insurance is not a new business in Bangladesh. Almost a century back, during British rule in India, some insurance companies started transacting business, both life and general, in Bengal. Insurance business gained momentum in East Pakistan during 1947-1971, when 49 insurance companies transacted both life and general insurance schemes.
ALICOAIG Life Bangladesh is the oldest operation in the company’s Middle East, Africa and South Asia (MEASA) Division, tracing its origin back to 1952, when it entered Pakistan with business activities also extending to erstwhile East Pakistan. The company started its full service branch operation in Bangladesh in 1974 and has since been marketing individual and group life insurance products with remarkable success.
ALICO started its operation in Bangladesh in 1952. It is the oldest operation in the company’s Middle East, Africa and South Asia division. ALICO has been the market leader since 1997 amongst 18 companies in this local insurance market. Its head office is in Dhaka and two sales offices in Chittagong & Camilla. ALICO has 123 agency
offices all over the country. The sales mechanism of ALICO is activated through these agency offices. The main products of ALICO are as Three Payments Plan (3PP), Income Growth Plan (IGP), Education Protection Plan (EPP), Life Line Plan (IGP) and WP, AI, AX, ADB, HC, CC, Good Health, etc.
Total sales of Ordinary Life Policy has increased by Tk 94.90 million from year 2004 to 2005 and renewal premium collection of Ordinary Life Policy in year 2005 had increased from that of year 2004 by Tk. 333.09 million. In year 2005, sale of PA policy had increased by 12.75% from that of year 2004. In year 2005, ALICO had been able to increase its sales of Group Insurance Policy to TK. 17.16 million, which was TK. 4.38 million higher than that of year 2002. Sales growth of every four years have resulted to 211.2%, 213.94%, 246.53%, 253.54% and 69.56% in year 1984, 1989, 1994, 1999 and 2004 respectively. The total number of agencies has increased from 16 to 123 in year 2007 from that of year 1980. Sales forces have increased from 500 to 7698 in year 2008 from that of year 1980.........
1.1 Introduction
Successful companies treat their strategic as well as performance status not as important assets but as critical partners. Performance is more important in today’s business arena for many reasons. We have just entered into a new millennium where need of the efficient and effective performance become a strategic business partner for the organization is imperative. Organizations facing a challenging economicenvironment, changing demographics, regulatory oversight, the shifting of employee values, and technology all impact the ability of organizations to perform and succeed in a global environment..
Performance evaluation can make or break a business. If any business have problems in ensuring it’s business positions, performance evaluation can help it to get through them. Analyzing strategically in detail can help a business in deciding where and how to pay attention and allow the business to test out ideas and gauge their impact on its most pressing needs. Business can spend an intense couple of hours every few weeks to get on top of the problem and chart a course of action. Businesses don't have to worry about it every hour of every day.
If things seem to be going well, but a business is little nervous, performing strategy can be like using night vision goggles - a clear picture of true strategic position emerges from the murkiness of business uncertainty. Just because we have money in the bank doesn't mean that we are well off. It could be that we got lucky and were unexpectedly paid early by a key customer, and with major strategic needs on the horizon.
In Bangladesh, ALICO AIG Life (Herein after mentioned as only ALICO) has been one of the most successful organizations in her past and is still continuing its successful run. ALICO’s extensive attention on strategic move is one of key factor for its success. For these reasons it carries a high degree of importance in choosing ALICO to practice theoretical knowledge and to get familiar with the existing approach to business thought through performance evaluation.
1.2 Objectives
This study on ALICO aiming to evaluate its overall performance, have some particular objectives. Following objectives are identified as broad objective and specific objectives.