"SURVEY FOR FINDING OUT SEGMENT OF PEOPLE AND DIFFERENT METHOD OF

FINDING OUT PROSPECT FOR BUSINESS ASSOCIATE’S (BA’s) RECRUITMENT”

TATA AIG Life Insurance Co. Ltd.

DIBRUGARH (ASSAM)

Presented by
Ashish Agrawal
Enrollment No. 08fc068
Batch-2008-2010
Under The Guidance Of

External Guide Internal Guide

Amitabh Das Soumendra Roy
Manager Incharge Assistant Professor (Finance)
TATA AIG LIC (Dibrugarh) IMIS (Bhubaneswar)

As a Partial Fulfillment of PGDFC Programme of IMIS, Bhubaneswar

Institute of Management & Information Science, Bhubaneswar

 DECLARATION

I hereby declare that this project work entitled "survey for finding out
segment of people and different method of finding out prospect for Business
Associate’s (BA’S) recruitment”, conducted at TATA AIG Life Insurance Co. Ltd
is record of independent research work carried out by myself during the
academic year 2008-2010 under the guidance of my faculty guide Prof.
Soumendra Roy, IMIS Business School, Bhubaneswar & my company guide
Mr. AMITABH DAS (MANAGER INCHARGE).

I also declare that this project is a result of my effort and my indebtedness to

other work publications, if any have been duly acknowledged.

Place: Dibrugarh (ASSAM) (ASHISH AGRAWAL)

Date:
 Certificate from the organization/external guide
TO WHOM IT MAY CONCERN
This is to certify that the project entitled "survey for finding out segment of
people and different method of finding out prospect for Business Associate’s
(BA’s) recruitment” is a bona fide work of Mr. Ashish Agrawal, a student of
Institute Of Management And Information Science, bearing Roll No. 08fc68
and was successfully conducted at Tata AIG Life Insurance Company Ltd.,
Dibrugarh (Assam) from 11th May 2009 to 8th July 2009 for the partial
fulfillment of the course Post Graduate Programme in Finance & Control of
IMIS, Bhubaneswar.

Mr. Ashish Agrawal was briefed about the work of recruiting financial
advisors. He has proved his skills and achieved the targets that were assigned
to him as his project profile and we appreciate his talent.

His attachment with TALIC as an Advisor during financial year 2006-07 with
very good track record helped him finishing his project with great detail.

We put on record and appreciate the excellent conceptual abilities and

communication skills of Mr. Ashish Agrawal and wish him all the very best for
a bright and promising career.

Date: Name : Amitabh Das

Place: Dibrugarh (Assam) Designation : Manager Incharge

Organization: TALIC

Branch Office: Dibrugarh (DH01)

 ACKNOWLEDGEMENT

Appreciating the people who helped me to make this project involves

introspecting and also looking back the past few weeks with memories that
will hardly fade. When one enjoys work it does not seems like an assignment
at all, it happened with most of us.
I take privilege to express my sincere gratitude to the CLUSTER HEAD of
TATA AIG Life Insurance Co. Ltd., Mr. NEERAJ GOGOI for providing me an
opportunity to take up this project in his prestigious organization. I would
also like to thank him for providing his support and guidance during the
course of the project.
I take this opportunity to specially thank Mr. AMITABH DAS, MANAGER
INCHARGE for his constant support and guidance and also for his effort in
providing me with the documents related to the project and other details
regarding the project, which helped me in understanding the function in
better way.
Special thank and gratitude to my faculty guide Prof. Soumendra Roy, IMIS
Business School, Bhubaneswar, for his genuine support, valuable advice
sincere comments.
My sincere regards to our respected Chief Coordinator (Training &
Placement) Capt. K.S.V.Subramanian for giving me the privilege to be
associated with such an organization and carry forward the name of our
college. And finally I would like to put a special note thanks to all my faculties
of IMIS.
 TABLE OF CONTENTS
PARTICULARS Page No.

CERTIFICATE FROM THE ORGANIZATION I

CERTIFICATE FROM THE INTERNAL GUIDE II

DECLERATION III

ACKNOWLEDGEMENT IV

LIST OF TABLES & GRAPHS V-VI

EXECUTIVE SUMMARY VII

CHAPTER-1

INTRODUCTION 1-3

1.1 Objective Of The Project 1

1.2 Scope Of This Project 1

1.3 Limitations 2

1.4 Research Methodology 2-3

CHAPTER- 2

OVERVIEW OF INSURANCE 4-18

2.1 What Is Insurance? 4

2.2 Basic Concept 4-5

2.3 Fundamental Principles Of Insurance 5-6

2.4 History Of Insurance 7-10

2.5 List Of Life Insurer 10-11

2.6 Types Of Insurance 12

2.7 What Are The Benefits One Get From Insurance 13

2.8 Distribution Channels In Insurance 13-18

- Introduction 13-14

- Need For Insurance Agent 15

- Alternate Distribution Channels 16

- Code Of Conduct For Insurance Agent 17-18

CHAPTER -3

COMPANY PROFILE 19-28

3.1 About The Company 19-20

3.2 Tata AIG Provides insurance covers to: 21-23

3.3 Organizational Structure Of The Company 24-25

3.4 Organizational Structure of Tata AIG Life (Dibrugarh branch) 26

3.5 Financial Highlight Of The Company 27-28

CHAPTER -4

RECRUITMENT & CAREER OPPORTUNITIES FOR AN ADVISORS

WITH TATA AIG LIFE 29-39

4.1 Introduction 29

4.2 Overview Of The Tata AIG Life Recruitment Process 29

4.3 Opportunities For Tata AIG Advisors 30

4.4 Benefits Available For Advisors 31

4.5 Models Of Tata AIG Life For Advisors 31-39

- BA Model (Sampatti Yatra) 32-38

- BSP Model (Dhan Varsa) 38-39

CHAPTER - 5

THUMB RULE FOR RECRUITMENT 40-49

5.1 Recruitment 40

5.2 Why Recruitment? 40-43

5.3 Whom To Recruit? 44-45

5.4 Where To Recruit? 46-47

5.5 How To Recruit? 48-49

CHAPTER - 6
ANALYSIS PART 50-67

6.1 How To Find Out Prospect For Recruitment (Methods)? 50-54

- Natural Market 50

- Referral Market 50-51

- Cold Market 51- 54

6.2 To Find Out Potential Segments For Recruitment: 55-67

- Bases Of Segmentation 55

- Demographic Basis:

Occupation wise 56-61

Age group wise 62-64

- Geographic basis: 65-67

Chapter – 7
 CONCLUSION PART 68-74

7.1 Conclusion/Findings 68-72

7.2 Suggestions & Recommendations: 73-74

APPENDICES

Questionnaires 75-76

References 77

Glossary 78

LIST OF TABLES & GRAPHS

PARTICULARS Page No.
1> [Table 6i], Overall Findings 52

2> [Fig. – 6c], pie chart, happy with current job/

Financial situation 52

3> [Fig. – 6d], pie chart, need for supplementary

source of Income 53

4> [Fig. – 6e], pie chart, preference for supplementary

source of income 54

5> [Table 6ii (a)], happy with current job/

Financial situation- basis-occupation 56

6> [Fig. – 6f], graph, happy with current job/

Financial situation- basis-occupation 57

7> [Table 6ii (b)], need for supplementary

source of Income- basis-occupation 58

8> [Fig. – 6g], graph, need for supplementary

source of Income- basis-occupation 59

9> [Table 6ii (c)], preference for supplementary

source of income - basis-occupation 60

10> [Fig. – 6h], graph, preference for supplementary

source of income - basis-occupation 61

11> [Table 6iii (a)], happy with current job/

Financial situation- basis- age group 62
12> [Fig. – 6i], graph, happy with current job/
Financial situation- basis-age group 62

13> [Table 6iii (b)], need for supplementary

source of Income- basis- age group 63

14> [Fig. – 6j], graph, need for supplementary

source of Income- basis-age group 63

15> [Table 6iii (c)], preference for supplementary

source of income – basis- age group 64

16> [Fig. – 6k], graph, preference for supplementary

source of income- basis-age group 64

17> [Table 6 iv (a)], happy with current job/

Financial situation- geographic basis 65

18> [Fig. – 6l], graph, happy with current job/

Financial situation- geographic basis 66

19> [Table 6iv (b)], need for supplementary

source of Income- geographic basis 65

20> [Fig. – 6m], graph, need for supplementary

source of Income- geographic basis 66

21> [Table 6iv (c)], preference for supplementary

source of income – geographic basis 65

22> [Fig. – 6n], graph, preference for supplementary

source of income- geographic basis 66
 EXECUTIVE SUMMARY

In today’s competitive market, for life insurance sector, recruiting good

agents has often been considered the number one job & problem in agency
management. It is certainly a task that new companies in the Indian life
insurance market have put much stress on. The reason is that life insurance
remains a product, not many are easily disposed to buy and not many want to
sell either. The survival of agency manager depends on his convincing enough
qualified and competent people to choose life insurance selling as a
permanent career. Recruitment involves selecting the right candidate for the
agent’s job and selling the agency idea to him.
Recruitment continuously is very much important for life insurance
companies; because FYP (First Year Premium) is directly depend on the
number of Agents/Advisors, Activity Ratio, Case Rate & Case Size. Apart
from recruiting more & more advisors it is necessary to recruit quality
advisors to maintain activity ratio, case rate and case size.
Further, it is very important to know the target segment for recruitment, in this
project work, I have segmented the whole market mainly on the basis of
demographic (occupation, & age), and geographic (urban & sub-urban areas)
segmentation, to identify the potential segment for recruitment.
 CHAPTER-1
INTRODUCTION
1.1 Objective of the project
 To identify the segment of people for Business Associate’s (BA’S)
recruitment.
 Find out the different ways to find the prospects for BA recruitment.
 To find the reason behind individual decisions in joining life insurance
company as an agent or advisor.
 To collect the data, this would help in formulating strategies for
recruitment of TATA AIG Life Insurance Co. Ltd.
 To find probable individual for recruitment for the organization.
 To know difficulties in recruitment.
 To know the process of good recruitment.
1.2 Scope of This Project
As the project is fully based on survey and it can be used for decision
making. By knowing the opinion or conversion ratio of the individual
management can take decision accordingly, management can identify
the segment of people for recruitment on the basis of age, profession
etc. i.e. the people to whom company should target for recruitment.
1.3 Limitations
 Most of the people do not want waste their time to fill up the
questionnaires due to their busy schedule.
 Some of the respondents hesitate to disclose their details.
 Most of the person thinks that market survey is wasting of time, so
they are not answering the question seriously.
 Time constraint: since recruitment is a long process.
 The study has been limited to geographical boundaries of Dibrugarh
Dist. (Assam) only.
1.4 Research Methodology
The research is based on the systematic research design to meet the above
mentioned objective. For the fulfillment of the objective of the study
effectively methods of data collection are quite necessary.
Sampling:
The sampling is selected according to the respondent’s convenience, as I had
to visit them as per their availability.
Sampling method: Stratified Random Sampling
Sample Unit: Teachers, Govt. Employee, Pvt. Employee,
Students, businessmen, Advocates,
Medical Representatives, etc.
Sample Size: 150
Geographical Location: Dibrugarh District (Assam)

Source of data collection: Primary & Secondary

Primary Data Collection:
The primary source of data collection was through survey through
market survey tool/questionnaires where each respondent were
provided with a market survey form and ask to give their views.

Secondary Data Collection:

The secondary source of data collection Internet, Magazine On
Insurance, & Books On Insurance.

Survey technique used:

The survey method used was “Structured Direct interview

technique”& also through telephonic interview technique. Where
respondents knew why the survey was being done. The questionnaire
was setup multiple choice questions, simpler questions using YES or NO
or MAY BE options & also by OPEN/CLOSE handed questions by which
we can know about the NEED & PREFERANCE for supplementary
income of an individual, from which we can find out the segment of
people to whom company should target for recruitment.
 CHAPTER-2
OVERVIEW OF INSURANCE
2.1 What Is Insurance?
 Insurance is a contract between two parties whereby one party
agrees to undertake the risk of another in exchange for a
consideration known as premium.
 Insurance is an economic device whereby the individual can
substitute a small relatively definite cost (premium) for a large
financial loss (the contingency insured against) that would have to
be borne if insurance was not available.
 The party which undertakes the risk is called insurer and the
other one, whose risk is transferred is known as the insured.
 The insurer promises to pay a fixed sum of money to the insured
on the happening of an uncertain event (death) or after the expiry
of a certain period in case of life insurance.
 The insurer agrees to indemnify the insured on the happening of
an uncertain event in case of non-life (general) insurance.
2.2 Basic Concepts
 The concept behind insurance is that a group of people exposed
to similar risk come together and make contributions towards
formation of a pool of funds.
 In case a person actually suffers a loss on account of such risk, he
is compensated out of the same pool.
  Insurance has two fundamental characteristics:
Risk is transferred or shifted from one individual to a group.
Losses are shared, on some equitable basis, by all members
of the group.

2.3 Fundamental Principles of Insurance

 Insurable Interest:
Insurable Interest is defined as the legal right to insure
arising out of a financial relationship recognized under law,
between the insured and the subject matter of insurance.
The Principle of Insurable Interest states that the insured
must be in position to lose financially if a loss occurs.

 Utmost Good Faith:

A positive duty voluntarily to disclose, accurately and fully,

all facts material to the risk being proposed, whether
requested or not.

Higher degree of honesty is imposed on both parties to an

insurance contract than any other contract, because-
Insurance product is intangible one.
 Principle of Indemnity:
It states that the insurer agrees to pay no more than the
actual amount of loss.
In other words, the insured should not make profit from a
loss.
The principle applies to non-life (property and liability)
insurance contracts only.

 Principle of Subrogation:
It is the right of one person, having indemnified another
under a legal obligation to do so, to stand in the place of
that other and avail himself of all the rights and remedies of
that other.
In other words, it is the substitution of the insurer in place
of the insured for the purpose of claiming indemnity from a
third person for a loss covered by insurance.
It avoids a situation where an insured might profit from an
insured event.
2.4 History of Indian Insurance Industry:
The history of insurance in India dates back to the year 1818, when the
Oriental Life Insurance Company was formed in Kolkata. The Life
Insurance Act of 1912 marked the beginning of a new era in the insurance
sector of India.

The Indian Insurance Companies Act was passed in the year 1928. This act
empowered the government of India to gather necessary information about
the life insurance and non-life insurance organizations operating in Indian
financial markets.

The Triton Insurance Company Ltd. formed in 1850 and was the first of its
kind in the general insurance sector in India. The Indian Mercantile Insurance
Limited was established in 1907, and was the company in India to handle all
classes of insurance.

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 190 years.
  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.

 Some of the important milestones in the general insurance business in

India are:
1907 - The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound business
practices.

1968 - The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from 1st
January 1973.
 The Malhotra Committee, 1993

Reform in the Indian insurance sector was initiated with the formation of the
Malhotra Committee in 1993. It was named after R.N. Malhotra, the then
Finance Secretary and RBI Governor, who headed the committee.

The aim of the Malhotra Committee was to assess the functionality of the
Indian insurance sector. This committee was also in charge of recommending
the future path of insurance in India.

The Malhotra Committee attempted to improve various aspects of the

financial sector, making them more appropriate and effective for the Indian
market.

The recommendations of the committee put stress on offering operational

autonomy to the insurance service providers and also suggested forming an
independent regulatory body.

“Malhotra Committee” was constituted by the government in 1993 to

examine the various aspects of the industry. The key element of the reform
process was Participation of overseas insurance companies with 26% capital.
Creating a more efficient and competitive financial system suitable for the
requirements of the economy was the main idea behind this reform.
Due to concerns of
 Relatively low spread of insurance in the country.
 The efficient and quality functioning of the Public Sector insurance
companies.
 The untapped potential for mobilizing long-term contractual savings
funds for infrastructure the (Congress) government set up an Insurance
Reforms committee in April 1993.

In 1993 the Government of Republic of India appointed RN Malhotra

Committee to lay down a road map for privatization of the life insurance
sector. While the committee submitted its report in 1994, it took another six
years before the enabling legislation was passed in the year 2000, legislation
amending the Insurance Act of 1938 and legislating the Insurance Regulatory
and Development Authority Act of 2000.The same year that the newly
appointed insurance regulator - Insurance Regulatory and Development
Authority IRDA – started issuing licenses to private life insurers.

2.5 LIST OF LIFE INSURERS:

Apart from Life Insurance Corporation, the public sector life insurer, there
are 20 other private sector life insurers, most of them joint ventures
between Indian groups and global insurance giants.
SL. Insurers Foreign Partners Regn. Date of Year of
NO. No. Registration Operation
1 HDFC Standard Life Standard Life Assurance, UK 101 23.10.2000 2000-01
Insurance Co. Ltd.
2 Max New York Life New York Life, USA 104 15.11.2000 2000-01
Insurance Co. Ltd.
3 ICICI-Prudential Life Prudential , UK 105 24.11.2000 2000-01
Insurance Co. Ltd.

4 Om Kotak Life Insurance Old Mutual, South Africa 107 10.01.2001 2001-02
Co. Ltd.

5 Birla Sun Life Insurance Sun Life, Canada 109 31.01.2001 2000-01
Co. Ltd.
6 Tata-AIG Life Insurance American International 110 12.02.2001 2000-01
Co. Ltd. Assurance Co., USA
7 SBI Life BNP Paribas 111 29.03.2001 2001-02
Insurance Co. Ltd. Assurance SA, France

8 ING Vysya Life ING Insurance International 114 02.08.2001 2001-02

Insurance Co. Ltd. B.V., Netherlands

9 Bajaj Allianz Life Allianz, Germany 116 03.08.2001 2001-02

Insurance Co. Ltd.

10 Metlife India Metlife International Holdings 117 06.08.2001 2001-02

Insurance Co. Ltd. Ltd., USA

11 AVIVA Aviva International Holdings 122 14.05.2002 2002-03

Ltd., UK
12 Sahara Life 127 06.02.2004 2004-05
Insurance Co. Ltd ……………………………

13 Shriram Life Sanlam, South Africa 128 17.11.2005 2005-06

Insurance Co. Ltd.

14 Bharti AXA Life AXA Holdings, France 130 14.07.2006 2006-07

Insurance Co. Ltd.

15 Reliance Life 121 03.01.2002 2001-02

Insurance Co. Ltd. ……………………………
(Earlier AMP Sanmar
Life Insurance Co.
from 3.1.02 to 29.9.05)

16 Future Generali India Pantaloon Retail Ltd.; 133 04.09.2007 2007-08

Life Insurance Co. Ltd. Sain Marketing Network Pvt.
Ltd. (SMNPL), Generali, Italy
17 IDBI Fortis Life Fortis, Netherlands 135 19.12.2007 2007-08
Insurance Co. Ltd.

18 Canara HSBC OBC Life HSBC, UK 136 08.05.2008 2008-09

Insurance Co. Ltd.

19 Aegon Religare Life Religare, Netherlands 138 27.06.2008 2008-09

Insurance Co. Ltd.

20 DLF Pramerica Life Prudential of America, USA 140 27.06.2008 2008-09

Insurance Co. Ltd.

21 Life Insurance 512

Corporation of India

2.6 Types of insurance:

 Generally, insurance is divided into two categories and is named as;

General Insurance

Life Insurance

FRAME WORK ANALYSIS OF

INSURANCE

GENERAL INSURANCE LIFE INSURANCE

INDIVIDUAL MICRO GROUP

INSURANCE INSURANCE INSURANCE

HEALTH ULIPs ANNUITY WHOLE LIFE ENDOWMENT TERM

INSURANCE PLANS INSURANCE PLANS INSURANCE
2.7 What are the benefits one get from insurance:

 Safeguards oneself and one's family for future requirements.

 Life cover.

 Peace of mind in case of financial loss.

 Encourage saving.

 Tax rebate.

 Protection from the claim made by the creditors.

 Security against a personal loan, housing loan or other types of loan.

 Provide a protection cover to industries, agriculture, women and child.

2.8 Distribution Channels in Insurance

 Introduction
An insurance cover is an intangible product evidenced by a written contract
known as the ‘policy’. Insurers market various insurance covers either
directly or through various distribution channels—individual agents,
corporate agents (including Bancassurance) and Brokers. The marketer in the
distribution network is in direct interface with the prospect and the
customer.
Life insurance products are sold through individual agents and many of them
have this as their only career occupation. General insurance products are
sold through individual agents, corporate agents and brokers.
Distribution channels such as agents are licensed by the IRDA. To get an
agency license, one has to have certain minimum qualifications; practical
training in insurance subjects and pass an examination conducted by the
Insurance Institute of India.
IRDA regulations on licensing of agents/brokers lay down the code of
conduct for individual agents, corporate agents and brokers.
Thus it is seen that the dos and don’ts for these intermediaries are given
clearly at the point of sale as well as in the event of a claim. Service does not
end with the customer receiving his document; it in fact only begins here.
After sales service is as important or even more important – like when a
refund has to be made or when a claim has to be made.

One of the issues that are of great concern affecting professionalism in

insurance activities is resorting rebating by intermediaries. Rebating is
prohibited as per Section 41 of the Insurance Act, 1938 and the public are
advised not to deal with intermediaries offering rebate of any kind.
Rebating means a share of commission receivable by the agent/broker is
given to the prospect/client. This is done to attract the client in the purchase
of insurance contract by offering cash. Competition among agents/brokers is
so cut-throat, some agents indulge in such unethical practices. Public are
advised not to ask for any prohibited rebates in premium since commission
payment to an agent is the only income for some to take care of their
families. Similarly, agents are also advised not to indulge in such practices
which could cause them loss of agency income.
  Need For Insurance Agent:

Insurance is sold, not bought, because of its intangibility ( Fig-

2a shows the intangibility of insurance)

People do not understand, how insurance works. It is like sand when

it is bought and gold when it is realized.

Insurance is a concept that has to be explained personally.

Buyer has his own special needs and requires specialized solution.

It is the AGENT who knows the proposer and he only can act as first
line underwriter.


FIG-(2a)

 Alternate Distribution Channels:

The insurance marketplace is undergoing a transformation that may

eventually lead to significant changes in how consumers purchase insurance
products. A variety of distribution channels are currently used in this market
place and some insurers utilize a combination of distribution channels. Such
as;

Direct Sales

Brokers

Corporate Agents

Bancassurance

Telemarketing

Online Marketing

Retail Chains

Franchisee
  Code of Conduct for Insurance Agent:

No insurance agent shall:

Solicit or procure insurance business without holding a valid license;

Induce the prospect to omit any material information in the

proposal form;

Induce the prospect to submit wrong information in the proposal

form or documents submitted to the insurer for acceptance of the
proposal;

Behave in a discourteous manner with the prospect;

Interfere with any proposal introduced by any other insurance

agent;

Offer different rates, advantages, terms and conditions other than

those offered by his insurer;

Demand or receive a share of proceeds from the beneficiary under

an insurance contract;

Force a policyholder to terminate the existing policy and to effect a

new proposal from him within three years from the date of such
termination;

Have, in case of a corporate agent, a portfolio of insurance business

under which the premium is in excess of fifty percent of total
premium procured, in any year, from one person (who is not an
individual) or one organization or one group of organizations;
 Apply for fresh license to act as an insurance agent, if his license was
earlier cancelled by the designated person, and a period of five years
has not elapsed from the date of such cancellation;

Become or remain a director of any insurance company;

Every insurance agent shall,-

Identify himself and the insurance company of whom he is an insurance

agent;

Disclose his license to the prospect on demand;

Disseminate the requisite information in respect of insurance products

offered for sale by his insurer and take into account the needs of the
prospect while recommending a specific insurance plan;

Disclose the scales of commission in respect of the insurance product

offered for sale, if asked by the prospect;

Indicate the premium to be charged by the insurer for the insurance

product offered for sale;

Explain to the prospect the nature of information required in the

proposal form by the insurer, and also the importance of disclosure of
material information in the purchase of an insurance contract;

Bring to the notice of the insurer any adverse habits or income

inconsistency of the prospect, in the form of a report (called “Insurance
Agent’s Confidential Report”) along with every proposal submitted to the
 insurer, and any material fact that may adversely affect the underwriting
decision of the insurer as regards acceptance of the proposal, by making
all reasonable enquiries about the prospect;

Inform promptly the prospect about the acceptance or rejection of the

proposal by the insurer;

Obtain the requisite documents at the time of filing the proposal form
with the insurer; and other documents subsequently asked for by the
insurer for completion of the proposal;

Render necessary assistance to the policyholders or claimants or

beneficiaries in complying with the requirements for settlement of claims
by the insurer;

Advise every individual policyholder to effect nomination or assignment

or change of address or exercise of options, as the case may be, and offer
necessary assistance in this behalf, wherever necessary;

CHAPTER-3
COMPANY PROFILE
3.1 About the Company:
Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture
company, formed by the Tata Group and American International Group, Inc. (AIG).
Tata AIG Life combines the Tata Group’s pre-eminent leadership position in India
and AIG’s global presence as one of the world’s leading international insurance
and financial services organization. The Tata Group holds 74 per cent stake in the
insurance venture with AIG holding the balance 26 per cent. Tata AIG Life provides
insurance solutions to individuals and corporates. Tata AIG Life Insurance
Company was licensed to operate in India on February 12, 2001 and started
operations on April 1, 2001.
 VISION OF THE COMPANY: To be the fastest growing Life Insurance
Company in India, measured by annualized premium growth, procuring
persistent business, delivering first class customer service.

 MISSION OF THE COMPANY: To fulfill the insurance and retirement

planning needs of both individual and corporate customers in India and it’s
constant endeavor to be the first in the industry to design and expand
product suite as well as distribution channels to ensure we meet this
objective.

 MAJOR ACTIVITIES OF THE COMPANY: Tata AIG Life Insurance Company

Ltd. provides insurance solutions to individuals and corporates. Tata AIG Life
Insurance Company was licensed to operate in India on February 12, 2001 and
started operations on April 1, 2001. Tata AIG Life offers a broad array of life
insurance coverage to both individuals and groups, providing various types of
add-ons and options on basic life products to give consumers flexibility and
choice.

THE TATA GROUP:

Tata is a rapidly growing business group based in India with significant

international operations. Revenues in 2007-08 are USD 62.5 billion (around Rs.
251,543 crores), of which 61% was from business outside India. The Group’s Net
Profit for 2007-08 is USD 5.4 billion (around Rs. 21,578 crores). The Group
employs around 350,000 people worldwide. The Tata name has been respected in
India for 140 years for its adherence to strong values and business ethics. The
business operations of the Tata Group currently encompass seven business
sectors - Communications and Information Technology, Engineering, Materials,
Services, Energy, Consumer Products and Chemicals. The Group's 28 publicly
listed enterprises have a combined market capitalisation of around $60 billion,
among the highest among Indian business houses, and a shareholder base of 2.9
million. The major companies in the Group include Tata Steel, Tata Motors, Tata
Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels,
Tata Teleservices and Tata Communications.

AMERICAN INTERNATIONAL GROUP, INC. (AIG):

American International Group, Inc. (AIG), a world leader in insurance and financial
services, is the leading international insurance organization with operations in
more than 130 countries and jurisdictions. AIG companies serve commercial,
institutional and individual customers through the most extensive worldwide
property-casualty and life insurance networks of any insurer. In addition, AIG
companies are leading providers of retirement services, financial services and
asset management around the world. AIG's common stock is listed on the New
York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.

3.2 Tata AIG Provides Insurance Covers To:

Individuals
Corporates
Micro insurance

 Individuals

Each one of us is unique. Yet many of us share the same concerns over the course
of our lives.

For instance, you may have asked yourself, “Who will take care of my family if
something happens to me?” Tata AIG Life is here to help & provide answers to
questions just like that one. For example, if you:
  Are hospitalized or have a prolonged illness?

For this Tata AIG Life offers: Invest Assure Health, Tata AIG Life
Health Investor, Tata AIG Life Health First, Tata AIG Life Hospi Cash
Back , & Tata AIG Life Health Protector - 5 Year Guaranteed Renewal
Accident and Health Plan.

 Want a low cost term plan which offers a large cover?

For this Tata AIG Life offers Tata AIG Life Raksha 10/15/20/25.

Tata AIG Life realizes that individual want the best for his/her children. Tata AIG
can help you ensure they have ample money available to pay for education or
marriage;

For this Tata AIG Life offers Tata AIG Life United Ujjwal Bhavishya, Tata AIG
Life Starkid, Tata AIG Life Assure Career Builder, Tata AIG Life MahaLife Gold
and Tata AIG Life Assure Educare at 18 & Assure Educare at 21.

With prices on the rise, it’s important that you start planning for Retirement now.
Tata AIG can ensure that your Golden Years are truly ‘Golden’ by offering
insurance plans such as; Tata AIG Life Assure Golden Years Plan, Tata AIG Life
Easy Retire, Tata AIG Life MahaLife Gold, Tata AIG Life Nirvana, Tata AIG Life
Invest Assure II. Tata AIG Life Invest Assure Gold, Tata AIG Life Invest Assure
Future, Tata AIG Life Nirvana Plus, Tata AIG Life Invest Assure Swarna Jeevan.

 Corporates

For any corporation, its employees and customers are its greatest assets. And it is
important for the organization to take the necessary measures from time to time to
maintain their motivation levels. Offering security to them and their families with
insurance cover is one way to show that you care.

Tata AIG Life also offers solutions for managing the liabilities on Gratuity and
Superannuation products for the employees.

Range of corporate life insurance products include:

Employee Benefits.
Credit Life.
Group Pensions.
Workplace Solutions.   

 Micro Insurance

Micro Insurance is the process of delivering and servicing relevant and affordable
life insurance products to the low-income socio economic strata. The focus of Tata
AIG Life’s Micro insurance program is rural India, where traditionally the far-
flung, lower and lower middle-income segments have had limited access to life
insurance services.

How does Tata AIG Life operate?

Tata AIG Life operates in 11 states with a specific relationship management team
for each state. A dedicated & trained sales and marketing team manages the front
end of the Micro insurance program. Micro insurance distribution model of the
company is collaborates with NGO’s (Non-governmental organisations) and Rural
organizations with community level SHG (Self Help Group) women advisors who
provide insurance advisory services to the rural customers at their doorstep. The
grassroots level agents explain the product details in the local language of the
customer, thereby enabling the customer to make a decision. The training
programs, brochures, contract documents, and application forms are available in 8
different languages other than English and Hindi.

 
Cost of Tata AIG Life’s plans:
 
Tata AIG Life Micro insurance plans are available with or without
survival benefits and with death benefits ranging from Rs.5, 000 to  
Rs.50, 000. With premiums as low as Rs.5** per month, there is now  
an affordable life insurance product for nearly every rural household
in India.  

** The premium mentioned above is exclusive of Service Tax.

3.3 Organisational structure of the company:

Oraganisational structure of Tata AIG Life is consisting of three vertical

segments. i.e.

Sales( B A Model)

Operation

Training

 sales MD

(COUNTRY HEAD)
 (ZONAL HEAD)

(REGIONAL HEAD)

CLUSTER HEAD CLUSTER HEAD

MANAGER INCHARGE MANAGER INCHARGE

(BUSINESS ASSOCIATE) BA-MANAGER BA- MANAGER

MBA(MANAGRIAL-BA) Sr.BA BA PBA(Provisional BA)

NOTE: THESE ARE ON COMMISSION BASIS

(THEY ARE NOT COMPANY EMPLOYEE)

 Operation (COUNTRY HEAD)

ZONAL BRANCH OPERATION HEAD

(ZONAL HEAD)

(REGIONAL HEAD)

CLUSTER MANAGER CLUSTER MANAGER

BRANCH OPERATION MANAGER BRANCH OPERATION EXECUTIVE

 Training
(COUNTRY HEAD)

(ZONAL HEAD)

(REGIONAL TRAINING MANAGER)

CLUSTER TRAINING MANAGER CLUSTER TRAINING MANAGER

BRANCH TRAINING MANAGER BRANCH TRAINING MANAGER

3.4 Organisational structure of Tata AIG Life (Dibrugarh Branch):

 sales CLUSTER HEAD

(Mr. NEERAJ GOGOI)

MANAGER INCHARGE
(Mr. AMITABH DAS)

BA-MANAGER BA-MANAGER BA-MANAGER

Mr. BISHAL CHOUDHRY Mr. RAJU NANDI Mr. KOUSHIK BORAH

MBA(MANAGRIAL-BA) Sr.BA BA PBA(Provisional BA)

2 NOs 8 NOs 20 NOs
TOTAL ADVISORS UNDER BAs ARE 400+
  Operation CLUSTER OPERATION HEAD

BRANCH OPERATION MANAGER BRANCH OPERATION EXECUTIVE

Mr. ARUNAVA CHAKRABORTY Mr. JAFRI YASIN

 Training

BRANCH TRAINING MANAGER

Mr. SWAPNAJYOTI BORDOLOI

3.5 Financial Highlight of the Company:

 Tata AIG Life Insurance Company’s Total Premium increases by 253 % to Rs 254
crores over 1, 60,000 new individual lives insured during FY 2003-2004.

Tata AIG Life achieves an all-round robust growth in its business during FY 2003-
04:

• Total Premium increases by 253 % to Rs 254 crores.

• First year Premium moves-up by 245 % to Rs 180 crores.

• Total Sum Assured goes up by 116% to Rs 11,485 crores.

• Rural insurance sales increases by 152% to 23,034 policies.

• Over 1, 60,000 new individual lives insured during FY 2003-04.

  FOR THE PERIOD ENDING MARCH-2006

Tata AIG Life Insurance total annual premium up 77 % to Rs 880 crores:

 FYP income up 48% to Rs 432 crores.

 Agency Total Premium Income up by 61% with persistency rate of 85%.

 Total Premium Income from Alternate Channels up 132 %; Bancassurance growing at

179 %.

 Geographical network expanded to cover 45 cities with 85 offices.

 Lives covered under rural sector - 21% versus Regulatory obligation of 16%.

 Lives covered under Social sector 101,873 versus Regulatory obligation of 20,000 lives.

 FOR THE PERIOD ENDING FEBRUARY-2009

FYP u/w (Rs. In No. of policies/scheme No. of lives covered

Crores) under group scheme
FEB-09 UPTO UPTO FEB-09 UPTO UPTO FEB-09 UPTO UPTO
FEB-09 FEB-08 FEB-09 FEB-08 FEB-09 FEB-08
INDIVIDUAL 2.27 34.95 36.87 480 7262 6516
SINGLE
PREMIMUM
INDIVIDUAL 76.09 742.46 639.48 58366 595684 398899
NON-SINGLE
PREMIMUM
GROUP 2.18 30.14 56.96 0 7 4 2389 80093 335164
SINGLE
PREMIMUM
GROUP 7.15 94.06 52.86 4 67 64 12314 294395 195336
NON-SINGLE
PREMIMUM

CHAPTER-4
RECRUITMENT & CAREER OPPORTUNITIES FOR AN ADVISOR WITH
TATA AIG LIFE
4.1 Introduction
Advisors are the backbone of any life insurance company. They play the most
important and key role for company to cashing the revenue through selling the
insurance policies.
Some years ago Advisors were known as Agents but Tata AIG introduced
them as Advisors which seems to be more appropriately.

In India, ever since the insurance industry has opened up, opportunities for
insurance companies have become limitless. To tap this opportunity, they
require insurance agents because agents are one of the most significant modes
of bringing in much-needed business to the company.

4.2 Overview of the Tata AIG Life Recruitment Process

 Prospecting
 Approach- Attraction and Invitation
 Career Opportunity Presentation- COP
1:1 COP
Branch COP

 Candidate Selection:
Profiling
Aptitude Test
Selection Interview
Candidate Sign up

 50 Hours Pre- Licensing Exam and Training

Licensing
Recruitment Activity Management by BA

4.3 Opportunities for Tata AIG Advisors:

Apart from making a good profit without an investment, Tata AIG
provides an excellent carrier opportunity.
Enjoy the benefit of residual income.
Maintain flexible work hours.
Earn attractive commissions.
Participate in exciting recognition programs.
Capitalize on the growing Insurance market.
4.4 Benefits Available for Advisors:

Apart from being remunerated well, Advisors get a lot of recognition and can
win awards by participating in the monthly, quarterly, half yearly, yearly
business competition. These business reviews can fetch foreign tours and
travel free of cost. Easy way to globe trot is to become an advisors with
TALIC.
Become an Advisor to really see the benefits. It is told that "seeing is
believing '. We are ahead and we say "experiencing is believing" are you
ready to experiment.
 KL – 2006

Foreign tour offered by TALIC for advisors.

4.5 Models Of Tata AIG For Advisor:

As Tata AIG Life Insurance Advisor, the sky is not the limit—you can go
beyond. Thus Tata AIG Life introduced certain models for advisors;

Business Associate (BA) Model.

(Promoting as SAMPATTI YATRA)

Business Service Partner (BSP) Model.

(Promoting as DHAN VARSA)

 Business Associate (BA) Model;

 Sa m p a tti Ya tra
The jo urne y to w a rd s We a lth & C a re e r

A True The Yatra (Career Path)

FAST TRACK Path

with
Tata AIG offers dual career opportunities to Newly Licensed Advisor
DUAL
(NLAs). Career
NLA is a mandatory Opportunities
for 3 month development phase. Month of
licensing is taken as Month 0. After this they have option to move either in
Agency Leader Career Path or Individual Sales Career Path (Fig-4a).

90
90 Days
Days

Fig-4a
If an agent chooses Agency Leader Career Path then he/she has to make
his/her own team by recruiting new agents. In a leadership career path there is
unlimited earning opportunity & also it provides tremendous opportunity to
grow as a Provisional Business Associate (PBA) → Business Associate (BA)
→ Senior Business Associate (SBA) → Managerial Business Associate
(MBA) on the basis of performance & certain criteria (Fig-4b).
Further an agent has option to move toward Individual Sales Career Path,
there is also opportunity to grow as an Advisors→ Senior Advisors →
executive advisor on the basis of performance & certain criteria (Fig-4b).
Again company provides an opportunity to migrate toward leadership path
from an individual sales career path at any time (Fig-4b). In both the path
there is unlimited earning opportunity with their growth (Fig-4c).
We have Fast Tracked the YATRA
for an Advisor to become a Leader

Opportunity to MIGRATE
to Sales Leadership Path

Special Career Opportunity

for Outstanding Sales People

FIG-4b
Be A Professional Advisor
FIG-4c
 Progression for NLA on Sales Leader Career Path

Figurer (4d) shows the criteria for the growth of NLAs on sales leader career path.
NLA has to clear aptitude test, L1 (Level-1), & validation program conducted by
Tata AIG Life with the recruitment of three Advisors and also he has to submit 3
policies having FYP 20,000 to become PBA.
Again if team size of PBA is increases to 15 and also he/she has to maintain team
FYP of Rs.100, 000 in last six month to become a BA (Business Associate), apart
from this he/she has to clear L2 (Level-2) & BA validation program conducted by
Tata AIG Life.
Further if BA will produce 2 BAs from his direct team & also he/she has to attend
BA Star – L1 to L3 training program conducted by Tata AIG Life, then he/she will
be promoted as SBA (Senior Business Associate).
If SBA will produce 2 SBAs from his direct team & also he/she has to attend all
the 4 levels of BA Star training program conducted by Tata AIG Life, then he/she
will be promoted as MBA (Managerial Business Associate).

CRITERIA  Interview

 Clear Aptitude Test

 Clear Validation

 3 policies & 20,000 issued FYP

• Overrides accrues from the 1st recruit

• Maintain CMC as per PBA Contract

CONTRACT
• Contract Valid for 12 months
 NLA PBA BA SBA MBA

 3 Recruitment  Team Size: 15  Min 6 months as  Min 12 months

BA as SBA
 Clear PBA Validation,  Team FYP of
L1& ULIP 100,000 in last 6  Direct Team of
 Direct Team of
months min 15 & 2 BAs.
 completes 90 days 15 & 2 SBAs.
 Clear L2 & BA  BA Star – L1 to
 3 Policies & 20,000 Validation L3  All 4 levels of
issued FYP BA Star

Fig-4d
Earning In Leadership Path:

 Earning of direct commission from self code.

 MPF (Monthly Performance Fees) from direct team.
 Even MPF from indirect team (up to Level 2).
 Monthly Special Bonus (MSB) from direct team.
 Quarterly Persistency Bonus (QPB) from direct team.
 Annual Productivity Bonus (APB)
 Direct Team Growth Incentive.
 Indirect Team
of BA1 Level 2

FIG-4e, Direct & indirect team of BA

Progression for NLA on Individual Sales Career Path

9 policies having
90,000 FYP in 90
days

Sr. Executive
NLA Advisor Advisor
Advisor

 6 policies having 60,000  Min 12 months as Sr.

 Minimum 90 days
(M0 to M3) as NLA.
 L1 Training.
FYP in 3 rolling Months Advisor.
&
 500,000 FYP & 24 Cases
 Minimum 1 month as an or 750,000 FYP in 12
Advisor. rolling months.
 Completion of Level 1  Completion of Level 2
Induction, AML & MCG, Training, AML & MCG,
& ULIP Certification. ULIP Certification.
 Fig-4f
While the figure 4f shows the criteria & growth pattern of NLAs on Individual
Sales Career Path. NLA will be promoted as an advisor after the period of 90 days.
Then advisor will be promoted as a senior advisor, if he/she gives 6 policies having
60,000 FYP in 3 rolling months, apart from this they have to attained L1 (Level-1),
AML (Anti Money Laundering), MCG (Market Conduct Guideline), & ULIP (unit
Linked Insurance Plan) training program conducted by Tata AIG Life.
Simultaneously he/she will be promoted as an executive advisor if he/she gives
500,000 FYP & 24 Cases or 750,000 FYP in 12 rolling months, and again they
have to attend L2 (Level-2) training program.
Again an NLA can become directly senior advisor by submitting 9 policies having
90,000 FYP in 90 days.
Earning in Individual Sales Career Path:

 Direct commissions from individual sales.

 Monthly Production Bonus.

 Quarterly Persistency Bonus

 Annual Production Bonus.

 Business Service Partner (BSP) Model:(Promoting as DHAN VARSA)

NLA

FIG-4g
Business service partner model is a very new concept of Tata AIG Life to
boom its sales in terms of FYP (First Year Premium). In this model Tata AIG
Life recruits one Business Service Partner on the basis of certain criteria like
it should have its own firm. With this model company can penetrate more &
more in rural area.
BSP makes their own team and its income is completely depending upon the
performance and growth of the team (Fig-4g).

Earning in BSP Model:

 Advisor Identification & Recruitment Fees.

 Advisor Certification Fees.

 Advisor Functionality Fees from direct team.

 Advisor Functionality Fees from indirect team (up to Level-2).

 Activity Factor Fees.

[Activity Ratio (%)] = No. of Active Advisors

Total Number of Advisors

 OPEX Reimbursement; is calculated on the basis of the number of active

advisor. Active Advisor is defined as an Advisor in the Direct & Indirect
team who has issued & cleared one or more policies & earned at least Rs.1,
000 FYC in a month.

 `BSPs under TALIC at Dibrugarh Branch:

At present there are 7 BSPs under TALIC at Dibrugarh Branch, and under these
BSPs there are 58 NLAs.
 CHAPTER-5
THUMB RULE FOR RECRUITMENT
5.1 Recruitment:

Recruiting good agents has often been considered the number one job &
problem in agency management. It is certainly a task that new companies in
the Indian life insurance market have put much stress on. The reason is that
life insurance remains a product, not many are easily disposed to buy and not
many want to sell either. The survival of agency manager depends on his
convincing enough qualified and competent people to choose life insurance
selling as a permanent career. Recruitment involves selecting the right
candidate for the agent’s job and selling the agency idea to him.

5.2 Why Recruitment?

Recruitment is critical when the agency force is small. But it becomes
important even for a fairly large sized agency. Agency groups, like companies
and products, have a life cycle. Turnover of agents is a fact of life business. In
course of time only some agents can maintain high new business growth rate
and remain stars. Many quite or turn inactive after some time while other tend
to lose steam. Some, who have a regular flow of high renewal commission,
may relax efforts or look for other pastures in which their skills could be
employed. If the agency manager does not continuously add new people to
replenish the resulting depletion of selling energy, the agency system would
begin crumble in spite of its apparent success.

From the following calculation we can understand the need for recruiting new
& quality advisors:
FYP = TOTAL NO. OF ADVISORS × ACTIVITY RATIO × CASE RATE × CASE SIZE

Were,
FYP = First Year Premium.

No. of Active Advisors

Activity Ratio (%) = Total Number of Advisors

Case Rate = Total No. Of Policies

Total No. of Active Advisors

Case Size = Total Premium

Total No. Of Policies

It is calculated that only 32% advisors remain active by the end of month.
While, the case rate of Tata AIG Life is 1.5 per active advisor in a given
month.
And case size is around Rs. 15,000 per policy.
For example at Dibrugarh Branch (TALIC) there are around 400 advisors.
Therefore, FYP in a given month = 400 × 32/100 × 1.5 × 15000
= 128 × 1.5 × 15000 = Rs. 28, 80,000.

Again if total no. of advisor is increase to 500, & other things remain
constant.
Then, FYP = 500 × 32/100 × 1.5 × 15000 = Rs. 36, 00, 000.

Therefore from the above calculation we can say that FYP is directly
proportional to the No. of advisors. So it necessary to recruit more & more
advisors, and again apart from recruiting new advisors it is necessary to
recruit quality advisors to maintain Activity Factor, Case Rate, & Case Size.

Why then do agency managers often fail to recruit? The reason is that it is not
considered urgent enough. There is a lot of energy that needs to be expended
to recruit and develop a new agent but payoffs come much later. Again, there
are periods (like March) when one has to focus on getting business. It is a
poor time to bring new people into the agency. Many are lost simply because
one could not devote sufficient time to develop them.
New men, typically, would contribute only a small share of the agency
business so that if one dose not recruit, it will not make an immediate
difference to the agency operation. The penalty may be there but it is a
deferred one. For example, if there is no recruitment done in the years 2006 &
2007, the impact may really be felt only by 2010. Remember that at that time
more than half the agency’s business may come from agents recruited after
2005. The two years of non- recruitment would have created a huge hole in
the fabric that cannot be sewed up quickly by extra recruitment in 2010. The
omission by then has become irrevocable.
The only solution to the above is to recruit continuously and at all times-
indeed make a habit out of recruitment. No doubt, the lean months are when
one can spend more time on recruiting while peak business periods like
December to March may put other demands on the agency manager’s time.
But we must remember that peak months also provide an opportunity to new
agents to get off to a flying start. Nothing works, like early success, to
motivate an agent to plunge into the business with heart and soul.
The only thing worse than non - recruitment is to recruit indiscriminately and
for the sake of fulfilling a recruitment quota. This is a disease, which seems to
have caught on with life insurance companies in the Indian market. It is like
drawing water from a well with a bucket that has a hole in it. The logic seems
to be that if you get sufficiently large numbers, many will drop off but some
may stay. There are two problems with this logic. First, it is very inefficient
way of doing things. Agents are deadweight unless they can work
independently and generate new business. What is the purpose of recruiting
an agent if the agency manager has to do canvassing of business and other
activities on his behalf? Many drop off any way after a few halfhearted
attempts.
Second, what many marketing managers do not seems to realize is this serious
harm done to an agency organization and agency manager’s morale when he
is not even allowed (leave alone supported) to strike a balance between
recruitment and agent development one may argue that winners (the agents
who will make it) do not need too many winners would like to be part of a
ship that is rudderless, without the captain in sight and crew that is verge of
jumping off?
5.3 Whom to Recruit?
The agency organizations would be crippled era long if the right kind of
people were not in the ship. The agent’s job like any other contains a job
description and a job specification. The agency manager needs to be clear
about not only what he requires the agent to do also a profile of who would
play the role well. It is not necessary or even possible to get readymade
MDRT stuff. The key is to discover those people who have the latent potential
to grow and to be groomed so as to emerge as sales champions. As in new
business prospecting, one must build a reservoir of potential candidates who
can be offered an agency career. Let us looked at some of the qualities to look
for (Fig-5a):
K
A
B
G
U
H
O
T
P
X
E
C
N
ID
R
L Fig-5a

 The candidate should ideally come from a background where work and life
has been challenging and every meal had to be earned the hard way. An
agent’s job is essentially entrepreneurial. The only security that there is
comes from the ability to perform & this is often not within one’s control.
A great deal of courage, self-discipline, self-confidence, self-drive is
needed to enable one to stick to the course & work in an environment
where results do not come easily.
 A person with some business & service experience & who has enjoyed
success pattern may make a good recruit. Such a person is likely to have a
fair amount of maturity of thought and a sense of responsibility. Success
also requires discipline and healthy work habits. Remember, customer have
to be sure about the person from whom they are buying insurance.
 The candidate must obviously be one with the ability to relate with and
communicate to people. One of the key things to especially look for is the
social mobility of the prospect- is he actively engaged in community and
social activities where he meet and render services to other people. Is he
someone who is liked?
 One of the critical requirements of an agent is character & attitude.
Character is about doing what is right and ethical and in the interest of
one’s customers. Similarly, one must be sure of the agent’s attitude to
insurance and the customer. The agent must be the type who believes in
insurance & the importance of financial security.
 Finally, the most important attribute to look for is fire in the belly – a
hunger to excel in the agency profession. There are no free lunches.
Success has a price and one can pay that price only when there is sufficient
fire within.

5.4 Where to Recruit?

The types of people we have profiled above are obviously not likely to be
sitting idle at home. Usually, they are engaged somewhere. It is also obvious
that good prospects do not easily come by. One has to make a search for them
and discover them. Let us look at some of the source from which one may
draw good prospects.
 A most potent source lies in individuals and professional/occupational
being displaced by industry wide vocational disturbances. A large number
have taken voluntary retirement (VRS) or face retrenchment. Similarly
many business proprietors have their revenues and profits affected by
competition and adverse trends. These are people likely to be interested in
 life insurance sales career. They do not posses maturity and work
experience but also are at an age when fire is still there.
 A next source is to liaise with Placement Agencies and other platforms
where people in search of jobs are registered. One may also advertise about
a job opening. The problem is that such recruitment centers are unlikely to
promote a job in life insurance selling. This is where selling the career
become important.
 For several decades, the most popular source of agency recruitment has
been members of one’s extended family & community, friends circle, one’s
customers and center of influence. They may either themselves become
agents or recommend and help in recruiting others. Policyholders,
especially if they are satisfied clients, could provide great support in this
regard. The problem is that many of them are not business minded. They
have valuable personal contacts but the agency manager would need to
work and assist to convert these into professional and business
relationships.
 Fourth, there are salesmen in other areas. Those in FMCGs can be found in
retail outlets or moving from house to house. Others from the
pharmaceutical industry visit doctors and hospitals. There are salesmen all
around the place. The task is to ask if they intend to remain in their present
line of sales all their lives. Why not plunge into something a lot more
challenging and rewarding?
 One of the most promising sources of recruitment is the housewives
looking for a part time job to supplement family income. Women can
understand personal and family financial problems and are able to interact
on an emotional level. Remember they constitute half of the mankind and
are the pillar of support in every family. In many Indian & Asian
communities, women would not move amidst and talk freely to male
 strangers. But housewives would listen to other housewives. Perhaps the
best advantage stems from the fact that millions are seeking new career
opportunities today and are entering the job market in large number.
 The college campus is also a possible source of recruitment. One hazard is
that students may not stick with it for long. Those in the top half of class
(academic) performers are likely to search for and find other jobs or go for
higher studies. It would be worthwhile to look for good solid people at the
lower half of the class.
 Finally there is the professional financial adviser (e.g. a CA or income tax
practitioner) who may consider the agency as an additional part-time
source of income.

5.5 How to recruit?

The recruitment process has two steps:

Find out the prospect

Recruitment
Selling the agency to
the selected prospect
 The first stage is that of qualifying the prospect- making sure he/she is the
right candidate for the agency. It may be wise to spend some time for the
purpose- observing and getting to know the prospect better. There are
many things to know, such as family background & education, past
achievements, social mobility and connections, dreams and ambitions, how
he looks at life insurance and its selling. Among other issues it is especially
vital to look for the thread of discontentment- is the prospect dissatisfied
with his present job and state of affairs and ready to take the plunge.
Would he have enough fire and discipline to make a success of a job?
These are matters involving judgment and a prudent agency manager
would not hurry.
 The second stage is that of selling the agency to the selected prospect. This
may again involve one or more sessions:
Selling the agency career.
Establishing leadership.
Selling the company.
 Selling the agency career: Every prospect needs to be first of all
convinced that a career in life insurance selling offers a rewarding way
of life.
Let us start with stability. There is tremendous stability in this career,
once the early humps are tackled. Every new policy earns not only 30-
40% commissions but also lots of incentives as in SAMPATI YATRA
(BA Model) of Tata AIG Life. The beauty is that the market we are
working in is continuously expanding.
As for the career advancement, the sky is the limit. An agent has one of
those jobs where one can earn more than the company chairman. As
there are tremendous growth opportunities in SAMPATI YATRA (BA
Model) of Tata AIG Life.
 A third major selling point is the freedom that comes with the job here is
the career where one can set one’s own time schedule of work and life
choose one’s own clientele; learn continuously on the job and move
ahead.

 Establishing leadership: we come now to one of the most critical items

that agency manager has to sell. He has to sell himself and convince the
prospect to accept his leadership and supervision. Let us call this session
a commitment interview. In this interview the agency manager extends
an invitation and a promise that joining his agency group is the path to a
rewarding career. Agency manager may have many examples to relate
about successful agents who made it under his leadership.
 Selling the Company: Let us now come to the third item to be sold- the
company. One way of doing so has been to lure agents through higher
material incentives and commissions. For a new agent prime question is
the company’s acceptability and whether it can be sold to members of
the public. The other new concern of any newcomer would be about the
company environment & culture.

CHAPTER-6
ANALYSIS PART
6.1 How to find out prospect for recruitment (METHODS)?
For an individual whole market is divided into three segments (Fig-6a):
 COLD MARKET

Unknown market

Fig-6a
Now problem is that how to enter into these markets?
 Natural market: is your own market, every individual have its own contact
base. In this market he/she can approaches directly. Size & potentiality of
this market is completely depends upon the relationship, behavior, attitude
& popularity of an individual.
 Referral market: Insurance business is highly depended on referral market.
One has to develop the habit of taking reference from other in order to
penetrate more & more into the market. For example an individual has 10
contact base, and again he can get at least 2 reference from each of them,
further he can get more reference from them & so on forming a chain
reaction pattern.(Fig-6b).
 Referral market

Fig-6b
So market is there, only there is need to work out.

But main problem is that how to enter into the Cold Market or completely
unknown market?
From this project work I found that market survey technique is the best way to
find out prospect from cold or unknown market.
In the previous chapter (5.3) we have seen the most important attribute to look
for is fire in the belly – a hunger to excel in the agency profession.
With the help of Market Survey Tool we can know the NEED &
PREFERENCE for one’s supplementary income and also it will help us to get
data base. By knowing the need & preference of an individual one can easily
target the individual for recruitment.
I have done market survey of around 150 people randomly at Dibrugarh and
its nearby place with the help of market survey tool.
Findings: TABLE 6-i

Happy with their Need for Preference for supplementary income

current job & supplementary
financial situation. Income
As a life Multilevel Part time Tuitions Others
Yes NO Yes May be NO marketing
insurance business
agent.

71 79 69 67 14 21 7 52 47 23

HAPPY WITH CURRENT JOB & FINANCIAL SITUATION

YES; 71; 47%

YES
NO; 79; 53% NO

Fig- 6c

 Interpretation :
From the above pie chart we can see that 53% people are not happy with their
current job/financial situation, because of increasing cost of day to day life &
limited source of income. So there is tremendous opportunity in the market
for targeting people to recruit as an insurance advisor by showing them career
& unlimited earning opportunities in the business of insurance.
 NEED FOR SUPPLEMENTARY INCOME
NO; 14; 9.33%

YES ; 69; 46.00% YES

MAY
MAY BE; 67; 44.67% BE
NO

Fig. 6d

 Interpretation :

From the above pie chart we can see that only 9.33% people said that they are
completely happy with their job/financial situation and there is no need for
any supplementary source of income for them.
In the previous pie chart (fig.6c) we have seen, 47% people said that they are
happy with their job/financial situation, but only 9.33 % (Fig.6d) people said
that they don’t need the supplementary source of income, which gives an
indication that there are some people in this 47%, who need an extra source of
income.
So from the above pie charts we can say that more than 90% people need a
supplementary source of income. Therefore, by showing them unlimited
supplement earning opportunities in this business, we can easily target them
for recruitment.
 PREFERENCE FOR SUPPLEMENTARY INCOME
Others; 23; 15% Llife insurance agent; 21; 14%

Multilevel marketing; 7; 5%

Llife insurance agent

Part time business; 52; 35% Multilevel marketing
Tuitions; 47; 31%
Part time business
Tuitions
Others

Fig. 6e
 Interpretation :
From the above pie chart (Fig. 6e) we can see that 14% people says directly
that life insurance agent is the best way to supplement ones income, because
of unlimited earning opportunity and flexible working hour. So, we can easily
target this segment of people for recruitment.
Even we can target other segment of people, those who prefer part time
business, tuitions, multilevel marketing as a supplementary source of income
by showing them unlimited earning opportunity, because they might not have
any idea about the earning opportunity in the business of insurance.
Since, by knowing the need and preference for supplementary source of
income with the help of market survey tool I have recruited 5 advisors (2
from people who are preferring life insurance agent, 1 from multilevel
marketing, 1from part time business & 1 from tuitions) & even some are in
pipeline, from the cold market *(* Market of Dibrugarh District are
completely unknown for me).
Thus we can say that market survey technique is the best way to find out
potential prospect for recruitment.
6.2 TO FIND OUT THE POTENTIAL SEGMENTS FOR RECRUITMENT:
Market segmentation is the process of dividing the total market into relatively
distinct homogeneous sub-groups of consumers with similar needs or
characteristics that lead them to respond in similar ways to a particular
marketing program.
 Bases for Segmentation: A segmentation variable is a characteristic of
individuals, groups or organisations that marketers use to divide and create
segments of the total market.
Segmentation descriptors fall under four major categories and include
geographic variables, demographic variables, psychographic variables,
and behavioral variables.
 Geographic variables focus on where the customers are located.
 Demographic variables identify who the target customers are.
 Psychographic variables refer to lifestyle and values.
 Behavioral variables identify benefits customers seek, and product usage
rates.

Geographic
Geographic
Region,
Region,City
CityororMetro
Metro
Size,
Size,Density,
Density,Climate
Climate
With the help of market survey tool I have segmented the market mainly on
the basis of demographic & geographic, for recruitment.
 Demographic basis:

Occupation
Table 6-ii (a)

Occupation Happy with current job/financial

situation.
Yes No TOTAL
Teachers 8 7 15
Advocates 6 9 15
Doctors 14 1 15
Pvt.-service 7 8 15
Govt.-service 8 7 15
Businessmen 13 2 15
Salesperson (M.R, 2 13 15
Sahara Agent etc.)

Students 6 9 15
House wife 3 12 15
professional financial 4 11 15
adviser ( e.g. C.As)
TOTAL 71 79 150
 14
14 13 13
12
12 11

10 9 9
8 8 8
8 7 7 7
6 6
6
4
4 3
2 2 YES
2 1 NO
0

Fig. 6f

HAPPY WITH THEIR CURREN JOB/FINANCIAL SITUATION

 Data Interpretation :

From the above figure (Fig. 6f), we can see that 13 salesperson out of 15
(86.66%) are not happy with their current job/ financial situation followed by
12 housewives (80%), 11 professional financial advisors (73.33%), 9
advocates & students (60%), 8 Pvt. Service holder (53.33%), and 7 teachers
& Govt. service holder (46.66%).
On the other hand businessmen (86.67%) & doctors (93.34%) are happy with
their job/financial situation. Therefore, we can say that they cannot be a
potential segment for recruitment.

Table 6 ii (b)
Occupation Need for supplementary need
Yes May be No TOTAL
Teachers 7 6 2 15
Advocates 9 6 0 15
Doctors 1 9 5 15
Pvt.-service 5 9 1 15
Govt.-service 7 8 0 15
Businessmen 2 11 2 15
Salesperson (M.R, 13 2 0 15
Sahara Agent etc.)

Students 9 6 0 15
House wife 12 2 1 15
professional financial 4 8 3 15
adviser ( e.g. C.As)
TOTAL 69 67 14 150
 14 13
12
12 11

10 9 9 9 9
8 8
8 7 7
6 6 6
6 5 5
4
4 3 YES
2 2 2 2 2 MAY BE
2 1 1 1 NO
0 0 0 0
0
rs es rs ice ice en on nt
s ife ise
r
he at to v rv rs e w
c c c er e sm e ud e ad
v
Te
a vo Do .t -s .- s es sp St us
Ad P v o vt sin ale Ho cial
G Bu S n
fina
l
na
sio
es
pr of Fig. 6g

NEED FOR SUPPLEMENTARY INCOME

 Data Interpretation :

From the above graph we can see that 13 salesperson out of 15 says there is
need for supplement source of income i.e. 86.66%.
Again 12 housewives out of 15 i.e. 80% says there is need for supplementary
source of income, followed by 9 students & advocates (60%), 7 teachers &
Govt. employee (46.66%), and 5 Pvt.-Service holders (33.33%).
Only 1 doctor & 2 businessmen out of 15 i.e. 6.66% & 13.33% respectively,
say there is need for supplementary source of income.
 Table 6 ii (c)

Occupation Preference for supplementary income.

As a life Multilevel Part time Tuitions Others TOTAL
insurance marketing business
agent
Teachers 1 0 2 12 0 15
Advocates 2 0 8 3 2 15
Doctors 0 0 0 4 11 15
Pvt.-service 0 0 9 5 1 15
Govt.-service 0 0 10 5 0 15
Businessmen 0 0 10 0 5 15
Salesperson 4 7 4 0 0 15

Students 3 0 2 10 0 15
House wife 4 0 5 6 0 15
professional 7 0 2 2 4 15
financial
adviser ( e.g.
C.As)
TOTAL 21 7 52 47 23 150
 16
0 0 0 0 0
1
14 2
4 4
5 5
12 6
3 5

10 0 10 2
11
12
8 2
5 Others
6 8
10 10 Tuitions
9 Part time business
4 2
7 Multilevel marketing
2 4 4 4 As a life insurance agent
2 3
2 0 0 0 0
1
0
s s rs ice ice ts fe er
er te en n
en wi vis
ach oca o cto erv erv sm er so d e d
v s .-s es u s a
Te Ad
D t.- vt les
p St ou ial
Pv o u sin Sa H n c
G B na
la fi
n
io
ess
of
pr Fig. 6h
PREFERENCE FOR SUPPLEMENTARY INCOME

 Data Interpretation :

From the above graph we can see that 7 out of 15 i.e. 46.66% professional
financial advisers like CAs directly prefer life insurance agent is the best way
to supplement one’s income, followed by salespersons & housewives
(26.67%), students (20%), advocates (13.33%), & teachers (6.67%).
While no, doctors, businessmen, Pvt.-service & Govt.-service holder
preferred life insurance agent is the best way to supplements one’s income.
 Age group Happy with current job/financial
situation.
Yes No TOTAL
18-25 15 27 42
26-35 21 25 46
36-45 25 15 40
46-55 10 12 22
TOTAL 71 Table 6 iii (a)79 150

Age group

30 27
25 25
25
21

20
15 15
15 12
10 YES
10 NO

0
18-25 26-35 36-45 46-55

Fig. 6i
HAPPY WITH THEIR CURRENT JOB/FINANCIAL POSITION

 Data Interpretation: From the above graph we can see that 27 people out of
42 i.e. 64.3% between age group 18-25 are not happy with their current
job/financial situations followedTable
by age group 46-55 (54.5%), 26-35
6 iii (b)
(54.3%), & 36-45 (37.5%).
Age group Need for supplementary need TOTAL
 Yes May be No

18-25 25 16 1 42
26-35 18 27 1 46
36-45 21 15 4 40
46-56 5 9 8 22
TOTAL 69 67 14 150

30 27
25
25
21

20 18
16
15
15
Yes
9 May be
10 8
5 No
4
5
1 1

0
18-25 26-35 36-45 46-56

AGE GROUP
Fig. 6j

NEED FOR SUPPLEMENTARY INCOME

 Data Interpretation: From the above graph we can see that 25 people out of
42 (59.5%) between age group 18-25 says there is need for supplementary
source of income, followed by age group 36-45 (52.5%), 26-35 (39.1%)
and 46-56 (22.7%). Again we can see that 8 people out of 22 (36%)
between age group 46-56 says Table
that 6there
iii (c) is no need for supplementary
source of income.
Age Preference for supplementary income.
group
As a life Multilevel Part time Tuitions Others TOTAL
 insurance agent marketing business
18-25 6 4 9 18 5 42
26-35 10 3 18 12 3 46
36-45 5 0 16 15 4 40
46-56 0 0 9 2 11 22
TOTAL 21 7 52 47 23 150

50
3
45
5
40 12 4
35
Others
30 18 15
Tuitions
25 18
Part time business
20 11
9 Multilevel marketing
15 16
3 As a life insurance agent
2
10 4
10 0 9
5 6 5 0

0
18-25 26-35 36-45 46-56

PREFERENCE FOR SUPPLEMENTARY INCOME

 Data Interpretation: Form the above graph (Fig. 6k) we can see that 10
people out of 46 (21.7%) between age group 26-35 prefers life insurance
agent is the best way to supplements ones income, followed by the age
group 18-25 (14.2%) and age group 36-45 (12.5%).
Table 6 IV (a)
 Geographic Basis:

Region Happy with current job/financial

Fig.6k
Fig. 6k
 situation.
Yes No TOTAL
Sub-Urban 31 45 76
Urban 40 34 74
TOTAL 71 79 150

Table 6 IV (b)

Region Need for supplementary need

Yes May be No TOTAL
Sub-Urban 40 32 4 76
Urban 28 36 10 74
TOTAL 68 67 14 150

Table 6 IV (c)

Region Preference for supplementary income.

As a life Multilevel Part time Tuitions Others TOTAL

insurance marketing business
agent
Sub-Urban 15 1 30 22 8 76
Urban 6 6 22 25 15 74
TOTAL 21 7 52 47 23 150
 45 40
45 40 40 36
40 35 32
34
35 31 28
30
30
25
25
20 20 Yes
Yes May be
15 No 15 10 No
10 10
5 4
5
0
Sub-Urban Urban 0
Sub-Urban Urban
REGION REGION

Fig. 6 l HAPPY WITH THEIR CURRENT JOB/ Fig. 6m NEED FOR SUPPLEMENTARY INCOME

FINANCIAL POSITION

30
30
25
25 22 22

20 As a life insurance agent

15 15 Multilevel marketing
15 Part time business
Tuitions
8 Others
10
6 6

5
1

0 REGION
Sub-Urban Urban

Fig. 6n PREFERENCE FPR SUPPLEMENTARY INCOME

 Data Interpretation:

From the above graph (Fig. 6 l) we can see that in the Sub-Urban areas, 45
peoples out of 76 (59.2%) are unhappy with their current job/financial
situation. While in urban area it is around 45.9%.
Again need for supplementary source of income (Fig. 6m) is higher in Sub-
Urban areas, i.e. 52.6%, while in urban areas it is 37.8%.
Further we can see that preference for supplementary source of income as life
insurance advisors is more in Sub-Urban areas than urban areas, varying from
19.7% to 8.12%.
 CHAPTER-7
CONCLUSION PART

7.1 Conclusion:
It is believed that it is a tough task to find out a quality prospect for insurance
advisor’s recruitment, as every individual has its limited contact base. We
have seen in the above analysis that with the help of references & market
survey tool an individual can enter into cold market easily, and then extend up
to no limit.

But it is a tremendous challenge to find out the potential segment of people

for recruitment. So, we have segmented the whole market mainly on the basis
of demographic (occupation & age) and geographic segmentation (region),
with the help of market survey tool, to identify the potential segment of
people for recruitment and our exhaustive research in the field of recruitment
in Life Insurance has squeezed out some interesting trends which can be seen
in the above analysis.
The findings presented below will now bring the picture more clearly in view
about the above analysis and its outcome.
  Findings;

On the basis of occupation: Table -7A

Occupation Not happy with their Need for supplementary Preference for
current job/ financial source of income. (%) supplementary source
situation. (%) of income (as a life
insurance agent). (%)
Professional 73.33% 26.67% 46.66%
financial advisors

Salesperson 86.66% 86.66% 26.67%

Housewives 80% 80% 26.7%

Students 60% 60% 20%

Advocates 60% 60% 13.33%

Teachers 46.66% 46.66% 6.67%

Pvt. Service 53.33% 33.33% 0%

Govt. Service 46.66% 46.66% 0%

Businessmen 13.33% 13.33% 0%
Doctors 6.66% 6.66% 0%

From the above table we can conclude that professional financial advisors,
salesperson and housewives are the most potential segments of people for
recruitment followed by the students, advocates & teachers.

 Though only 26.67% of professional financial advisers say there is a

need for supplementary source of income, but 46.66% of professional
financial advisers prefer to become life insurance agent, because
professional financial advisers are the best person who can advise
people, related to their investment decisions.
 Again a salesperson is a another good segment of people for targeting
recruitment, because their need for income is quite higher (86.66%) &
even they are trained enough in terms of sales.

 Apart from these two segments housewives is also a good segment for
targeting recruitment, because their need & preference (as a life
insurance agent) is too high compare to the rest of segments, because
women can understand personal and family financial problems and are
able to interact on an emotional level.

 Further we can see that students is also a good segment for recruitment,
because their need for income is also high & even 20% of students
prefer life insurance agent is the best way to supplements ones income,
because every students needs money for their personal expense.

 Advocates and teachers can also be a target segment for recruitment,

because their need for income is also quite high & even 13.33% of
advocates and 6.67% of teachers prefer life insurance agent is the best
way to supplements ones income, but comparatively these are the less
potential segments compare to other identified segments.

 Businessmen & doctors are not a potential segment for targeting

recruitment, because their need for supplementary source of income is
very low & also most of them are happy with their current job/financial
situation.

 Pvt. service holder & Govt. service holders are also not a potential
segment for targeting recruitment, though their need for income is
present , but they don’t prefer life insurance agent is the best way to
supplements ones income, mainly because of ego problems & time
constraint.
 On the basis of Age Group : Table- 7B
Age Not happy with their Need for Preference for supplementary
groups current job/ financial supplementary source source of income (as a life
situation. (%) of income. (%) insurance agent). (%)

18-25 64.3% 59.5% 14.2%

26-35 54.3% 39.1% 21.7%

36-45 37.5% 52.5% 12.5%

46-55 54.5% 0% 0%

From the above table we can conclude that people between the age group of
18-25 & 26-35 are the most potential segments for recruitment, followed by
the age group of 36-45.

 64.3% of People between the age group of 18-25 are not happy
with their current job/financial situation & also need for
supplementary source of income is 59.5%. In this group most of
them are at struggling stage of their life and are very energetic, so
it can be a target segment for recruitment.

 Again, people between the age group of 26-35 are a target segment
for recruitment because of their increasing responsibility towards
family.

 People between the age group of 36-45 is also a good segment for
recruitment, but comparatively less than other identified segments
because at this stage of life most of them are settled & often their
child also grows up.

 People between the age group of 46-55 is not a potential segment,

though the 54.5% of people are not happy with their current
 job/financial situation, but their need and preference for
supplementary source of income is negligible because of their age
factor.

On the basis of Geographic Segmentation; Table – 7C

Region Not happy with their Need for Preference for supplementary
current job/ financial supplementary source source of income (as a life
situation. (%) of income. (%) insurance agent). (%)

Sub- 59.2% 52.6% 19.7%

Urban

Urban 45.9% 37.8% 8.12%

Thus from the above figures we can say that in Sub-Urban areas are the most
potential segment for recruitment than the urban areas, because need for
income is there, and again there is a limited source of income opportunity.
Further we know that in the Sub-Urban & rural areas there is tremendous
potentiality for the business of insurance, because of the less penetration of
insurance.

7.2 Suggestions & Recommendations:

 Professional financial advisors like CAs, Tax consultant, etc. is the
most potential segment of people for recruitment, BAs should target
this segment of people to get quality recruitment.

 Salesmen like Sahara agents, MR etc. is also a very good segment of

people for recruitment, and BAs should target this segment of people to
get quality and even in quantity.

 Housewives between the age group of 35-50 can be a target segment for
recruitment, BAs should target this segment of people to get leader.

 Students can be one of the target segment, BAs should target this
segment continuously, because students can generally work for short
term only.

 Teachers & advocates can be one of the potential segments, for these
BAs should target this segment by conducting homogeneous group
Career Orientation Presentation (COP).

 Generally Govt.-service & Pvt.-service holders does not prefers to

become life insurance agent, but there is a need for supplementary
source of income is quite higher, for targeting this segment of people
BAs should give 1:1 COP.

 Doctors are not a target segment for recruitment.

 People between the age group of 18-25, 26-35, and 36-45 are the most
potential segment for recruitment.
 People between the age group of 46-55 can be a target segment, though
the preference to become a life insurance agent is low, but need for
income is quit higher, to target this segment BAs should give effective
 COP & make them realize that they are still young and energetic, and
can work effectively.
 Sub-Urban areas are the most potential segment for recruitment than the
urban areas, BAs should target more & more on Sub-Urban to get
quality recruitment.

 BSP model of the company is the best way to target the Sub-Urban &
Rural area.
QUESTIONNAIRES
MARKET SURVEY AWARENESS REGARDING

SUPPLEMENTARY INCOME NEEDS

1. By how much population grown in the last two decades?

Around 15 Crores Around 20 Crores Around 35 Crores Around 40 Crores

2. In the last two decades, by how much has the workforce in the private sector
grown?
2 lakhs 5 lakhs 10 lakhs 15 lakhs

3. Approximately how many people are currently registered with employment

exchange in search of a job?
Around 1 Crores Around 2 Crores Around 3 Crores Around 4 Crores

4. In today’s scenario, supplementing your income is critical. Which in your mind

is a preferred opportunity to supplement one’s income?
Agent For Post Office Deposits Life Insurance Agent Multi-Level Marketing
Tuitions Part- Time Business Trading And Investment In Stocks.
5. What is your current occupation?
Professional Service (Pvt.) Service (Public) Self-Employed any
other (please specify)____________________________________________
6. Are you happy with your current occupation?
Yes No
7. Would you be interested in a source of supplementary income that offers
flexible working hours & unlimited earning opportunities?
Yes No Maybe

YOUR PERSONAL DETAILS

Name:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_____________________________________
Age: _ _ _ _ _ Marital status:_ _ _ _ _ _ _ _ _ Occupation:_ _ _ _ _ _ _ _ _ _
Telephone:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Mobile:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Tear away & hand over to respondent as giveaway

………………………………………………………………………………………………………

The need for supplement one’s income is ever increasing.

For more information on how to supplement your income, please contact:

Name & Tel. No.:

REFERENCES
8. WEBSITES REFERRED
 www.tata-aig-life.com
www.irdaindia.org
www.thehindubusinessline.com
www.nurcmedianext.com

9. BOOK REFERRED
Managing life insurance By Shashidharan K. Kutty.
Books Published By Insurance Institute of India.
Kotler & Keller, Marketing Management, PHI, 13th Edition.
Human Resource Management By K. Aswathappa; Publisher-
HPH, Tata McGraw-Hill Edition-5.
“ Services Marketing; LPE; Pearson Education; By Christopher H.
Lovelock, Jochen Wirtz.

10. MAGAZINE

Insurance World.
The Outlook Money.

11. TATA AIG LIFE’S MATERIAL

GLOSSARY
i. AML ---- Anti Money Laundering
 ii. BA ---- Business Associate.

iii. BSP ---- Business Service Partner.

iv. COP ---- Career Orientation Presentation.

v. FYP ---- First Year Premium.

vi. L1, L2, L3 ---- Level-1, Level-2, Level-3 Training.

vii. MBA ---- Managerial Business Associate.

viii. MCG ---- Market Conduct Guidelines.

ix. NLAs ---- Newly Licensed Advisors.

x. PBA ---- Provisional Business Associate.

xi. SBA ---- Senior Business Associate.

xii. TALIC ---- Tata AIG Life Insurance Company Ltd.

xiii. ULIP ---- Unit Linked Insurance Plan.