 billion as on June 19, 2008, among the highest among Indian business houses, and a shareholder base of 2.9 million. The major companies in the Group include Tata Steel, Tata Motors. TATA Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications.

The Group’s major companies are beginning to be counted globally. Tata Steel became the sixth largest steel maker in the world after the acquisition of Corus. Tata Motors is amongst the top five commercial vehicle manufacturers in the world and has recently completed the acquisition of Jaguar and Land Rover. TCS is one of the leading global software businesses, with delivery centers in the US, UK, Hungary, Brazil, Uruguay and China, other than India. Tata Tea is the second largest branded tea company in the world, through its UK based subsidiary Tetley. Tata Chemicals is the world’s second largest manufacturer of soda ash. Tata Communications is one of the world’s largest wholesale voice carriers.

In tandem with the increasing international footprint of its companies, the Group is also gaining international recognition. Brand Finance, a UK based consultancy firm, recently valued the Tata brand at US$ 11.4 billion and ranked it 57th amongst the Top 100 brands in the world. Business week ranked the Group sixth amongst the ‘World’s Most Innovative Companies’ and the Reputation Institute, USA recently rated it as the ‘World’s sixth Most Reputed Firm.’

Founded by Jamsetji Tata in 1868, the Tata Group’s early years were inspired by the spirit of nationalism. The Tata Group pioneered a number of industries of national importance in India: steel, power, hospitality and airlines. In more recent times, the Tata Group’s pioneering spirit has been showcased by companies like Tata Consultancy Services, India’s first software company, which pioneered the international delivery model, and Tata Motors which made India’s first indigenously developed car, the Indica, in 1998 and recently unveiled the world’s least cost car, the Tata Nano, for commercial launch by end of 2008.

The Tata Group has always believed in returning wealth to the society it serves. Two-thirds of the equity of Tata Sons, the Tata Group’s promoter company, is held by philanthropic trusts which have created national institutions in science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to NGOs in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined development-related expenditure of the trusts and the companies amounts to around 4 per cent of the Group’s net profits.

Going forward, the Group is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer, currently ranked the world’s fourth fastest, developed by one of its companies. The Group aims to build a series of world class, world scale businesses in select sectors. Anchored in India and wedded to its traditional values and strong ethics, the Group is building a multinational business which will achieve growth through excellence and innovation, while balancing the interests of its shareholders. Its employees and wider society.

Values and Purpose

· Integrity

· Talent Development

· Business Acumen

· Direction Setting

· Customer Focus

· Service Excellence

· Change Leadership

· Working Across Boundaries

Purpose

At the Tata Group our purpose is to improve the quality of life of the communities we serve. We do this through leadership in sectors of national economic significance, to which the Group brings a unique set of capabilities. This requires us to grow aggressively in focused areas of business.

Our heritage of returning to society what we earn evokes trust among consumers. Employees, shareholders and the community. This heritage is being continuously enriched by the formalization of the high standards of behavior expected from employees and companies.

The Tata name is a unique asset representing leadership with trust. Leveraging this asset to enhance Group synergy and becoming globally competitive is the route to sustained growth and long-term success.

Five core values

The Tata Group has always sought to be a value-driven organization. These values continue to direct the Group's growth and businesses. The five core Tata values underpinning the way we do business are: Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

Marketing Strategies of TATA-AIG:

1) To become 1 billion company in 2009.

2) Working with 5 modules.

* Agency

* UM (Unit Manager module)

* Bank Assurance

* Alternate Channels

* Rural Marketing

3) Invest assure flexi low cost, low charges, low allocation charges, low admin charges.

4) AST team strong support to sales in concern of training, recruitment, joint field work.

5) Opening another 300 branches in all over India

Tata Group Management

The Tata Group is headed by Group chairman Ratan Tata. The Group Corporate Centre (GCC) is the top decision-making body of the Tata Group. Each company has its own management

TATAS in business

The Tata Group's business activities are conducted through 98 companies operating in seven business sectors. It has a presence in six continents and holds leadership positions in many industry segments, among them tea, software, automobiles, energy and hospitality. In 2006-07, Group revenues stood at $28.8 billion or Rs129,994 crore (not including Corus financials)

A saga of vision, commitment and fortitude

As much an institution as it is a business conglomerate, the Tata Group is unique in more ways than one. Established by Jamsetji Tata in the second half of the 19th century, the Group has grown into one of India's biggest and most respected business organizations, thanks in no small part to its entrepreneurial vision, its commitment to ideals that put people before profits, and its fortitude in the face of adversity.

The Tata Business Leadership Award

The Tata Business Leadership Award (TBLA), initiated in 2004, is an annual business school event organized by the Tata Group. It offers students from select business schools a unique opportunity to compete with the brightest and display their business acumen.

The award underlines the commitment of the Tata Group towards promoting and encouraging future leaders. It is also an Endeavour to create awareness among management students of the Tata brand.

The students (in teams of three to four) are given a strategic problem or situation relevant to the Group. They have to make a presentation to senior managers in the Group and defend their case study. The defense is evaluated on parameters such as creativity, clarity, relevance and business value.

Preliminary rounds are held on campus and chaired by a panel consisting of a cross section of senior Tata managers. The final defense presentation, held at the Tata Management Training Centre in Pune, is seen by Tata leaders and others

The winning team gets the coveted TBLA rolling trophy and a host of other prizes.

TBLA 2008

National winners: IIM Calcutta (Amit Mehta, Puneet Gandhi, Puneet Jain, Ritesh Saxena)

First runner-up: SP Jain Mumbai (Ashish Upadhyay, Raghava Attinuru, Swagata Basak, Sunrita Bhowmik Saha)

Second runner-up: IIM Bangalore (Amlan Chaudhuri, Neetu Chitkara, Parvej Kumar Ravesh, Rahul Arya)

TBLA 2008 in-house winners

National winners: Tata Chemicals (Amitabh Tapadar, Anand Sinha, Madhur Vaghela, Mohammed Altaf S)

First runner-up: HVTL (Heavy Vehicles Transmission Ltd), Jamshedpur (P. Sant Prasad, Sabas Fernando, Sanjay Kumar Singh, Soumik Chatterjee)

Second runner-up: TCS, USA (Prabhat Kumar Asthana, Vikrant Neogi, Devendra Kumar Singh)

TBLA 2007

National winners: IIM, Lucknow (Alok Bhagaria, Sidharth Bansal, Pratik Shukla, Rahul Khaparde)

First runner-up: IIM, Bangalore

Second runner-up: FMS, Delhi

TBLA 2006

National winners: FMS, Delhi (Abhijit Shetty, Manuj Ahri, Vidisha Mehta, Aditya SV)

First runner-up: IIM, Bangalore (Sameer Shetty, Vaibhav Jambhekar, Apurv Parashar, Hemang Mehta)

Second runner- up: SP Jain, Mumbai (Rajeev Singh, Nikesh Samaiya, Gopalakrishnan K, Kapil Lodha)

TBLA 2005

National winners: IIM Lucknow (Tarandeep Singh Ghai, Kunal Arya Shreshta, Ashutosh Bhandari, Saurabh Khandelwal)

First runner-up: FMS, Delhi (Abhijeet Shetty, Mohit Ralhan, Amit Gupta, Curie Balgir)

Second runner-up: IIM Calcutta (H. V. Vinayak, Madhusudan Sharma, Kunal Kumar, Ashish Verma)

TBLA 2004

National winner: SP Jain Mumbai (Ravi Kumar, Anahita Ichaporia, Nilesh Kumar, Asif Shamim)

First runner-up: IIM Ahmedabad (Anish Saraf, Ashish Keyal, R. N. Gautam, Rahul Verma)

Second runner-up: XLRI, Jamshedpur (Diwakar Loshali, Purnima Kumar, Surabhi Loshali, Ritesh Bhardwaj)