A COMPREHENSIVE PROJECT REPORT

ON
SBI INSURANCE ADVISOR OPPORTUNITY AND
THREATS

Submitted in Partial Fulfillment for the Requirement of MBA

Programme of Study

Supervised by: DR. ADITI SHARMA Submitted by: RISHAV PAGROTRA

Designation: ASSITANT PROFESSOR Roll No: CUHP18MBA59

November 2019
School of Commerce & Management Studies
Central University of Himachal Pradesh
(Established under Central Universities Act 2009)
DHARAMSHALA, DISTRICT KANGRA – 176215, HIMACHAL PRADESH

I
 DECLARATION

I Rishav Pagrotra Hereby declare that this report is the record of authentic work carried out by
me during the period 17 June 2019 to 31 July 2019 and has not been submitted to any other
university / institute for the award of any degree etc.

Rishav Pagrotra

CUHP18MBA59

I
 ACKNOWLEDGEMENT

The satisfaction of the successful completion of any task wouldn’t be complete

without the expression of gratitude to the people who made it possible.
I am very thankful to DR. ADITI SHARMA (ASSISTANT PROFESSOR), Faculty,
CENTRAL UNIVERSITY OF HIMACHAL PRADESH for the guidance and interest
evinced throughout the preparation of this Report.
I will also like to thank SBI life insurance dharamshala for letting me work in
internship I will also thank my mentor AASHISH GULERIA for his guidance
I am highly grateful to my Parents (SHISHU PAL, NIRMLA DEVI) for moral
support and encouragement.

Rishav Pagrotra

(CUHP18MBA59)

II
 Table of Contents
DECLARATION .............................................................................................................................................. I
ACKNOWLEDGEMENT ................................................................................................................................ II
INTRODUCTION .......................................................................................................................................... 1
INDUSTRY PROFILE ..................................................................................................................................... 5
Introduction ............................................................................................................................................ 5
Market Size ............................................................................................................................................. 5
Government Initiatives ........................................................................................................................... 6
SBI LIFE:..................................................................................................................................................... 12
Vision, mission and values of the company: ........................................................................................ 13
Lines of business ................................................................................................................................... 13
INSURANCE ADVISORS:......................................................................................................................... 17
PRODUCT PROFILE ................................................................................................................................ 19
SBI life Insurance SWOT Analysis.............................................................................................................. 21
Strengths............................................................................................................................................... 21
Weaknesses .......................................................................................................................................... 21
Opportunities........................................................................................................................................ 21
Threats .................................................................................................................................................. 21
FUNCTIONAL DEPARTMENTS ................................................................................................................... 22
FINANCE DEPARTMENTS ...................................................................................................................... 22
MARKETING DEPARTMENT................................................................................................................... 22
HUMAN RESOURCE MANAGEMENT..................................................................................................... 23
WEEKLY WORK REPORT ............................................................................................................................ 24
OVERALL LEARNING .................................................................................................................................. 25
Some opportunities .............................................................................................................................. 25
Threats it is facing in current environment .......................................................................................... 25

III
TABLE OF FIGURE

Figure 1-I THE PURCHASE FUNNEL ..................................................................................................... 4

Figure 2-I INSURANCE STRUCTURE .................................................................................................... 7
Figure2 -II Insurance Penetration and Insurance Density ......................................................................... 9
Figure 2-III Share of public and private sector in life insurance .............................................................. 10
Figure 2-IV Premiums Market Share in First Year Life Insurance (FY19) ............................................. 11
Figure 3-I SBI LIFE ORGANISATION STRUCTURE .......................................................................... 15
Figure 3-II HIERARCHY IN RETAIL AGENCY CHANNEL .............................................................. 16

I
 INTRODUCTION

Insurance comes underneath the service sector and whereas selling this service, guardianship is
to be taken in quality product and client satisfaction. Whereas selling the services, it's
conjointly pertinent that they rely on the innovative promotional measures. it's not decent that
you just perform well however it's conjointly necessary that you just let others comprehend the
standard of your positive contributions.

Insurance selling

The insurance selling refers to the selling of Insurance services with the aim to form client and
generate profit through client satisfaction. The Insurance selling focuses on the formulation of a
perfect combine for Insurance business in order that the Insurance organisation survives and
thrives within the right perspective.

Marketing --Mix for Insurance firms to best meet the requirements of its targeted market. The
selling combine includes sub-mixes of the seven P's of selling i.e. the merchandise, its price,
place, promotion, people, method . Out of Exclusive 3 P’s most vital one is mentioned below
that is said to the present study:

People:
Understanding the client higher permits coming up with acceptable merchandise. Being an
industry that involves a high level of individual’s interaction, it's vital to use this resource with
efficiency so as to satisfy customers. Training, development and powerful relationships with
intermediaries square measure the key areas to be unbroken into account. Coaching the
workers, use of IT for potency, each at the employees and agent level, is one among the
necessary areas to appear into.

From the survey results of a recent poll among B2B sales and selling executives, the foremost
usually mentioned selling goals for the year ahead square measure lead generation and
branding/awareness initiatives.

1
Lead Generation

In selling, lead generation is that the generation of client interest or inquiry into merchandise or
services of a business. Leads is created for functions like list building, e-newsletter list
acquisition or for sales leads. The ways for generating leads usually represent the umbrella of
advertising, however might also embrace non-paid sources like organic computer programme
results or referrals from existing customers. Businesses try to get "quality" leads, those with a
better likelihood of a desired outcome.

Lead generation is that the method of creating contacts which can result in a procurement or
different favourable outcome. The leads might come back from numerous sources or activities,
as an example, digitally via the net, through personal referrals, through phonephone calls either
by the corporate or telemarketers, through advertisements, events, and buy of lists of potential
customers. A 2014 study found that seventy eight of respondents cited email because the most-
used channel for generating leads, followed by event selling and eventually content selling.
Social media was found to play solely a part in lead generation. Another 2014 study found that
direct traffic, search engines, and net referrals were the 3 preferred on-line channels for lead
generation, accounting for ninety three of leads.

Lead generation is usually paired with lead management to maneuver leads through the
acquisition funnel.

Lead Management could also be a collection of methodologies, systems, and practices designed
to get new potential business patronage, usually operated through a spread of selling campaigns
or programs.

Lead management facilitates a business's association between its outgoing client advertising
and also the responses thereto advertising. These processes square measure designed for
business-to-business and direct-to-consumer methods. Lead management is in several cases a
precursor to sales management and client relationship management. This important property
facilitates business gain through the acquisition of latest customers, commerce to existing
customers, and making a market whole.

2
The purchase funnel .The purchase funnel, or shopping for funnel, could also
be a shopper targeted commercialism model that illustrates the theoretical shopper journey
towards the acquisition of a product or service.

In 1898, E. St. Elmo Lewis developed a model that mapped a theoretical client journey from
the instant a whole or product attracted client attention to the purpose of action or purchase. St.
Elmo Lewis’ plan is usually brought up because the AIDA-model - associate descriptor that
stands for Awareness, Interest, Desire, and Action. This staged method is summarized below:

• Awareness – the client is responsive to the existence of a product or service

• Interest – actively expressing associate interest during a product cluster
• Desire – meaning to a specific whole or product
• Action – taking following step towards buying the chosen product

The purchase funnel idea is employed in selling to guide promotional campaigns targeting
completely different stages of the client journey, and conjointly as a basis for client relationship
management (CRM) programmes and lead management campaigns.

3
 Figure 1-0-I THE PURCHASE FUNNEL
Sales leads square measure generated on the premise of demographic criteria like FICO score,
income, age, HHI, psychographic, etc.

These leads are resold to multiple advertisers.

Sales leads square measure generally followed up through phone calls by the business
department.

Sales leads square measure ordinarily found within the mortgage, insurance and finance leads

4
 INDUSTRY PROFILE

Introduction
The insurance industry of India consists of 57 insurance companies of which 24 are in life
insurance business and 33 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers. In addition to these, there is sole national re-
insurer, namely, General Insurance Corporation of India (GIC Re). Other stakeholders in Indian
Insurance market include agents (individual and corporate), brokers, surveyors and third party
administrators servicing health insurance claims.

Market Size
Government's policy of insuring the uninsured has gradually pushed insurance penetration in
the country and proliferation of insurance schemes.

Gross premiums written in India reached Rs 5.53 trillion (US$ 94.48 billion) in FY18, with Rs
4.58 trillion (US$ 71.1 billion) from life insurance and Rs 1.51 trillion (US$ 23.38 billion) from
non-life insurance. Overall insurance penetration (premiums as % of GDP) in India reached
3.69 per cent in 2017 from 2.71 per cent in 2001.

In FY19 (up to October 2018), premium from new life insurance business increased 3.66 per
cent year-on-year to Rs 1.09 trillion (US$ 15.46 billion). In FY19 (up to October 2018), gross
direct premiums of non-life insurers reached Rs 962.05 billion (US$ 13.71 billion), showing a
year-on-year growth rate of 12.40 per cent.

Investments and Recent Developments

The following are some of the major investments and developments in the Indian insurance
sector.

 As of November 2018, HDFC Ergo is in advanced talks to acquire Apollo Munich

Health Insurance at a valuation of around Rs 2,600 crore (US$ 370.05 million).

 In October 2018, Indian e-commerce major Flipkart entered the insurance space in
partnership with Bajaj Allianz to offer mobile insurance.

 In August 2018, a consortium of WestBridge Capital, billionaire investor Mr Rakesh

Jhunjunwala announced that it would acquire India’s largest health insurer Star Health
and Allied Insurance in a deal estimated at around US$ 1 billion.

5
  In September 2018, HDFC Ergo launched ‘E@Secure’ a cyber insurance
policy for individuals.
 Insurance sector companies in India raised around Rs 434.3 billion (US$ 6.7 billion)
through public issues in 2017.

 In 2017, insurance sector in India saw 10 merger and acquisition (M&A) deals worth
US$ 903 million.

 India's leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with
Ebix Inc to build a robust insurance distribution network in the country through a new
distribution exchange platform.

Government Initiatives
The Government of India has taken a number of initiatives to boost the insurance industry.
Some of them are as follows:

 In September 2018, National Health Protection Scheme was launched under Ayushman
Bharat to provide coverage of up to Rs 500,000 (US$ 7,723) to more than 100 million
vulnerable families. The scheme is expected to increase penetration of health insurance
in India from 34 per cent to 50 per cent.

 Over 47.9 million famers were benefitted under Pradhan Mantri Fasal Bima Yojana
(PMFBY) in 2017-18.

 The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue
redesigned initial public offering (IPO) guidelines for insurance companies in India,
which are to looking to divest equity through the IPO route.

 IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds
that are issued by banks to augment their tier 1 capital, in order to expand the pool of
eligible investors for the banks.

Insurance Regulatory and Development Authority (IRDA)

• Established in 1999 under the IRDA Act

• Responsible for regulating, promoting and ensuring orderly growth of the insurance
and re-insurance business in India

6
 Ministry of
Finance
Government

Insurance
Regulatory and
Development

Speciali Standalone Foreign

Life General Re-
sed Health Reinsur
insura insuranc insuran
Insur Insurance ers’
nce e (21 ce (2
branche

Public Public Public Private Public Private

(1) (4) (2) (7) (1) (7)

Private Private Private

(23) (17) (1)
Figure 2-0-I INSURANCE STRUCTURE

7
Insurance Penetration (Premiums as % of GDP) Insurance Density (Premiums Per Capita)
(US$)
3.6 8
3.4 0 7
3.4 9
3. 9 3
3. 4 0.93 7 1
5 3 0.72 0.77 0 59.
0.7 5 8
54. 7
5 7 13.
2.5 2.72 2.72 2.76 5 11 11.5 2 55
2.6
0
46.5
2 40 44 43.2

1.5 30

1 20

0.5 10

2014 2015 2016 2017 2014 2015 2016 2017

Life Non-Life Life Non-Life

Figure2 0-II Insurance Penetration and Insurance Density

 At 3.69 per cent, India was ranked 41st in 2017 in terms of insurance penetration with life
insurance penetration 2.76 per cent and non-life

insurance penetration at 0.93 per cent.

 In terms of insurance density India was ranked 73rd in 2017 with overall density at US$ 73.

Note: Updated data expected after July 2019

Source: Swiss Re Institute For updated informa

 INCREASING PRIVATE SECTOR ACTIVITY IN LIFE INSURANCE SEGMENT

Share of public and private sector in life insurance Share of public and private sector in life
segment (%) FY03
insurance segment (%) FY19

2.00
%
33.
8% Public
sector
Public sector
Private
Private sector
66. sector
2%
98.00
%

Figure 2-0-III Share of public and private sector in life insurance

 Over the years, share of private sector in life insurance segment has grown from
around 2 per cent in FY03 to 33.8 per cent in FY19.

For updated informa

Note: Figures are as per latest data available, share based on new business premium
collection

Source: IRDA, Life Insurance Council

LIC CONTINUES TO DOMINATE LIFE INSURANCE SEGMENT

 As of FY19, life insurance sector had 24 private players in comparison to only four in FY02.
Visakhapatnam port traffic
 With a 52.78 per cent share new business market share in FY19, Life Insurance Corporation of
India, the only public sector life insurer in the country, continues to be the market leader

 In FY2019, in the private sector, HDFC Standard Life Insurance is leading with a share of
14.25 per cent in new business premium, followed by SBI Life Insurance at 9.15 per cent and
ICICI Prudential Life Insurance at 6.35 per cent.

Premiums Market Share in First Year Life Insurance (FY19)

LIC
17.48%
HDFC Standard Life

6.35% SBI Life Insurance

52.78%
9.15% ICICI Prudential Life
Insurance

14.25% Others

For updated informa

Figure 2-0-IV Premiums Market Share in First Year Life Insurance (FY19)

Source: Life Insurance Council, IRDA

 SBI LIFE:

SBI insurance could be a venture insurance company between depository financial

institution of Asian nation (SBI), the most important state-owned banking and money
services company in Asian nation, and BNP Paribas Assurance. SBI owns seventy four of
the whole capital and BNP Paribas Assurance the remaining twenty sixth of the capital.
BNP Paribas Cardif is that the life and property & casualty insurance arm of BNP Paribas,
one among the strongest banks within the world. BNP Paribas cluster, having presence in
additional than eighty countries ranks extremely in Retail Banking, Investment Solutions
and company & Investment Banking. Beside its five Associate Banks, depository financial
institution cluster has the peerless strength of over ,000 branches across the country,
arguably the most important within the world

In 2007, CRISIL Ltd, a subsidiary of world rating agency normal & Poor's, gave the
corporate a AAA/Stable/P1+ rating.SBI Life is one the highest non-public players within
the insurance sector of Asian nation. It offers insurance policies, investment plans, unit
coupled insurance plans. There area unit around 17,000 staff within the company,
operating in its 762 branches.

Business: continued its account of property growth, SBI insurance has denote a record
profit of Rs. 820 crore, throughout the fiscal year ending March thirty one, 2015, a rise of
Martinmas over the last twelvemonth. Operational potency has been the key driver of SBI
Life’s gain. the corporate is that the all over again market leader amongst the non-public
life insurers, in New Business Premium (NBP), for the twelvemonth 2014-15.

Awards and Accolades of SBI insurance (few latest ones):

• SBI Life wins and best observe in learning transfer for rising business bottom
line.SBI Life wins 3 awards at “World HRD Congress 2015” and “FINNOVITI”-
Digital Innovation Award 2015, for Connect Life.

• Most trustworthy non-public insurance complete 2011, 2012 and 2013 by The
Economic Times, complete Equity and Nielsen Survey

• Most loved insurance Company and also the Best insurance Company within the
non-public sector by the BFSI 2014

• Non-Urban Coverage - insurance by the Indian Insurance Aors

12
Vision, mission and values of the company:

Vision: "To be the most trusted and preferred life insurance provider”

Mission:"To emerge as the leading company offering a comprehensive range of life

insurance and pension products at competitive prices, ensuring high standards of customer
satisfaction and world class operating efficiency thereby becoming a model life insurance
company in India in the post liberalization period ".

Values:

 Trustworthiness

 Ambition

 Innovation

 Dynamism

 Excellence

Lines of business
SBI Life has a unique multi-distribution model encompassing vibrant Banc assurance,
Retail Agency, Alternate Channel, Emerging Business and Corporate Solutions
distribution channels. SBI Life extensively leverages the State Bank Group relationship as
a platform for cross-selling insurance products .SBI’s access to over 100 million accounts
across the country provides a vibrant base for insurance penetration across every.

Multi-Dimensional Model

CHANNELS

BANCA Retail Agency Alternate Channel Emerging Business CS

Multi-Dimensional Distribution Channel-SBI Life

BANCASURRANCE: Banc assurance in its simplest form is the distribution of life

insurance products through a bank’s distribution channel. Insurance companies see banc
assurance as a tool for increasing in their market penetration and premium turnover. It was
introduced in India when insurance industry was opened for private players. In India, a
bank can tie-up with one general insurance and one life insurance companies as mandate
13
by IRDA regulation. The banking sector in India comprises of more than 67,000 branches
and around 20 crores bank accounts.

RETAIL AGENCY: Another innovative distribution channel that could be used are the
non-financial organizations. Agency Channel, comprising of the most productive force of
over 110,000 Insurance Advisors, offers door to door insurance solutions to customers.
Conventionally, insurance products have been sold through agents, who are not the regular
employees of the organization but the organizational success, however, critically depends
on the effectiveness of these people. An agent is the public face of an insurance company.
Most of the insurance clients never get to see anyone else besides the agent. They are
known by a myriad of names like financial advisors, insurance agents, life advisors and
certified financial consultants. Due to increasing competition, the skill set of these agents
has also been undergoing a change.

CORPORATE SOLUTION GROUP: This group is responsible for bringing business

from corporate institutes.

ALTERNATE CHANNEL: Initially it was known as Institutional alliance. Alternative

channels such as banks, brokers, online i.e. direct, corporate agents and wire houses.

Emerging Business: It comprises of approaches like cross selling (selling an additional

product or service to an existing customer), Defence Marketing and Digital Initiatives.

14
SBI LIFE ORGANISATION STRUCTURE

Figure 3-0-I SBI LIFE ORGANISATION STRUCTURE

Fig 2.2 ORGANISATION STRUCTURE AND DEPARTMENTS

RETAIL AGENCY CHANNEL: As already discussed above that in this channel

insurance products have been sold through agents, who are not the regular employees of
the organization but the organizational success however, critically depends on the
effectiveness of these people. An agent is the public face of an insurance company. Each
Agent/ Advisor is mapped under Unit Managers as shown in figure below.

So we can say they are the bottom of the pyramid but plays vital role for this channel. This
is the reason they are given various club membership on specific targets and rewards and
recognition too and apart from this there is also career progression scheme for IAs. All this
is discussed in detail below.

15
Figure 3-II HIERARCHY IN RETAIL AGENCY CHANNEL

16
INSURANCE ADVISORS:

WHO CAN BECOME AN INSURANCE ADVISOR?

 Anyone-A businessman, distributor of financial products, housewife, agent-post

office, mutual fund, general insurance.

 Minimum 18 years of age.

 Education qualification-10th pass( As per new IRDA laws implemented from April
2015 for both urban and rural).Earlier for Urban(with population>5000) it was 12th
pass.

 Willing to work hard and enjoys meeting people.

BENEFITS OF BEING AN INSURANCE ADVISOR:

 Unlimited earning potential

 Opportunity to have regular addition income

 No investment(capital/infrastructure/manpower)

 Be your own boss, have no pressure with flexible and convenient work timing

As per Industry Research, SBI Life Insurance Advisor’s productivity is around three
times that of the industry average (Productivity= No. of policies sold per person per
year)

REWARDS AND RECOGINITION FOR INSURANCE ADVISORS:

 Premium SBI Life Club Membership#

 Membership to International Clubs( MDRT/ COT/ TOT )

 Opportunity to join SBI Life Insurance Company as Sales Managers through

“Utkarsh” program

 Win exciting prizes by participating in regular contests announced time to time

 Prizes include gift cards, utility items, consumer durables and incentive trips to
exotic destinations

17
CLUB MEMBERSHIP BENEFITS:

 Rewards in cash ranging from Rs.750 to Rs.75,000

 Petrol Vouchers

 Office Allowance

CAREER PROGRESSION FOR IAs:

 Promotion to UM

 Further promotion within UM group to Branch Sales Manager, Divisional Sales

Manager, Area Sales Manager

An IA can aspire to join the Managerial Cadre of the company under the
“UTKARSH” Scheme.

EARNING POTENTIAL OF ADVISORS:

From the table below we can see earning potential of an IA over a period of 5 years. If we
assume an advisor in his first year sells on an average 5 policies in a month then he/she can
sell 60 in a year. Assuming by next year his efficiency will increase and so will no. of
policies. In addition to it average premium for SBI Life products is Rs. 25,000.Now
applying the commission rate on new and renewed policies below chart is prepared.

(All values in Rs.)

YEAR YR 1 YR 2 YR 3 YR 4 YR 5

NUMBER OF POLICIES 60 80 100 120 150

PREMIUM(AVERAGE-RS.25,000) 15,00,000 20,00,000 25,00,000 30,00,000 37,50,000

COMISSION @10 % (A) 1,50,000 2,00,000 2,50,000 3,00,000 3,75,000

RENEWAL PREMIUM NA 15,00,000 35,00,000 60,00,000 90,00,000

COMISSION @5 % (B) NA 75,000 1,75,000 3,00,000 4,50,000

TOTAL COMISSION
EARNED(A+B) 1,50,000 2,75,000 4,25,000 6,00,000 8,25,000

Table3: Earning Potential over a 5 Year Period

18
PRODUCT PROFILE

SBI Life Insurance products are of two types- Individual and Group Plans. Few of them are
discussed below:

1. Group Products

RiNn Raksha Scheme: - This scheme covers the House, Vehicle, Education and Personal
Loans. It is a Group Credit plan, where in unfortunate event of death the loan outstanding
amount (according to EMI Schedule) is adjusted with the claim received from SBI Life
Insurance Co.

2. Individual Products: - These products can be sold by the Certified Insurance

Felicitators (CIF, a staff member specifically trained, as per IRDA norms, for sale of
individual insurance products).At present the main products for sale are:-

Saral Shied

It is an individual without profit pure term insurance plan. Minimum age: 18 years Max
Entry age: 60 years Maturity/vesting age: 65 years Min. term 5 years, Minimum Sum
Assured Rs.7.50 Lacs/Maximum Rs. 24.00 Lacs, Riders: Preferred Term/Accidental Death
Benefit/Accidental Total Permanent Disability is also available.

Smart Shield

It is an individual without profit pure term insurance plan. Minimum age: 18 years Max
Entry age: 65 years Maturity/vesting age: 70 years Min. term 5 years, Minimum Sum
Assured-Rs.25.00Lacs/Maximum-no limit, Riders: Preferred Term/Accidental Death
Benefit/Accidental Total Permanent Disability is also available

Smart Money Back

It is an individual endowment assurance product with money back plan where in case
policyholder is alive at specific durations (end of policy years).During the policy term, a
fixed % of the basic sum assured is paid to him as survival benefit in fixed number of
instalments. Minimum Age: 14 years Max Entry Age: 58 years Maturity/vesting age: 70
years, Term 12/15/20/25 years.

19
Subh Nivesh

It is an individual participating traditional savings cum whole life endowment plan

primarily designed as savings vehicle with protection along with income generation and
wealth transformation. It is a regular premium plan for a term varies from 5 to 30 years
with a minimum annual premium payment of Rs. 6000.00 per annum and
minimum/maximum entry age is 18/60 years.

Smart Wealth

It is an individual Unit Link single premium insurance product. This product provides the
policyholders two types of investment return, namely Guaranteed Return and Market
Linked Return. Minimum Term 10 years, Minimum Premium Amount Rs.50000

Smart Pension

It is a ULIP pension product with minimum single premium mode of Rs. 50,000/-and no
maximum limit of premium. It has 4 fixed policy terms: 10/15/20/25 years. The minimum
& maximum entry age is 30 years and 65 years respectively Minimum Term 10 years,
Maturity Benefit: 1/3rd of commutable, 2/3rd Annuity (compulsory), Death Benefit, Fund
Value.

Smart Scholar

It is a unit-linked non-participating product for securing the future needs of the child. The
risk cover is on the life of the proposer who is the life assured. The nominee at the point of
sale must be a child whose interest the policyholder wants to protect. Entry age for child-0
to17 years, for parents 18 to 57 years.

Smart Elite

It is an individual unit-linked product designed mainly for preferred (HNI) customer. It

offers Limited Premium paying Term and Single Premium payment

20
 SBI life Insurance SWOT Analysis
Strengths
Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of SBI life
Insurance. Strengths are:

1. Leverages SBI’s largest customer base for cross selling its product

2. Multi layer Distribution channel

3. SBI life has over 7,000 on-roll employees and 75,000 agents

4. Strong Presence across India

5. SBI Life Insurance has an authorized capital of Rs2,000 crore (US$405.6 million)and a paid up
capital of Rs1,000 crore (US$202.8 million

6. State Bank Group has the unrivalled strength of over 18,000 branches across the country

Weaknesses
Here are the weaknesses in the SBI life Insurance SWOT Analysis:

1. Managing a huge number of people is a concern

2. Cases of fraud have tarnished image

Opportunities
Following are the Opportunities in SBI life Insurance SWOT Analysis:

1. Growing rural market potential

2. Group Insurance through large employers

3. People willing to invest more to secure their future

Threats
The threats in the SWOT Analysis of SBI life Insurance are as mentioned:

1. Economic crisis

2. Entry of new NBFCs in the sector

21
 FUNCTIONAL DEPARTMENTS

FINANCE DEPARTMENTS

 Something should be direct the however of economic activity and facilities its sleek
operation. Finance is that the agent that produces this result. Nature of economic
management refers to its functions, scope and objectives.
 Financial management is that social control activity that is bothered with the design and
dominant of the firm’s money resources. In nowadays finance is that the life-blood of the
business. No matter, whether or not the business is massive or tiny money is that the
equally necessary. The money resources should correct planned and management so as to
attain the most effective out of obtainable. So, money resources ought to be terribly
properly.
 Generally, money coming up with means that deciding beforehand, the money activities
area unit to be carried on to attain the target of the firm. In broader get together, within
the words of Walker and Boughn as; “financial coming up with includes the
determination of firm’s money objectives, formulating and promulgating money policies
and developing and procedures.”

MARKETING DEPARTMENT

Traditionally, insurance product are promoted and sold chiefly through agency systems in
most countries. With new developments in client behaviour, evolution of technology and
deregulating, new distribution channels are developed with success and speedily in recent
years.

SBI life assurance create use of varied distribution channels:

 Career Agents
 Advertisements
 Direct Response
 Internet

22
HUMAN RESOURCE MANAGEMENT

 “Human Resource Management performs that helps managers recruits choose,

train and develop members for a company. Obviously, HRM is bothered by the
people’s dimensions in organizations.
 In all business considerations, there's one common component. i.e. HUMAN
RESOURCE. manpower of a company is one in all the foremost necessary inputs
of parts. it's aforementioned that folks area unit our single most vital assets. thanks
to the distinctive importance of HUMAN RESOURCE and its complexness thanks
to ever dynamical science, behavior and attitudes of men and ladies at work,
personnel perform, i.e., force management perform is changing into more and
more specialized. The personnel performs or system may be generally outlined
because of the management of individuals at work- management of managers and
management of staff. Personnel perform is especially inquisitive about personnel
relationship and interaction of employees-human relations.

23
 WEEKLY WORK REPORT

In this training I worked under marketing department here I was exposed to various
stages of policy formation how a suspect is changed into customer

 During my first week of training I formal introduction to various departments

and introduction about sbi life insurance what are role of insurance advisor
how he create a change in people life and how he is able to make people self-
sufficient in life. Further I was introduced to my mentor under whom I will do
further learning.
 In second week I was introduced to my department and taught about various
functions it does I was also introduced to various policies which were offered
by the SBI life. At the weekend there was some interaction with my mentor to
check my progress and further throw some light about this industry.
 In third week I mostly worked in documentation and basic training was given
for the insurance advisor also as the insurance sector is moving toward
computerisation updating of all paperwork into online platform and putting all
work into same platform.
 In forth week I went out with my mentor into field to know how theoretical
work is converted into practical field how to convert suspect into customer
how to convince customer what are their problem what are problem faced by
insurance advisor.
 In fifth week I was given task of attest one conversion to get first-hand
experience also I was given task to record various problems faced and advice
which will help them to improve.
 In my last week I was able to convert one suspect into customer also I
presented various drawback of system also they gave me feedback about my
work my mentor told me to give a report of which I gave.

24
 OVERALL LEARNING

During my 6 week of training I was able to get first-hand experience of customer service
market. I was able to understand various stages through which a suspect becomes a
customer I was able to understand the customer funnel. I was able to understand how
theoretical knowledge is applied in the practical field I was able to understand the basics of
service industry what are the opportunities which lies un it how it is evolving and threats it
is facing

Some opportunities

 Rural retail is vast market.

 Little competition.
 Brand name of sbi is influencing.
 Availability of large network.
 Cross selling of product.
 Fast growth.

Threats it is facing in current environment

 Little knowledge among people about insurance.

 Priority of spending is not insurance.
 Frauds damaging insurance sector reputation.

25