Professional Documents
Culture Documents
Mba STR
Mba STR
Submitted by:-
Submitted to:-
KAPIL DEV
M.B.A. PART-II
HOD
2008-2010
PREFACE
One and the only certain thing in this world in uncertainty
The above statement correctly depicts the uncertainty prevailing in the environment.
In order to reduce risk due to uncertainty many methods are developed and one such
method is insurance. Insurance is a contract of indemnity where the indemnifier (insurer)
promises indemnified (insured) to protect him. Two main streams of insurance are popular
that is life insurance and general insurance. Rather more specifically saying the project is
an attempt to know the awareness level about Financial Consultant of Life Insurance
Company, whose are the driving forces of such companies.
For the purpose of study a questionnaire was made and it was filled by a sample of
people.
After due analysis of responses from these 221 customer it was found that people
are want to join insurance companies but they are not aware about the Jobs & FC even
they have no proper information about FC.
They dont have any idea about the private players in this sector.
In the end of the research project certain suggestion regarding for approach & recruit the
desired person as FC in HDFC Standard Life are given so as to increase the awareness
level regarding the FCs.
ACKNOWLEDGEMENT
I express my sincere thanks to my project guide Mr. Vibhor Jha Branch Head Ajmer HDFC
standard life insurance. For guiding me right for the inception till the successful completion
of the project. I sincerely acknowledge him for extending their valuable guidance .support
for literature, critical review of the project and the report and the above all the morel support
he had provided for me with all the stage of this project
I would also like to thank the supportive staff marketing department for their help &
cooperation throughout our project.
I would also like to thank the supporting Mr. Mukesh Machra (HOD of IIMS) for their help
and cooperation throughout our project.
KAPIL DEV
EXECUTIVE SUMMARY
One and the only certain thing in this world in uncertainty
The above statement correctly depicts the uncertainty prevailing in the environment.
In order to reduce risk due to uncertainty many methods are developed and one such
method is insurance. Insurance is a contract of indemnity where the indemnifier (insurer)
promises indemnified (insured) to protect him. Two main streams of insurance are popular
that is life insurance and general insurance. Rather more specifically saying the project is
an attempt to know the awareness level about Financial Consultant of Life Insurance
Company; whose are the driving forces of such companies.
For the purpose of study a questionnaire was made and it was filled by a sample of
people.
After due analysis of responses from these 221 customer it was found that people
are want to join insurance companies but they are not aware about the Jobs & FC even
they have no proper information about FC.
They dont have any idea about the private players in this sector.
INDEX
S. No.
Contents
Page No.
01.
02.
20
03.
Research Methodology
41
3.1
3.2
3.3
Objective of study
3.4
Type of research
3.5
41
41
41
41
42
44
3.6
Scope of study
3.7
Limitation of study
45
45
04.
46
05.
48
06.
SWOT Analysis
65
07.
Conclusion
70
08.
73
09
Appendix
75
10.
Bibliography
79
INTRODUCTION TO
THE INDUSTRY
What is Insurance?
Insurance is a contract between two parties whereby one party called insurer undertakes In
exchange for a fixed sum called premiums, to pay the other party happening of a certain
event.
Insurance business is divided into four classes:
1) Life Insurance
2) Fire Insurance
3) Marine Insurance and
4) Miscellaneous
To get insurance an individual or an organization can approach to an insurance Company
directly, through Insurance Agent of the concerned company or through Intermediaries.
Every asset has a value for its owner and also for those who are benefited with the
existence of that asset. Insurance is concerned with the protection of economic value of
assets.
All of us are interested in the creation of assets because:
i.
ii.
iii.
iv.
They may provide satisfaction of some needs and also yield income to the
owner.
Every asset has normally an expected lifetime. During this period, it is expected to perform
and provide income/comfort to the owner. The owner, being aware of this, plans the things
in such a way that by the time the expected lifetime of the asset expires, he is ready with
the funds required for its replacement. In this way, he ensures that the value or income from
the asset is not lost. Well, this appears to be a fine arrangement provided the asset
completes its expected lifetime!
All assets carry the risk of being destroyed or damaged. But all assets may not necessarily
get destroyed or damaged. Only in a few instances, the probability turns out to be true and
7
the asset gets actually lost or destroyed by accident or some other unfortunate event before
the completion of its expected lifetime. The owner and those deriving benefits from the
asset will suffer because the arrangement to make available its substitute is not yet ready.
Insurance is helpful in mitigating such adverse consequences. To sum up, assets are
insured, as they are likely to be lost or made non-functional through an accidental
occurrence.Insurance does not protect the assets. This means that insurance cannot
prevent loss to the assets due to perils. Nor can insurance avoid the occurrence of the
perils. It only compensates, may not be fully, the economic or financial loss resulting to the
asset from such damage or destruction.
Loss of or damage to the goods in transit by ship due to bad weather in high
seas. The first insurance policy was issued in England in 1583.
Possibility of damage to asset caused by any peril is the risk that asset is exposed
to.
Risk means uncertainty or unpredictability about future loss or damage, which may
or may not happen. This refers to the losses, which may happen suddenly and
unexpectedly.
Human life may be lost due to unexpected early death or become non-functional
following sickness or disabilities cause by accidents.
If this happens by the time one is on the verge of retirement when his income is
about to cease, he might have made alternative arrangements to meet his needs.
But if this happens at a younger age when he is not expected to have made adequate
alternative arrangement, those who are dependent on his income, will suffer. Insurance is
necessary to help those dependent on his income.
Types of Insurance
Basically there are two types of Insurances:
Non-Life Insurance
Life Insurance
INSURANCE
NON-LIFE
INSURANCE
--MARINE
INSURANCE
--FIRE
INSURANCE
--MISCELLANEOUS
INSURANCE
VEHICLES
FURNITURE
BUILDING
AIRCRAFTS
GENERAL
INTANGIBLES
LIFE
INSURANCE
10
11
Economic security
Provides employment
Promoted education
Distribution of risks
Prevention of social evils
Awareness towards health
Prevention of losses
Contributes towards the development if utility services
Security to public & private property
12
13
b) Regular Savings:
Providing for one's family and oneself, as a 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) Investment:
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.
In simple words, insurance protects against untimely losses. Insurance has been
found useful in the lives of persons both in the short term and long term. Short term needs
like sudden medical costs and long-term needs like marriage expenses etc can be met with
using life insurance.
14
Foreign
Major local
Business of
Shareholder
Shareholder
Local
Shareholder
Bajaj Auto
Auto Manufacture
Sanmar
Sun life of
Canada
Birla Global
Finance
4. Dabur CGU
5. HDFC
Standard Life
6. ICICI
Prudential
Life
7. ING Vysya
Life
8. Max New
York Life
9. MetLife India
CGNU
Standard Life
Dabur
HDFC
Prudential(UK)
ICICI
Divesified
Conglomerate
Diversified
Conglomerate
Medical &
Consumer
Products
Investment &
Finance
Investment &
Finance
ING
Vysys bank
Old Mutual
Cardiff
AIG
SBI
TATA
10. OM Kotak
Mahindra
11. SBI Life
12. TATA-AIG
Life
MetLife
15
Registration
Date of
Number
Reg.
101
23.10.2000
104
15.11.2000
105
24.11.2000
107
10.01.2001
109
31.01.2001
110
12.02.2001
111
30.03.2001
114
02.08.2001
116
03.08.2001
10
117
06.08.2001
16
Yr:
2001-2002
Insurance
Industry
From
in
this
year,
1st
so
Jan
far
2002
has
to
5new
Dec.
2002)
entrants;
namely
Life Insurers:
S.No
Registration
Date of Reg.
Number
1
121
03.01.2002
Yr:
122
14.05.2002
2003-2004
Insurance
Industry
:
in
(
this
year,
so
1st
far
Jan
has
2003
1new
till
Date)
entrants;
namely
Life Insurers:
S.No. Registration
Number
1
127
Date of
Reg.
06.02.2004
Yr: 2004-2005 :
Insurance Industry in this year, so far has 1new entrants; namely
Life Insurers:
S.No. Registration
Number
Date of
Reg.
17.11.2005
128
Yr: 2008-2009 :
Insurance Industry in this year, so far has 2 new entrants in Life and 1 new entry in General
; namely
17
Life Insurers:
S.No. Registration Date of
Number
Reg.
138
27.06.2008
140
27.06.2008
General Insurers:
S.No.
1
Registration Date of
Number
Reg.
139
Role of Technology
18
Future Opportunities
Opening up of the pensions sector: Considerable discussions have taken place on
thissubject, only some form of retirement benefits protects 11 percent of the working
population. It is learnt that a detailed proposal is before the Government to open up the
pension sector. Providing coverage through a national pension scheme is challenging; but it
is necessary, particularly for the non-salaried or self-employed workforce and those
engaged in agriculture. The life insurance industry has come alive, Awareness has
increased and it is being expected that the market will grow fast. In five years one will be
looking at an annual premium income of Rs. 100,000 crores in the life insurance sector. Life
insurance will, at long last attain its rightful place in the economy.
19
INTRODUCTION TO
THE ORGANISATION
20
Background: Promoters
Housing Development Finance Corporation
Market leader in mortgage finance 18 Lakh homes financed in over 2400 towns
Deposits and bonds rated FAAA and MAAA by CRISIL and ICRA for last 10 years.
Market Potential
Only 25% of insurable population has been covered till this date
Premiums expected to rise from Rs. 26,000 Crores to Rs. 5,12,000 Crores by 2010
Customized solutions
Commitment to customer
Quality of advice
22
Market leader in
the Housing
Finance Sector
Serving
customers for
over 180 years
Over 2 million
satisfied
customers
Currently
administers 125
billion in assets
Over 1,00,000
Crores in Loan
Approvals
Ranked as Indias
3rd Best Managed
Company by
Finance Asia2005
250 Branches
11,00,000
Customers
Multiple Products
- Protection
- Unit Linked
- With Profit
More than
8 lakh
policyholders
Servicing over
440 towns in
India
23
The Partnership:
HDFC and Standard Life first came together for a possible joint venture, to enter the Life
Insurance market, in January 1995. It was clear from the outset that both companies shared
similar values and beliefs and a strong relationship quickly formed. In October 1995 the
companies signed a 3-year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the
relationship.
The next three years were filled with uncertainty, due to changes in government and
ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act
passed in parliament. Despite this both companies remained firmly committed to the
venture.
In October 1998, the joint venture agreement was renewed and additional resource made
available. Around this time Standard Life purchased 2% of Infrastructure Development
Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC
Treasury department to advise them upon their investments in India.
24
Towards the end of 1999, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level. Therefore, in
January 2000 an expert team from the UK joined a hand picked team from HDFC to form
the core project team, based in Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in
HDFC Bank.
In a further development Standard Life agreed to participate in the Asset Management
Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was
launched on 20th July 2000.
The company was incorporated on 14th August 2000 under the name of HDFC Standard
Life Insurance Company Limited
Their ambition from as far back as October 1995, was to be the first private company to reenter the life insurance market in India. On the 23rd of October 2000, this ambition was
realized when HDFC Standard Life was the only life company to be granted a certificate of
registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life
owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the
maximum investment allowed under current regulations.
HDFC and Standard Life have a long and close relationship built upon shared values and
trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies
and be the yardstick by which all other insurance company's in India are measured.
25
Mission:
Their aim to be the top new life insurance company in the market.This does not just mean
being the largest or the most productive company in the market, rather it is a combination of
several things like
Core Values:
SECURITY: Providing long term financial security to our policyholders will be our
constant endeavor. They will be doing this by offering life insurance and pension
products.
TRUST: They appreciate the trust placed by their policyholders in them. Hence, they
will aim to manage their investments very carefully and live up to this trust.
HDFC Standard Lifes mission is to be the best new life insurance company in India and the
values that will guide HDFC Standard life in this.
PRODUCTS
HDFC Standard life Insurance offers a range of innovative, customer-centric products that
meet the needs of customers at every life stage. Its 16 products can be enhanced with up
to 4 riders, to create a customized solution for each policyholder .
Individual Products
Each of us leads a unique life and so has unique needs. HDFC Standard Life offers a range
of products and invites you to choose the one that suits you best.
26
Plan
Benefits
Savings Plans
Endowment Assurance Plan
Unit Linked Endowment Plan
Childrens Plan
Unit Linked Young Star Plan
Money Back Plan
Investment Plans
Single Premium Whole Of Life
Plan
Protection Plans
Term Assurance Plan
Loan Cover Term Assurance
Plan
Retirement Plans
Personal Pension Plan
Unit Linked Pension Plan
27
Group Products
Gratuity Plan
The HDFC Gratuity Plan is an insurance policy, which offers you, as an employer
and gratuity scheme trustee, a new and flexible way to fund your gratuity liability. The
contributions that you decide to invest in this policy will assist you in meeting your gratuity
obligations in a systematic manner.
HDFC Standard Life offers 4 flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
1. Accident & Disability benefit: If death occurs as the result of an accident
during the term of the policy, the beneficiary receives an additional amount equal to
the sum assured under the policy. If the death occurs while traveling in an authorized
mass transport vehicle, the beneficiary will be entitled to twice the sum assured as
additional benefit.
28
2. Level Term cover: This rider provides the option to increase the risk cover. The
cover may be increased for an additional amount up to a maximum of the existing
basic sum assured on your policy.
3. Critical Illness Benefit: protects the insured against financial loss in the event
of 9 specified critical illnesses. Benefits are payable to the insured for medical
expenses prior to death.
4. Major Surgical Assistance Benefit : provides financial support in the event of
medical emergencies, ensuring that benefits are payable to the life assured for
medical expenses incurred for surgical procedures. Cover is offered against 43
different surgical procedures.
ORGANISATION STRUCTURE
The organizational pattern of the life Insurance companies are broadly similar each
company has a board of director president by a full time chairman cum managing
director. Each company operates to out the country through regional/area offices,
divisional office and branches. These would be clearer by diagram-
Chairman-Cum-Managing Director
REGIONAL MANAGER
DIVISIONAL MANAGER
BRANCH MANAGER
DEVELOPMENT OFFICER
AGENTS
30
Branch
Sales
Manager
(RM)
Sales
Manager
Direct
Sales
Unit
Manager
Insurance
Advisors
31
INSURANCE AGENTS
32
An insurance agent is a person who sells insurance policies after training and certification.
They sell three basic types of insurance, life insurance, property-liability and health
insurance.
The tasks:
Helping individuals or companies select the right policy for their needs.
Planning for the financial security of individuals, families, and businesses, advise
about insurance protection for an automobile, home, business, or other property
Insurance agents have to undergo training. Initial stipends and pocket expenses form part
of the initial packet to the agent in addition to the commission.
Surveyors of Insurance
Insurance surveyors are technically qualified professionals deputed for the assessment of
losses according to their qualifications and experience. A surveyor with a background in
Mechanical Engineering does the assessment in the case of an industrial accident. The
surveyor doesn't just survey he/she investigates, evaluates, assesses, adjusts,
determines liability, negotiates and finally reports. He is the only specialized link between
the insurers and the insured. He helps insurers by minimizing and
avoiding false, exaggerated claims and on the other hand helps the insured that have
suffered a genuine loss by indemnification of their loss.
For this purpose a professional insurance surveyor is needed. The work of an insurance
surveyor is not always a pleasant exercise. There are irregular timings, traveling and
hard work. A surveyor needs to have the eye of a detective and the balance and tact
of a diplomat.
Meet prospects, analyze their financial needs, and persuade them to buy a product,
which provides solution.
Arrange completion of all essential requirements for the underwriter viz. filling of
proposal form, collection of premium, medical examination, age proof, proof of
income (if required) or other medical reports.
After a proposal results into a policy, it is in the interest of the life assured, the agent
and the insurer that the business is conserved and it continues, without a lapse, till it results
into a claim. Therefore, the agent has to
Remain in contact with the policyholders and ensure that renewal premiums are paid on
time.
Take care that nomination is made under the policy and is changed under the changed
circumstances.
Provide help to the claimants to complete necessary forms and comply with other
requirements relating to claim settlement.
Office procedures for various matter as also the forms and documents required.
Other financial instruments, suitable for savings and investment, available in the
market and their benefits and advantages.
Pre-
Approach
a
p
Recruitmen
tProc
Motivatio
n
Intervie
w
Objections
FUNCTIONS OF AN AGENT
35
A life insurance agent has the unique role of such person, who enjoys the trust of two
parties, the prospect and the insurer simultaneously in the same transaction.
To simplify, functions of a life insurance agent could be divided into two parts, via
a) Pre-sale functions; and
b) Post-sale functions
Before Sale
After Sale
Contact prospects
Assist
policyholder
for
nomination
or
change
thereof.
o Filling of Forms
o Arranging for Medical
Examination
o Collecting proofs of age
and income etc.
o Any other information
required
by
the
underwriter.
Collection of First Premium
Deposit
The factors that make customer happy are Recognition and respect
36
Responsiveness
Ease of access
Reinforce the impression that the agent is trustworthy and dependable.
Enhance the insurers image.
OBJECTIVE
Recruitment of Financial consultant (FCs) of a excellent profile and their retention strategies
and what are their benefit that company going to provide for retention of their FCs.
Brand value and the reputation of the partners ( HDFC Limited) Market leader in
housing finance:
Product innovation.
Strategies:
Telecalling
Collect references.
Some important steps to make effective telecalling: Open the call in a friendly and positive way.
State the name, position and company name.
Check the prospect has time to speak.
State the reason for the call.
Clearly succinctly explain how the meeting will be benefiting the prospect.
Achievements
1. Recruited eight financial consultants for company.
2. Increase in confidence level.
3. Got the knowledge about the difficulties and conveniences in insurance sector
working as FC (agent)
38
4. Made more and more people aware about my companies Products (Policies)
5. Sold the policies (products) and brought business of Rs. 720000 as premium.
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.
Getting accurate response from the respondents due to their inherent problem is
difficult.
There is a time limitation it is not possible to study whole thing I covered some
special aspect as well as some topics.
ONLY profession where there are definite benefits derived for todays work for the
next 10-20 years.
This is the ONLY profession, which gives up to 40% gross margin without ANY
capital investment in the business.
Non-monetary benefits.
Certified Financial Consultant. The title Consultant therefore reflects the image we
wish to develop and advocate in the market.
The need for a consultant who will provide a customer-centric solution in insurance is
inevitable.
Earnings Potential
Commission Structure
Endowment Plan
40%
40%
7.5%
SPWOL
2%
Children Plan
40%
Term Assurance
20%
LCTAP
20%
ULYSS/ULEP
12.5%
40
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
41
Title of the study:My project title was Analysis of different products and plans of HDFC standard life
INSURANCE COMPANY LTD.
Duration of the project:My project duration was 40 days with the HDFC LIFE INSURANCE and meanwhile these
days I got some practical knowledge not just about HDFC but I also got the opportunity to
analysis the little part of other insurance players those dealing with this growing industry.
Research Objectives
Primary Objective:
To study about the awareness among the people for joining as agent in Life
Insurance Companies.
To know the Role & Scope of Financial Consultant in Life Insurance Companies.
To have a complete understanding of Recruitment & Selection Process of FCs in
HDFC Standard Life.
Secondary Objective:
Future scope and prospects of Financial Consultant in India.
To do SWOT analysis of HDFC Standard Life.
To know about different service providers of HDFC Standard Life .
42
Type of research
Quantitative as well as Qualitative
Sample Size
25% Respondents means 57 in numbers of the total 221 people, selected from the
population as sample.
Primary Data: are those, which are collected afresh and for the first time, and
thus happen to be original in character.
Schedules
A schedule is a Performa containing a set of questions. In this method, I went
with the schedule to the respondent, put to them the questions form the Performa in
order the questions were listed and recorded the replies in the space meant for the
same is the Performa. Thus through this method, the aims and objectives of the
research would be explained to the respondents and also the difficulties, which any
43
Secondary data: On the other hand, are here which someone else has
already collected and which have already been passed through the statistical
process.
Sampling Design
Since a study involving all the adults of Ajmer city is far from possible due to
limitations of time, money and energy so it was decided that a sample survey would be
carried out. Selection of only a few items (respondents) from the universe is called a
sample survey.
44
Some People might not express their feelings freely because they might think this
may have effect on their impression/position.
45
FACTS &
FINDINGS
46
From the over all research and survey that has been done to get the perception of
Business class towards private life insurance company (HDFC Standard life Insurance)
These Finding has been come into study that.
Among the sample of hundred people more then two third mass has already
Been insured and one third mass is still to be insured, close to two third insured
Mass pay premium in five figures on yearly basis and one third mass pay in four
Figures and among all policy holder maximum 90% people had already been taken
The policy from Bhartiya Jeevan Bima Nigam and there where too much
Awareness about private life insurance sector in Business class and Ratio is as high
As 96%.
The head reason behind the publicity of private life insurance company was
Friends and Relatives. Near about three, four people got information about
Company from his relative and rest of although companys cold call, News
Paper/Magazines and TV/Radio Respectively.
47
ANALYSIS &
INTERPRETATION
Que.1
48
Response
Percentage of
Respondents
Yes
90%
No
10%
Interpretation:
During the data collection phase, the first question asked during personal interviews
and in schedule was whether the respondents had ever heard about HDFC. As was
expected majority of the respondents had heard about HDFC in one way or other.
49
Que. 2
50
Response
Percentage of
Respondents
HDFC is a bank
25%
60%
10%
5%
Percentage of Respondents
HDFC is a bank
10%
5%
60%
25%
HDFC is a housing
finance company
HDFC operates in
mutual funds
HDFC provides life
Insurance
Interpretation:
51
When the respondents were asked to share the information they had about HDFC,
majority as high as 60% of then knew of HDFC only as a housing finance company. HDFC
housing Finance company seemed to be only what they meant by HDFC. A very few
percentage of the respondent i.e. nearly only 25% of them were aware that HDFCs sole
existence was not only as a housing corporation but as a bank also. An extremely low ratio
of the population (nearly 10%) were aware of the fact that HDFC provides life insurance
also, while on the extreme, almost negligible percentage of the respondent (approx. 5%)
knew that HDFC operates in the field of mutual funds also.
Thus the general interpretation which can be drawn from the responses of the
respondents was that most of them knew of HDFC only as a finance company while a few
had the knowledge that the company provided housing loans as well. Thus it can be said
that the image of HDFC as a housing finance company has almost overshadowed its image
as bank as well.
Que. 3.
Response
Percentage of
Respondents
Life Insurance
General Insurance
Both
25%
25%
50%
Percentage of Respondents
25%
50%
25%
Life
Insurance
General
Insurance
Both
Interpretation:
The above graph shows that there were many people know about insurance (approx.
50%). There were an equal number of respondent who get knowledge about life insurance
as well as general insurance.
The above data presents a picture of the level of awareness of the insurance & this
indicates that company have great opportunity in their products of life insurance. HDFC
Company should use adequate promotional efforts so it forced the customers to knock on
doors of other life insurance companies.
53
Que. 4
Response
Percentage of
Respondents
Yes
90%
NO
10%
Percentage of Respondents
10%
Yes
NO
90%
Interpretation:
The above chart shows that most of the people (approx. 90%) like to join the
prestigious company and only few persons (approx. 10%) dont like to join a prestigious
company because of their personal reasons.
HDFC is also renowned company so quite understood that people take interest in
the opportunity of HDFC.
54
Que. 5
Do you want to
Response
Percentage of
Respondents
1. Earn extra
50%
40%
5%
5%
Earn extra
5% 5%
40%
Awards &
Recognition
Status symbol,
brand name &
growth
Interpretation:
The above graph shows that most of the people approx. 50% wants extra income &
part time job 40%. Rest people wants to joint HDFC Standard Life for award Recognition &
status symbol.
HDFC Standard Life is a prestigious company, providing good infrastructure and facilities
so the person who know about it take interest in it and the awareness about HDFC
Standard Life must be created by more advertisement publicity through different medias.
55
Que. 6
Response
Percentage of
Respondents
Yes
50%
No
50%
Percentage of respondents
50%
50%
Yes
No
Interpretation:
The above graph clearly shows that there were an equal number of respondents who
had seen the advertisement of HDFC Standard Life as the number of respondents who had
not seen the same. This indicates that the advertisement campaign currently being
undertaken by the company is not competent enough to stand in the market competition. It
is a pity to learn that almost half of the respondents had never seen the advertisement of
the company, which is the pioneer of HDFC life insurance in India.
56
Que. 7
Response
Percentage of Respondents
Yes
30%
No
70%
Percentage of Respondents
30%
Yes
No
70%
Interpretation:
The above graph shows that 70% of people are aware about the carrier in insurance
sector, but they dont aware about the process of recruitment they know that there are
agents and financial consultants in insurance sector but they dont know the process of
recruitment and the educational qualification required for it.
Proper information is not given about FC by advertisement or Media, So HDFC
Standard Life should advertise about it properly by carrier fair & Media.
57
Que. 8
Response
Percentage of Respondents
Yes
10%
No
40%
Will think
50%
Percentage of Respondents
10%
Yes
50%
No
40%
Will think
Interpretation:
HDFC is renowned and prestigious company, it has good brand image & prudent
company so many people wants to join a company in many ways among them 10% surely
wants to join the company as FC.
The FCs does not get fixed income; they get the monetary benefits in the form of
incentives. So it appeals less to those who want fixed income.
58
Que. 9
most?
Response
Percentage of
Respondents
20%
12%
18%
4. LIC
50%
50%
Percentage of Respondents
1. ICICI
Prudential Life
2. Allianz
20%
Bajaj Life
3. HDFC
12%
Standard Life
18%
4. LIC
59
Interpretation:
The above Graph shows that most of the people joined LIC as FC & then 20% wants to join
ICICI Prudential Life and 18% people wants to join HDFC Standard Life.
LIC is a Recognized by Govt. & the trust level of people for LIC is higher then with
above private companies.
Due to more promotional activities, a person gets aware about ICICI & wants to join
it.
60
Que. 10
other then HDFC , which of the following factors led you to this
decision ?
Response
Percentage of
Respondents
30%
10%
20%
40%
Percentage of Respondents
Lack of adequate
information about
HDFC
30%
40%
20%
10%
Better services of
other companies
Brand image of
other companies
Mouth publicity of
other companies
Interpretation:
61
It can be understood from the above table and figure that the greatest factor, which
attracted people towards other companies, is the Mouth publicity. But another major factor,
which attracted people to, joined, as FCs from HDFC, while the Lack of adequate
information about HDFC & brand image of other companies had little role to play in
attracting customers towards them.
Here once again the same fact is reflected that inadequate promotional efforts by
HDFC Standard Life forced the customers to knock on doors of other Life Insurance
companies. It is quite natural that people would joined as FCs from HDFC Standard Life
only if they are well aware of it & its product & all their queries are satisfied, but without
sufficient promotional efforts both of the above objectives cannot be satisfied and hence
customers would be reluctant to approach the company.
62
Que.11
Response
Percentage of
Respondents
Very Good
30%
10%
Poor
40%
Fair
20%
Dont Know
Percentage of Respondents
20%
30%
40%
10%
Very Good
Poor
Fair
Dont Know
63
Interpretation:
The Services provided by the HDFC Standard Life are fair. Services like the pre & post sell
of product services are good & fair. The environment of working is good and pressure free.
There is provision of award & recognition according to their club, which are made up to two
teams i.e. LAKSHYA & VIJAY, Systems to motivate SDM to provide good services.
64
SWOT ANALYSIS
65
Latest Technology
All the branches and the offices of the company are connected through
Intranet and all the modern means in the technology that helps in giving its customers
prompt services. All the information about the company and its products is available on its
site(hdfcstandrdlife.com) in detail. For recruiting the FCs there is also a provision of Online
Training for those FCs who are not able to join the Class room session.
66
Branch Network
HDFC currently have 52 branches but are expanding this to 103 which
is more than any other private life insurance provider in India.
67
WEAKNESS
Low Reach
Since the company has started in Rajasthan its operations recently its reach
is very limited while its rival LIC has ha reach in almost every part of the Rajasthan. The
company will have to think over expanding its operations as soon as possible.
Less Products On Offer
As compared to LIC the company does not have a Joint Life Policy and Group
insurance policy on offer to the public.
68
OPPURTUNITIES
THREATS
Coming Up of many Private Players
After opening of this sector, there are many companies who have aligned with
some or the other foreign partner. Many banks are also coming up in this sector with a plan
of giving the risk cover to the account holders at a very cheap price.
Government
As discussed earlier, if the government comes up with an amendment where in it
plans to reduce the exemption under different sections, the company may find it difficult to
sell its products. This as of now is the biggest threat to the company.
69
CONCLUSION
70
CONCLUSION
HDFC Standard Life has strong parentage & long-term commitment to this business.
It is trust worthy company.
Company has a commercial tie-up with Standard Life, which is a number one
company of UK.
HDFC Standard Life is renowned for transparency and high corporate governance
standards.
In HDFC SL the Certified Financial Consultant have free environment of working.
There is no time boundation.
FCs of HDFC SL have unlimited opportunity to earn. FC profession gives up to 40%
gross margin without ANY capital investment in the business.
The facility provided by the company to the FCs is very good.
All the Fcs were satisfied with the staff-co-operation and co-operation of their SDMs
Besides Monetary benefits non-monetary benefits are also there, which encourage
the FC for better performance. Non-monetary benefits like Club Membership benefits
& MDRT Benefits.
HDFC Standard Life Company doesnt have a good network and comparatively less
number of FCs as compare to other companies but it has a good hold over market
as the services given by FC and development officer is very good.
Most of the people have heard about HDFC but not necessarily about the HDFC
Standard Life Among those who have heard about HDFC, most of them only know of
71
its existence as a Bank & Housing Finance Company, while a few are aware of the
fact that HDFC is also a Life Insurance Company. Only negligible ratio of the people
knows that the company operates in the field of Life Insurance.
Most of the people are also aware only about the public players Like LIC in life insurance,
names of private sector companies in Life Insurance Like HDFC Standard Life are not
known by people in Jaipur.
HDFC Standard Life Company covers good market share but now its company in the
market has increased to great extent it has to compete both with other companies
public as well as companies of private sector.
The FCs dont join the product training proper manner so they dont get the product
knowledge properly thats why they are not covering the insurance market properly.
72
RECOMMENDATION
AND
SUGGESTIONS
73
The company can sponsor sports events, educational camps, cultural events etc.
and thus earn publicity.
APPENDIX
75
APPENDIX
QUESTIONNAIRE
1.
Personal Details
Name
Age
Occupation
Designation
Phone No.(Mobile)
(Office)
(Personal)
2.
3.
Yes
No
If you have heard about HDFC, kindly share your information about the same?
4.
5.
Life Insurance
General Insurance
Both
Yes
No
76
6.
Do you want to
i.
ii.
iii.
iv.
7.
Earn extra
Part time job cum business
Awards & Recognition
Status symbol, brand name & growth
8.
Yes
No
9.
Yes
No
10.
11.
Yes
No
Will think
In case you joined as FCs from life insurance company other then HDFC, which of
the following factors led you to this decision?
i.
ii.
iii.
iv.
77
12.
i.
ii.
iii.
iv.
What is your opinion about the different services like product, services provided by
personal by the HDFC Standard Life?
Very Good
Poor
Fair
Dont Know
13.
1)
Name
Address
Phone No.
Name
Address
Phone No.
2)
78
BIBLIOGRAPHY
79
BIBLIOGRAPHY
ESCOLIFE Solution For the Insurance Industry-Ritu Nanada
Agents Hand Book HDFC Standard Life
Kothari C.R. Research Methodology & Techniques, Wiley Eastern Ltd., New
Delhi,1999
Sharma DD Marketing Research, Sultan Chand and Sons,New Delhi,1999
Principles and Practice of Insurance G.S. Panda
Insurance Times (Insurance Monthly Magazine)
Company Reports & Broachers
Monthly Progress report
www.apnabima.com
www.hdfcinsurance.com
www.indiastat.com
80
81