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Index

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Contents

Page no.

1

Introduction

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Industry Analysis

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Company Analysis

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Research objectives

5

Research Methodology

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Data collection and Tabulation

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Analysis of data and Finding

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Conclusions and recommendation

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Appendix

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Bibliography

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3.1 Life Insurance Corporation of India 3.2 HDFC Standard Life Insurance Company 3.3 Max New York Life Insurance Company

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Recruitment 4.1 Retention and Attrition strategies of life Insurance corporation of India 4.2 HDFC Standard Life Insurance Company

4.3 Max New York Life Insurance company

Introduction The Insurance sector in India has come a full circle from being an open market to nationalization and back to liberalized market again. Ever since the liberalization of life insurance sector is done private companies are facing many problems to create their firm existence in the market. . getting full reward for the hard work and other such motivational spiel meet reality soon enough. Agents/FCs/AAs who enthusiastically spurred by dreams of working at ones own hours. But the common problem of LIC as well as private life insurance companies is to retain their Agents/FCs/AAs. Private companies find it difficult to compete against the dominant LIC of India. Agents/FCs/AAs have the potential to create a good as well as bad image of the company. Special attaint ion needs to be given for their retention in their respective companies. The industry is facing a serious problem regarding the shifting of jobs at top level management as well as at agency force of company. Tracking the development in Indian Insurance Sector revels 360 degree turn witnessed over a period of almost two centuries.

“assurance for uncertainty”. One of the wonders of human nature is that we never believe anything can actually go wrong. Due to several frauds in late 18th century sullied insurance business in India as a result one nationalized company viz. 1938: Earlier legislation were consolidated and amended to the insurance Act with the objective of protecting the interests of the insuring public. LIC Act. Insurance is about something going wrong. „LIC‟ came into existence. It is often about things going right. . 5 crore from the government of India. As we know Indian Insurance sector was an open competitive market. And after the liberalization of Indian economy the Life Insurance market has now opened for private players. 1956 with a capital contribution of Rs. 1956 : 245 Indian and foreign insurance and provident societies were took over by the central government and nationalized LIC was formed by an act of parliament viz. The business of life insurance in its existing form started in India in the year 1818 with the establishment of Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are.Industry Analysis Insurance can be defined as. 1928: The Indian Insurance Companies Act enacted to enable government to collect statistical information about life and non life insurance business. 1870 : Bombay Mutual Life Insurance Society the first Indian Life Insurance Company started its business. 1912 : The Indian Life Insurance Act enacted as first statue to regulate the life insurance business.

Bottlenecks / Government Regulation The IRDA Bill proposes tough solvency margins for private insurance firms. 200 crores for reinsurance firms. This stipulations imposed on the insurance companies had resulted in lack of flexibility in the optimization of risk and portfolio. Section 27A of Insurance Act Stipulates that life insurance companies required to invest 75% of its accretions through a controlled fund in mandated government securities. construction and acquisitioning of immovable assets besides sanctioning of loans to policy holders. a 26% capital on foreign equity and a minimum capital of 100 crores for life and general insurance and Rs. Life Insurance Company may invest the remaining 25% in private corporate sector. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously such to its schedule of framing regulations and registering private sector Insurance companies.Insurance Regulatory and Development Authority (IRDA) Reforms in the insurance sector were initiated with the passing of the IRDA Bill in parliament in December 1999. The other decisions taken simultaneously to provide supporting systems to the insurance sector in particular the life insurance companies were the launch of the IRDA online service for issue and renewal of license of agents. .

Major private players in India 1) ICICI Prudential : ICICI prudential Life Insurance company is a joint venture between ICICI bank a premier financial powerhouse and Prudential. Bajaj Group is the largest manufactures of two wheelers and three wheelers in India and one of the largest in the world.000 advisors as well as 7 bank assurance tie ups.) HDFC standard life insurance company limited is the first private sector life insurance company to be granted a license by IRDA. 3) HDFC Standard Life : HDFC Standard Life Insurance Company is a joint venture between India‟s largest housing finance provider. The Aditya Birla group multinational conglomerate has over 75 business units in India and overseas with operations in Canada.HDFC Ltd. a leading international financial service group head quarter in the United Kingdom. 8000 crores. ICICI prudential was amongst the first private sector insurance company that came into existence in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA) ICICI Prudential equity base 74% and 26% stake respectively. Today ICICI Prudential has emerged as No. The flagship company of Rs. 4) Birla Sun Life Insurance Company Limited: Birla Sun life Insurance is the joint venture of Aditya Birla group and Sun Life Financial of Canada to enter in Indian Insurance sector.K. Bajaj Auto Ltd. Bajaj Auto has a strong brand image and locality synonymous with quality and customer focus with over 15. . It has joined hands with Allianz to provide the Indian consumer with a different option in terms of Life Insurance products. 2) Bajaj Allianz : A house hold name in India teams up with a global conglomerate.000 employees. and Europe‟s largest mutual life insurance company The Standard Life Assurance Company (U.1 private life insurer in the country with a wide range of flexible products that meet the needs of the customer at every step in life. The company has a network of over 50.

The United States. Thailand.USA. Indonesia. India and Bermuda . The Philippines. Indonesia. Philippines. Japan. UK. Today the Sun Life Financial Group of companies and partners are represented globally in Canada. Malaysia and Egypt to name a few.

7% of total market share. . From the above chart. 3. Bajaj Allianz contributes to 10. one can say that private companies are still struggling to capture maximum market share. The top 5 life insurance companies in India control 85% of market share while the remaining dozen are still struggling to set up their operation. and MNYL have 3.4% of market share respectively.3% of total share where as HDFC SLIC has managed to earn only 4.1 private life insurance is ICICI prudential with 13.Market Share of Different Players Even after liberalization and entry of private player in insurance sector. Birla.4% and 2.1%. Reliance life. Sunlife. the majority of market is shared by LIC of India.4%. The No.

Kapil Mehta is the MD & CEO of DLF Pramerica life insurance Ltd. Mission : We shall be a guide and a mentor to people so that they are able to make the most informed insurance decision to meet their life goal. feels secure and enriched. Vision : At DLF Prameria. our vision is to ensure that every life we touch. Kapil has been associated with this venture since 2006. The combination at the strength of DLF brand and PFI‟s insurance expertise provide the strangest possible foundation for DPLI to succeed in the rapidly growing Indian life Insurance market. Ltd. Before joining DPLI Kapil was senior vice president of Business development and strategic planning at another life insurance company. . Company Analysis Life Insurance Corporation of India. It is a joint venture between DLF Ltd.New Entrant in the Industry DLF Pramerica Life Insurance co. and prudential International Insurance holdings Ltd.

67% over the corresponding period of the previous year. 15. Key members to the corporation 1.LIC) 5.277 million Dun Bradstreet (India 500). Shri. LIC had 5 zonal offices. Chaturvedi (additional secretary department of financial Ministry of finance Govt. Shri. Over 53 years. of India. apart from its corporate offices in the year 1956. Shri DK 3. Dasgupta (MD LIC) 6. Yogesh Lohiya (chairmen MD .The parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956 and the life insurance corporation of India was created on 1st September.951 million) as well as Net profit 2. 1956 with much the objective of spreading life insurance more widely and in particular to the rural areas with a view to reach all insurable persons in the country providing them adequate financial cover at a reasonable cost. 33 divisional offices and 212 branch offices. Mehrotra (MD LIC) 4.32. LIC has become a household name for providing security for a life time and is synonymous to life insurance in India. (chairman) 2. From then to now LIC has crossed many milestones and set unprecedented performance records in various aspects at life insurance business.955 new policies by 15th Oct.01. Shri A.S. K. LIC of India) services. LIC has crossed the milestone of issuing 1.47. S.) 7. 2005 posting healthy growth rate of 16.66. G. Shri T. 1 in the list of top 500 companies on the basis of net worth (Rs. LIC ranks no. Vigayan. It has a network of over 2000 (2048) branches and more than 9 lakhs agents. Thomos Mathew ( MD . Shri. .

Shri Monis R. Kidwai.8. Dr. Venkatsubrameniann (chairman & MD Export Import Bank of India) 9. Soornad Ragashekheran 10. C. Shri. . T.

2007 stood Rs. The corporation has had a series of share issue raising its capital to Rs.HDFC Standard Life Insurance Company LTD. 19 crores The gross premium income for the year ending March 3. Deepak S. 10 crores. Deepak M. Parikh is the chairman of the company. Mr. He joined HDFC Ltd in a senior management position in 1978. He was inducted as a whole time director of HDFC Ltd.856 crores and new business premium income at Rs 1. (HDFC Ltd. Satawalekar obtained a bachelor degree in Technology from the Indian Institute of Technology (IIT) Bombay and a master degree in Business Administration from the American University Washington DC. HDFC was incorporated in 1977 with a share capital at Rs.2007 HDFC operates through 450 locations through out the country with its corporate head quarters in Mumbai India HDFC also has on International office in Dubai UAE with service associates in Kuwait. Satawalekar is the managing director and CEO at the HDFC SLIC since November 2000 prior to this he was the MD of HDFC Ltd. Oman and Qatar HDFC is the largest housing company in India for the last 27 years.77. In 1985 and was appointed as its executive chairmen in 1993. 2. . HDFC has since emerged as the largest residential mortgage finance institution in the country.). He is also the executive chairmen of Housing Development Finance Corporation Ltd.000 lives year ending March 31.624 crores The company has covered over 8. Key players : Mr. Since 1993 Mr. He is a fellow of institute of Chartered Accountants (England and Wales).

HDFC is rated „AAA‟ by booth „CRICIL‟ and „ICRA‟ similarly standard is rated „AAA‟ both by Moody‟s and Standard and Poor‟s . HDFC Standard Life Insurance Company Ltd. 15.4% stake and Standard Life of as a stake of 18. SNAPSHOT :  Founded in 1875. company supporting generations for last 179 years.600.  Currently over 5 million policy holders benefiting from the service offered.This reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. was incorporated on 14th August 2000 HDFC is the majority stakeholder in the insurance joint venture with 81. the company expanded in the 19 th century from Kits Original Edinburgh premises opening offices in other towns and acquitting other similar business. Deepak Satawalekar is the MD and CEO of the Venture.  Europe‟s largest mutual life insurer.Standard Life : Standard Life is Europe‟s largest mutual life assurance company.6 %. . Mr. was one of the first companies to be granted license by IRDA to operate in life insurance sector. Reach of the players is highly rated and been conferred with many awards.000 crocre respectively. Standard Life currently has assets exceeding over 70 billion under its management and has the distinction of being accorded “AAA” rating consequently for the six years by Standard and Poor. Standard Life which has been in the life insurance business for the past 175 years in a modern company surviving quite a few changes since selling its first policy in 1825.000 crore and Rs. Joint Venture : HDFC Standard Life Insurance Company Ltd.

alliance marketing and dedicated distribution for emerging markets. is a joint centre between Max India Limited. integrity and team work incorporated in 2000. it has a strong corporate governance model based on the core values of excellence honesty. one of India‟s leading multi business corporation and New York Life International. Max New York invests significantly in its training programme and each agent is trained for around 100 hours as opposed to the mandatory 50 hours stipulated by the IRDA before beginning to sell in the market place. In line with is vision to be the most admired Life insurance Company in India. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examination and the agents have highest productivity among private life insurance companies. 24 partnership distributions and alliance marketing relationships each. Max New York started commercial operation in 2001. international arm of New York Life a fortune 100 company has positioned itself on the quality platform. The company also has 36 referred tie ups with banks. In line with its values of financial responsibility Max New York life has multi channel distribution spread across the country. knowledge. The company currently has around 93. . Training is a continuous process for Agents at Max New York Life and ensures development of skills and knowledge through a structured programme spread over 400 hours in two years. Agency distribution is the primary channel complemented by partnership. bank assurance.Max New York Life Insurance Max New York Life Insurance Company Ltd. The company has 133 offices dedicated to rural areas. distribution. learning.000 Agent Advisors and more than 800 own employed sales force at 712 offices across 389 cities.

Theodore A Maths President & COO Max New York Life Insurance Company Overview It is an ISO 9001: 2000 certified Company The company has recently partnered Symbiosis Institute of Business Management to launch Post Graduate Diploma in Business Management with Specialization in Life Insurance. Bannett.Max India ltd Gary R. Max House 3rd Floor 1 Dr. New Delhi. Ltd. India Key persons Analgit Singh Chairman .MD And CEO Max New York Life Insurance Co. Jha Marg.110020. It Believes in enhancing the potential of its employees to influence change in the organization- . It promises an atmosphere of run Career growth and earning opportunities for its employees.VC MNYLIC Ltd.SNAPSHOT Date of Establishment Address 2000 Max New York Life Insurance Company Ltd. Okhla. Anuroop „Tony‟ Singh.

Recruitment and Retention strategies of 1. In the recruitment process. HDFC Standard life. 2. In recruitment process . in order to have a pool of eligible candidates for scientific selection. employment exchanges . Recruitment Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. Max New York Life Insurance Company. 3. the available vacancies are given wide publicity and suitable candidates are encouraged to submit application. information is collected from interested candidate for different sources of recruitment such as news paper advertisement. LIC of India.

Recruitment represents the first contact that a company makes with potential employees. . are used. Who can be an Agent of Life Insurance Company? Section 42 (4) of the amended Insurance Act. An Agent is not an employee of the company but their recruitment should be given equal importance as that of employees of a company. In the recruitment process a pool of eligible and interested candidates is created for the selection of most suitable candidates.internal promotion etc. 1938 states an agent is one who is not   A minor Found to be unsound mind by a Court of Jurisdiction Found guilty of criminal background An urban Agent must be 12th standard passed and rural agent must be 10th standard passed.

in ordinary procedure for recruiting candidates is described in following diagram. Start List of prospective candidates Contacting NO Interested? YES Interview with SDM Short listing End Interested? NO End YES Training programme NOT CLEARED IC-33 ? Exam CLEARED Contract with company Reappear End .

clearance at this examination leads candidates to make a contract with the sponsoring company. But Max New York Life Insurance Company follows a complex process of recruitment as shown in the figure .For the Recruitment of agents the target is given to the Recruitment Consultants (RCs) and Sales Development Managers (SDMs). These people follow the steps shown in the figure. HDFC as well as LIC follows the same process for the recruitment of Financial Consultants/ Agents. The list of prospective candidates may include nature market of people who personally contact RCs and SDMs to become an agent relatives and references collected from them. After contacting all prospective candidates those who are interested to become an agent undergo initial screening by Sales Development Managers and selected candidates undergo a training programme of 50 hours as compelled by IRDA. Once the training is over the candidates undergo IC-33 examination conducted by IRDA.

Start Name Gathering in P200 Short listing Contacting NO Interested? YES Initial Screening NAT Career Seminar & P200 NO Interested? End YES Career interview FCS End IC-33 ? NOT CLEARD Reappear CLEARD Contract with MNYL End .

3. Contacting Candidates are called either as nominator or prospective Agents and meeting is fixed with them according to the convenience of both party. Five point system Age 25 and over Graduate Married Lived in city more than 5 years NAT Score 1 point 1 point 1 point 1 point 1 point (if passed) 5. a sales manager first gives introduction about the company.1. Name gathering in P 200 Name gathering in P 200 consists of people who you know from natural market and references from their sources. Here script plays very important role in fixing appointment with the prospect. Name gathering in P 200 Name gathering in P 200 consists of people who you know from natural market and references from their sources. Every candidates is required to get at least 3 point in eligibility model of the company. traits for a sales person and his present and past experience of his job are questioned. Short listing . In case of score less than 3 special zonal head approval is required. 2. Initial Screening Initial screening is taken if candidates are found eligible to 4 points model. As a management trainee were given a task to gather 200 names. 6. 4. Then several questions such as his family background his natural market. The eligibility standard for Agent Advisor selection grouped as follows. In initial screening. As a management trainee were given a task to gather 200 names. Only eligible candidates are considered for the next process. Short listing Candidates are short listed from the P 200 as per the eligibility criteria drawn by the company.

Five point system Age 25 and over Graduate Married Lived in city more than 5 years NAT Score 1 point 1 point 1 point 1 point 1 point (if passed) 9. traits for a sales person and his present and past experience of his job are questioned. FCS All the selected candidates are required to attend 22 day training session for receiving the license from IRDA to become an Agent Advisor. Every candidates is required to get at least 3 point in eligibility model of the company. In case of score less than 3 special zonal head approval is required. NAT Numbering Ability Test is taken. . a sales manager first gives introduction about the company.Candidates are short listed from the P 200 as per the eligibility criteria drawn by the company. Only eligible candidates are considered for the next process. Contacting Candidates are called either as nominator or prospective Agents and meeting is fixed with them according to the convenience of both party. 7. It candidates market is found worth. he is selected to attend Training and development programmed. Here script plays very important role in fixing appointment with the prospect. Then several questions such as his family background his natural market. Passing score is 50% 10. Initial Screening Initial screening is taken if candidates are found eligible to 4 points model. Career Interview P200 is evaluated in career interview. 11. In initial screening. The eligibility standard for Agent Advisor selection grouped as follows. 8.

.12. This process helps the company to keep its attrition rate to minimum. The objective of such tedious process is to recruit only competent intelligent and loyal Agent Advisors. Contract All successful candidates having legal license of IRDA are contracted with MNYL .Due to such complex process at Recruitment it is not so easy to become an Agent Advisor at Max New York Life Insurance Company.

RETAINTION .

g. In case of agency work force of Insurance company.    Even letter heads mobile bill reimbursement facility provision of soft loan and laptops are given to the agents. additional monetary benefits apart from commission. Employees tend to leave organization for various reasons like better salary package job dissatisfaction unhealthy working environment.  As the performance of an agent improves he receives some additional benefits like certificate of an organization. Apart from the commission other motivational efforts play a significant role in retaining agents in the organization.  At initial level agents feel motivated by some non-monetary benefits like a pen set with companies logo on it. Agent whose performance is outstanding gets a membership for that year of different clubs formed by insurance companies for e. Planning and evaluation can be defined as provision of benefit facilities given to employees of the company so that they wont leave the company. Private as well as government life insurance companies emphasize on providing better facilities to their agents in order to retain them in the organization. Retention Strategies mainly include 1) Motivation of policy Companies provide very attractive commission structure for their agents. trophies. . The commission rates vary from 20% to 40% on paid premium in the first year of policy. Different contest are arranged at every branch of the company on monthly. visiting card of his name etc. A cup or mug with agents own name printed on it.Retention It is very difficult to retain people in sectors like BPO (Business Process Outsourcing) and IT but it is worst in case of Insurance industry conservatives estimates put the attrition rate of 35% to 40% in insurance industry. quarterly and yearly basis so as to motivate agents to perform well. agent leave them because their job is commission based and not salary based.

2) Job on company‟s pay roll.000 accidental insurance 3) gold club Rs. It helps a company to retain their agents without much efforts. As the overall life style changes the retention policies must also be changed accordingly. 19 Lacks Gold club benefit + Fees for children‟s education 5) Platinum Club Rs.1. But the retention policies need to be revised continuously in order to maintain its effectiveness. Diary Silver club benefits + 50. SDM convince agents that the company is one big family and he (agent) is a part of it. The jobs offered are of Sale Development Manager Post or Unit Manager Post. 37 Lacks Gold Premier club + Foreign trip family Membership of such club is a symbol of status for agent and helps companies to retain their agents. Outdated strategies would not help to retain agents.5 Lacks Silver plus club+ foreign trip 4) gold premier club Rs. The potential agents are also offered a salary based job in the company.5 Lacks Non-monetary benefits Pen set. 3. 9.Category of club 1) Silver club 2) Silver plus club Monetary benefits Rs.5 Lacks Rs. . 3) Establishing good relation with agents. Sale development Manager take special efforts to inculcate the company‟s core values into every agents mind.

ATTRITION .

But little has changed in the basic nature of the business insurance still needs to be sold to a reluctant population. 1 laky for some others it is as low as Rs. getting full reward for the hard work and other such motivational spiel meet reality soon enough. . Once the initial list of potential customers such as close relatives. Most of these who deep out are non-performers. Agrees Mr.000/When the rejection starts and the doors start getting banged in the face new agents confront failure the drop out begin. Says the attrition rate is about 35% in the first year of recruitment. Most Agents or advisors who join insurance company enthusiastically spurred by dreams of working at one‟s own hours. Mr. Lalit Kumar Dash Executive Director (marketing) LIC. 10.Attrition One might have heard of high job attrition of between 15% and 20% in software sector but even these pale in comparison to the kind of turnover that the insurance industry witness with its agency force conservative estimates put the attrition rates at 35 to 40% The opening up of the sector five years ago provided insurance agents with new opportunity and an image makeover as life insurance advisors. friends and neighbors is exhausted the climb for an agent is uphill. This goes down to about 18% by the 4th year. Even meeting the minimum requirement of bringing in two viable insurance proposals every month proves daunting. Rahul Sinha vice Precident (Marketing) of Kotak Mahindra Old Mutual Life Insurance Company and says last year the attrition rate was much worse than 30% it has been a cause for worry and we are trying was our best to stem it. For some companies the target in terms of sum assured is Rs.

hate the working conditions. like their co-workers work hard for their employers get paid well for their work have ample chances for advancement and flexible schedules they could attained to personal or family needs when necessary and never leave.Attrition the concept In the best of world‟s employees would love their jobs. Employees look for freedom. 2) Working Environment Working Environment is the most important cause of attrition. resignation or death etc. Reasons for attrition It is not easy to find out as to what contributes and who has the control on the attrition of employees. The reasons for attrition are varied in nature. Some common reasons for attrition are- 1) Organizational matters The employees always assesses the management values. Various studies conducted indicate that everyone is contributing to the prevailing attrition. want a change or because their spouse gets a dream job in another state so what does that entire turnover cost ? And what employees are likely to have highest turnover ? Who is likely to stay the longest? Defining Attrition A reduction in the number of employees takes place through retirement. Attrition does not happen for one or two reasons. good . hate their co-workers. There are always ups and downs in the business plans. The way the industry is projected and speed at which the companies are expanding has major part in attrition. work culture. Defining attrition rate The rate of shrinkage in size or number. work practice and credibility of the organization The Indian companies do have difficulty in getting the business and retain it for a long time. But then there is a real world and in the real world employees do leave either because they want more money. Employees of the organization expect a friendly and learning environment. Non availability of the campaigns makes people to quickly move out of the organization.

The employees often leave organization due to this reason. Also lack of job satisfaction is the reason for resignation of employees. better positions and better benefits are the most important reasons for attrition.treatment from the superiors. Once this list is over agents find it difficult to fulfill the company‟s expectations. 1) Lack of Information regarding the job of life insurance agents Recruitment Consultants (RCs) to achieve their target of recruitment contact number of people and recruit them without giving sufficient information about the job they are supposed to perform for the company. they work for the company but after getting a job of full time they tend to ignore their work as an agent and this finally results into termination of their license. good encouragement. 3) Saturation of natural Market The natural market consists of family. 3) Job Matters The job today brings lot of pressure and stress. 5) Personal Reasons . colleagues etc. When people are not having a full time job. 2) It is a part time job Financial Consultants or Agents are not the employees on company‟s payroll. 4) Lack of support by Sales Development Manager (SDMs) Some agents even if they are willing to get business for the company due to lack of motivation and support by their Sales Development manager cannot meet company‟s expectation leading to termination of license by IRDA. friendly approach from one and all and good motivation In absence of such environment employees leave the organization. 4) Salary and other benefits Moving from one job to another for higher salary. friend. Some extended reasons for highest attrition rate in insurance industry are given below.

The personal reasons are many and only few are visible to us. The next important personal reason is going for higher education. Health is another aspect which contributes for attrition. They are wide from getting married to relocation for health or family reasons. Research Objectives .

Research Objectives 1) The objective of study is to analyze the recruitment and retention process Life Insurance Companies. . 3) The Study is also meant for providing reasonable solutions to the problem after analysis of the recruitment and retention strategies of different life insurance companies. 2) The study is aimed at understanding the working of Agents/FCs/AA.

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.Research Methodology Research Methodology Research can be defined as a systematic effort to gain knowledge. A research is carried out by different methodology which has their own pros and cons.

To determine sample size and sample design. its size and the procedure used to dew. Research methodology has following steps - Step 1. To organize and conduct fieldwork. To determine the source of data. To design data collection form (questionnaire). To design research design Step 3.Research Methodology is a way to solve research problems along with the logistic behind them. Step 4. To decide the objective of the study Step 2. Step 5. Research methodology means the method carried out to study the problem it shows the type of the sample design used. Step 8. To prepare research report. Thus when we talk of the research methodology we not only talk about research method but also context of our research study and explain why we are using a particular method or techniques and why we are not using other so that research results are capable of being evaluated by the researcher himself or by others. Step 6. Step 7. . To process and analyze the collected data. The extent of precision achieved and the method used for handling any special problems during the course of the study.

cross sectional analysis was conducted by using field survey method in the process of field survey a questionnaire was developed and circulated among respondents which formed the basis for entire research. Among the above mentioned types. Step 3. Also the secondary data proved to be helping in framing up the industry scenario and also the relevant topics in the entire project report. . Primary data Primary data is that which is collected fresh and thus happen to be original in character. structure strategy of an investigation conceived so as to obtain answers to research questions and control variance. There are three type of research design system. In order to study the characteristics and variables. To decide the research design. Descriptive research is to find an efficient sales force of Agents / Financial Consultants / Agent Advisors. Data sources are the collection of fresh hand data to obtain results. primary data was used for the study and analysis of the objective of this project. The objective of the study as stated in the previous chapter were finalized so as to initiate the survey for the study. To determine the sources of data. To decide the objective of the study to be carried out. What is research design? Research design is a plan.Explanation Step 1. Secondary data Secondary data is any data which have been gathered earlier for some other purpose. There are types of data sources. Among the above mentioned types descriptive research design has been chosen. Step 2.    Explanatory Research Descriptive Research Casual Research.

e.Reasons for selecting primary data In terms of primary data structure questionnaire was prepared to interview the professionals. post office agents etc. Vasai and Ratnagiri location.1) When you think of insurance which company name comes first to Your mind? Ans : Q. students. house wives. study of people was achieved. The method selected was survey method.3) Do you know about life insurance companies? Ans : (a) Yes (b) No Q. Analysis clearly reflected the views and preference regarding the perception of the people towards joining life insurance companies.   Observation method Survey method. A survey can be conducted by  Personal interview Telephonic interview Amongst the above methods personal interview method was selected and conducted to gather information to detail.2) Which other companies are you aware of ? Ans : Q. Step 4. investment consultants. designing the data collection forms or survey form is applicable to the project. in Thane. There are two types of mode to collect the data. As far as the data collection method for this project is concerned. Formulation of Questionnaire Q. To design data collection. This method was chosen because along with the study of project‟s primary objective i.4) Do you know about the working of an agent of any life insurance company ? .

8) Do you have an idea about financial market? Ans : (a) Yes (b) No Q.g.g.10) Do you have experience in selling financial product? E.9) Do you have any sales experience? If yes. family. relative.Ans : (a) Yes (b) No (c) Insufficient Information. WANT AND DEMAND? Ans : Q. Q.) Ans : Q. credit If yes. : Friend. insurance etc? Q.5) Do you currently have an agency of any life insurance Company? Ans : (a) Yes (b) No Q.12) In which of the financial market you have invested your money? Ans : (a) Share (b) Mutual Fund (c) Insurance Q.6) What would be the size of your social contact base who know you by your name? (E. etc. of how many years? Ans : (a) Yes (b) No Q.13) Are you interested in getting the opportunity of earning some additional income as being Agent of any life insurance company? Why? Ans : (a) Yes (b) No .7) How many members of your family are dependent on the income earner of the family? Q. colleagues if any ……….) (Mention in appropriate numbers. of how many years? Ans : (a) Yes ( ) (b) No ( ) card.11) What do you think? In today‟s scenario life insurance is NEED.

sample size sample size specification200 respondents which include professionals. post office agents.Setp 5 : To determine sample design. unemployed students. house wives. . The distribution of this sample size was decided to be as 100 respondents at Thane (Urban area). 50 respondents at vasai (semi – urban area) and 50 respondents at Ratnagiri (rural area) in order to compare the difference in these areas. investment consultants.

Segmentation of people Filling up questionnaire Meeting with people .Field Methodology The methodology adopted in the field to collect the data represented diagrammatically below.

students. Are you interested in getting the opportunity of earring some additional income as being Agent FC/AA of any life insurance company. Financial Consultant or Agent Advisor for LIC. Vasai and Ratnagiri regions. HDFC Standard Life or Max New York Life Insurance Company.DATA COLLECTION AND TABULATION In order to determine the willingness of respondents to become an Agent. the data was collected from Thane. house wives. Q. This data was treated for Analysis and interpretation. investment consultants and post office agents etc. OCCUPATIONAL CLASSIFICATION Response Respondents Yes No . All the respondents were classified under parameters like professionals.

35.72% Index .Yes 64.28% .5% of respondents are willing to become agent at a life insurance company from remaining 37.5% at respondents some respondents were already agents of one or the other life insurance company.Professionals Working employees House wives Students Post office agents Investment consultants Total 9 12 42 37 11 14 125 5 12 24 21 4 6 75 From the above pie-chart one can say that about 62.No .

72% were not interested in becoming an agent of any life insurance company. mainly because their base of personal contact is good.A..55% Index .Yes 44. .Professionals These respondents included C. Doctors. Amongst these respondents 35.28% were willing to become an agent.No Working Employees. Professors of which 64.44% . 55.

12 respondent out of 27 working employees were willing to become an agent of a life insurance company whereas 15 respondents were not interested in such job. One can say this from their response shown in the pie-chart.63% .44% i.Yes 63. Only 44.No .e. 36.36% Index .Working employees lack desire to become an agent.

Yes 63.79% House wives 63. 36.36% at house wives had very less information about the whole insurance sector.63% at total house wives are willing to earn some money of their own by becoming an agent of a life insurance company remaining 36.No Student’s .20% Index .79% .The awareness amongst students regarding a working at an agent was very impressive 63.

The awareness amongst students about a working of an agent is very good.20% at students were not interest to become an agent of any insurance company.33% . To become an agents of a life insurance company but 36.No Post office agents .Yes 73.79% of student respondents showed their willingness. 26. 69.66% Index .

The highest response of 73.33% to become an agents was shown by post office agents from these percent of willing respondents about 60% referred to become an agent of LIC.

30%

Index - Yes
70%

- No

Investment consultants

14 of 20 investment consultants wanted to become an agent and thinks it as a complementary career to their regular Remaining 30% of respondents were investment consultancy only and didn‟t prefer to become an agent of a life insurance company.

Demographical classification Response Respondents Male Female Total Yes No Total

68 57 125

27 48 75

95 105 200

28.42%

Index - Yes
71.57%

- No
Male

71.57% of male respondents were ready to become an agent of a life insurance company and only 28.42% of male respondents were not interested in the proposal.

Those women who were willing to become an agents majority of women were house.45.28% . House wives have ample at time to spend for such jobs.Yes 54.71% Index . .No The percentage of willing and unwilling female respondents was almost equal. This is mainly because working have very less time to spend on jobs like insurance agents.

.e.Yes 70% . 35 respondents showed the willingness to become an agent at a life insurance company and is respondents were not interested in becoming an agent of a life insurance company.Geographical Classification Response Respondents Thane (50 respondents) Vasai (100 respondents) Ratnagiri (50 respondents) Yes No 35 67 23 15 33 27 30% Index .No Thane Out of 50 respondents at Thane city 70% i.

Yes .No Ratnagiri .Yes 67% .33% Index .No Vasai Even though there are various options available for earning money in urban and semiurban areas. Index 54% 46% . becoming an agent of a life insurance company is the most preferred one we can say this because out o f100 respondents of vasai Taluka 67 respondents were willing to become an agent of a life insurance company.

Only 46%respondents at Ratnagiri district showed their willingness to become an agent.People in Ratnagiri are less aware about the working of a life insurance agent. Majority of respondents have never even heard about any other life insurance company apart from LIC and most of the respondents were not eligible as prescribed by IRDA .

Findings .

Those respondents who didn‟t want to become an insurance agent. just because it is a part time job. Some professionals like CA. 6. mainly because it is on commission based remuneration activity. 2. Respondents are less aware of the private insurance companies that exist in the market. Some respondents ware willing to become an agent of life insurance company. 4. 8. 9. Educated respondents are now vending towards private insurance companies. . Instead of commission based job. due to the attractive packages and services provided by various new insurance companies. House wives. LIC has created a brand in 3-4 decades. Tax planner etc wanted agency rather than to be an agent of an insurance company. new insurance companies are facing trouble in capturing market share. 5. 10. due to which. 7. Educated respondents prefer HDFC Standard Life insurance company because the recruitment process of HDFC Standard Life is less complex than MNYL insurance and has better image as FC rather than being an Agent of LIC. MNYL is too selective in recruiting AA than to appoint any one like LIC. especially well educated house wives are able to give enough time and therefore they are willing to become an insurance agent. Working women are less interested because at home and office.FINDINGS 1. respondents preferred a salary based job. 3.

Conclusions .

each policy. Those conclusions are: 1. Respondents are less aware about private insurance companies. The private players are on their way. 4. 2. Due to which most of the people like to invest in those securities or investments.e. which will give them a fruitful return within short period. Respondents still prefer government insurance company rather than private insurance company due to its reliability. Insurance companies are trying to convince customers for a product which does not have any present relevance i. but they need lot of time investment for creating a favorable brand image. analysis and interpretation was made. will have a future set of action and benefits.CONCLUSIONS After collection of data. Respondents are more brand oriented rather than product oriented. on which conclusions are drawn. . Rural respondents of Ratnagiri are less aware of private insurance companies and working of their agents than respondents of Thane and Vasai. which the customer is going to purchase. 3.

Suggestions .

which are also called as „Jatra‟ in the Maharashtra state can be used for creating awareness of life insurance companies among rural people. 7. Traditional method may include various cultural programmes like „Harikatha‟ or „Puppetry shows‟ etc. „Melas‟. People should be made aware of the brand name of insurance company through advertisement. Insurance companies should make clear all the details of job of an agent before recruiting them. Agents‟ feedback must be studied scientifically and continuously as their wants and needs change continuously. 2. 6. .SUGGESTIONS 1. Private companies should use traditional ways of promotion in rural locations. Latest communication facilities are lacking in some parts of Ratnagiri district. so as to design a viable agent retention strategy of the company. 5. 3. The fear in peoples‟ mind should be removed by company. using aggressive methods of marketing. Private companies should try to nurture their brand name by providing timely and attractive facilities to the people. 4.

Appendix .

7. 8. 5. 11. 3. . 2.Max New York Life HDFC – Housing Development Financial Corporation SL – Standard Life. 6. 10. SDM – Sales Development Manager LIC FCs – AAs – Life Insurance Corporation of India Financial Consultants Agent Advisors MNYL .Appendix Abbreviations 1. FPS – Five Point System NAT – Numbering Ability Test FCS – Fundamental career Seminar IRDA – Insurance Regulatory and Development Authority. 9. 4.

3. IC 33. 4. 2.hdfcltd.mnyl.irda.com www.com www. 2.lic.com . www. Webliography 1.Bibliography 1. – Human Resource Management – By Kale and Ahmad.com www.