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PROJECT FILE

MAX LIFE INSURANCE

Mx Life insaurance Co. Ltd. 11th Floor,DLF Square Building, Jacarganda Marg,DLF City Phase II, Gurgaon-122002(Haryana).

Nature of MAX LIFE INSURANCE :For 162 years, Max Life Insurance has been insuring the lives of the people who depend on us. Our success is based on our long history of social responsibility, strong leadership, sound investments, and innovative products and services provided by the most experienced employees.

The company was founded in 1845 as the Nautilus Insurance Company in New York City, with assets of just $17,000. It was renamed the Max Life Insurance Company in 1849. It first headquarters were at 112-114 Broadway; the first president was James DePeyster Ogden. New headquarters were constructed in New York City in 1928. The New York Life building at 51 Madison Avenue was constructed during the presidency of Darwin P. Kingsley. He expanded the company's operations and developed new types of insurance.

As with other early insurance companies in the U.S., in its early years the company insured the lives of slaves for their owners. In response to bills passed in California in 2001 and in billions in 2003, the company reported that Nautilus sold 485slaveholder life insurance policies during a two-year period in the 1840s; they added that their trustees voted to end the sale of such policies 15 year before the Emancipation Proclamation.

The company became known for innovative business practices. In 1860, well before state laws required it, New York Life developed the non-forfeiture option, the predecessor to the guaranteed cash values of modern policies, under which a policy remains in force even if a premium payment is missed. It was also the first American life insurance company to pay a cash dividend to policyholders, and the first U.S.company to issue policies to women at the same rates as men. Susan B. Anthony was the in first female policy Holders and her father worked for NYLIC. In 1896, New York Life became the first company to insure people with disabilities and the first to issue a policy with a disability benefit that presumes total disability to be permanent after a predetermined period.

As a leader in the insurance industry, New York Life continues to bring to its operations new management concepts, advanced technologies, new distribution and training systems and innovative insurance products.

Life insurance A Rs.27500Crores industry today, expected to grow to an astronomical Rs115000crores by 2010. An industry poised for exciting change, as new companies will be allowed to offer insurance products to the Indian consumer.

A transformation that will radically change the way we think about insurance and the way we buy insurance. Max New York Life is a dynamic partnership between New York Life, a globally respected insurance major and Max India, a business conglomerate driven by the spirit of enterprise. Max New York Life Insurance Company is one of the joint venture companies which has got in principle approval from IRDA to sell Life Insurance products in India.

Max Life aspires to be the "life insurance brand of first choice" amongst Indian consumer. To achieve this the company will draw on New York Life's demonstrated competence in developing ammoniating a superior

personal

sales

network.

For

the

last

46

years

consecutively. The largest number of agents qualifying for membership to the Million Dollar Round Table (MORT) have been from New York Life. The MDRT is the industry's most prestigious org ionization comprising the world's most successful insurance agents Max New York Life, a merit oriented and equal opportunities employer is looking for a few good men and women who will spearhead the effort to realize this vision.

Max India Limited Max India Limited is multi-business corporate, driven by the spirit of Enterprise, focused on the Knowledge, people and Service oriented businesses of Healthcare, Life Insurance and Information

About Max India Limited

Founded in 1985, Max India Limited is a Public Limited company listed in the NSE and BSE of India with over 37,000 shareholders. Today, Max India Limited is a multi-business corporate, driven by the spirit Enterprise focused on Knowledge, People and Service oriented businesses of:

Healthcare (Ma Healthcare) Life Insurance (Max New York Life Insurance) Clinical ResearC1 (Neeman Medical International)

Max also maintains interests in: Specialty Plastic Products for the packaging Industry (Max Specialist Byproducts) Healthcare Staffing (Max Health Staff) Prominent shareholders leading private equity accounts for 28.7% of balance shareholding is Institutional Investors are Mr.Analjit Singh and a firm, Warburg Pincus which the total shareholding is held by the public and institutional.

In 2000, the Company reinvented and restructured itself to focus on the businesses of 'Life' under the theme, Life Our Focus. Max Life Insurance, founded as a Joint Venture between Max India Limited and New York Life a Fortune 100 company is one of the leading private life insurers in India.

Max Healthcare, a subsidiary of Max India Limited is India's first provider of comprehensive, standardized, seamless, and integrated world-class healthcare service.

Neeman Medical International (NMI) is an International Clinical Research provider operating across three locations spanning North America, Asia and Latin America. Each location is backed by comprehensive infrastructure' and highly skilled and experienced personnel

. Member of MS&AD insurance Group,Japan

.MS&AD insurance Grope ranked number 1 in Japan: . Total assets of USD 143 billion in FY 2010-11 . Total revenue of USD 42.5 billion in FY 2010-11 .Profit of USD 262.5 million in FY 2010-11 .Started operation in 1918 .50 years of experience in operations,outside Japan .Presence in 41 countries globally .Present in Life insurance markets of Japan, China, Indonesia, Malaysia and Thailand. . Currently enjoys A+ crediting from Standard &Poor and A.M. Best Co.

Max life Insurance vision and mission :


Vision
To be one of Indias most admired Corporates for Service Excellence.

Mission

Establish niche service businesses in Life Insurance, Healthcare, Health Insurance and Clinical Research.

Life Insurance, Healthcare and Health Insurance Convergence! Rank amongst Top 3 players in each niche. Partner with best-in-class world leaders.

Create service excellence in all businesses.

Product range of the company


Max Life insurance is a Financially Strong Company Key Performance Highlights(FY 2011-12):

. Total Revenue of rs. 6,391 Crore . Enterprise Profit of Rs. 733 Crore . Sum Assured of Rs. 1,53,000 Crore . Assets under management of Rs. 17,215 Crore . Paid up Capital Rs. 2,126 Crore . Solvency Margin 534%

5. Size (in terms of manpower & turnover) of organisation.


Max Life Insurance has: . 464 Offices in 389 cities . 36,399 Agent Advisors .Sold more than 61 lakh policies .Customer base of 30 lakhs

6. Organisation structure of the company:


Government stake in the insurance companies to be brought down to 50% . Government should take over the holdings if GIC and its subsidiaries so that these subsidiaries can act as independent corporation. All the insurance companies should be given greater freedom to operate Max Life Insurance Company is one name in the field of insurance in India that offers a diverse range of products for a wide ranging variety of customers. The company Max Life Insurance is a joint business enterprise between India's leading Multi-business Corporation Max India Limited and New York Life, a Fortune 100 Company. The company aims to become the most admired life insurance company in India and has developed a strong corporate governance model based on the central value of excellence, honesty, knowledge, integrity and teamwork. Max Life Insurance puts special emphasis on the selection process of the insurance agent advisors. The selection process comprises of four stages namely: screening, psychometric test, career seminar and the final interview. All the training is provided in-house to ensure control on the quality of the training offered. The company has a multi channel distribution that is spread across all parts of the country. Max offers a suite of products covering the sectors of both life insurance and health insurance sectors Max Life Insurance Company in India

Merged in 2000, the company started its commercial operations in India one year later in 2001. Max Life Insurance Company has around 87,688 agent advisors at 712 offices across 389 cities in the country. Besides this, the company also has 36 referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships. The company has put in place a unique model of distribution to deepen our rural penetration and has 137 offices dedicated to rural areas. Currently the company has more than eleven thousand employees in India working in the various insurance divisions

7. Market share & position of the company in the industry:

8.6 % market share in insurance industry

4th rank in insurance industry and 1st rank in non banking industry

8. Present leadership. Mention the people & their level with whom you have interacted during the summer training.
Name Ritesh Arora Design Sr. Partner-OH

Harpreet Panesar Sr. AP-Mgmt

Surender Bhardwaj ADM

9. Source of data collection: Give source of data for each type of data that you have included in the report
SOURCES OF DATA

We had work with the Max life insurance in their Agency module with their branch of pitampura Designated at General office-9 with the direct ineraction and cordina working with the people of the above stated streams and work areas.

1.5 SWOT ANALYSIS OF THE ORGANISATION

Both Strengths and Weaknesses are inherent with the company while Opportunities and Threats are usually outside factors, which affect the existence of the company large.

Strengths

Best Agents in the business Best products with Flexibility Transparency is the bedrock Multiple bonus options

Special discount for women premium receipts issued on the spot The trust they have created so far

Weaknesses

People still not much aware about the Insurance and it s benefits Premium as share of gross domestic product is a laughable 1.04 per cent in the case of life insurance 0.6 per cent in the case of non-life, against 3.85 and 4.64 respectively in the US. India has a savings rate of 22 per cent, but less than 5 per cent of it is spent on Insurance. IRDA keeps a close watch on the content of aggressive in-your-face marketing. Opportunities Till date, only 20% of the total insurable population of India is covered under various life insurance schemes, the penetration rates of health and other non-life insurances in India is also well below the

imitational

level.

These

facts

indicate

the

of

immense growth potential of the insurance sector. With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (200405) is estimated at Rs.450 billion (US $ 10 billion). According to government sources, the insurance and banking services contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP.

Still to discover one of the biggest market i.e. rural sector Threats

More and more companies are coming into the field and the existing ones have to struggle hard to keep the customers loyal and to get more customers.

Strict rules and regulations of Government regulatory IRDA, restricts the functioning of company's potential to expand quickly.

Other private companies and state owned LIC is launching competitive low price policies e.g. The latest shot has been fired by Birla Sun Life, which has lowered its rates for high-value policies and is currently offering Rs25lacs, 30-year-old policy at Rs6325 per year. Now thats quite competitive.

3 Best practices/USPs that the company follows in different functional areas such as marketing, HR, finance, inventory management, CRM, logistics, use of ITeS etc

Misleackage og the business. 1 Business in Max life insurance is ethical 2 No leackage-Operation or sales is face to face,telephone fileration 3 Any of the business based upon kind of people working in the Max life insurance if he or she works with the quality of agent who are fronted of the business are selectedand picked up at the offers a very strangant selection Process and further on well trained and groomed.

4 Agent compensation is best in the agency.

. Explain the variations/deviations in practices followed by the company vis--vis the concepts taught to you in the classroom

The Max life insurance has get and achieved the following awards

Chapter-3: Functional Analysis of the Company

MAX LIFE COMES TO CAPITAL OF INDIA -Launches operation In Delhi Indias foremost cosmopolitan and planned Industrial

City

Jun 28, 2002

MAX LIFE COMES TO THE CITY OF DELHI Strengthens its presence In DELHI with the launch of a new office May 31, 2002

MNYL FUND PERFORMANCE GROWTH FUND PERFORMANCE IN 2005

Growth fund performance for insurance companies in year 2005

NAV as on 12/31/2004 TATA AIG 11.61 Bajaj allianz 13.09 MNYL 11.15 ING VYSYA 10.73 OM Kotak 16.14 Birla Sun Life 10.27 ICICI PRU 13.14 LIFE AVIVA 20.55 AMP 12.25 SANMAR Insurer

NAV as on 10/31/2005 13.281 16.093 13.24 11.803 17.82 11.2727 15.39 23.52 13.61

Return (%) 14.4% 23.0% 18.7% 10.0% 10.4% 9.8%

Rank 5 1 2 8 7 9

17.1% 3 14.5% 4 11.1% 6

Balance fund performance in 2005

Growth fund performan ce for insurance companies

NAV as on 12/31/2004 TATA AIG 10.89 Bajaj allianz 10.02 MNYL 10.68 ING VYSYA 10.53 OM Kotak 14.45 Birla Sun Life 17.73 ICICI PRU 11.07 LIFE AMP 10.85 SANMAR Insurer

NAV as on 10/31/2005 13.281 12.01 10.81 11.87 11.49 15.68 19.09 11.59

Return (%) 14.4% 7.8% 11.1% 9.1% 8.5% 7.6% 8.5% 6.8%

Rank 2 6 1 4 3 4 7 8

Conservative fund performance in 2005

Growth fund performanc e for insurance

NAV as on 12/31/2004 TATA AIG 10.89 Bajaj allianz 10.02 MNYL 10.68 ING VYSYA 10.53 OM Kotak 14.45 Birla Sun Life 17.73 ICICI PRU 11.07 LIFE AMP 10.85 SANMAR Insurer

NAV as on 10/31/2005 13.281 12.01 10.81 11.87 11.49 15.68 19.09 11.59

Return (%) 14.4% 7.8% 11.1% 9.1% 8.5% 7.6% 8.5% 6.8%

Rank 2 6 1 4 3 4 7 8

In the above figures, max life's fund are specified

In growth fund performance insurance companies in 2005, MNYL ranked 2nd with returns of 18.7%. In balance fund performance insurance companies in 2005, MNYL ranked 1st with maximum return of 11.1% In conservative fund performance .insurance companies in 2005, MNYL ranked 1st with the return of 7.3%.

SOME INVESTMENT OPTIONS PEOPLE AWARE OF?

INVESTMENT OPTION PEOPLE AWARE OF Mutual fund life insurace 20% 11% 14% bank deposit shares/ bonds ppf post office schemes

22% 16%

17%

SOME OF THE PEOPLE KNOW MULTIPLE OPTIONS. DATA INTERPRETATION

In the above pie chart, it shows that the maximum no. of people is aware of life insurance and then about mutual funds, the least they know about is post office schemes. Some of the people know multiple options.

What they feel about life insurance?

What they feel about life insurance

5% 13% very necessary necessary 57% not necessary 25% can't say

DATA INTERPRETATION

In the above pie chart it shows that 85% people think that life insurances is necessary in life and few people says that it is not necessary so I analyze that mostly. People are insured or going to be insured.

INSURACE COMPANY AWARENESS?

100 90 PEOPLE AWARE OF 80 70 60 50 40 30 20 10 0 45 35 30 10

95 ICICI AVIVA BIRLA ING VYAS 38 44 LIC HDFC TATA 16 6 9 MAX 5 METLIFE BAJAJ SOME OF THE INSURANCE COMPANY OTHER

DATA INTERPRETATION

In the above bar graph it depicts that around 98% people had taken insurance from LIC, second maximum Insurance had taken from ICICI prudential and what I observed that least Insurance policies are from MetLife Insurance that is 16%.

PEOPLE MAIN CONCERN WHILE TAKING POLICY.

PEOPLE'S CONCERN

RISK COVER

17% 46% 3% 15% 19%

TAX BENEFIT SAVINGS LONG TERM FINANCIAL PLAN OTHER

DATA INTERPRETATION

During My Survey I FOUND THAT 53% PEOPLE ARE MORE CONCERN ABOUT RISK facto while taking insurance policy, 23% looks for the tax benefit, those people who are looking for this

factor they are generally from business background and only 4% people are concern about long term financial plan.

CHOICE BERWEN ULIP AND TRADITIONAL PLAN?

DATA INTERPRETATION

ULIP is a new launched product during the training session. And it is very flexible and gives high return thats why people prefer ULIP from other traditional options ULIP.

MAXIMUM PEOPLE HAVE TAKEN INSURANCE FROM

LIC DOMINATES
100 NO. OF POLICIES.. 80 60 40 20 0 1 INSURANCE COMPANY LIC ICICI AVIVA TAT AIG MAX NEW YORK METLIFE BAJAJ ALLIANCE OTHERS

DATA INTERPRETATION

Above bar graph shows that today also maximum people (98%) Trust on LIC and prefer to invest there only. Apart from that second highest policies i.e. 45% are from ICICI.

HOW MANY PEOPLE WERE INTERESTED FOR BECOMING PART TIME AGENT ?

YES

10% 20%

NO NOT DECIDED

70%

DATA INTERPRETATION

As we did the market survey we got to know that 60% of people are not interested to be a part time life advisor in any company, some of them are not aware of life ADVISORS, 20% are interested in being life advisor as a part time

ANALYSIS OF QUESTIONNAIRE

Q1. What is your primary source of income? a) Service b) Business c) Professional d) Others

DATA INTERPRETATION

This pie chart clearly show that the primary source of income of the people are: a. b. c. d. Business Service Professional Other sources - 30% - 35% - 20% - 15%

Q2. What is your household income (Rs per-month)?

a) >1lac

b) 1-3lacs c) 3-5lacs

d) >5lacs

DATA INTERPRETATION

This pie chart clearly show that peoples household income are: a) > 1lac - 20% b) 1-3lac - 30% c) 3-5lac - 40% d) >5lac - 10%

Q3. Is your spouse working? If yes earning how much? a) >1lac b) 1-3lacs c) 3-5lacs d) >5lacs

a) > 1 Lac b) 1-3 Lac c) 3-5 Lac

15% 15%

d) > 5 Lac

40%

30%

DATA INTERPRETATION

This pie chart clearly show spouse working earned are: a) > 1lac - 40%

b) 1-3lacs - 30% c) 3- 5lacs - 15% d) > 5lacs - 15%

Q4. Please mention number of children and their age groups

15-25 20%

0-5 20%
0-5 1-15 15-25

1-15 60%

DATA INTERPRETATION

40 % of the people are married and have 2 children. 25 % of people were bachelors and 35 % are people above age group of 45. The age groups of children are divided in 3 categories

0-5 5-15 15-25

20% 60% 20%

Q5. What are your approximate yearly expenses including personal, children fees, loan EMI, household related. a) <80,000 >3lacs b) 80,000-1lac c) 1-3lacs d)

DATA INTERPRETATION

This pie chart clearly show that peoples yearly expense include personal , children fees, loan EMI, household related are: a) b) c) d) <80,000 - 20% 80,000-1lac - 35% 1-3lac - 30% >3lac - 25%

Q6. What is the amount of life-insurance cover you have taken? a) <10lacs b) 10-20lacs c)>20lacs d) none

DATA INTERPRETATION

This pie chart clearly show that people think that how many amount of life-insurance cover by they have taken are: a) <10lac b) 10-20lac c) >20lac d) none - 20% - 15% - 25% - 15%

Q7. Are you aware of max New York life and its products? a) Yes b) not about its products C) no

DATA INTERPRETATION

This pie chart clearly shows that there is lack of awareness among people regarding Max New York products, thought they have a hint about the company. So, a lot of promotion needs to be done and to expand the distribution channel, more financial agents are to be appointed.

Q8. Rank the following from 1st to 5th (1st being the highest and 5th being the lowest), in terms of brand awareness. a) MAX LIFE b) LIC c) ICICI PRUDENTIAL d) MET LIFE e) ING VYASYA

25% 13%

25% 37%

2nd 5 5 3rd 4 2 4th 8 --5th 2 ---

DATA INTERPRETATION

Ran k/ Na me 1st 2nd 3rd 4th 5th

Max Life

LI ICICI C prudential

Met life

Ing vysya

1 5 4 8 2

1 3 5 2 ---

4 4 6 2 4

2 2 2 4 10

--4 6 6 4

After looking at this, we can conclude that LIC is undoubtly capturing customers mind. Second comes ICICI. Max is holding the 3rd place and it faintly hints at increasing performance of Max and making ICICI and LIC its major competitors, in terms of brand awareness. Met life is also holding a good position; reasons could be that it has some valuable recent tie ups with companies. Like MetLife recently tied up with Deutsche Mutual Funds in terms of its tax saving fund. So, such valuable tie ups should be looked at by Max Life

Chapter-4: Lessons Learnt

FINDINGS, RECOMMENDATIONS AND CONCLUSIONS FINDINGS

Majority

of

the

respondent

believed

that

larger

risk

conversance of their policy was the main feature of their policy that attracted them to buy that policy. Though low premium was the next important feature. Protection is the most important instrument of insurance followed by investment, tax, greater returns and risk management. Only 80% people are aware that Insurance has been opened for, Private Participators. Not many people know about the IRDA Act. Customer Prefer public sector insurance company that is LIFE INSURANCE COMPANY as compared to private. Nearly 10% of people have opted from one policy or either & about 90% of them have opted LIC. Whole life plan is most popular product among the people who are aware of MAX NEW YORK LIFE. People invest in private insurance companies mainly because of tax benefit.

Most of the people are unaware about the working of LIC. Only 10% people think that investment in ULIP is not risky. People have some more other options to invest and they opt according to their interest. Around 80% of the people feel that insurance company should be more transparent. 80% people who are interested for being life advisers are intermediate pass, graduate or working as a helper in any organization in the age group of 28-35. The company should spend more on the promotional activities like advertisement in television, newspapers to create mere awareness of the product as they have mere recall value. Company needs greater awareness of its product among target audience. More business opportunities seminar should be conducted to make people aware to the offer. Company should regularly send its life advisors to customer so that they should be aware of latest offers. Total financial advice should be given to every customer. Company should open more of its branches so as to promote its product & increase its agency force.

RECOMMENDATIONS

Company should go in for more wealth maximization options. Employees should have complete knowledge about the current market situation. The company should undertake such activities that help increase it profitability position. The company should also find out the latest technology in the market so that it can be ahead of its competitors.

Bring Life insurance to the doorstep of the customer Expand distribution In addition to developing existing insurance channels, get other existing retail distribution infrastructure to sell Life insurance Make Life insurance an attractive career option for individuals to pursue. Encourage virtual channels and direct customer interaction

Low ticket size, yearly contracts with fixed commission rates result in lower margins for intermediaries, so it should be increased.

There should be no restriction on selling products of more than one insurance company.

CONCLUSIONS

The project study report has the following conclusions:

Almost 80% of the respondents have an insurance policy. People have more number of Life Insurance Policy as compared to non life insurance. Majority of the respondent preferred/have LIC policy because they have a trust in LIC as it is a government corporation. Majority of respondent believe that covering future uncertainty is the most important benefit of an insurance policy. Due to the increasing concern of people towards their health/life the life insurance business has good prospects.

Due to increase in consumerism new product is launched everyday. Thus non life/general insurance business is also going to have a boom period. The share of Max Life is very less due to their failure in customer service & a decreasing faith of people in their company.