DECLARATION

I here by declare that the training report entitled, submitted by me to Prestige

Institute of Management, Gwalior in fulfilment of the requirement for the award
of Master of Business Administrator is a record of my original work carried out
by me under the guidance of
 CERTIFICATE

This is to certify that MANENDRA SINGH CHAUHAN student of MBA, 1 st

year program has completed his summer training of 45 days from 01-05-2019 to
15-06-2019 and prepared this report entitled “Impact of Globalization on
Marketing” under my guidance.

His performance during the training was excellent and his work efficiency was
also commendable. I wish him a very good future with lots of hope.

Date: Prof.
ACKNOWLEDGEMENT
History of Organisation
SBI Life Insurance Company Limited (SBI Life) established in 2001 is a joint venture
between State Bank of India (SBI) and BNP Paribas Cardiff S.A. and is one of the leading
life Insurance companies in India. SBI has an unrivalled strength of over 22000 branches
across the country making it the largest banking group in India. BNP Paribas Cardiff S.A. is
the life and property & casualty insurance arm of BNP Paribas one of the strongest banks in
the world. SBI Life offers a comprehensive range of life insurance and pension products. The
company offers individual and group products which include savings and protection plans to
address the insurance needs of diverse customer segments. SBI Life has a multi-channel
distribution network comprising of an expansive Bancassurance channel with SBI and agent
network comprising of 1.13 lakh agents as on September 30 2018. The company's other
distribution channels include direct sales and sales through corporate agents’ brokers
insurance marketing firms and other intermediaries. As on September 30 2018 the company
had a widespread network of 848 offices across the Country’s Life Insurance Company
Limited was incorporated as a public limited company at Mumbai on October 11 2000 and
received certificate of commencement of business from the RoC on November 20 2000. The
Company is registered with the IRDAI for carrying out business of life insurance pursuant to
the registration certificate dated March 29 2001. During financial year 2002-03 SBI Life
launched Bancassurance channel. It also paid its first claim during the year. During financial
year 2004-05 SBI Life's Assets Under Management (AUM) crossed Rs 1000 crore mark. In
January 2005 SBI Life launched unit linked product. During financial year 2005-06 SBI Life
became the first new generation private life insurance company to make profit; the company
registered profit after tax of Rs 2.03 crore for the year. During financial year 2007-08 SBI
Life's Gross Written Premium (GWP) crossed the milestone of Rs 5000 crore and AUM
crossed the milestone of Rs 10000 crore. The company also achieved cumulative breakeven
during the year wiping out all accumulated losses. During the year the company's share
capital increased by Rs 500 crore to Rs 1000 crore. During financial year 2009-10 SBI Life's
GWP crossed the milestone of Rs 10000 crore. During financial year 2010-11 SBI Life's
branch network crossed the milestone of 500 branches. During the financial year 2011-12
SBI Life achieved the milestone of profit after tax (PAT) of Rs 500 crore; the company
reported PAT of Rs 556 crore for the year. It also declared a maiden dividend of 5% during
the year. During the financial year 2012-13 the company's AUM crossed the milestone of Rs
50000 crore and the number of branches crossed 750. During the financial year 2015-16 SBI
Life's GWP crossed the milestone of Rs 15000 crore. During the financial year 2016-17 SBI
Life's renewal premium collection crossed the milestone of Rs 10000 crore. Also, during the
year Value Line Pte Ltd and MacRitchie Investments Pte Ltd. bought stake of 1.95% each in
SBI Life from SBI.

Objective
The Company recognises its stewardship responsibilities and regularly reviews the activities of the
Fund Managers. This Policy sets out principles indicated in Guidelines on Stewardship Code for
Insurers in India issued by IRDAI and constitutes the Disclosure and Reporting requirements under
these rules.
 Introduction
SBI LIFE – a joint venture between

SBI life Insurance is a joint venture between the state bank of India and Cardiff
SA of France. SBI Life Insurance is registered with an authorized capital of Rs
1000 core and a paid up capital of Rs 350 carore. SBI owns 74% of the total
capital and Cardiff the remaining 26%.

State bank of india enjoys the largest banking franchise in india. Along with its
7 Associate banks, SBI Group has the unrivalled strength of over 14,000
branches across the country, the largest in the world.

Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone’s
leading bank. BNP is one of the oldest foreign banks with a presence in india
dating back to 1860. It has 9 branches in the metros and other major towns in
the country.

Cardif is a vibrant insurance company specializing in personal lines such as

long -term savings, proctection products and creditor insurance. Cardif has also
been a pioneer in the art of selling insurance products through commercial
banks in Frances and 29 more countries.

SBI Life Insurance’s mission is to emerge as the leading company offering a

comprehensive range of Life Insurance and pension products at competitive
prices, ensuring high standards of customer service and world class operating
efficiency. The company plans to make the insurance buying process quick,
simple and based on well – informed jugement.
In 2004, SBI Life Insurance became the first company amongst private
insurance players to cover 30 lacks lives. The company expects to carve a niche
in the Indian insurance market through extensive product innovation and aims
to provide the highest standards of customer service through a technological
interface. To facilitate this, call centers have been already installed and help
lines will be installed and customer will have access to their accounts through
the internet or through SBI branches.

The company proposes to make available ready liquidity to its Life insurance
policies by way of loans at SBI counters. This will make Life Insurance a liquid
asset in the financial portfolio of households.

Motivation:

SBI Life as a brand has high market value among private players in this sector.
SBI Life extensively leverages the State Bank Group relationship as a platform
of cross selling and has a ready distribution set up of over 18000 branches of
SBI selling various insurance products. Despite all the supporting factors SBI
Life has not been able to achieve a respectable market share.
Thus, the main managerial problem proposition which was intended to be
solved was to know the reasons behind various loopholes existing in retail
channel and subsequently devise a strategy to reduce the flagging issues and
challenges faced by this channel. The lacunae in company’s marketing and
retail agency strategy need to be found out to know the gaps between company
and the market. There is a need to find the target segment to generate best
quality leads for this segment, customer’s expectations to build a supporting
strategy and increase SBI Life’s market share in this region. An in-depth insight
into the problem proposed could only be gained by directly interacting with
intermediaries and with the end customers.
2.1.1 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

2.1.2 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

Fig 2.1 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 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.

2.2 ORGANIZATION STRUCTURE

SBI Life operates in states in three zones. It has 14 regional offices as shown
below. This report is for SBI Life, Patna region which has 25 branches in Bihar
and 17 branches in Jharkhand.
SBI Life was the top most private life insurer in Patna Region with 20% share
of New Business Premium amongst the private life insurance industry in the last
financial year. SBI Life has a strong force of over 6,000 well trained Insurance
Advisors spread across 42 branches and two Processing Centers in the Region.
In addition, there are over 1,200 Certified Insurance Facilitators selling
insurance in 1,389 State Bank branches in the Region. Thus, SBI Life reaches
100% of the districts of Bihar and Jharkhand through its own offices, its
advisors and Certified Insurance Facilitators at State Bank of India. SBI Life
has been successful in insuring 9.5% of the total population of Bihar and
Jharkhand, which is better than the country’s average insurance penetration of
4%.

2.3RETAIL 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.
Fig 2.3 HIERARCHY IN RETAIL AGENCY CHANNEL