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CHAPTER-1 INDUSTRY PROFILE
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 developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. A brief history of the Insurance sector The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both 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. 1956: 245 Indian and foreign insurers and provident societies taken 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. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Insurance sector reforms In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector.
HDFC STANDARD LIFE
The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…” In 1994, the committee submitted the report and some of the key recommendations included: i) Structure Government stake in the insurance Companies to be brought down to 50% Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate ii) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state iii) Regulatory Body The Insurance Act should be changed An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from the Finance Ministry) should be made independent iv) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time) v) Customer Service LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans
HDFC STANDARD LIFE
Computerization of operations and updating of technology to be carried out in the
Insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crore. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body. The Insurance Regulatory and Development Authority (IRDA) 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 decision taken simultaneously to provide the supporting systems to the insurance sector and in particular 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.
HDFC STANDARD LIFE
CHAPTER-2 COMPANY PROFILE OF HDFC - STANDARD LIFE
The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. Their ambition from the beginning was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this Ambition was realized when HDFC Standard Life was the first 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%.HDFC Standard Life Insurance Company Ltd. is one of India’s 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.), India’s leading housing finance institution and one of the subsidiaries of Standard Life plc, leading providers of financial services in the United Kingdom. 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.
Mr. Deepak S. Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).
Ltd. Respectively. HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. UK. holds 26. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. which offers a range of individual and group insurance solutions.000 Cr and Rs. 600. 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.6% Mr.this ambition [Type text] .4 %stale and Standard of as a staple pf 18. Is one of India’s leading Private Life Insurance Companies.HDFC STANDARD LIFE JOINT VENTURE: 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. HDFC is the majority stakeholder in the insurance JV with 81. HDFC Standard Life Insurance Company Ltd. 2009 HDFC Ltd.) India’s leading housing finance institution and the Standard Life Assurance Company. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd. 15.all important factors to consider when choosing your insurer. Reach of the JV player is highly rated and been conferred with many awards. while the rest is held by others. Similarly. which offers a range of individual and group insurance solutions..on 23rd of October 2000. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited). A) Background and inception of the company HDFC Standard Life Insurance Company Limited. The company was incorporated on 14th august 2000 under the name of Hdfc Standard Life Insurance Company Ltd. HDFC is rated ‘AAA’ by both CRISIL and ICRA. holds 72.00% of equity in the joint venture. The ambition of the company from as far back as October 1995 was to be the first private company to re enter the life insurance market in India . India's leading housing finance institution and a Group Company of the Standard Life Plc. Standard Life is rated ‘AAA’ both by Moody’s and Standard and Poor’s. Deepak Satwalekar is the MD and CEO of the venture.000 Cr.43% and Standard Life (Mauritius Holding) 2006. a leading provider of financial services from the United Kingdom. is one of India's leading private insurance companies. As on February 28.
This does not just mean being the largest or the most productive company in the market. In short. India’s largest housing finance institution standard life assurance company . which mean that we are the most trusted company. and set the standards in the industry.HDFC STANDARD LIFE was realized when HDFC STANDARD LIFE was the only life insurance company to be granted certification of registration . Hdfc Standard Life has a long and close relationship build upon shared value and trust. But HDFC is in diversified business like banking. Its sell various insurance policy based on the needs of consumer. It is one of the first private insurance companies. Hdfc Standard Life Insurance Company LTD is a joint venture between HDFC. offer the best value for money. Europe’s largest housing finance institution and standard life assurance companies . The ambition of Hdfc Standard Life is to mirror the success of the parent company and be the yard stick by which all other insurance companies in India are measured. housing finance. Mission We aim to be the top new life insurance company in the market.280000 CRORES. Mission and quality policy Vision “The most successful and admired life insurance company. Europe’s largest mutual life company HDFC over RS. “The most obvious choice for all”. B) Nature of the business carried HDFC Standard Life Insurance is into a business of insurance. the easiest to deal with. Its has traditional insurance plan as well as modern ulip plan in its portfolio. rather it is a combination of several things like Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share [Type text] . securities and also C) Vision.
HDFC STANDARD LIFE Values • • • • • • Integrity Innovation Customer centric People Care “One for all and all for one” Team work Joy and Simplicity Quality policy Quality road map – time lines Phase-1 to phase-3 should run simultaneously Phases Objectives Visible proof when Phase-5 Business excellence BE award (external)/service guarantee 12-24 months and Improve levels Phase-4 Value stream map projects Process maturity 6 sigma processes. financial benefit. SLA. Process complaint functions 6-8 months and improve 8-12 months and sustenance Phase-3 Organized work places Phase-2 Current business improvement programs Completion of projects and benefits derived and sustenance 4-6 months and sustenance Zone/region/branch/location certification 6-10 months and sustenance Phase-1 [Type text] .
which is a decreasing percentage of the initial Sum Assured. The plan does this by providing a lump sum to the family of the life assured in case of death or critical illness (if option is chosen) of the life assured during the term of the contract. HDFC Home Loan Protection Plan: This plan aims to protect family from loan liabilities in case of unfortunate demise within the policy term. Protection Plans HDFC Term Assurance Plan: This plan is designed to help secure family’s financial needs in case of uncertainties. Children's Plans [Type text] . HDFC Loan Cover Term Assurance Plan: This plan aims to protect family from loan liabilities in case of unfortunate demise within the policy term. It ensures that family does not lose the dream house that person have purchased for them. the cover under the policy also decreases as per the policy schedule. in case person is not around to repay the outstanding monthly installments on their housing loan. One can choose the lump sum that would replace the income lost to one’s family in the unfortunate event of one’s death.HDFC STANDARD LIFE D) Product/service profile 1. It provides the beneficiary with a lump sum amount. This means that as the outstanding loan decreases as per the loan schedule. 2.
Retirement Plans [Type text] . HDFC Young Star Supreme Suvidha: This Plan provides valuable protection to insured person child in case he is not around and gives him an outstanding investment opportunity to maximize his savings by providing him a choice of thoroughly researched and selected investments. 3. HDFC Young Star Super Suvidha: It is a convenient plan. which saves him from the need of going for Medicals. This plan also gives Bumper Addition to the fund value at Maturity. HDFC Young Star Super: This Plan provides valuable protection to insured person child in case his/her is not around and gives them an outstanding investment opportunity to maximize their savings by providing them a choice of thoroughly researched and selected investments. This plan also gives Bumper Addition to the fund value at Maturity. everyone priority is their child’s future and being able to meet their child’s dreams and aspirations. HDFC SL Young Star Champion Suvidha: This is a convenient plan. This plan also gives Bumper Addition to the fund value at Maturity. they can start building their savings today and ensure a bright future for their child. This Unit Linked Plan gives him with an outstanding investment opportunity to maximize his savings by providing you a choice of thoroughly researched and selected investments.HDFC STANDARD LIFE HDFC Children's Plan: As a parent. With HDFC Children’s Plan. which saves insured person from the need of going for Medicals. This Unit Linked Plan provides valuable protection to his/her child in case he is not around and gives him with an outstanding investment opportunity to maximize their savings by providing them a choice of thoroughly researched and selected investments. This plan also gives Bumper Addition to the fund value at Maturity.
[Type text] .HDFC STANDARD LIFE HDFC Personal Pension Plan: The HDFC Personal Pension Plan is a ‘With Profits’ insurance policy that is designed to provide a post-retirement income for life with the freedom to choose your retirement date. This plan also gives Bumper Addition* of 5% of initial single premium at vesting and on death. designed to provide a post-retirement income for life with the freedom to choose their retirement date. The HDFC Immediate Annuity offers a number of options to meet all their income needs. This plan gives them with an outstanding investment opportunity to maximize their savings by providing them a choice of thoroughly researched and selected investments. This plan also gives Bumper Addition to the fund value at vesting. The income is guaranteed and is unaffected by the rise and fall of interest rates. HDFC SL Pension Champion: The HDFC SL Pension Champion is Unit Linked plan. HDFC Pension Supreme: The HDFC Pension Supreme is Unit Linked plan. designed to provide a postretirement income for life with the freedom to maximize their investment returns. This means the investor can plan their life the way they want it to be. safe in the knowledge that their gross income will not fall during the period they have selected. HDFC Immediate Annuity: The HDFC Immediate Annuity is a contract that uses investor capital to provide them with a guaranteed gross income throughout their lifetime or over a period of their choice. designed to provide a post-retirement income for life with the freedom to choose their retirement date. This plan also gives Bumper Addition to the fund value at vesting. HDFC SL Unit Linked Pension Maximiser II: HDFC SL Unit Linked Pension Maximiser II is a unique Single Premium unit linked plan. HDFC Pension Super: The HDFC Personal Pension Plan is a ‘With Profits’ insurance policy that is designed to provide a post-retirement income for life with the freedom to choose your retirement date. This plan gives them with an outstanding investment opportunity to maximize their savings by providing them a choice of thoroughly researched and selected investments.
which saves investors from the need of going for Medicals. even when they are not around. This Unit Linked Plan also gives them with an outstanding investment opportunity to maximize their savings by providing them a choice of thoroughly researched and selected investments. which saves insured person from the need of going for Medicals. investors can start building their savings today and it ensures that their family remains financially independent. This Unit Linked Plan gives them with an outstanding investment opportunity to maximize their savings by providing them a choice of thoroughly researched and selected investments. This plan also gives Bumper Addition to the fund value at Maturity. It is a convenient plan. [Type text] . This plan also gives Bumper Addition to the fund value at Maturity.HDFC STANDARD LIFE 4. which saves investors from the need of going for Medicals. HDFC Endowment Supreme Suvidha: It is a convenient plan. HDFC Endowment Supreme: With HDFC Endowment Supreme. investors can start building their savings and it ensures that their family remains financially independent. This Unit Linked Plan gives them with an outstanding investment opportunity to maximize their savings by providing them a choice of thoroughly researched and selected investments. This Unit Linked Plan gives them with an outstanding investment opportunity to maximize their savings by providing them a choice of thoroughly researched and selected investments. HDFC Endowment Super Suvidha: It is a convenient plan. This plan also gives Bumper Addition to the fund value at Maturity. Savings & Investment Plans HDFC Endowment Super: With HDFC Endowment Super. which saves them from the need of going for Medicals. This Unit Linked Plan gives them with an outstanding investment opportunity to maximize their savings by providing you a choice of thoroughly researched and selected investments. HDFC SimpliLife: It is a convenient plan. even when they are not around.
HDFC Money Back Plan: With HDFC Money Back Plan. even when they are not around. This plan also gives Bumper Addition to the fund value at Maturity. investors can start building their savings today and ensure that their family remains financially independent. Health Plans [Type text] . This ‘With Profits’ plan is designed to secure their family’s future by giving their family a guaranteed lump sum on maturity or in case of their unfortunate demise. HDFC Endowment Assurance Plan: With HDFC Endowment Assurance Plan. investors can plan now to ensure that they have the necessary funds to have the necessary funds to secure their longterm as well as short-term financial goals. early into the policy term. HDFC Savings Assurance Plan: HDFC Savings Assurance Plan is a ‘With Profits’ savings plan which helps investors conveniently build their long-term savings and ensure that their family is protected even if they are not around. An investment cum insurance plan that will actively help in building investor wealth and give them twin advantage of exclusive funds (actively managed ) along with choice of limited premium payment term. This plan provides the financial protection to their loved ones and builds up their wealth effortlessly.HDFC STANDARD LIFE HDFC Wealth Builder: HDFC Wealth Builder is an exclusive plan crafted for elite achievers. This ‘With Profits’ savings plan helps them to build their long-term savings while securing their family’s future. 5. HDFC Single Premium Whole of Life Insurance Plan: HDFC Single Premium Whole of Life Plan is a tailor made plan well suited to meet investors long-term investment needs and help them to maintain their family’s financial independence. This ‘With Profits’ plan gives them a proportion of the basis Sum Assured as Cash lump sums at regular 5-year intervals within the policy term. This single premium investment plan is a Whole of Life plan aimed at providing long-term real growth of their money. HDFC Assurance Plan: HDFC Assurance Plan helps investors conveniently build their long-term savings while keeping their family’s future protected.
ensuring their financial independence at all times. Social Products HDFC Development Insurance Plan [Type text] . Rural Products HDFC Gramin Bima Kalyan Yojana HDFC Gramin Bima Mitra Yojana HDFC Bima Bachat Yojana 6. as the case maybe. HDFC SurgiCare Plan: HDFC SurgiCare Plan provides investors with timely support in case they have to undergo a major surgery and hospitalization. investors don’t have to dig into those precious savings of them. 6.HDFC STANDARD LIFE HDFC Critical Care Plan: HDFC Critical care plan provides for a lump sum payment on survival post diagnosis of a critical illness. so that in the event a critical illness strikes.
both for creating awareness and facilitating self service. your company continues to explore partnerships with F) Ownership pattern It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited). reduces leakage and contributes to increasing revenues. The combination of outsourcing partnerships and technology implemented by the company is assisting in improvement of service turnaround times.HDFC STANDARD LIFE E)Area of operation During the year. As part of its Corporate Social Responsibility. all channelsof delivery . internet and the customer portal. Towards this end. company continued to increase its focus on service quality. holds 72. Your company continues to explore strategic outsourcing partnerships with a focus on handling volumes and reaping economies of scale. periodic service audits conducted across all regional offices and at the call centers provide useful insights into customer requirements and expectations helping the company improve its processes. while the rest is held by others. The company has implemented a Quality Initiative across its offices which regularly measures the effectiveness of its processes. UK. India's leading housing finance institution and a Group Company of the Standard Life Plc. Ltd. The company has continued to strengthen its presence in the virtual world.branches. The company aims to provide consistent and high quality service across the country through.00% of equity in the joint venture. call centers. managing costs and improving service quality.43% and Standard Life (Mauritius Holding) 2006. Associate Companies: HDFC Limited HDFC Bank HDFC Mutual Fund [Type text] . 2009 HDFC Ltd. holds 26. The company has also launched a completely revamped website with a big focus on customer education and knowledge. As on February 28.
have come together to launch AEGON Religare Life Insurance Company Limited. Aviva Group Aviva Group is the UK’s largest and one of the biggest Insurance groups worldwide. We provide high quality advice to our customers and offer superior customer service. Dabur. Coleman & company. India’s largest media house. Dabur Group is one of India's oldest and largest groups of companies with a consolidated annual turnover in excess of Rs 2. whose association with India dates back to 1834. pension and investment company. the UK's largest insurance group. This venture is dedicated to build a firm future. Our business philosophy is to help people plan their life better. Aviva Group has a 50 million customer base worldwide. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. an international life insurance.396 crores. both for customers and employees and will continue to balance a local approach with the power of an expanding global operation. it is the country's leading producer of traditional healthcare products. A professionally managed company. With a history dating back to 1696. Religare. one of India’s leading integrated financial services groups and Bennett. Bajaj Allianz Life Insurance Co Ltd [Type text] . Aviva India Aviva India is a joint venture between one of the country’s oldest and largest groups. We launched our pan-India multi-channel operations in July. Dabur Group Founded in 1884. 2008 with over 30 branches spread across India.HDFC STANDARD LIFE HDFC Sales HDFC ERGO General Insurance G) Competitors information Aegon Religare Life AEGON. and Aviva plc.
one of the largest Insurance Company and Bajaj Finserv. ICICI Prudential Life Insurance ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank .80 billion. Canara HSBC OBC Life The shareholding pattern of the Joint Venture is as follows . by The Economic Times . HSBC Insurance (Asia Pacific) Holdings Ltd 26% and Oriental Bank of Commerce 23%. and Future Generali India Insurance Co.AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution. For three years in a row. Ltd. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). and 7 bancassurance partners. Allianz SE has over 115 years of financial experience and is present in over 70 countries around the world. ICICI Prudential has been voted as India's Most Trusted Private Life Insurer. 2008 after receiving requisite approvals from the Insurance Regulatory Development Authority (IRDA). managing assets worth over a Trillion (Over INR.000 Crores).a leading international financial services group headquartered in the United Kingdom. with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. product [Type text] . our nation-wide team comprises of 2074 branches (inclusive of 1. 00.one of India's foremost financial services companies-and prudential plc .000 advisors. The Venture has an initial paid up capital of INR 325 crores which will further increase in line with our expansion plans.116 micro-offices). over 225. 55. Future Generali is present in India in both the Life and Non-Life businesses as Future Generali India Life Insurance Co. Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world. Today. Canara HSBC Life has access to 4100 bank branches all over India. The Company commenced business 16th of June.HDFC STANDARD LIFE Bajaj Allianz Life Insurance is a union between Allianz SE. ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings.Canara Bank holds 51% equity. 47. Total capital infusion stands at Rs. Ltd. Future Generali Life Future Generali is a joint venture between the India-based Future Group and the Italy-based Generali Group.
[Type text] . CIO magazine has a long tradition of honoring leading companies for business and technology leadership and innovations through its flagship award program – CIO 100. financial consultants.Consultant Corner.2009 Award. and honors end-user companies in India that have demonstrated the best use of technology to solve a business problem. H) Infrastructural facilities HDFC SL is providing good infrastructural facilities which are required for employees to perform their work in a better way. HDFC Standard has received the CIO 100 Award for the third consecutive year. the Company has invested in additional infrastructure capacity and human capital. improve business competitiveness. whether by creating competitive advantage. and deliver quantifiable ROI to stakeholders. In 2007. Received Diamond EDGE Award 2009 HDFC Standard Life has received the Diamond EDGE Award 2009 for its mobile workforce portal . the company received CIO 100 award for Wonders and a Special Award in Storage category. staff. Additionally. The company stepped up the recruitment programme in the latter part of the year in preparation for the next year. the company has received the CIO 100 ‘Security Award 2009’ for pioneering LANDesk Management and Security Suite security implementation and taking its security to a higher level of technological excellence.’ for ATLAS (Agency Training Licensing and Servicing System). we continue to tirelessly uphold our commitment to deliver worldclass financial solutions to customers all over India. in order to be well positioned to increase the growth momentum in the year ahead. EDGE .Identity and Access Management. I) Awards/achievements Received CIO 'the Ingenious 100 2009' Award HDFC Standard Life has received the CIO ‘The Ingenious 100 . including Sesame .Network Computing magazine to identify. optimizing business processes. recognize.Enterprises Driving Growth and Excellence (using IT) is an initiative by the .HDFC STANDARD LIFE range and customer base. It had received the 2008 CIO Bold Award for Consultant Corner and CIO Security Award for our initiatives for a secure computing environment. enabling growth or improving relationships with customers. technology. in terms of offices. During the year. It’s a celebration of 100 organizations (and the people within them) that are using IT in innovative ways to deliver business value.
for February 2008. providing centralized control over a vast geographical spread for key business units such as inventory. whose pioneering implementations have taken their enterprise security to the next level. This year's award theme. its path-breaking implementation of an enterprise-wide workflow system. which brings more than 100 IT media brands to more than 18 million technology and business decision makers worldwide. Silver Abby at Goafest 2008 HDFC Standard Life's radio spot for Pension Plans won a Silver Abby in the radio writing craft category at the Goafest 2008 organized by the Advertising Agencies Association of India (AAAI). one of the leading private insurance companies in India.HDFC STANDARD LIFE Network Computing magazine is part of CMP Technology. the applications for its financial consultants. including identity management. Received 2008 CIO Bold 100 and CIO Security Awards HDFC Standard Life has received the 2008 CIO Bold 100 Award. The company received the 2008 CIO Bold Award for its mobile workforce portal and the CIO Security Award for its initiatives for a secure computing environment. without compromising on one’s self-respect Unit Linked Savings Plan Tops Mint Best TV Ads Survey The Unit Linked Savings Plan advertisement of HDFC Standard Life. This annual award recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. etc. HDFC Standard Life has also been one of the five recipients of the Special 2008 CIO Security Award aimed at CIOs. The radio commercial ‘Pata nahin chala’ touched several changes in life in the blink of an eye through an old man’s perspective. Received PCQuest Best IT Implementation Award 2008 HDFC Standard Life received the PCQuest Best IT Implementation Award 2008 for Consultant Corner. The objective was drive awareness and ask people to invest in a pension plan to live life to the fullest even after retirement. HDFC Standard Life has won the PCQuest Best IT Implementation Award for two years consequently. licensing. HDFC Standard Life’s Unit Linked Savings Plan [Type text] . training. the company received the award for Wonders. has topped Mint’s Top Television Advertisement survey conducted. This award category identifies innovative and groundbreaking deployment of technologies aimed at creating a secure business infrastructure. ‘The Bold 100.’ recognized those executives and organizations that embraced great risk for the sake of great reward. Last year.
HDFC STANDARD LIFE advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall and 3rd in terms of ad diagnostic scores (likeability.a workflow based system. Hence through diversification the insurance company earns return through their investment and which is passed back to the investors. enjoyment. HDFC Standard Life. Sar Utha Ke Jiyo among India’s 60 Glorious Advertising Moments HDFC Standard Life’s advertising slogan honored as one of ‘60 Glorious Advertising & Marketing Moments' over the last 60 years in India. J) Work flow model During the year the company launched ATLAS (Agent’s Training and Licensing Administration System). followed by others including ICCI Prudential. thus giving HDFC Standard Life the credit of bringing up one such glorious advertising and marketing moment in the last 60 years. received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro Awards function. believability. Deepak M Satwalekar. and claim). which enables efficient processing of data for training and licensing of Financial Consultants. Managing Director and CEO. This was then. Investments in securities are spread among a wide cross-section of industries and sectors thus the risk is reduced. Life insurance is a mechanism for pooling the resources by issuing policy to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007 Mr.’ by 4Ps Business and Marketing magazine. The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations. The magazine said that HDFC Standard Life is one of the first private insurers to break the ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand proposition. This is just like a” Life Cycle” which repeats in nature WORK FLOW: [Type text] . Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at same time.
good service to customers than competitors etc…. it can acquire a good market share in future Thus from the above diagram we can say that HDFC SL is growing steadily as it is acquiring market share from 4.10% to 4.10% to 4.5% in march 2009.5% in march 2009. Through many strategies like: advertising.HDFC STANDARD LIFE MANAGER CHANNEL DEVELOPMENT MANAGER FINANCIAL CONSULTANTS CUSTOMERS MANAGER CORPORATES CUSTOMERS K) Future growth and prospects New Business Market Share HDFC Standard Life growing steadily BAJAJ ALLIANZ: 8% BIRLA SUNLIFE: 5% REALIANCE LIFE: 6% HDFC SL: 5% OTHERS: 59% LIC: 40% MAX NEW YORK: 3% SBI LIFE: 9% ICICI PRUDENTIAL: 12% Thus 12% OTHERS: from the above diagram we can say that HDFC SL is growing steadily as it is acquiring market share from 4. [Type text] . Through many strategies like: advertising.
peters and Julian R Philips have been consultants at MC-Kinsey and co.HDFC STANDARD LIFE good service to customers than competitors etc…. they published their 7’s model in their article STRUCTURE IS NOT ORGANISTATION(1980) and in their books THE ART OF JAPANESE MANAGEMENT (1981) and IN SEARCH OF EXCELLENCE(1982). systems. Thomas J. Productive organization change is not simply a matter of structure. The authority is delegated to officer/manager to extract work from the staff. STRUCTURE In the hdfc standard life each and every department is empowered with the officer. Our claim is that effective organizational change is really the relationship between structure. [Type text] . Our framework for organization change graphically depicted the figure. Jr.. clerk and sub staff. skills. This is because the persons who developed this model Robert H Waterman. staff and something we call super-ordinate goals. Thus it is having an effective work on the various activities efficiently and effectively. systems from the interaction of several factorsome especially obvious and some under analyzed. although strategy is critical too. it can acquire a good market share in future also. The each department consists of members based on its requirements. styles. Our central idea is that organization effectives. strategy. 3) MCKINSEY 7-S MODEL The 7-s model with reference to Hdfc standard life: The 7s model is better known as Mc-Kinsey 7’s.
Mgr. Mgr. B. Channel Executive [Type text] . Business Dev.M. Sales Dev.HDFC STANDARD LIFE MD Zonal Manager Regional Manager Retail Marketing Territory Manager Branch Manager Alternative Chanel Territory Manager Branch Manager Operation Chanel Team Manager Operation Manager Human Resource HR Executive Asst.
but pattern of action is decisive. STRATEGY By “strategy” we mean those actions that a company plans in response to or anticipation of changes in its customers. it is. perhaps by achieving sales and service dominance. Supporting. Personal/administration. Medical. Typically have more people on board who understand exploration are have headed exploration department. how to invest and number of products with having more benefits to investors. Not words. or ought to be. Financial services generally do mass supporting services are rendered to all types (classes) of customers. analytical skills. Soft skills. The power of style then is essentially manageable. The service given to the customers are accomplished as per their requirements. We think it is important to distinguish between the basic personality of a top management team and the way the team comes across to the organization. its competitors. The skills are broadly categorized as follows:Market knowledge. It has reputed customers who are loyal to the organization. others STYLE Hdfc standard life follows tip down/bottom up style in its management. Finance. Strategy is the way A Company aims to improve its position vis-à-vis competition perhaps through low cost production or delivery. Information relations.HDFC STANDARD LIFE SKILLS It is a more reputed insurance company. an organization way of saying:” here is how we will create unique value”. One aspect of style is symbolic behavior. where in each major decision regarding the company is taken in tip down fashion and other decision like targets and growth aspects hdfc standard life follows bottom up style. as it is providing financial solution of where to invest. Research. [Type text] . More over the people feel their task is in safe hands of the industry. perhaps by providing better value to the customer. The organization is having various capabilities over the competitors. the course of action to be taken to achieve the objective and guidelines for the course of action. Services. Organization may listen to what managers say but they believe what managers do. strategies to achieve the objective. The hdfc standard has set of objectives. Typically they fund exploration more consistently. These skills are unique from the competitors of hdfc standard life.
not line/staff) is often treated in one of two ways.HDFC STANDARD LIFE Hdfc standard adopts low pricing strategy to generate huge returns and good market share in the industry. the selection is done based on the education qualification first class degree. evident in most of the superior performers. If it starts recruiting. The value shared by the members of an enterprise is known as the shared values. pay scales. STAFF Staff (in the sense of people. attitudes. or even most. The information is versatile. They are. Since hdfc standard life has good backup system. job rotation and job training. [Type text] . The various training program to the employees are taken like refresher course. super ordinate goals don’t seem to be present in all. Recruitment. The organization of HDFC STANDARD LIFE is having a strategy of sharing values. SYSTEM The hdfc standard life has various techniques to control this procedure as system like to improve the back office targets by giving addition support. The hdfc standard life is in the course of cutting down the cost of service. training and development system Recruitment process starts with the identification of the vacancies by the department head of the respective department. Hdfc standard life charges minimal to its clients for the services. Hence it is known for the good pricing strategy in the industry. The performance appraisal is also taken as a basis for promotion so officer’s staff makes it. SHARED VALUES Unlike the other six S’s. however. we talk about morale. motivation and behavior. It provides more benefits to customers compared to its competitor. A form requesting for the human resource is sent from the department to HRD. seniority and educational qualification. The promotion in the organization is taken place based upon the service. At the soft end. formal training program and the like. organizations. we talk of appraisal systems. since it has well expanded its business all over INDIA. Information system: the implementation of computers has made information flow fast and reliable. At the hard end of the spectrum.
share and securities also pose problems and threats to the working of the life insurance sector. [Type text] . People are hesitant to invest and put their hard earned money to the private life insurance company with the fear of getting lost. Lack of knowledge and expertise. WEAKNESSES 1. 2. Life insurance industry is a rapid growing and a nobler service industry. 2. 4. Alternative financial services such as mutual fund.HDFC STANDARD LIFE 5) SWOT ANALYSIS STRENGTHS 1. Illiteracy and unemployment also pose threat. 2. LIC is prevalent and sustains even today a major source of population. Still the numbers of companies are few and company has every capability to grow and forward its performance areas to the widest. grow and measure its success. 3. 2. banking services. Low number of offices and network and number of life insurance agents. Belief towards LIC as it is a government corporation phobia is continue to surmount the people of India despite lots of flaws and development and liberalization of life insurance. 3. OPPORTUNTIIES 1. HDFC Standard life insurance offers a range of individual and group insurance solutions. Life insurance has captured its mere15 – 20% growth therefore a wide open untapped market is open to the company to develop. Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year for High service standards 4. 3. THREATS 1. HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.
Analysis of Short – Term Liquidity: a. Quick ratio = quick current assets / quick current liabilities [Type text] .HDFC STANDARD LIFE 5. bankers. existing shareholders. b) Solvency: Solvency shows the ability of the business to meet the long term obligation. Current ratio = Total Current Assets / Total Current Liabilities b. and cash flow statement. internal management. Rising real estate industry also pose threat as people are investing a bulk of their money over to that industry. one has to meticulously look for the right information from the right data. potential shareholders. One can undertake the financial statement analysis from different stakeholders’ perspective: creditors. and employees too. credit rating agencies. However. 6) ANALYSIS OF FINANCIAL STATEMENT Financial statement analysis is a comprehensive analysis of all three financial statements: balance sheet. d) Profitability: Profitability shows the ability to the business to generate and distribute profit. Intra firm comparison of hdfc: 1. Financial statement helps in understanding the performance of the organization. The performance of an organization can be explained on the basis of the four important aspects of the business: a) Liquidity: Liquidity shows the ability of the business to service the short term obligation. c) Efficiency: Efficiency shows the ability of the business to use the resources of the business. Financial statements provide useful information. income statement.
The standard current ratio is 2:1.’000) 8.629 9. for the year 2008 and 2009.37% Inference: The above table is showing the details regarding the current ratio and quick ratio of hdfc standard life insurance company ltd.HDFC STANDARD LIFE Table showing: current ratio and quick ratio of hdfc standard life insurance company ltd.263.’000) 84.643.076 13.33% Inference: [Type text] .07% 2008 (RS.29% 2008 (RS.433. Year Current assets Current liabilities Current ratio and quick ratio 2009 (RS.578.029.462 5. Years Outsiders Funds Share Holders Fund Debt Equity Ratio 2009 (RS.37 and 1. But compare to year-2009 ratio year-2008 ratio was good.132 6. but the company has got only 1.251.470 18. and quick ratio is 1:1.727 6.575.038 1.’000) 9.07 both the year the ratio is not satisfactory. 2.’000) 97.168 1.012. Capital Structure and Long -Term Solvency Ratios: Debt equity ratio =long Term Debt / shareholders fund Table showing: debt equity ratios of hdfc standard life in the year 2008 and 2009.
is suffering gross loss in the year 2008 and 2009. Gross profit ratio = gross profit / sales*100 Table showing: the gross profit ratio of hdfc standard life insurance company ltd.’000) (5.’000) (2.05. but later it went on increasing.183. it shows the larger outsiders funds are available to the company.09% 2008 (Rs. In the year 2009.09 respectively. Outsider’s funds are increased more than the shareholders fund.05% The high ratio of gross profit is considered satisfactory. 3.166 -0. Net profit ratio: Net profit ratio= net profit/sales*100 [Type text] . Since this is quite satisfactory and in the same way it is not good to the shareholders point of view and also to the company.631) 55.176.435. Hence the outsider’s funds has been increased year by year. Year Gross profit Sales Gross profit ratio Analysis: 2009 (Rs.09 compare to last year the loss has increased. hdfc standard life insurance company ltd. b. In the year 2008 it was facing less gross loss.763 -0.HDFC STANDARD LIFE There is continues increase in Share holders’ Funds and also in an outsider funds from the year 2008 to 2009. loss percentage is 0.029.094) 48. and 0. Profitability Ratios: a. Inference: There is an increase in gross loss and also the percentage of loss in the year 2008 to 2009 is 0.
14. learn and same thing we will write in the exam and we will get pass but when we go for [Type text] .491) 48. hdfc standard life insurance company ltd.883.’000) (11. There is an increase in net loss in 2009 compare to year-2008.913. is suffering net loss in the year 2008 and 2009 respectively.22 2008 (RS.176. This is not good from the company point of view.166 -0.183. and 0.122) 55. The percentage of loss in the year 2008 and 2009 is 0.763 -0. In the class just we will read.14 Inference: The high ratio of net profit is considered satisfactory. LEARNING EXPERIENCE In the class just we can assume how the corporate world is but it is completely different when I started to go to the company.22 respectively.HDFC STANDARD LIFE Table showing net profit ratio of hdfc standard life for the year 2008 and 2009 Year Net profit Sales Net profit ratio 2009 (RS.’000) (6.
competition for jobs etc… That was a wonderful experience to me in that company. regarding pressure for target achievement. I learnt so many things there. [Type text] . what is the real corporate culture.HDFC STANDARD LIFE searching job really we will feel the heat of outside world. And then they need to get the licence from IRDA to do that work. I had to take interview to them and need to motivate them to take up that job. Actually I got the work of recruitment consultant. How much we have to be smart. for that they need to write the exam and get through with the exam. there I need to call to the people who want to work as financial consultant for part or full time as per their requirement. How we should achieve our target. How much talented we should. what is our responsibity.
b. It can try to create awareness about this company through some programmes.HDFC STANDARD LIFE SUGGESSITIONS a. There may be proper and immediate response in case of any queries from customers. [Type text] .
It can concentrate to increase its sales revenue as finance is life blood of any business. i. j. e. There may be more effective response in case of any incidents/events. f. Proper management is to be there and also it should supervise the activities of the company very well. g. Feedback information can be inculcated. There can be an outstanding after sales service which is one of the important factors.HDFC STANDARD LIFE c. [Type text] . It is able try to increase its profits through using better portfolios. It is able to concentrate on decreasing other expenses and it has to spend the expenses which are really required to the development of the company. h. It needs to be aware of its competitors to overcome from the competition and to get more market share. d.
It is selling more policies from year to year that means the sales percentage is increasing from many years it is the signal to the growth of the company. [Type text] . Because of that the company is in a good condition to get survival in the market. The overall performance of HDFC STANDARD LIFE is very good compared to other service providers.HDFC STANDARD LIFE CONCLUSION HDFC STANDARD LIFE has been one of the best life insurance service providers in India. It is in loss condition from past five years. It got fifth position in the insurance industry.equity ratio is good. ICICI Prudential etc…. The financial condition is not good from year to year. It has the excellent quality service provider to their customer. Its debt. Presently it is incurring more expenses and market share is very less compare to other competitors like LIC. They share a very good rapport with the customers.
892 552.725 - 3.360.263.718 3.450 - .433.892 65.007.331.‘000) SOURCES OF FUNDS SHAREHOLDERS’ FUNDS: Share Capital Share application money received pending allotment of shares Reserve and Surplus Credit / [Debit] Fair Value Change Account 6 5 17.898 - - 287.HDFC STANDARD LIFE ANNEXURES Balance sheet of HDFC STANDARD LIFE as at March 31 for five years Particulars Schedule 2009 (Rs.194.462 - 13.610) 3.359 8.958.190.441 - 6.‘000) 2005 (Rs.105 3.706.552 Sub-Total BORROWINGS POLICYHOLDERS’ [Type text] 7 18.132 - 8.391 - - 552.‘000) 2008 (Rs.902 65.148 6.902 - (77.192.‘000) 2006 (Rs.180 12.‘000) 2007 (Rs.881 - 73.
743 1.990.582.569 174.083 24.470.090 23.291.541 2.747 56.076 2.130.918.781 6.213.485 25.763 45.119 4.467 29.516 - - - - - - TOTAL APPLICATION OF FUNDS: INVESTMENTS Shareholders’ 8 117.133.896 11.999.885) 193.012.655 8.203.516.976 17.996 9.470 586.397 1.391.309 11.419.451.317.936.970 246.499 28.633.395 3.934.936 97.380.064 1.745 91.665.531 25.264 11.732.782.597 4.092.910 984.669 29.HDFC STANDARD LIFE FUNDS: Credit / [Debit] Fair Value Change Account Policy Liabilities Insurance Reserves Provision for Linked liabilities Add: Fair value change (15.608 59.578.487.529.980 531.951 59.147 ) Total Provision for Linked Liabilities Sub-Total Funds for Future Appropriations Funds for future appropriation Provision for lapsed policies unlikely to be revived Surplus Allocated to Shareholders 68.302.292 (296.297 97.159 54.584 84.247 209.377.522.419 84.366.085.253 [Type text] .
969 4.869.687.181 [Type text] .090 29.108.HDFC STANDARD LIFE Policyholders’ Assets held to cover Linked Liabilities LOANS FIXED ASSETS CURRENT ASSETS Cash and bank balances Advances and Other Assets 12 5.356 601.913.652 2.905.878.584 18.879.050.039 1.635 14 208.695.106 409.248 1.534.874.143.916 1.325.225 6.936 30.296 1.559 - 1.643.782.753 1.069.129.363.420.029.763 12.567 1.182.299.706 23.813 122.489 1.168 3.591 - 2.292 11.629 8.B) MISCELLANEOUS EXPENDITURE (to the extent not written off or adjusted) DEBIT BALANCE IN PROFIT AND LOSS ACCOUNT (Shareholders’ account) 15 - 9.638 736.936.010 11.660 4.043 59.497 2.536 3.149 3.622 733.529 8A 8B 9 10 30.364 3.516.800 17.493.251.883.451.727 5.491 4.038 6.729 20.238 3.820.122 6.866 28.618 1.824 Sub-total (A) 9.658.961.918.495 11 4.421.984 731.728 1.669 11.845 28.980 990.556 2.054 11.575.090.331.165.097 68.019 30.720 Sub-Total (B) NET CURRENT ASSETS (C) = (A .024 CURRENT LIABILITIES PROVISIONS 13 8.087.355 614.782.082.432 - 52.324.447.345 6.
091 309.829 - 1.297 97.159 54.HDFC STANDARD LIFE TOTAL CONTINGENT LIABILITIES 1. Underwriting commitments outstanding (in respect of share and securities) 4.130. other than against policies.718 262. not acknowledged as debts by the company 3.467 29. Claims. Guarantees given by or on behalf of the Company 5.718 262.494 119.119 - - - - - - - - - - - - - - - 1.494 119.091 - - - - - - 309. not provided for 6.465.419.896 11.Others Total 117. Partly paid-up investments 2.Reinsurance obligations to the extent not provided for in the accounts 7.465.522. Statutory demands / liabilities in dispute.990.665.829 - [Type text] .
989 10.933) (4.’000) 2006 (RS.924 98.984 2008 (RS.887 (21.117 (35.836 138.032 3.694 114. from 2005 to 2009 Shareholders’ Account (Non-technical Account) 2009 Particulars Amounts transferred from the Policyholders Account (Technical Account) Income from Investments (a) Interest.650 66.Gross (b) Profit on sale / redemption of investments (c) (Loss on sale / redemption of investments) (d) Transfer / gain on revaluation / change in fair value (e) Amortization of (premium)/disco unt on investments Sub Total Other Income schedule (RS.909) (6.384) (23.367 242.965) 561 (2.274 764 124.239 1587 [Type text] .043) 51. Dividends & Rent .142) (12.109 126.192 7.’000) 516.870) (11.343 300 308.496 65.HDFC STANDARD LIFE Profit & Loss Account for year ended March 31.926) (5.341 2007 (RS.838 531 202.’000) 794.321 13.156) 329.375) (8.’000) 2005 (RS.’000) - 302.594) - (2.470) (6.
415.611 ) (1.611 ) (1.HDFC STANDARD LIFE TOTAL (A) Expenses other than those directly related to the insurance business Bad debts written off Provisions (other than taxation) (a) For diminution in the value of Investments (net) (b) Provision for doubtful debts 3A 1.038 8.208 3.348) (980.094 ) (1.596 203.421.833) (6.248.003 1.450.435.572 ) (1.255.63 1) (5.435.348) (897.094 ) (2.148.883.951 6.397.49 1) (4.124.63 1) (2.258 3.255.804 1.154.649 1.490 - - - - - - - - - - (c) Others Contribution to the Policyholders Fund TOTAL (B) 6.878.682 18.826 10.307 825.753 ) (1.287.458.029.029.251 67.710 12.364 ) (3.181 ) - - - - - - [Type text] .287.254 954.397 1.165.234 Profit / (Loss) before tax Provision for Taxation Profit / (Loss) after tax APPROPRIATIONS (a) Balance at the beginning of the Year (b) Interim dividends paid during the Year (c) Proposed final dividend (5.627 5.260.744 965.572 ) (897.252 127.
181 ) (3.38) [Type text] .38) (3.364 ) (1.878.42) (4.HDFC STANDARD LIFE (d) Dividend distribution tax (e) Transfer to liabilities on account of Employee benefits Profit / (Loss) carried forward to the Balance Sheet Earnings per share Basic Earnings per share Diluted - - - - - - - (27.491 ) (2.28) (6.883.81) (3.913.1 22) (3.83) (1.92) (2.28) (3.421.42) (2.92) (1.033) - - (11.753 ) (2.165.
COM REFERENCE BOOKS: PRASANNA CHANDRA: FINANCIAL MANAGEMENT.HDFCINSURANCE.COM WWW. (TMH). (TMH).HDFC STANDARD LIFE BIBILOGRAPHY WEBSITES: WWW. KHAN & P. JAIN: FINANCIAL MANAGEMENT. 6/e. 2004 M.YAHOOSEARCH.Y. 2004 OTHER REFERENCES: NEWS PAPERS: o TIMES OF INDIA o ECONOMIC TIMES [Type text] .COM WWW.K. 4/e.GOOGLE.
HDFC STANDARD LIFE MAGAZINES: o BUSINESS WORLD [Type text] .