Critical Success Factors

CSFs are the essential areas of activity that must be performed well by an organization to achieve its mission, objectives or goals of business or project. Critical Success Factors are strongly related to the mission and strategic goals of the business or project. Where the mission and goals focus on the aims and what is to be achieved, Critical Success Factors focus on the most important areas and get to the very heart of both what is to be achieved and how it will achieved.

Identification of Critical Success factors can create common point of reference and help an organization to measure the success of their business. CSFs help everyone in the team to know exactly what's most important. And this helps people perform their own work in the right context and so pull together towards the same overall aims.The idea of CSFs was first presented by D. Ronald Daniel in the 1960s. It was then built on and popularized a decade later by John F. Rockart. Critical Success factors of General Insurance Industry General Insurance Meaning: Insuring anything other than human life is called general insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are general insurance products that are in the nature of package policies offering a combination of the covers. Trend of General insurance Industry in India Until 2000, the general insurance sector had only four public sector players, formed after the nationalization of 107 general insurers. They primarily focused on their immediate regions and there was little competition, leading to a near monopolistic environment. With the de-regulation in Indian Insurance industry, the monopoly of public sector companies in life insurance and general insurance has come to an end. This has augmented the innovative practices initiated by the private players. Growth in the interactive technology such as internet has further created a wave of excitement in the insurance market. The Indian insurance sector is rapidly moving towards international standards of free (riskbased) market pricing and new/innovative product offerings. Big changes have occurred over the last few years, during which the sector was opened to private participation, but with foreign direct investment (FDI) capped at 26%.

In line with a continuation of solid growth and strong domestic demand, the number of insurers in the private sector are growing and major foreign players also see opportunities to increase both volumes and types of products. With the regulator possibly lifting the ceiling on foreign ownership to 49%, the capacities of domestic partners would no longer constrain capital levels for joint ventures.

General Insurance Industry Government of India holds four companies. Public Companies: National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd United India Insurance Co Ltd

Private Companies: Bajaj Allianz General Insurance Bharti AXA General Insurance Cholamandalam MS Future Generali India Insurance HDFC ERGO General Insurance ICICI Lombard IFFCO Tokio Liberty Videocon General Insurance Co Ltd L & T General Insurance Magma HDI General Insurance Co Ltd Raheja QBE General Insurance Reliance General Insurance Royal Sundaram SBI General Insurance Shriram General Insurance

Tata AIG General Universal Sompo General Insurance Star allied

Critical Success Factors of few companies are as below. 1. Bajaj Alliance, Jiyo Befikar
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Alliances mission is, as responsible, customer focused market leader, strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money. The strategic objective of Bajaj Alliance are:

To be the first choice insurer for customers. To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value.
In order to identify possible CSFs, the mission and objectives and areas of the business which needed attention are to be examined. For this what are the Critical Factors to success needed to be seen. Sr. No. Objectives 1. To be the first choice insurer for customers Critical Success Factors Offers every possible solution from health to finance, from life to pension, whatever is purpose of insurance. To be the preferred employer for staff in the The trusted support system insurance industry helped in establishing well knitted network in over 200 towns in all over India. To be the number one insurer for creating Amongst the top insurer shareholder value providers in India providing better quality consumer experience and good returns to shareholders and maintains the reliability of Bajaj.

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Fig. 1 showing Critical Success factors, Missions and Goals of Bajaj Allianz Critical Success factors Offering cover for every purpose of insurance. Employees acted as support system to increase network. Good returns to the shareholders.

Goals To be the first choice insurer for customers. To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value

2. IFFCO Tokio General Insurance Company Ltd, Muskarate Raho IFFCO Tokio is a joint venture between the Indian Farmers Fertilizer Co-operative (IFFCO) and its associates and Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan. IFFCO Tokios mission is to become industry leader by building customer satisfaction through fairness, transparency, and quick response. Strategic Objectives of IFFCO Tokio are: To achieve sustainable growth by curtailing loss prone and unviable class of business. To enhance the quality of the products in retail segment. To penetrate deeper into rural areas and B & C class cities and in addition to traditional intermediaries, utilize cooperative societies / banks as channel partners in those areas. To enter the untapped market. To review products continuously to make them customer friendly and suit the changing requirements.

In order to identify possible CSFs, the mission and objectives and areas of the business which needed attention are to be examined. For this what are the Critical Factors to success needed to be seen. Sr. No. 1. Objectives To achieve sustainable growth by curtailing loss prone and unviable class of business. . Critical Success Factors Exercised strict underwriting controls and better claims management, yielded results in reduction of loss ratio in Marine Cargo, Motor and Health portfolio and achieved better efficiency by reducing expense ratio.

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To enhance the quality of the Provides comprehensive policy based on products in retail segment. international rates and optimizes the premium outflow for clients as it offers a one-stop, allrisk cover. Other than the conventional products, it has been able to come out with

niche products like Credit Insurance, Fine Arts Insurance, P & I Insurance, Errors & Omissions Policy for the IT Sector etc. 3. To penetrate deeper into rural areas Various rural centric initiatives made by and B & C class cities. launching products like Sankat Haran Bima Yojana, Mausam Bima Yojana, Mahila Suraksha Bima Yojana and Janata Bima Yojana for the masses. To enter the untapped market. Special products introduces like Credit Insurance, P & L insurance, Fine Arts Insurance, errors & omission policies for IT sector.

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To review products continuously to Offers wide range of uniquely customized make them customer friendly and policies covering a large range of customers, suit the changing requirements. from farmers to some of India's largest automobile manufacturers. Moreover provides the technical support for underwriting and reinsurance on risk management.

Fig. 2 showing Critical Success factors, Missions and Goals of IFFCO Tokio Critical Success factors Strict underwriting controls and better claims management. Comprehensive policy based on international rates and optimal premium. Rural centric initiatives made. Pioneer in using technology. Provides uniquely customized policies.

Goals To achieve sustainable growth To enhance the quality of the products. To penetrate deeper into rural areas. To enter the untapped market. To review products continuously.

Some other Factors of success of the company: The insurance company in the country have a 100%-owned distribution channel to service its retail customers called IFFCO-TOKIO Insurance Services Ltd (ITIS). In order to gauge its operational efficiencies the conducts bi-annual customer satisfaction surveys through independent agencies. This is backed by a robust IT infrastructure. Speedy settlement of claims.

3. Reliance General Insurance Company Ltd. Reliance General Insurance Company Limited is an Indian insurance company, a part of Reliance Capital Ltd. of the Reliance Anil Dhirubhai Ambani Group. Mission of Reliance General Insurance Company Ltd is, To keep the customer satisfaction as focal point of all our operations, adopt the best international practices in underwriting, claims and customer service, be the most innovative in product development, establish presence all over India, ensure sustained value addition to all stake holders and to uphold Corporate Value & Corporate Governance. Strategic Objectives of Reliance General Insurance Ltd. are: Make affordable insurance accessible to all Keep customer as focal point for all operations Protect policy holders interests Adopt best international practices in claims, underwriting and policy servicing Be the most pioneering in designing of insurance products Establish Pan India presence

In order to identify possible CSFs, the mission and objectives and areas of the business which needed attention are to be examined. For this what are the Critical Factors to success needed to be seen.

Sr. No. 1.

Objectives

Critical Success Factors

Make affordable insurance accessible to More add ons to cover and discounts all. in specified cases. Maintain customer insurance activities focus for all An easy and quick customer care service to provide best of facility 247. Customized insurance products offering services to the corporate, SME and individual customers.

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Protect policy holders interests.

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Assume industry best global practices in Company uphold its corporate value underwriting, claims, and policy and corporate governance in order to services. provide the best insurance services. Be the most pioneering in designing of Over-The-Counter health and homes insurance products insurance policies, Shoppers package, Errection all risk, Contractors all risk, Contractors plant and machinery, Machinery insurance, Machinery loss of profit, Boiler and pressure plant insurance, Equipment Insurance, Workmen Compensation, Public liability Insurance. Establish Pan India presence. 200 offices, well placed at 117 cities.

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Fig. 3 showing Critical Success factors, Missions and Goals of Reliance General Insurance Company Ltd. Critical Success factors More add ons to cover. 24*7 service facility Customized insurance products for the corporates, SME and individual customers Uphold its corporate value and corporate governance Over-The-Counter health and homes insurance policies and other schemes 200 offices, well placed at 117 cities

Goals Make affordable insurance accessible to all Keep customer as focal point for all operations Protect policy holders interests Adopt best international practices in claims, underwriting and policy servicing

Be the most pioneering in designing of insurance products Establish Pan India presence

4. Oriental Insurance Company, Prithvi, Agni, Jal, Akash sabaiko suraksha hamro sath. The Oriental Insurance Company Ltd. was incorporated at Bombay in 1947. The Company was a wholly owned subsidiary of the Oriental Government Security Life Assurance Company Ltd and was formed to carry out General Insurance business. The Company was a subsidiary of Life Insurance Corporation of India from 1956 to 1973 (till the General Insurance Business was nationalized in the country). In 2003 all shares of the company held by the General Insurance Corporation of India were transferred to Central Government. Mission of oriental Insurance Company is, To be the most respected and preferred non-life insurer in the markets we operate. Strategic Objectives of Oriental insurance Company are: 1. To act as a financially sound corporate entity with high business ethics. 2. Implement best human resource development practices to build a highly efficient, dedicated and motivated workforce with high morale and moral values. 3. Optimally utilise the information technology infrastructure. 4 Provide excellent customer service.

5. Run the business profitably through prudent underwriting and efficient management. 6. Effectively manage reinsurance business. 7. Have effective risk management system. In order to identify possible CSFs, the mission and objectives and areas of the business which needed attention are to be examined. For this what are the Critical Factors to success needed to be seen. Sr. No. Objectives Critical Success Factors 1. To act as a financially sound corporate Various ranges of services provided by the entity with high business ethics. company includes individual or family product, health and medi-claim product, professional product, business product, engineering industry, motor vehicle, agriculture, animal/bird, aviation and marine. 2. Implement best human resource Highly technically qualified and competent development practices. personnel take care of meeting customers needs of various kinds apart from providing excellent customer care. 3. Optimally utilise the information Allows payment through debit, credit cards technology in infrastructure. or internet banking accounts by just providing policy number. 4. Provide excellent customer service. Developed and renovated various kinds of insurance covers and policies to deliver service provision to a vast portion of both urban and rural population of India. 5. Run the business profitably through Professionally managed independent prudent underwriting and efficient Board-run Company. management. 6. Effectively manage reinsurance S Special covers for large projects like power business. plant, p petrochemicals, steel and chemical plants. 7. . Effective risk management system H Happy family floater, Nagrik suraksha policy are t risk covering tools other than normally available.

Fig. 4 showing Critical Success factors, Missions and Goals of Oriental Insurance Company

Critical Success factors 1. Various ranges of services provided. 2. Highly technically qualified and competent staff. 3. Allows online payment mechanism. 4. Revised policies as per different categories of customers. 5. Professionally managed independent Board-run Company. 6. Special covers for large projects like power plant, petrochemicals, steel and chemical plants. 7. Happy family floater, Nagrik suraksha policy

Goal To act as a financially sound corporate entity with high business ethics. Implement best human resource development practices to build a highly efficient, dedicated and motivated workforce with high morale and moral values. Optimally utilise the information technology infrastructure. Provide excellent customer service. Run the business profitably through prudent underwriting and efficient management. Effectively manage reinsurance business. Have effective risk management system.

5. New India Assurance Company New India Assurance was founded in the year 1919 and owes its lineage to the prestigious and the first industrial house of India, The Tata group by Sir Dorab Tata. After independence in the year 1973, the New India Company was merged owing to polices of Nationalization of banks etc. Mission of the company is, To be the most respected, trusted and preferred Non-life Insurer in the Global markets we operate. Objectives of New India assurance Company Ltd. are: To develop general insurance business in the best interest of the community. To provide financial security to individuals, trade, commerce & all other segments of the society by offering insurance products & services of high quality at affordable cost.

In order to identify possible CSFs, the mission and objectives and areas of the business which needed attention are to be examined. For this what are the Critical Factors to success needed to be seen. Sr. No. 1. Objectives To develop general insurance business in the best interest of the community. Critical Success Factors Holds good number of offices in India and abroad as a pioneer in satellite insurance. Clear and transparent manner in seeking fulfillment of requirements for settling a claim.

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To provide financial security to individuals, trade, commerce & all other segments of the society by offering insurance products & services of high quality at

affordable cost.

Fig. 5 showing Critical Success factors, Missions and Goals of New India assurance Company

Critical Success factors 1 Holds good number of offices in India and abroad as a pioneer in satellite insurance. 2. Clear and transparent manner in seeking fulfillment of requirements for settling a claim.

Goals To develop general insurance business in the best interest of the community. To provide financial security to individuals, trade, commerce & all other segments of the society by offering insurance products & services of high quality at affordable cost.

Conclusion General Industry involves a large number of private players along with public players catering different needs of customers. Every player trying to compete in best possible manner to have edge over competitors. Various factors like top management support, well planned implementation process, establishment of mobilisation team, knowledge of users need, higher degree of e- business implementation, establishing channels of communication, provision of educational trainee, comprehensiveness of system functions, establishment of control mechanism are critical for success and helps the organization to compete and increase their customer base.

Assignment On Critical Success factors of General Insurance Industry

Submitted To: Mr. Savdeep Vasudev (Asst Prof.) Department of Business Administration DAVIET, Jalandhar

Submitted By: Isha Narang 2112/11