Professional Documents
Culture Documents
Rakesh HDFC Standard Life Insurance
Rakesh HDFC Standard Life Insurance
Chapter- 1 Introduction
1.1 Abbreviation
1.2 Industry Profile.
1.3 Company profile.
1.4 Key strength.
1.5 Rewards.
1.6 Major Players.
1.7 Who can be FC ?
1.8 Work of FC.
Chapter- 2
2.1
Objective.
Limitation.
Chapter-3 Methodology.
3.1 Findings.
Chapter-4 Conclusions.
4.1 Suggestions.
Appendix
Bibliography.
ACKNOWLEDGEMNT
DECLARATION
This Report has not been copied from anywhere, up to the best of my
belief and knowledge. It has not been submitted anywhere else for Award of
any other Degree/diploma.
VISION STATEMENT
VALUES
Integrity
Innovation
Customer centric.
People care.
Team work.
Joy and Simplicity.
INDUSTRY PROFILE
INSURANCE:
Insurance can be defined as assurance for uncertainty. Insurance is about something
going wrong. Its often about things going right.; One of the Wonders of human nature is
that we never believe anything can actually go wrong.
The insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to liberalized market again. Tracking the development
in Indian insurance sector reveals the 360 degree turn witnessed over a period of almost
two centuries.
The business of life insurance in Indian in its existing form started in India in the year
1818 with the establishment of Oriental Life. Insurance Company in Calcutta. Some of
the important milestones in life insurance business in India are.
1912: The Indian Life insurance Companies Act enacted as first statue to regulate the life
insurance business.
1928: The Indian Insurance Compan9es Act enacted to enable the government to collect
statistical information about life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the insurance Act with the
objective of protecting the interests of the insuring public.
1965: 245 Indian and foreign insurers and provident societies take over
by the central government and nationalized. LIC formed by an act of
parliament viz. LIC. Act . 1956, with a capital contribution of Rs. 5 Crore from the
government of India.
COMPANY PROFILE
HDFC Standard Life Insurance Company Ltd.
HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since
emerged as the largest residential mortgage finance institution in the country The
corporation has had a series of share issues raising its capital to Rs. 119 crores. The gross
premium income for the year ending March 31, 2007 stood at Rs. 2, 856 crores and new
business premium income at Rs. 1,624 crores. The company has covered over 8,77,000
lives year ending March 31, 2007.
HDFC operates through almost 450 locations throughout the country with its corporate
head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE,
with service associates in Kuwait, Oman and Qatar.
HDFC is the largest housing Company in India for the last 27 years.
SNAPSHOT-I
Incorporated in 1977 as the first specialized mortgage company in India.
9
Almost 90% of initial shareholding in the hands of domestic intuitions and retail
investors. Current 77% of shares held by foreign institutional investors.
Besides the core business of mortgage HDFC has evolved into a financial
conglomerate with holdings In:
HDFC Standard Life insurance Company- HDFC holds 78.07 %.
HDFC Asset Management Company HDFC holds 50.1%
HDFC Bank- HDFC holds 22.25%.
Intelenet Global (Business Process Outsourcing) HDFC holds 50%.
HDFC Chubb General Insurance Company HDFC holds 74%.
SNAPSHOT-II
Loan Approvals
Loan Disbursements
Rs.669 billion
2.5 million.
Distribution
Offices
181
Outreach Programs
90
10
KEY PLAYERS
Mr. Deepak S Parekh is the Chairman of the
Company. He is also the Executive Chairman of
Housing
Development
Finance
Corporation
Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since
November, 2000. Prior to this, he was the Managing Director of HDFC Limited since
1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian
Institute of Technology, Bombay and a Masters Degree in Business Administration from
The American University, Washington DC.
GROUP COMPANIES
HDFC Bank: World Class Indian Bank- among the top private banks in India.
HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.
Intelent Global : BOP services for international customers.
CIBIL: Credit information services bureau.
HDFC Chubb: Upcoming Private companies in the field of General Insurance.
12
STANDARD LIFE
Standard Life is Europes largest mutual life assurance company. Standard Life, which
has been in the life insurance business for the past 175 years is a modern company
surviving quite a few changes since selling its first policy
expanded in the 19th century from kits original Edinburgh premises, opening offices in
other towns and acquitting other similar businesses.
13
Standard Life Currently has assets exceeding over 70 billion under its management and
has the distinction of being accorded AAA rating consequently for the six years by
Standard and Poor.
SNAPSHOT
Founded in 1875, company supporting generation for last 179 years.
Currently over 5 m. Policy holders benefiting from the services offered.
Europes largest mutual life insurer.
14
15
JOINT VENTURE
JOINT VENTURE
16
HDFC Standard Life Insurance Company Limited was one of the first companies to be
granted license by the IRDA to operate in life insurance sector. Reach of the JV player is
highly rated and been conferred with many awards. HDFC is rated AAA by both
CRISIL and ICRA. Similarly, Standard Life is rated AAA both by Moodys and
Standard and Poors. These reflect the efficiency with which HDFC and Standard Life
manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. Respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14 th August 2000.
HDFC is the majority stakeholder in the insurance JV with 81.4 %stale and Standard :of
as a staple pf 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture.
HDFC Standard Life Insurance Company Ltd. Is one of Indias leading Private Life
Insurance Companies., which offers a range of individual and group insurance solutions.
It is a joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.) Indias leading housing finance institution and the Standard Life Assurance
Company, a leading provider of financial services from the United Kingdom. Both the
promoters are will known for their ethical dealings and financial strength and are thus
committed to being a long-term player in the life insurance industry- all important factors
to consider when choosing your insurer.
BUSINESS GROWTH
The company has covered over 8,77,000 lives year ending March 31, 2007. Company
also declared our 5th consecutive bonus in as many years for our with profit
policyholders.
Total
Growth FY 05
Approvals
30%
Disbursements
28%
KEY STRENGTH
Financial Expertise
As a joint venture
leading financial services
groups. HDFC standard Life has the
LOANof APPROVALS
AND DISBURSEMENTS
financial expertise required to manage your long-term investments safely and efficiently.
Range of Solutions
We have a range of individual and group solutions, which can be easily customized to
specific needs. Our group solutions have been designed to offer you complete flexibility
combined with a low charging structure.
18
19
means an exhaustive description of terms and conditions of LIC policy or its benefits or
privileges.
For more details, please contact our branch or divisional office. An LIC it will be glad to
help you choose the life insurance plan to meet your needs and render policy servicing.
ICICI PRUDENTIAL
ICICI Prudential life insurance company is a joint venture between ICICI bank, a premier
financial powerhouse and prudential plc. A leading international financial service group
headquartered in the United Kingdom. ICICI prudential was amongst the first private
sector insurance company to being operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA) . ICICI Prudential equity
base 74% and 26% stake respectively. In the period April-December 2004, the company
garnered Rs. Billion of new business premium for a total sum assured of over Rs 73.6
billion and wrote nearly 345000 policies.
The company has a network of over 50000 advisor; as well as 7 bank
assurance tie-ups. Today, ICICI Prudential has emerged as the No -1 Private Life insured
in the country. With a wide range of flexible products that meet the needs of the
customer at every step in life.
the 4th in the world .AAA rated by crises, Bajaj auto has in a operation for over 55 years.
It has joined hands with Allianz to provide the Indian consumer with a distance option in
term of life insurance products. As a promoter of Bajaj Allianz Life Insurance Co. Ltd.
Bajaj auto has following to offerFinancial strength and stability to support the Insurance Business.
A Strong brand-equity.
A good market reputation as a world class organization.
Adequate experience of r4unning a large organization.
A 10 million strong base of retail customers using Bajaj Products.
21
involved in finance Sector only where as the others are running in many other field
also like Reliance (Petroleum, Textile, Telecom etc.)
3. Ethics and Values: HDFC is an ethical and cultural organization which prevents
the false selling and prohibit the false commitment to the customer.
4. Sales Force: Properly trend licensed and Educated People are the strength of the
company. So that they could give the best customer service.
5. Huge branch network HDFC is having 450 branches in all over the country.
6. Online accessibility : It makes the process faster and make the customer delighted.
OBJECTIVE
Recruitment of Financial consultant (FCs) of a excellent profile and their retention
strategies and what are their benefit that company going to provided for retention of their
FCs.
(A)
23
1- Committed people who have the drive, determination and ability to become
professional financial consultants.
2- Ability to sell a range of financial products.
(B)
Brand value and the reputation of the partners (HDFC Limited) Market leader in
housing finance:
15 lakhs home financed.
11 lakhs retail deposits customer base.
Reputation for providing the higher standards of customer service.
Financial Strength of the partners.
Brand value and the reputation of the partners standard life:
175 years experience in life insurance.
Largest mutual life insurer in Europe.
Product innovation.
Achievements:
Recruited eight financial consultants for company.
Increase in confidence level.
Got the knowledge about, how to differentiate our product form that of LIC.
Made more and more people aware about my companies Products (Policies)
Taken some appointments for policies and got positive response from 8 persons with the
help of my BDM.
Limitations:So though the study aim to achieve the above mentioned Objective in full earnest and
accuracy, it may be hampered due to certain limitation. Some of the limitations are as
follows:
To cover the various section for the society.
25
RESEARCH METHODOLOGY
Research can be defined as systematized effort to gain knowledge. A research is carried
out by different methodology, which has their own pros and cons.
26
Research methodology is a way to solve research problem along with the logic behind
them. Thus when we talk of the research methodology we not only take of research
method but also context of our research study and explain why we are using a particular
method or techniques and why we are not using other so that research result are capable
of being evaluated either by the researchers himself or by others.
Research methodology means the method carried out to study the problem . It shows the
type of the sample design used, its size and the procedure used to dew sample. The extent
of precision achieved and the method used for handling any special problem during the
course of the study.
Step: 2
Step: 3
Step: 4
Step: 5
Step: 6
Step: 7
Step: 8
Explanation
Step: 1
conceived so as to obtain answer to research question and control variance. There are
three types of research design system.
Explanatory Research.
Descriptive Research
Casual Research.
Among the above mentioned types descriptive research design has been chosen.
Descriptive research is to find ad efficient sales force, of FC. In order the study the
characteristics and variables, cross sectional analysis was conducted by using field
survey method . In the process of field survey, a questionnaire was developed and
circulated to the respondents, which formed the basis for entire research.
Step: 3
results. There are two types of data sources: thus happen to be original in character.
Secondary data: Secondary data is any data, which have been gathered earlier for
some other purpose.
28
Among the above mentioned types of data was used for the study and analysis of the
objective of this project, Also the secondary to data proved to be helping hand in framing
up the industry scenario and also the relevant topics in the entire project report.
Reason for selecting primary data:
In terms of primary data structure questionnaire was prepared to interview the
professional, unemployed students, housewives, investment consultant, post office agent
and other in Bilaspur location. Analysis clearly reflected the views and preference
regarding the perception of the people towards joining HDFC standard life.
Observation method.
Survey method.
As for as the data collection method for this project is concerned, designing the data
collection forms or survey forms is applicable to the project. The method selected survey
method.
A survey can be conducted by:-
Personal interview.
Telephonic interview.
Amongst the above method personal interview method was conducted to gather
information in detail . this method was chosen because along with the study of projects
primary objective i.e. study of people and convince them to join as FC for HDFC
standard life.
Step 5 To determine sample design sample size.
29
FIELD METHODOLOGY
The methodology adopted in the field to collect the data represented diagrammatically
below:
Segmentation of People
Filling up questionnaire
and Schedule
TABULATION AND ANALYSIS
In order to determine the willingness of the people to become FC for HDFC SLIC in
Bilaspur, data collected by surveying is treated as analysis. Response to the parameter
30
Yes
2
2
2
3
2
3
14
No
28
33
18
22
18
12
131
Total
30
35
20
25
20
15
10
155
31
32
33
34
FINDINGS
1- Customers are less aware about the private insurance company in market.
2- Some customer are like to join HDFC as FCs because it is a Part-time.
3- Many professions like CA, tax planner want a corporate age3ncy rather than to be
a financial consultant.
4- HDFC is too selective in making a FC rather than to appoint any one like LIC.
5- Customer dont want to join as financial consultant because its on commission
basis the4y want job on salary basis.
6- Educated customers are now vending towards private insurance Companies, due to
the attractive
companies.
7- LIC has created a branded image in 3-4 decades, due to which new insurance
companies are facing trouble in capturing market share.
8- If the
investment for
35
CONCLUSION
After collection of data interpretation is done on that basis conclusion is drawn. The
conclusion drawn.
Conclusion prefer government insurance company other than private insurance
companies due to its reliability.
Customers are more brand oriented rather than product oriented.
Customers are less aware about the private insurance companies.
Private Players in order to encase maximum number of customers are introducing new
and innovative scheme for their FC.
Customers like to invest in other investment zones due to the hectic rules and regulations
associated with, entering into a contract with insurance companies.
Customers do not feel secure with private insurance companies.
Customers dont want commission base job.
The central problem with the insurance companies is having that they are trying to
convince customers for a product which do not have any present relevance, i.e. each
policy which the customer is going to purchase will have a future set of action and
benefits. Due to which most
of the people
investment, which will give them a fruitful return in short period of time ?
Life insurance Corporation has completed more than three decades and
thats where counts, inters of brand name, different number of policies for differed class
and age group of customers.
The Private players are on the way, but they need a lot of time investment for creating a
favorable brand image.
36
SUGGESTIONS
Customers should be made aware of the brand name of Insurance company
through advertisement.
The fear in the customer mind should be removed by company.
The insurance companies should try to nurture their brand name timely and
attractive facility provide to customer.
37
Flexible work timings, part time or full time: FCs can work whenever he likes
and from whereeve4r he like, FCs can work full time depending on their convenience its
like no other job however, the time.
Sunrise industry: Life insurance in India has a huge potential for growth Statistics
reveal that only 25% of the insurable population in India is insured and those insured are
in need of still higher insurance cover. The over 100% growth displayed by private
life insurers indicates this hu7ge untapped potential.
38
Strong Partnership:
A powerful brand HDFC Standard Life Insurance:
We were the first private life insurance company to be granted a license by IRDA.
We have been rated by business world magazine. As Indies most respected private life
insurance company 2004.
We have grown over 130% in the last and more than 8 Lakhs policy holder. HDFC
standard life insurance has one of the highest brand recall of around 80%
PROFESSIONAL TRAINING PROGRAMS AND CONTINUID GUIDANCE:
At HDFC standard training is an inherent element of our support system for FCs. Some
of our training and support initiative are as:
IRDA Training: Online training of 100 hrs. prepares for career as FCs and enables to
pass the IRDA examination. After the IRDA license, first step towards a successful
career as a FC.
Basic Training and Induction: Independence of work experience, this training will give
perfect knowledge about the insurance industry along with comprehensive knowledge
about the insurance along with comprehensive knowledge abut HDFC SLIC Product.
Disha training: This is a professional sales skill program eased by us to one selling
skills. Those program enable to understand customer need and provide need based
insurance solution.. A huge step from an amateur to a true finance professional.
Advance Training: Once Fc have settled down as a FC professional we will
continuously upgrade capability and knowledge through sophisticated training program,
fit for this dynamic world of financial products and markets.
UNMATCHED SUPPORT:
39
QUESIONNARIRES:
Dear Respondent,
I am an MBA student doing a HDFC standard life insurance company. I am
carrying a study on prospecting, Identifying, and Recruiting certified financial
consultant for HDFC SLIC-A study in Drug, Bilashpur, and Raipur City in this regard
I will like to spare some time to answer few adjustment, This study is conducted for just
academic purpose having no commercial relevance.
Information provided by you will be confidential.
..
QUESTIONNAIRE
40
Yes
(b) No
Q.2: Do you know about the working of financial Consultant of HDFC SLIC ?
Ans: (a)
Q.3
(b) No
Ans: (a)
Q.4
Yes
Yes
(b) No
What would be the size of your social contact base who knows you on first name
basis ?
(E.g : Friendly, family, relative, colleagues if any etc.)
Ans: Mention in appropriate nos.
Q.5
How many members of your family are dependent on the income earner of the
family ?
Q.6
Ans: (a)
Yes
(b) No
Yes
(b) No
Do you have experience in selling financial product ? e.g. credit card, insurance etc
? If yes how many years ? (If yes to question 6)
Ans: (a)
Yes
( )
(b) No
Q. 9 What do you think ? in todays scenario life insurance Is NEED, WANT AND
DEMAND ?
Ans:
Q.10 In which of the financial market you have invested your
money ?
41
(c) Insurance.
Q. 11 Are you interested in getting the opportunity of earning some additional income as
being financial consultant of HDFC SLIC and why ?
Ans: (a)
Yes
(b) No
Your Signature.
ABBREVIATIONS
42
BIBLIOGRAPHY
43
Books Referred:
Personal management.
Book of license training programme for insurance advisers.
44