CHAPTER-1 1.

1 INTRODUCTION TO THE INDUSTRY

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. Insurance industries in India have a long history. Life Insurance in existing form came in India from UK in 1818 with Oriental Life Insurance Company. The Indian Life Assurance companies Act, 1912 was the first measure to regulate Life Insurance business. Later in 1928, the Indian Insurance Companies act was enacted, which was amended in 1938. Finally, Government of India in 1950 again amended this act. Life Insurance Corporation of India was formed in September 1956 by passing LIC Act, 1956 in Indian parliament. The first general insurance company- Sun Insurance Office Ltd. was established in Calcutta in the year 1710. The General Insurance Business Act nationalized general Insurance business in India with effect from 1.1.73. From 1973, The General Insurance Company (GIC) as a holding company divided in four subsidiaries as:

- National Insurance Company Ltd. - The New India Assurance Company Ltd. - The Oriental Insurance Company Ltd. - The United India Insurance Company Ltd.

Max New York Life Insurance

DEVELOPMENTS IN THE INDIAN INSURANCE SECTOR

Liberalization and reforms have the potential to change the complexion of an industry. The Indian insurance sector is no exception. Until recently, India continued to be one of the few remaining countries of the world to remain insulated from the foreign direct investment in its insurance sector. In a bid to make this sector more competitive the government constituted an eight-member committee chaired by Mr. R N Malhotra in 1993. The committee took a year to submit its report. The main thrust of its recommendations was: Open up the insurance sector Improve the service standards of Indian insurance majors Extend insurance coverage to a larger section of the Indian population. The benefits of liberalization of Indian insurance sector were deemed to be that reforms would lead to: A competitive environment World-class sophisticated technology Better & wider range of products with more reasonable & affordable pricing Price war, leading to competitive pricing of the products Efficient & effective service Efficiency in the conduct of insurance business Global expertise & practices of insurance New entrants with a professional approach & state of art technology to revolutionize the market Services of intermediaries like corporate agents, brokers etc Malhotra Committee, in its report stated that only 22% of the Indian population is insured. The poor reach of insurance in the country and the sheer numbers make India a market with tremendous potential. The following facts show how under-developed the Indian insurance business is due to state monopoly and lack of aggressive marketing of insurance policies: 2

Max New York Life Insurance 1. Per capita insurance premium in India is a mere US$ 6, one of the lowest in the world. In South Korea, the corresponding figure is US$1,338, in USA it is $ 2250 and in UK it is $1589. 2. Insurance premium in India accounts for a mere 2 per cent of GDP compared to the world average of 7.8 per cent and G-7 average of 9.2 per cent. 3. Insurance premium as a percentage of savings is barely 5.95 per cent in India compared to 52.5 per cent in the UK. Nationalized insurance companies have not been able to target niche markets that are currently served poorly or not at all. Life insurance products provide a good example. They compete with investment and savings options like mutual funds. It is imperative that they should offer comparable returns and flexibility. For instance, pure protection products like term assurance account for up to 20 per cent of policies sold in developed countries. In India, the figure is less than one percent because policies are inflexible. Besides, no Indian life assurance product is linked to non-traditional investment avenues such as stock market indices. Therefore, returns are lower than those on other savings instruments. Retail segment or personal lines insurance, especially in general insurance is another area unexplored. Currently personal insurance, including health, householders, shopkeepers, personal accident, travel insurance and professional indemnity covers constitute only 12 per cent of Indian general insurance premium. This poor figure is largely due to the lack of adequate distribution channels rather than a lack of products. By tapping such under-served niches, new entrants can expand the market substantially. Since service and speed will be valued, a price premium is also possible. Keeping in mind the problems that ensnared LIC & GIC, the Malhotra Committee Report recommended the end of monopoly market in insurance. This recommendation was implemented with the passage of Insurance Regulatory Development Act (IRDA) through Indian Parliament in late 1999. Due to this Act the private players were allowed to enter the market from 1999. Several Indian private companies have entered into the insurance market, and some 3

Max New York Life Insurance companies have joined with foreign partners. After the passage of this Act, with effect from December 2000, all the four subsidiaries of GIC have been de-linked from the parent company and have been made independent insurance companies. GIC now functions as a National Reinsure. IRDA, for the time being, prohibits 100% foreign equity in insurance. It requires the Indian promoter to invest either wholly in an insurance venture or team up with a foreign insurer, with a cap of 26% of equity for a foreign partner. Since the opening up of Insurance Sector, 12 private players have entered the Life Insurance sector & 9 private players have entered the general insurance sector.

THE REGULATORS Insurance Regulatory & Development Authority

Under the Insurance Regulatory Development Act, Insurance Regulatory & Development Authority (IRDA) was formed which acts as the regulatory authority in the insurance sector. The main aim of the Act is to activate an insurance regulatory apparatus essential for proper monitoring and control of the Insurance industry. TAC is a Statutory Body under Insurance Act 1938. Tariff Advisory Committee controls and regulates the rates, advantages, terms and conditions that may be offered by insurers in respect of General Insurance Business relating to Fire, Marine (Hull), Motor, Engineering and Workmen Compensation.

Liberalization Scenario in India

Recent economic liberalization started few years ago have started bringing in new investments from global giants and the government was hard pressed to facilitate global integration by lowering trade barriers for the free flow of technology, intellectual and financial capital. Additionally, reforms are essential if the Indian economy is to achieve and sustain a growth rate of 7 to 8 per cent per annum. Reaching a faster growth path also implies attracting foreign direct investment inflows of $ 10 Billion every year, up from the current level of $ 3 to $ 3.5 Billion. Thus 4

Max New York Life Insurance liberalization of insurance creates an environment for the generation of long-term contractual funds for infrastructural investments. Nationalized Sectors Performance In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC income grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US). LIC has even provided insurance cover to five million people living below the poverty line, with 50 per cent subsidy in the premium rates. LIC claims settlement ratio at 95 per cent and GIC at 74 per cent are higher than that of global average of 40 per cent. Compounded annual growth rate for Life insurance business has been 19.22 per cent per annum and for General insurance business it has been 17 per cent per annum. However, there is other side of the coin too. Their large scale of operations, public sector bureaucracies and cumbersome procedures hampers nationalized insurers. The field staff and the agents of the GIC and its four wholly owned subsidiary companies have seldom bothered to venture out into the rural hinterland to sell crop or any other personal line insurance. The domestic insurance companies, despite meeting their social objectives of going into the deepest interiors of the country, have lagged behind in meeting customer expectations in products and services.

Private Players in Insurance Sector

Potential private entrants expect to score in the areas of customer service, speed and flexibility. It is expected that their entry will mean better products and choice for the consumer. Critics counter that the benefit will be slim, because new players will concentrate on affluent, urban customers as foreign banks did until recently. This might seem a logical strategy from the point of view of new players. Start-up costs-such as those of setting up a conventional distribution network-are large and high-end niches offer better returns. However, in the long run 'middle-market' offers the greatest potential as in terms of it is the second largest market in the world. This may still be an urban market but goes beyond the affluent segment. 5

Max New York Life Insurance Insurance, even more than banking, is a volume game. A very exclusive approach is unlikely to provide meaningful numbers. Therefore, private insurers would be best served by a middle-market approach, targeting customer segments that are currently untapped.

Repositioning of Public Sector Companies

Floodgates of competition opened up by the privatization of insurance industry did throw a challenge to the well-protected nationalized sector and it seems they have picked up the gauntlet. LIC and GIC, both are trying to reposition themselves by having re-engineering done on the structure and operations of their respective organizations. Life Insurance Corporation is at present going through presentations from top management consultants. These consultants have been asked to narrate their experiences in countries where the insurance sector has been opened up for private competition so that the public sector player can draw lessons. Based on these, LIC will appoint a consultant which can provide them broad terms of reference on what changes are required to tackle the impending competition. GIC has already identified the areas that need to be activated and given a shape through the four subsidiary companies. Foremost is the area of providing health insurance services. A change in the GIC Act will enable the corporation to float a joint venture company for health insurance. Other areas that the GIC is looking at are savings-linked insurance products and use of alternate distribution channels including banc assurance. Also in progress is the co-ordination of all foreign operations of the group. The PSU companies have offered VRS to their employees in an effort to reduce the manpower cost & to make their operations more effective.

Changes in Distribution Channel

Substantial shift in the distribution of insurance in India is likely to take place. Many of these changes will echo international trends. Worldwide, insurance products move along a continuum from pure service products to pure commodity products. Initially, 6

Max New York Life Insurance insurance is seen as a complex product with a high advice and service component. Buyers prefer a face-to-face interaction and place a high premium on brand names and reliability. As products become simpler and awareness increases, they become off-the-shelf, commodity products. Sellers move to remote channels such as the telephone or direct mail. Various intermediaries, not necessarily insurance companies, sell insurance. In the UK for example, retailer Marks & Spencer now sells insurance products. In some countries like Netherlands and Japan, insurance is marketed using post office's distribution channels. At this point, buyers look for low price. Brand loyalty could shift from the insurer to the seller. In other markets, notably Europe, this has resulted in banc assurance: banks entering the insurance business. The Netherlands led with financial services firms providing an entire range of products including bank accounts, motor, home and life insurance, and pensions. Other European markets have followed suit. In France over half of all life insurance sales are made through banks. In the UK, almost 95% of banks and building societies are distributing insurance products today. In India too, banks hope to maximize expensive existing networks by selling a range of products. Various seminars and conferences on banc assurance are taking place and many bankers have clearly shown their inclination to enter insurance market by leveraging their strengths in the areas of brand image, distribution network, and face to face contact with the clients and telemarketing coupled with advanced information technology systems.

1.2 PROFILE OF THE ORGANIZATION

Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune 100 company and Max India Limited, one of India's leading multibusiness corporations. The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of 7

Max New York Life Insurance excellence, honesty, knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted life insurance specialist through a quality approach to business. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital is Rs.657crore, which is more than the norm laid down by IRDA. Max New York Life has identified individual agents as its primary channel of distribution. The Company places a lot of emphasis on its selection process, which comprises four stages - screening, psychometric test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal control on quality of training. Max New York Life invests significantly in its training program and each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace. Training is a continuous process for agents at Max New York Life and ensures development of skills and knowledge through a structured program spread over 500 hours in two years. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and the agents have the highest productivity among private life insurers. 201 agent advisors have qualified for the Million Dollar Round Table membership in 2005. MDRT is an exclusive congregation of the worlds top selling insurance agents and is internationally recognized as the standard of excellence in the life insurance business. Having set a best in class agency distribution model in place, the company is spearheading a major thrust into additional distribution channels to further grow its business. The company is using a five-pronged strategy to pursue alternative channels of distribution. These include the franchisee model, rural business, direct sales force involving group insurance and telemarketing opportunities, banc assurance and corporate alliances.

Max New York Life Insurance Max New York Life offers a suite of flexible products. It now has 26 life insurance products and 8 riders that can be customized to over 400 combinations enabling customers to choose the policy that best fits their need.

VISION
To become the most admired life insurance Company in India.

MISSION
1. Become one of the top quartile life insurance companies in India 2. Be a national player 3. Be the brand of first choice 4. Be the employer of choice 5. Become principal of choice for agents

VALUES 1. KNOWLEDGE

Knowledge leads to expertise; and our expertise is in helping people protect them. Perfectly combining global expertise with local knowledge, we are India's life insurance specialist. Max New York Life believes that for knowledge to be of value it must be focused, current, tested and shared.

2. CARING

Max New York Life is redefining the life insurance paradigm by focusing on customers first. The service process is responsive, personalized, humane and empathetic. Every individual who represents the company is for us our brand champion. 9

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3. HONESTY

Honesty is the heart of the life insurance business. It is all about trust. Transparency, integrity and dependability form the cornerstones of the Max New York Life experience. The company ensures that everyone who represents the brand carries a promise: we care in word as well as deed.

4. EXCELLENCE

Excellence at Max New York Life implies the ability to perform at a consistently high level. Focused on the value of continuous improvement in people, processes and the organization, the company strives for the highest standards of quality in every aspect of its business. SALES PERFORMANCE OF THE ORGANIZATION Operating Earnings Reach $1.1 Billion, Up 17% from 2005 Surplus and AVR, a Cushion of Safety, Increases $1 Billion to $13.9 Billion Insurance Sales Increase 28%, Investment Sales Rise Nearly 24%, Operating Revenue Up 11%

NEW YORK, April 4, 2007 New York Life Insurance Company, Americas largest mutual life insurance company, set new records in 2006 for sales of insurance and investment products, as well as reached new highs in operating earnings, surplus, operating revenue, and assets under management. The companys net income reached $2.3 billion in 2006, compared with $855 million in 2005. The rise in net income was the result of strong operating earnings coupled with realized capital gains that included a $1,011 million one-time gain from a change in accounting for a company investment. Among the Significant Records New York Life Achieved in 2006: Operating earnings increased 17% to $1.1 billion in 2006, from $934 million in 10

Max New York Life Insurance 20051. Operating revenue grew more than $1.2 billion, or 11%, to $12.3 billion in 20061. Surplus and Asset Valuation Reserve grew $1 billion to $13.9 billion. Total insurance sales exceeded $2.8 billion in 2006, an increase of 28%. Total investment sales increased more than $6.6 billion, or nearly 24%, to $34.9 billion. Assets Under Management increased by more than $39 billion to nearly $265 billion in 2006. Sy Sternberg, chairman and chief executive officer, said, The companys operations had a year for the record books in 2006. Our broad array of products, including traditional life insurance products, lifetime income products, long term care insurance, and institutional and retail investment products and services, are clearly meeting the varied needs of our policyholders and clients. The robust growth achieved in 2006 reflects outstanding execution of our strategy, including our focus on life insurance, on career agents, on remaining a mutual company, and of course, maintaining financial strength, a hallmark of our company. Surplus reached a new high of $13.9 billion, providing a superb cushion of safety and security for our policyholders. Strong Earnings Operating earnings, the companys measure to track profitability from ongoing operations, increased 17% to a record $1.1 billion in 2006, compared with 2005 operating earnings of $934 million. Significantly, earnings from International and New York Life Investment Management, both of which represent future earnings growth engines, exceeded expectations in 2006. The companys GAAP net income (including realized capital gains and losses) totaled $2.3 billion in 2006, compared with $855 million in 2005. These results included net realized capital gains of $1,205 million in 2006, compared with net realized capital losses of $180 million in 2005. Record Sales and Operating Revenue Insurance sales increased 28% in 2006, to $2.85 billion, propelled by strong sales in 11

Max New York Life Insurance the United States of life insurance (up 24%) and lifetime income annuities (up 45%) and by a 26% increase in sales of life insurance in the companys International operations. New York Life is the largest seller of life insurance and lifetime income annuities in the United States, according to an industry source2. In addition, sales of life insurance through AARP increased 22% in 2006. Investment sales increased nearly 24%, to $34.9 billion in 2006, driven by a 27% increase in sales at New York Life Investment Management, which saw particularly strong sales in its Institutional, retirement services, and retail mutual fund businesses. New York Lifes operating revenue of $12.3 billion was up 11%, a new company milestone, led by a 24% increase in operating revenue from International operations. Review of Businesses U.S. Insurance Operations The companys U.S. Insurance Operations include its Life and Annuity and Special Markets business units. Life and Annuity is the companys largest revenue generator, selling a full array of products in the United States including individual, bank- and corporate-owned life insurance, lifetime income annuities and a variety of variable and fixed investment annuities. Key highlights of 2006 were: Operating revenue in Life and Annuity increased 10% to $7.8 billion, compared with $7.1 billion in 2005. New York Life continued its leadership in the Million Dollar Round Table, the industrys most prestigious professional organization for agents, for the 52nd consecutive year. The company had 2,331 agents achieve this recognition in 2006, nearly a third of New York Lifes active field force in the U.S. Special Markets increased operating revenue by 8% to $1.4 billion, compared with $1.3 billion in 2005. Through the AARP programs, New York Life is Americas leading direct marketer of life insurance, and in 2006 launched a new program offering lifetime income annuities to AARP members. 12

Max New York Life Insurance New York Life is also the largest underwriter of professional association insurance programs in the United States, covering members of more than 500 associations across the country. The companys long term care insurance operation ranks as the seventh largest provider in this field, according to an industry source2, with sales up 15% in 2006, versus industry sales that declined by 8%. New York Life Investment Management New York Life Investment Management ranks among the largest asset management firms in the United States. Through its multiple boutique investment structure, New York Life Investment Management delivers superior investment performance through an array of products designed for both institutional and retail clients. With its MainStay Investments brand, New York Life Investment Management distributes some of the most highly regarded mutual funds and wrap accounts in the industry. And its Guaranteed Products area provides guaranteed investment contracts, funding agreements and other products that leverage New York Lifes triple-A credit rating. New York Life Investment Management achieved strong performance in 2006 through strategic expansion of its product shelf and distribution channels. Highlights from 2006 included: The acquisition of Institutional Capital Corporation (ICAP), a premier value equity institutional investment firm based in Chicago, Illinois. An 18% increase in assets under management over 2005, exceeding $235 billion by year-end. Total sales climbed to a record $28.2 billion, up 27% over 2005.

New York Life International New York Life International has operations in nine markets including China, Hong Kong, India, South Korea, Taiwan, Thailand, Argentina, and Mexico. New York Life International operations remain in growth mode, expanding rapidly in a number of the worlds most attractive emerging markets, including India and China. Key highlights of 2006 were: 13

Max New York Life Insurance Operating revenue grew to $2.3 billion in 2006, up 24% over the prior year. Insurance sales increased 26% to $729 million, driven primarily by exceptional growth in the companys operations in India, Mexico and Hong Kong. Max New York Life, the companys joint venture in India, virtually doubled insurance sales over the prior year. It grew the number of licensed agents in India to nearly 18,000 and expanded its network of offices to 90 in 55 Indian cities. Insurance sales in China grew 70% as we entered four new cities, including the provincial capital of Nanjing.

Overall, Internationals career agent sales force continues to grow, with more than 29,000 agents registered in the nine markets.
Incorporated in 2000, Max New York Life started commercial operation in 2001. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up is Rs. 1,232 crore. Having set a Best in Class Agency Distribution Model in place, the company is spearheading a major thrust into additional distribution channels to further grow its business. The company has multi-channel distribution that includes the agency distribution, partnership distribution,

Banc assurance, distribution focused on emerging markets and alliance marketing through employed sales force. The company currently has 33 banc assurance relationships, 14 corporate agency tie-ups and direct sales force at 14 locations. Max New York Life has put in place a unique hub and spoke model of distribution to deepen rural penetration. The company has 14

Max New York Life Insurance 39 (9 hub office 30 spoke offices) offices dedicated to emerging markets in Punjab and Haryana. Max New York Life offers a suite of flexible products. It now has 38 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 4 riders in group insurance business. The company currently has more than 11,338 employees Max New York Life Insurance, one of the leading life insurance companies of India, on Wednesday announced it First Year Premium (FYP) income for financial year ended March 2008. During the year the company has recorded a growth of 70% in individual first year premium adjusted for single pay. The adjusted individual FYP for FY 2008 stood at Rs.1,308 crore as compared to Rs.769 crore during previous financial year. During the last quarter of the financial year (JanMar 08), the company grew by 95% over the corresponding period last year. The adjusted individual FYP for quarter ended March 2008 stood at Rs.471 crore as compared to Rs.241 crore for quarter ended March 2007. Commenting on the continued high growth of the company, Mr. Gary Bennett, Managing Director & CEO, Max New York Life Insurance, said, We have built a robust and values driven business model. We have the best in class agent advisors who are acknowledged for their quality of advice. We always had a strong focus on customer needs and during past one year we further sharpened our customer centricity. This reflects in our entry into new product segments like health insurance and retirement planning and superior customer service and claims record. These efforts are reflected in our financial performance for the year and will help us continue on this growth trend. Max New York Life Insurance sold 8.7lakh policies during the financial year 2008, an increase of 58% over 5.5lakh policies sold during financial year 2007. The company 15

Max New York Life Insurance has acquired around 23lakh policies since inception. In the financial Year 2008 the Assets Under Management also doubled to over Rs3,600 crore as compared to Rs.1,800crore as at the end of previous financial year. During the Financial Year 2008, Max New York Life further strengthened its distribution network. The company launched 77 new offices and now has presence in 157 cities across the country through 242 offices. The rural business of Max New York Life Insurance started its hub and spoke operations in Haryana after witnessing stupendous success in Punjab. The company also strengthened its partnership distribution channel by signing 4 corporate agency relationships, 5 broking house tieups and 8 referral tie-ups with banks. Max New York Life Insurance launched 13 new products during the financial year and now has a portfolio of 38 products and 8 riders for individuals. The company entered the health insurance segment with the launch of...

SELLING STRATEGIES OF MAX NEW YORK LIFE INSURANCE

In 1999, when the insurance sector was opened to private players in India, Max India Limited tied up with New York Life to form Max New York Life (MNYL) to provide individual and group life insurance solutions. In a short span of around 5 years, it established a wide distribution network with 28 offices and representatives across 21 cities in India. Max New York Life offered 13 products and 9 riders customized to over 400 combinations that provided a number of options to the customer. Max New York Life mission, vision and values were all directed towards becoming the most admired and preferred Life insurance Company in India. They also aimed to be the first choice for employees as well as agents. In 2000, Max New York Life realized that to compete against LIC, the only large player in the life insurance segment, it had to build a huge network and implement a product differentiation 16

Max New York Life Insurance strategy to gain customers. However, the tie up with New York life ensured that different options were given to the customer as against LIC products which were not differentiated. There was also an opportunity in the Indian markets as penetration rates were only 1.3% and insurance policies were mainly considered as a tax-saving investment, rather than risk coverage. The leading player (LIC) concentrated only on selling and very little qualitative advice was offered to the customer buying its insurance policies. This service gap enabled a customer-oriented player like Max New York Life to impress the potential customers.

Max New York Life laid stress on training of agents, as personal relationships were the key to success in selling insurance. For this purpose, it took special measures to train agent advisors who were the primary source of distribution. In 2002, it had around 1900 agent advisors who underwent 152 hours of training before selling as against 100 hours stipulated byIRDA. These training programs were spread over 2 years for 500 hours and ensured up gradation of skills and knowledge. The training program covered consumer psychology, the financial markets, and development of selling skills, discipline and the right attitude in the agents. These agents were groomed to become financial advisors to customers. Commenting on internal brand building, Debashis Sarkar (Sarkar), senior vice-president, marketing, Max New York Life said: We will also be focusing on internal brand-building, since brand-building has a larger context in the service sector. Internal employees are all opinion shapers and indirect brand-builders and brand promise needs to be replicated down the chain at every customer touch point. To strengthen its distribution system further, in 2003, Max New York Life adopted alternative distribution channels viz. franchisee model, rural business, telemarketing, banc assurance and corporate alliances. It appointed gram sahayaks in some rural locales who were trained to identify and sell specialized insurance products.

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There are tapping opinion leaders in the village like schoolteachers, social workers and chemists, and creating products which suit rural needs," commented Sarkar. The company tied up with Shoppers' Stop and reached out to customers who held the chain's "First Citizen" discount card and bought children's clothes more than once a month. Such customers were tapped for child saving schemes as well. Max New York Life created product differentiation by giving Whole Life policies that offered customers the correct balance between protection and savings. They offered for the first time in India a free-look period i.e., a customer had 15 days period to weigh the various options offered by Max New York Life which helped him to take an informed decision. This standard was adopted by IRDA as the best practice to be emulated by all players in the Indian insurance market. They were also the first company to sell a policy with riders. For example, 5-Year Term Renewable and Convertible Policy had two riders attached to it viz. Personal accident benefit and Dread disease benefit, which could be attached at the time of purchase of policy or later, subject to certain conditions. Max New York Life also offered a specialized rural policy provided term insurance for Rs10,000 for a sum of Rs100, which was affordable to that particular segment of society. Max New York Life offered cash bonus in May 2003 to its Whole Life policyholders, who joined before February 6, 2002. As a value added service, this bonus could be used in five different ways: accumulated with the company and earn interest, buy paid up additions to raise the death benefit of the base policy, offset against future payable premiums, taken in cash or buy an additional term cover for one year. In 2003, Max New York Life realized that it needed a new workflow system, as the existing one was unable to meet the customer requirements efficiently. Therefore, it tied up with nugent to supply business process management tools. These technological improvements helped to reduce the turnaround time for customer request by 45%, aided in immediate retrieval of information, and generated savings on paperwork and telephone costs. 18

Max New York Life Insurance

Max New York Life also fixed benchmarks on claim processing time, processing of complaints and customer satisfaction and monitored these regularly. All these measures served to enhance customer service levels in the company. At the outset, the mission and vision of Max New York Life clearly defined its objective to be the most admired and preferred insurance company in India. It then went about doing a SWOT analysis that formed the basis for its marketing strategy. It had the advantage of variety of products from New York Life, a leading insurance player in the US, which had to be introduced with Indian perspective. The largest threat was LIC, which had a big distribution network. Max New York Life also saw an opportunity in the under-penetrated insurance market where insurance policies are considered as an investment or tax-saving tool. Using this market analysis it went about building its distribution network through direct sales personnel called agent advisors. Special attention was given to training them so that they could go beyond selling and offer professional advice to customers. Max New York Life leveraged the fact that insurance policies were mainly treated as tax savers or investment tools. Therefore, it emphasized on protection against risk in its products and combined savings with protection creating a differentiated product. These measures coupled with other product differentiations and customized processes helped it to gain a presence in the insurance market. Max New York Life mainly used the concept of protection against risk to promote its products. It felt that existing insurance products, although having a money-back offer, did not offer protection to the customer. The Whole Life policies of Max New York Life, therefore concentrated on a unique combination of protection and saving that appealed to the customer. Along with this,

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Max New York Life Insurance riders in the form of supplementary policies served as an additional benefit to the customer. Another first for Max New York Life was its cash bonus offer which offered cash back on certain policies. As a value addition, there were various options wherein this cash could be invested with the company. Continuing with its innovations, Max New York Life also offered a free-look for 15 days, which later became the norm for insurance industry. With a focused approach to the rural areas, Max New York Life introduced a rural policy with minimum investment to suit the pockets of the lower income groups residing in villages. To make this section of customers understand the benefits of their policies, they adopted a unique strategy of appointing schoolteachers and social workers as agents, who being opinion leaders helped convince the villagers about the product. Other distribution channels like banks and corporate alliances were a means to expand the customer base of Max New York Life via customers visiting these places. The direct selling agents established personal rapport with customers on one-to-one basis, thereby increasing goodwill and loyalty towards Max New York Life. To support their products and distribution, they built a customized business process system using the web platform to generate quick customer response. This model also helped them to track complaints and measure customer satisfaction. The improved productivity and low costs helped to improve Max New York Lifes profits and gave them increased business.

VARIOUS SELLING STRATEGIES ADOPTED BY MAX NEW YORK LIFE ARE DISCUSSED BELOW:

1. BONUS STRATEGY
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Max New York Life Insurance Bonus is a function of surplus funds available after adjusting for future liabilities and current assets. This is based on actuarial experience. Therefore, based on actuarial experience, bonuses will be announced not before three years of operations. Max New York Life offers innovative and immediate (not reversionary) bonus options, which add value to customers. Bonuses can be received in cash, employed to offset premium, left on deposit with interest, used to buy additional insurance by way of paid-up additions or term insurance.

2. RURAL STRATEGY
Max New York Life recognizes the rural market and social sectors as being distinct, requiring different selling and product strategies. Therefore, Max New York Life have designed specific products and appointed village cooperatives in various districts across India. These village cooperatives help increase awareness of life insurance.

3. COMMUNICATION STRATEGY
Max New York Life objective is to build Indias most admired Life Insurance Company. Max New York Life seeks to build trust with customers. Max New York Life focus on life insurance and experience of over 158 years has helped position us as life insurance specialists. The selling strategy is to provide a consistent brand experience across all stakeholders customers, shareholders, employees, agents, regulator and the public. The brand experience will be based on positioning of being a trusted life insurance specialist that can partner the customer for life. Max New York Life is also sparing no efforts to increase awareness for the true value of life insurance, which lies in risk protection.

4 .STRONG AGENCY FORCE AND DIFFERENT AGENCY COMMISION STRUCTURE

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Max New York Life Insurance Max New York Life has over 3,000 agents / advisors. Max New York Life believe in a quality approach to business and therefore select and train only the best in class people so that they can deliver value to the customer. The company places a lot of emphasis on its selection process, which comprises four stages screening, psychometric test, career seminar and final interview. The agents are given in-house training to ensure optimal control on quality. Commission is purely a function of the business that they generate. Given approach to business it will not be unusual to see some agents earn more remuneration than the managing director of the company.

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FUTURE PLANS OF THE ORGANIZATION

EXPANSION PLANS: Mr Sy Sternberg, Chairman & CEO, New York Life Insurance Company, and Mr Analjit Singh, Chairman, Max India Ltd, at a press conference in the Capital on Tuesday. - Kamal Narang New Delhi , Nov. 28 Max New York Life Insurance plans to foray into the micro insurance sector. The company is right now looking at the various aspects of micro insurance in terms of product packaging, pricing and chalking out distribution models, Mr Gary R. Bennett, Managing Director and CEO of Max New York Life Insurance Co Ltd, said. Speaking to newspersons, he said, "we are in the early stages of talks with a general insurance company for a tie up for the micro insurance foray." He, however, declined to give any time frame when the company is likely to go for the venture. It is going to be a great opportunity for the insurance company, he said adding, the next phase of development of the life insurance industry will be in rural areas. Capital infusion Speaking about the fresh capital infusion, Mr Analjit Singh, Chairman, Max India Ltd and Max New York Life, said, the company planned to raise its paid-up capital to Rs 1,000 crore in next two years and eventually to Rs 1,500 crore. Currently, the paid-up capital of the company stands at Rs 617 crore. The company expects to break even by 2008-09. The company, which registered more than 100 per cent growth last year, intends to roll out about seven new products next 23

Max New York Life Insurance year. FDI limit Asked about the foreign direct investment limit (FDI) in the insurance sector, New York Life Insurance Co, Chairman and Chief Executive Officer, Mr Sy Sternberg, said the company wants the Indian Government to raise the FDI in the insurance sector. "Our highest priority at the moment is to see the FDI cap lifted. It will help us scale up our investment in India," he added. New York Life has 26 per cent equity the highest permitted at present and has committed to increase its stake to 49 per cent, when the Government raises the cap.

1.3 PROBLEMS OF THE ORGANIZATION Problems

Consumer awareness level is still off the mark. According to the recently conducted FICCI survey on the Present State of Indian insurance industry, a copy of which is available with all of you, the awareness levels regarding Insurance are still in the realm of medium to low. This clearly indicates the onerous task that companies have in creating awareness about "need to Insure" and also tremendous potential they have in expanding the markets by getting more customers in their fold by increasing awareness levels. Insurers in India should also explore distribution through non-financial organizations. For example, insurance for consumer items such as refrigerators can be offered at the point of sale. This piggybacks on an existing distribution channel and increases the likelihood of insurance sales. Alliances with manufacturers or retailers of consumer goods will be possible. With increasing competition, they are wooing customers with various incentives, of which insurance can be one. Another potential channel that reduces the need for an owned distribution network is worksite marketing. Insurers will be able to market pensions, health insurance and even other general covers through employers to their employees. These products may 24

Max New York Life Insurance be purchased by the employer or simply marketed at the workplace with the employers co-operation. Finally, some potential Indian entrants into insurance hope to ride their existing distribution networks and customer bases. For example, financial organizations like ICICI, HDFC or Kotak Mahindra intend to tap the thousands of customers who already buy their deposits, consumer loans or housing finance. Other hopeful entrants anticipate specific alliances such as with hospitals to provide health cover.

International Experience
Cross-country experience shows that nowhere in the world have the entry of foreign firms threatened the position of domestic companies. Whether it is Malaysia, where the insurance sector has been open for more than 50 years and foreign companies account for about 10 per cent of market penetration or it is Indonesia, Thailand, China or the Philippines, where the market has been opened more recently, the total market share of foreign companies is less than 10 per cent except in Indonesia where it is about 20 per cent. Closer home, we have the experience of the banking sector where despite the presence of 42 foreign banks, their share in total banking assets is less than 10 per cent. Today hardly 20 per cent of the population in India is insured and insurance premium (life as well as non-life) account for just 2 per cent of GDP as against the G-7 average of 9.2 per cent. Consequently, the fear that new companies will displace public companies is misplaced. There is room for more for not only the existing companies but also for any number of competitors.

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Max New York Life Insurance

LIFE INSURANCE
Life Insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against. Usually the insurance contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death if it occurs earlier. Obviously, there is a price to be paid for this benefit. Among other things, the contract also provides for the payment of premiums by the assured. Life Insurance is universally acknowledged as a tool to eliminate risk, substitute certainty for uncertainty and ensure timely aid of the family in the unfortunate event of the death of the breadwinner. In other words, it is the civilized world's partial solution to the problems caused by death In a nutshell, life insurance helps in two ways: premature death, which leaves dependent families to fend for itself and old age without visible means of support.

Benefits of Life Insurance: Superior to Any Other Savings Plan

Unlike any other savings plan, a life insurance policy affords full protection against risk of death. In the event of death of a policyholder, the insurance company makes available the full sum assured to the policyholders' near and dear ones. In comparison, any other savings plan would amount to the total savings accumulated till date. If the death occurs prematurely, such savings can be much lesser than the sum assured. Evidently, the potential financial loss to the family of the policyholder is sizable.

Encourages and Forces Thrift

A savings deposit can easily be withdrawn. The payment of life insurance premiums, however, is considered sacrosanct and is viewed with the same seriousness as the payment of interest on a mortgage. Thus, a life insurance policy in effect brings about compulsory savings.

Easy Settlement and Protection against Creditors

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Max New York Life Insurance A life insurance policy is the only financial instrument the proceeds of which can be protected against the claims of a creditor of the assured by effecting a valid assignment of the policy.

Administering the Legacy for Beneficiaries

Speculative or unwise expenses can quickly cause the proceeds to be squandered. Several policies have foreseen this possibility and provide for payments over a period of years or in a combination of installments and lump sum amounts.

Ready Marketability and Suitability for Quick Borrowing

A life insurance policy can, after a certain time period (generally three years), be surrendered for a cash value. The policy is also acceptable as a security for a commercial loan, for example, a student loan. It is particularly advisable for housing loans when an acceptable LIC policy may also cause the lending institution to give loan at lower interest rates.

Disability Benefits
Death is not the only hazard that is insured; many polices also include disability benefits. Typically, these provide for waiver of future premiums and payment of monthly installments spread over certain time period.

Accidental Death Benefits

Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if death occurs as a result of accident.

Tax Relief
Under the Indian Income Tax Act, the following tax relief is available a) 20 % of the premium paid can be deducted from your total income tax liability. b) 100 % of the premium paid is deductible from your total taxable income. When these benefits are factored in, it is found that most polices offer returns that are comparable/ or even better than other saving modes such as PPF, NSC etc. Moreover, the cost of insurance is a very negligible

1.4 COMPETITION INFORMATION

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Max New York Life Insurance

COMPETITORS:
1. ICICI LIFE INSURANCE 2. LIFE INSURANCE CORPORATION 3. AVIVA LIFE INSURANCE 4. MET LIFE 5. BAJAJ ALLIANZ 6. BIRLA LIFE INSURANCE

1.5 SWOT ANALYSIS OF MAX NEW YORK LIFE

STRENGTHS
Knowledge based Being quality conscious rather than quantity oriented Providing in-house training to advisors rather than online training Cost effective organization Persuasiveness of customer service representative to address the problems. Effective customer Personal consulting for customized policy. Perceived financial loyalty programmers. Customized policies that cover the specific terminal disease.

WEAKNESSES
Less Brand Awareness Time consuming ( in picking advisors) 28

Max New York Life Insurance Process Oriented( process are too lengthy) Fewer suggestions in terms of precautionary measures for avoiding perils. Are pulled by the engine of powerful brands like TATA AIG and Bajajallianz.

OPPORTUNITIES
It can enter in the General insurance sector. Opportunity in the rural sector as there is an under-penetrated insurance market in rural sector. Relative market potential in not only the rural markets but also the semiurban markets. Better customer services like utmost promptness in issuance of the policy, giving cheque pick up facilities and not making customers waiting for months. Making more loyal customers and attracting other customers with better service.

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Max New York Life Insurance

THREATS

LIC being the major market share holder Competitors in the private sector With players like SBI Life and ICICI Prudential spending lot in advertisements, it may take away the market. Focusing more on innovating new products takes the fruitfulness out of good products. Less number of agents compared to other companies leading to a bad distribution network.

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Max New York Life Insurance

CHAPTER-2 OBJECTIVE AND METHODOLOGY

2.1SIGNIFICANCE

SIGNIFICANCE OF THE STUDY

It plays a very important role in the day-to-day activities of the common man, business houses, industries, agriculturists and other service providers. Insurance not only provides protection for individual and industry through risk coverage; it also mobilizes funds for economic activity, and encourages savings. Thus an insurance cover is considered an important tool for economic stability. The insurance industry is a key sector in the economy of any country.

2.1

RESEARCH DESIGN
A Research Design is the framework or plan for a study which is used as a

guide in collecting and analyzing the data collected. It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods.

2.2

RESEARCH OBJECTIVE
1. To know the consumer feedback. 2. To know the marketing strategies adopted to promote these products. To make the private players responsible to the investors and not to the 31

Max New York Life Insurance government. To increase the competition in this sector so that the common people has the advantage of enjoying quality services at a reasonable cost 3. Insurance has a far reaching effect in synchronizing between the various service sectors. So if this sector can grow, the prospects of the various other services sector remains to be promising. 4. No study is generally full proof this report suffers from certain limitation with respect to information and analysis

2.3 RESEARCH METHODLOGY

1. Research and Design a. Descriptive research attempts to describe systematically a situation, problem, phenomenon, service or programme, or provides information about , say, living condition of a community, or describes attitudes towards an issue.

2. Data collection method a. Primary Research: This data is collected by the interacting with various people in our society. The researcher originates primary data for the specific purpose of addressing the researcher problem or for selecting the best course of action to take in a given situation. Questionnaires are used for collecting the primary data i. Questionnaire: Questionnaire is a research instrument

consisting of a series of questions and other prompts for the purpose of gathering information from respondents. Although they are often designed for statistical analysis of the responses,

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Max New York Life Insurance this is not always the case. The questionnaire was invented by Sir Francis Galton b. Secondary Research: This data is collected through various web sites, magazines, and prospects .Secondary data is collected for some purpose other than the problem at hand and the data is provision of insight into and comprehension of the problem situation confronting the researcher or for selecting the best course of action to take in a given situation. i. Journal/Brochure of IRDA ii. Published Reports iii. Internet

SAMPLING Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample. SAMPLE SIZE The sample size for the survey conducted was 120 respondents.

DATA COLLECTION METHOD: 33

Max New York Life Insurance (a) Questionnaire: A questionnaire is a structured technique for data collection consisting of a series of question, written or verbal, to which a respondent replies , is interpret as questionnaire

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Max New York Life Insurance

DATA ANALYSIS & INTERPRETATION

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Max New York Life Insurance HOW DO YOU COME TO KNOW ABOUT MAX LIFE INSURANCE.
PERCENTAGE FRIENDS ADVERTISEMENT WEBSITE BROUCHER OTHER SOURCE 21 28 15 6 30

FIGURE 3.1 Analysis: 21% people come to know about Max through friends 28% people come to know about Max through advertisement 15% people come to know about Max through website search 6% people come to know through pamphlets and brochure 36

Max New York Life Insurance 30% people awarded by other source. Interpretation: One third of the people come to know though other source like banner, telephone conversation, etc. It is a good amount that company investing lots of money for the awareness of the product and services. Sometime good relation with the customer helps to increase the new customer and sometime new product and services build according to them. This improves the credit worthiness of the company with the customers. Where company has to improve the website source which will be helpful in future because people are generally gather information through internet. And this will be the biggest source of network from where people can gather the information.

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Max New York Life Insurance YOU ARE EMPLOYED IN WHICH SECTOR
CATERGORY PRIVATE JOB GOVERNMENT JOB SELF PERCENTAGE 27 32 41

FIGURE 3.2 Analysis:

27% of the respondent works in private jobs 32% of the respondent works in government job 41% respondent is self employed.

Interpretation: People are like to be secured about their jobs and need various facilities to. In government job people are offered with many tools like insurance, PPF, pension etc. Where people want to earn more are working in the private jobs. In the life of competition everyone wanted to secure their future. Private employee can be the target area where company can increase their customer. Does Max life insurance provides better services of insurance

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Max New York Life Insurance

OPTION Yes No

In Percentage 75 25

FIGURE 3.3 Analysis :

75% of people think max priovides better serives of insurance 25% of people think max doesnt provide good service.

Interpertation: A huge amount of respondent belives that the max provide good services but few people think it not. Because every the which they have availed by other insurance company its s diifernet. Every company have there own policy and way of handling the customer. So the max have to work more to satisfy their customer. Are you satisfied with your present Insurance service.

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Max New York Life Insurance Consumer Response Yes No In Percentage 75% 25%

FIGURE 3.4 Analysis:

75% of respondent are satisfied with their insurance services. 25% of respondent are not satisifed with their service.

Interpertation : One forth of population are not satisfied by the max company serviec. So there should be some more service to be introduce to their customer to retain them. Because without customer they cant survial in the market. Where people are also aware of portablity of the insurance policy which helps them to avail the serivesand could shift to another company.

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Max New York Life Insurance Important features which satisfied the consumer provided by Max life insurance. Consumer Response Good return Secure future Tax Deduction In Percentage 56 22 22

FIGURE 3.5 Analysis:

56% of people satisfy with the return they provide 22% think it secure there future 22% think by taking insurnace they can have some tax benefits.

Interpertation: Insurance all about securing your life directly or indirectly. Its have many features which helps to save money and can be utilies at required time. Where insurance always provide a good return and also the safety of life. People also can save 41

Max New York Life Insurance their tax to avail the tax deduction in the income tax. Where the rate of return generally high in campariosn to other insuranc company.

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Max New York Life Insurance 6. Face any difficulty while using the Max life insurance policy Consumer In Percentage Response While paying preium 15 At the time of claim 61 settlement About information of their 24 product

FIGURE 3.6 Analysis: 15% people face problem while paying preium 61% face problem while claim settlement 24% people face problem while gathering information Interpertation : From the graph above show 15% customer face diffculty while paying the preium. Where all they are the fresh customer where he/she couldnt know when and how to pay the perium. Sometime they couldnot have sufficent money at the time of the payment of preium. Maximum people face problem at the time of claim settlement

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Max New York Life Insurance because in case of accident and death the team have to investigate about the cause of death. So the time required to investigation, so delay in claim settlement.

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Max New York Life Insurance 7. Max life insurance successful in which Areas.

Consumer Response RURAL URBAN SEMI URBAN

customers 8 72 40

In Percentage 8 64 28

FIGURE 3.7 Analysis: 8% people think they are sucessful in the rural sector 64% people think they are sucessful in the urban sector 28% peole think they are sucesful in semi urban sector

Interpertation : From the above graph 40% customer thinks that the aviva life insurnace company also focusing to the backward and rural area. While 40% think that they are not focused in rural sector. IRDA have some rule and regulation where the have to focus in this the company also see the rural sector. They have introduce various plan 45

Max New York Life Insurance and policy to promote there company and help the backward and rural sector to develop and grow.

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Max New York Life Insurance 8. Maxs insurance scheme is Economical. Consumer Response GOOD RETURN SAVING INVESTMENT SAFETY AND SECURING FUTURE In Percentage 30 20 10 40

FIGURE 3.8 Analysis: 30% people think good return scheme 20% people think its a good saving 30% peoplethink good investment 40%people think a saftey policy

Interpertation : From above pie chart the scheme of policy are economical. Which help the customer in various area such as having good return, proper saving for future, investment tool and schemce of safety. Where people are always expose to the risk so 47

Max New York Life Insurance they need an tool which can safe guard them. And provide them insured whenever they exposed to the risk.

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Max New York Life Insurance 9. Do you think that, which policies provided by Max life insurance that helping to change your life? Consumer Response IMPROVING STATUS PROVIDING FUND AT RITE TIME PSYCHOLOGICAL SATISFACTION ANY OTHER In Percentage 21 42 29 8

FIGURE 3.9 Analysis: 42% people think they provide funds at right time 21% people think they improve there life style 29% people have psychological satisficaton

Interpertation : 49

Max New York Life Insurance From above pie chart customer think the policy which have been provided them is really help to change there lives. Because max provide the product which help to save more and can enjoy there benfits accordingly. They genrally focus upon the customer reilablity. People always need fund when they grow old, because there required have also increae so they need fund at that time.

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Max New York Life Insurance 10. Number of policy provided is sufficient.
CUSTOMER RESPONSE SATISFIED NOT SATISIFED IN PERCENTAGE 40 60

FIGURE 3.10 Analysis:

40% people are satisfied with the policy 60% people are not satisfied and need more policy.

Interpretation: People always need more and more. So companies have to design the product which helps them to increase their customer. Because customer are the king of the market. As per the market consent the companies have to come with new product every time to retain in the market. 11. Which policies do think is most preferable and satisfies you the most 51

Max New York Life Insurance

CONSUMER RESPONSE LIFE INSURANCE PLANS PENSION PLANS CHILDREN PLANS LIFE CUM PENSION PLANS

IN PERCENTAGE 24 7 14 55

FIGURE 3.11 Analysis: 24% people have life insurance plan 7% people have pension plan 14% have childrens plan for their child 55% have the life cum pension plan.

Interpretation: 50% people are generally self employed and private employee; they dont have the surety of their job. While people working in the private sector doesnt have the pension after the retirement. Government employee often have pension in future thats why they opt for the life insurance. Well right now the requirement of children has gone up to. So to satisfy them also a major problem so they have childrens plans. 52

Max New York Life Insurance

CONCLUSION
Max life insurance is one of the worlds largest and oldest life insurance companies. It has businesses spread out across the globe. It came to India in the year 2002. It currently ranks number 7 amongst the insurers in India (Source: annual premium provided by the company) The company faces a large amount of competition. To sustain itself it must promote its products through advertising, improve its selling techniques and also focus upon the customer satisfaction. Consumers must be aware of the new plans available at max life insurance. The medium of advertising used could be television since most of its competitors use this tool to promote their products. The company must be promoted as an Indian company since consumers seem to have more trust in investing in Indian firms. The unit linked concept must be specifically promoted. The general perception of life insurance has to change in India before progress is made in this field. People should not be afraid to invest money in insurance and must use it as an effective tool for tax planning and long term savings. Max life insurance could tap the rural markets with cheaper products and smaller policy terms. There are individuals who are willing to pay small amounts as premium but the plans do not accept premiums below a certain amount. It was usually found that a large number of males were insured compared to females. Individuals below the age of 30 (mostly male) were interested in investment plans. This was a general conclusion drawn during prospecting clients.

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Max New York Life Insurance

FINDING AND RECOMMANDATION

With the help of a questionnaire we have tried to assimilate information that can throw light on the customers satisfaction. The questionnaire has been so designed that it not only understands the customers perceived notion on the role of an insurance advisor but also the market position of max life insurance.

Finding: A major finding was regarding the mindset of people who perceive the Insurance advisor as low paid Insurance agents. People do not see the challenges and the opportunity to understand customers perception which is available in this job. Most of the interviews were not aware of the player in the Insurance sector. Senior citizen and middle aged employees still believe that insuring and working worth a government company is less risky and reliable. Most of the interviews ranked reliability more important than profitability when asked about reason for choosing a particular Insurance company Since the Insurance advisors are not the employees of the company, people had several misconceptions on the career prospects of this job.

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Max New York Life Insurance

RECOMMENDATIONS TO COMPANY:
Since Max Life Insurance co. ltd is the largest in terms of FDI invested, in terms of work force, in terms of market share, in terms of no. of customers. All these positive stands of the company place at the number one position. On second aspect whatever amount of money Max save, can be used to increase the no. of policies, which will helpful to increase the market share of the company. Since the customers think about the companies in the industry, when they invest money in the life insurance industry. So its necessary to increase the market share of the company. There are some recommendations. Open some more branches in semi urban and rural area. Max has almost its branches in urban area or metros. So in order to increase the no. of customer, Max should increase the approach towards potential customers. For that it has to increase the branches in the semi urban cities like C, D grade cities. And the rural marketing is the best option for Max to increase its base in the market Improve customer services. In order to take the advantage of being industry leader in private sector, Max has to improve its customer services. According to my experience in the company, a good number of customers forget to pay their premium at time so it causes a big loss to the company. Bring some unit linked life insurance plans in the market. Being a market leader doesnt ensure the leadership in the future. Since after increment in FDI from 26% to 49% all player will have the opportunity to capture the market share. So in order to maintain its position Max should introduce some new market linked insurance plan, which will give a competitive advantage to the Max against its competitors. 55

Max New York Life Insurance

Trained the financial advisors more efficiently to provide information to the general public. In the changed scenario, more efficient training will be needed, so Max

should provide good and efficient training to their financial advisors. Because they are the one who interact directly with the customers. So good training will give them the right way to deal with the potential customers.

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Max New York Life Insurance

LIMITATIONS
The consumer was not very keen to fill up the questionnaire. Some of the consumer did not either understand the questions or they were not aware of the policies of the company, e.g. the most obvious question regarding the benefits of insurance policy was also answered by some in no whereas as per our understanding. There was hardly any scope to interact with the consumer. Although there was some issues which were confusing as some most obvious questions were answered by the employees in no and I was curious to know whether they are saying correctly or not and wanted to consult them to verify the facts but the consumer were not available very easily. . The study was limited only to the city of New Delhi in few areas like Palam. The study was conducted only for a short period of one month. The study is based on the assumption that information provided by the respondents is true.

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