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“HDFC LIFE INSURANCE COMPANY LIMITED” SUBMITTED BY SABHYA KUMARI UNDER THE GUIDANCE OF INTERNAL GUIDE:MRS. SHAMPA CHAKRABERTY PROFESSOR NSHM KOLKATA EXTERNAL GUIDE:MR. ANURAG KUMAR CIRCLE MANAGER HDFC LIFE
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION FROM
NSHM KNOWLEDGE CAMPUS
I hereby declare that this Project Report titled “Development of distribution channel on HDFC Life Insurance Company” conducted at HDFC Life Insurance Company, Kolkata during the academic year 2010-2012, has been submitted in partial fulfillment of the requirement of the degree of Masters in Business Administration from NSHM Knowledge Campus, Kolkata. It is an original work carried out by me under the guidance of Prof. Shampa Chakraberty from NSHM, Kolkata and Mr. Anurag Kumar, Center Manager from HDFC Life Insurance Company, Kolkata. I also declare that this Project work has not been previously submitted to any other university or institution for the award of any degree.
Place: Kolkata Date: SABHYA KUMARI
The work presented in this report is solely the effort of SABHYA KUMARI and that any work of others that was used during the execution of the project or is included in the report has been suitably acknowledged through the stand practice of citing references and stating appropriate acknowledgments. I hereby forward the project entitled “Development of Distribution Channel for HDFC Life Insurance Company”, presented by SABHYA KUMARI, Registration No.: - 102770710070 and Roll No.: - 27700910081 of 2010-2012 Third Semester, Master in Business Administration, this has been carried out as Summer Internship from June 10, 2011 to August 10, 2011 under the internal guidance of - Prof. Shampa Chakraberty and external guidance of Mr. Anurag Kumar.
INTERNAL GUIDE:PROF. SHAMPA CHAKRABERTY DEPT of MBA NSHM Knowledge Campus
EXTERNAL GUIDE:MR. ANURAG KUMAR CIRCLE MANAGER HDFC LIFE
I wish to express my sincere gratitude to Mr. Anurag Kumar, Circle Manager of HDFC Life, Kolkata, for giving me the opportunity to do my summer training at their highly esteemed organization. I‟m very much thankful to him for his attention and encouragement to complete my training session. His guidance, advice, suggestion, information and constant encouragement rendered to me at every stage. During the training period he had helped me a lot to understand my project work properly and look necessary steps so that I can do my project properly. I express my sincere gratitude to Ms. Shampa Chakraberty who helped me and guided me to complete my summer training. I would also like to thank the overwhelming support of my friends and all other people including my teammates in HDFC Life who gave me an opportunity to learn and gain knowledge about the various aspects of the company which helped me either directly or indirectly towards completion of my training.
A SUMMER TRAINING REPORT ON
“DEVELOPMENT OF DISTRIBUTION CHANNEL FOR HDFC LIFE INSURANCE COMPANY”
“HDFC LIFE INSURANCE COMPANY LIMITED”
SAR UTHA KAR JIYO
CONTENTS Title of the Project Organizational Information o About HDFC Life o Company Profile o What is Insurance? o Vision & Mission of the Organization o Board Members o Awards & Accolades o Milestones o Distribution Reach-Offices and Financial Consultant Objective of the Study Channel Development Team of HDFC Life Research Methodology o o o o o Working Procedure Sample Area Data Collection Procedure of recruitment of Financial Consultant Competitor of HDFC Life Findings and Analysis Recommendations Conclusions Limitations Bibliography Questionnaire 6 .
The topic of my project is “Development of distribution channel for HDFC LIFE Insurance Company” 7 . The essential equipment of a project is that it should contain scientific collection of data. analysis and interpretation of data leading to valid conclusion.PREFACE A project is a scientific and systematic study of real issues on a problem with the application of management concept and skills. enhance our technical skills and thereby helps us to properly utilize them both within and outside the organization. Internship provides an opportunity to deepen our knowledge about the corporate world. Project is an essential part in MBA curriculum. It enables the student to share the real experience in industry and market. The study can deal with small and big issues in any division of an organization.
and journals. 8 . books. Sources of the data are the company records and the references for the literature are mainly based on internet. The report covers the details that about the “DEVELOPMENT OF DISTRIBUTION CHANNEL FOR HDFC LIFE INSURANCE COMPANY”. We had visited many institutes. hospitals.EXECUTIVE SUMMARY The following project was undertaken at HDFC LIFE INSURANCE. I had done this project in a group of three. A list of the references is given at the end of the report. schools and many other places in order to meet a large number of people and to educate them about the company products and to increase the sales of the company. to get their feedback and to sell the product of the company and also to recruit financial consultant. Our work was to make people aware about the products of the company. Summer Project is a Pedagogic approach that gives the MBA participants an opportunity to apply their Managerial Skills and Classroom Learning in real life projects in an Industry. This report describes about my training. Kolkata. The data hereby collected is mainly secondary data.Kolkata in pursuance of the Summer Internship Project forming a part of the curriculum in MBA Program at NSHM KNOWLEDGE CAMPUS.
So management is the only which develop the channel within the framework of organizations and management may have to develop multiple channels for the development.TITLE OF THE PROJECT. But the distribution channel for HDFC Life Insurance Company is mainly a channel of distribution of the organizational product and policies in the market and the structure of a distribution channel for HDFC Life is determined by the marketing function because marketing function performs specifically to develop the channel. First of all. The main focus area of the company is to recruit more financial consultant who brings business for the company. It is a distribution network through which producer puts his product in the market and passes it to the actual users. This channel mainly consists of producers. I have gotten the work to recruitment of financial advisor or financial consultant or Insurance agent or development of distribution channel of HDFC Life who becomes the base of an Insurance company. advisors and dealers who intervene between producers and consumers. users and various middlemen like selling agents. Indeed the work of financial consultant is very significant and gives more and more distribution of the policy of the insurance to the company through selling the policies. Distribution Channel effects the place or path through which consumer can buy and receive the product. promotion and place. HDFC Life is one of the India‟s leading private Insurance Company which offers a range of individual and group insurance solution and it is also a joint venture between housing 9 .Performance Appraisal of Development of Distribution Channel for HDFC Life During my summer internship training in the Housing Development Finance Corporation Life Insurance Company Limited. Development of Distribution Channel for HDFC Life is really depends on the nature of the product or policy and the organization‟s target market. In this company my department was Channel Development Department whose work is to recruit financial consultant. price. Distribution Channel is a method of getting a product to its consumer and Distribution Channels are part of a Company‟s marketing mix where marketing mix refers to each business unique combination of product.
Develop the distribution channel for HDFC Life. It is the endeavor of the organization to attract talent in a competitive landscape and retain them through effective people processes and we believe that people can build the blocks in which the company‟s performance and productivity is based i. So.e.development Corporation limited and a group of company of standard life. 10 .
which meet various customer needs such as Protection.37% in the hand of HDFC life and 26% equity in the joint venture. It is an incorporated in 1977 as a public limited company with the specialization in provision of housing 11 . the leading provider of financial services in the United Kingdom. The company currently has 28 retail and 9 group products in its portfolio. HDFC life stands for housing development finance corporation life insurance Company. at a nominal price.ORGANIZATIONAL INFORMATION ABOUT HDFC LIFE HDFC Life. the discussion commenced in January 1995 and the agreement signed in October 1995. It is a joint venture between Housing Development Finance Corporation Limited (HDFC) and Standard Life. In January 2000 the life insurance project team established in Mumbai. protection and retirement needs of customers. HDFC Life continues to have one of the widest reaches among new insurance companies with more than 500 branches servicing customer needs in over 700 cities and towns. Investment and Health. Savings. HDFC Life's product portfolio comprises solutions. offers a range of individual and group insurance solutions. while the rest is held by others. Pension. At last the company officially incorporated in 14th august 2000. along with ten optional rider benefits catering to the savings. The company has a strong base of Financial Consultants. 2000. one of India's leading private life insurance company. Now we can say that 72. Customers have the added advantage of customizing the plans. Further joint venture agreement renewed in October 1998. by adding optional benefits called riders. For the joint venture between HDFC and SLIC. It is the matter of great happiness for HDFC life is that it is the first private sector life insurance company to be granted a certificate of registration in 23rd October. investment.
12 . ensures its growth. This company came into the life Insurance business in 2000. the Insurer agrees to pay the policy holder a sum of money upon the occurrence of the specific event.finance to individual cooperative societies and the corporate sector. while others are optional and an Insurance policy creates a contract between the Insured and the Insurer. Life insurance plans unlike mutual funds. Some forms are required by law. On one hand. are beneficial when you look at them as a long term avenue of investment which also offers protection through life cover. As an Insurance company. it focuses mainly in the recruitment of Financial Consultant and we know very well the whole company is based on it because the main aim of company is to get business and sell product or policies to the customers and this work is only done by the Financial Consultant. COMPANY PROFILE If we are talking about HDFC‟s profile then it is targeting Insurance Sector and not only this. thus providing with complete well being. HDFC Life has fully implemented a risk control framework to ensure that all types of risks are identified and measured. In exchange for payments from the Insured. And Life Insurance is the key to good financial planning. An Insurance is designed to protect the financial well-being of an individual. HDFC launching various type of plans and products in which customer can buy different kind of product or policy. WHAT IS INSURANCE? First of all. One significant matter about the HDFC is that it is the first private sector retail housing finance company and it is listed on both BSE and NSE. Since then HDFC has maintained a strong hold in this market and serving the best quality services to customers. And HDFC Life is a joint venture between financial corporation and standard life. These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated. company or other entity in the case of unexpected loss. it safeguards customer money and on the other hand.
the perils of sea. The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The sharing of risk among large group of people is the basis of insurance. The asset would have been created through the efforts of the owner. The asset is valuable to the owner. the benefit may not be available. None of them will last forever. Thus collective bearing of risk is insurance. Every asset is expected to last for a certain period of time during which it will provide the benefits. because he expects to get some benefit may be an income or in some other form. So we can classify insurance in these terms: It is a system by which the losses suffered by a few are spread over many exposed to similar risks. The benefit may be an income or in some other form. a large number of people associate themselves by sharing risks attached to individuals. it provides comfort and convenience in transportation but there is no direct income apart from these both are assets and provide benefits.Insurance may be described as a social device to ensure protection of economic value of life and other assets. The losses of an individual are distributed over a group of individuals. are made good. The owner is aware of this and he can so manage his affairs that by the end of that period or life time. a substitute is made available. An accident or some other unfortunate event may destroy it or make it incapable of giving the benefits. due to accidental events. It is a benefit because it meets some of his needs. However. death and accidents. Insurance is a protection against financial loss arising on the happening of an unexpected event. 13 . which can be insured against. After that. Suppose a case of a car. may be insured against at a premium commensurate with the risk involved. Insurance is a pool in which a large number of people exposed to a similar risk make contribution to a common fund out of which the losses suffered by the unfortunate few. the asset may get lost earlier. Any risk contingent upon these. Under the plan of Insurance. The risks. Thus he makes sure that the benefit is not lost. There is a life-time for a machine in a factory or a car. include fire.
Integrity:-HDFC Life believes in honest and truthfulness in every action. It gives more focus on customer activity and saying. It is stick to principles irrespective of outcome. c. The customers should trust on our policies. Apart from that. It promotes growth and upgrade standards in the industry. and set the standards in the industry. It tries to understand customer needs and deliver solutions. defines the character and the empowers one to do justice to the job. the value will be observed while we work with the HDFC Life. 14 . we need trust of our customer. It wants to give them the easiest deal so that they can be understood the terms and policies. services. It establishes the credibility of the person. the easiest to deal with. For retention in the market and highest market share.VISION AND MISSION OF THE ORGANIZTION Vision of HDFC Life The most successful and admired life insurance company. Customer becomes centre point of the organization and the main focus of the organization becomes to understand his expectations by keeping him as the centre point. a. Integrity gives inner feeling to both customer and the employee to work with it. offer the best value for money. Whatever work done by the organization runs around the expectations of the customer. which mean that HDFC is the most trusted company. It enables confidence and trust. Innovation:-Innovation is essential to exceed customer expectation and maximize customer relation because it is the sector of investment so need to fulfill the customer expectation which help to retain customer. Transparency in dealing with customers. b. Customer centric:-Customer becomes the main properties of any organization. employs and they should be friendly with us. Integrity is the bedrock on which the company and the expectations of the customers and employees are built. achieving transparency and laying a strong foundation for a binding relationship. Innovation helps to achieve competitive advantage.
we can say that: 1. Develop close relationships with individual households. To enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner and to promote home ownership. 5. f. It generates synergy and provides a focused approach. Mission of HDFC Life 1. 4. e. Maintain its position as the premier housing finance institution in the country. 15 . It helps them to develop their requisite their skills so that they can reach true potential. Provide consistently high returns to shareholders. 2. Work with joy and simplicity brings creativity and new imagination which also brings new innovative ideas that promote competitive advantage to the organization.d. People care:-It guides the development through training and support. Team work:-Team work helps everyone to achieve more. To increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets. it adds joy at workplace which add interest in the work and new stamina in the work. To grow through diversification by leveraging off the existing client base. 2. When an idea or activity performed in a group. It try to create an environment of trust and openness so that all people who are working here be have friendly and helps to each other because team work is most important for getting success and give respect for the time of others. It tries to know them on a personal front because it works as a performance appraisal. 3. But apart from that. Transform ideas into viable and creative solutions. Joy and simplicity:-It believes inn joy and simplicity so that people in the organization will be more dedicated towards work and they will give more business to the organization. it has greater acceptability means “Team work proves one for all and all for one”.
He joined HDFC Limited in 1981 and became an Executive Director in 1993. USA. 2002 was a Partner & VicePresident at Bain & Company. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. 2000. Mr. Skeoch was working with M/s. BA. Corporate Business Development at General Electric headquarters in Fairfield. Mr. Mr. Executive Director. Manufacture and Commerce. MA. Norman K. He joined the Board of Directors in February 2010. Skeoch is a Fellow of the Securities Institute. He is the Chief Executive at Standard Life Plc. David Nish joined HDFC Life on 1st November 2006 as Group Finance Director and remained in that position until December 2009. Mr. James Capel & Co. He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited. Keki M. Mr. Chief Economist. Fellow of the Royal Institute for the Encouragement of the Arts. In 2000 he was awarded the Scottish Business Awards Finance Director of the Year and from 2004 to 2005 he served on the Government Employers Pension Task Force. Pant. Inc. He was appointed as its Managing Director in 2000. Prior to this. He was also Director. Mr. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Boston. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. holding the positions of UK Economist. Skeoch joined the Board of Directors in November 2005. He is a member of the Institute of Chartered Accountants of Scotland. Mr. Mistry joined the Board of Directors of the Company in December. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. Mr. where he led the worldwide Utility Practice. Director of Controls and Strategy HSBS Securities and Managing Director International Equities.. Pant has an MBA from the 16 .BOARD MEMBERS Mr.
driving sales and servicing strategy. Mr. He has worked with Standard Life for 33 years in managerial positions covering a number of fields such as Pensions law. He is associated with Infrastructure Development Finance Company Ltd. customer interactions etc. leading recruitment. Skeoch. A fellow of the Institute of Chartered Accountants of India. Company Secretarial and Banking. Paresh Parasnis is the Executive Director and Chief Operating Officer of the company. Risk. Compliance. He holds a degree in Law and MBA. Mr. Prior to this he was associated with Infrastructure Development Bank of India (IDBI) from 1975 to 1999.T. He has acted as Project Manager for the start-up project of the Company in 2000. A. As one of the founding members of HDFC Standard life. Operational Management. 2010. Parasnis has been responsible for setting up branches. Strategy. contributing to product launches and performance management system. (IDFC) for last 11 years. International Marketing. Mr.Wharton School and BE from Birla Institute of Technology and Sciences. During his 16-year tenure at HDFC Limited. Currently he is handling project finance for infrastructure projects at IDFC. overseeing new business and claims settlement. Michael G Connarty is responsible for Life's investments in life assurance Joint Ventures in India and China. He is the Alternate Director to Mr. 17 . Mr. K. he has been associated with the HDFC Group since 1984. he was responsible for driving and spearheading several key initiatives. Mr. Norman K. Chari has joined HDFC Life as a Director on March 10. Chari has completed his Electrical Engineering from Madras University in 1962.
Managing Director and CEO. HDFC Holdings Ltd. HDFC Developers Ltd. HDFC Property Ventures Ltd. HDFC Life. HDFC Ventures Trustee Company Ltd.ASSOCIATE COMPANIES OF HDFC LIFE Other Companies HDFC Trustee Company Ltd. Credit Information Bureau (India) Ltd AWARDS AND ACCOLADES February. 18 . Deepak M Satwalekar. HDFC Investments Ltd. 2008 Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007 Mr. received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual QIMPRO award function. GRUH Finance Ltd.
Last year. May. training. 19 . licensing. the company received the award for Wonders. HDFC Life has also been one of the five recipient of the special 2008 CIO Security Award aimed at CIOs. September. its path-breaking implementation of an enterprise-wide workflow system. including identity management. whose pioneering implementations have taken their enterprise security to the next level. providing centralized control over a vast geographical spread for key business units such as inventory. „The Bold 100. the application for its financial consultants.‟ recognized those executives and organizations that embraced great risk for the sake of great reward. 2008 Received PC Quest Best IT Implementation Award 2008 HDFC Life received the PC Quest Best IT Implementation Award 2008 for consultant corner. HDFC Standard Life has won the PC Quest Best IT Implementation Award for two years consequently. This award category identifies innovative and groundbreaking deployment of technologies aimed at creating a secure business infrastructure. 2008 Received 2008 CIO Bold and CIO Security Awards HDFC Life has received the 2008 CIO Bold 100 Award. This annual award recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. etc. The company received the 2008 CIO Bold Award for its mobile workforce portal and the CIO Security Award for its initiatives for a secure computing environment.The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations. This year‟s award theme.
security implementation and taking its security to a higher level of technological excellence. EDGE . 20 . It had received the 2008 CIO Bold Award for consultant corner and CIO Security Award for our initiatives for a secure computing environment.Received Diamond EDGE Award 2009 HDFC Life has received the Diamond EDGE Award 2009 for its mobile workforce portal . the company has received the CIO 100 „Security Award 2009‟ for pioneering LANDesk management and security suite. HDFC Life has received the CIO 100 Award for the third consecutive year. and honor end-user companies in India that have demonstrated the best use of technology to solve a business problem. Additionally. enabling growth or improving relationships with customers. Network Computing magazine is part of CMP Technology. improve business competitiveness. recognize. and deliver quantifiable ROI to stakeholders. whether by creating competitive advantage.Enterprises Driving Growth and Excellence (using IT) is an initiative by the Network Computing magazine to identify.Consultant Corner. CIO magazine has a long tradition of honoring leading companies for business and technology leadership and innovations through its flagship award program-CIO 100.Identity and Access Management. optimizing business processes. Received CIO „The Ingenious 100 2009‟ Award HDFC Life has received the CIO „The Ingenious 100-2009‟ Award. which brings more than 100 IT media brands to more than 18 million technology and business decision makers worldwide. for ATLAS(Agency Training Licensing and Servicing System). including Sesame. It‟s a celebration of 100 organizations that are using IT in innovative ways to deliver business value. the company received CIO 100 Award for wonders and a special award in storage category. In 2007.
The company provides some unique platform such as mission “in genius” 21 .Mission “in genius” national quiz. packaging or process or any other specified form. design.'Young Star Super' Voted 'Product of the Year 2010' HDFC Life‟s Young Star Super has been voted a Product of the Year 2010 in the 'Insurance' category by more than 30. It ranked 34th on the top and 50 best company to work in India 2010 list. Best Companies to work for in India in 2010 HDFC Life has been adjudged one of the best companies to work for in India in 2010. attractive allocations rates. The company has participated in the great places to work study for the first time and ranked first in the Insurance category.000 consumers nationwide across 36 markets. The study has shown that HDFC Life conscientiously develops employee talent program to keep engaging and motivating its employees. The company was also awarded for its unique employee initiative. The consumer study on product innovation in India was conducted by A C Nielsen. Entries were then filtered by a jury of distinguished industry professionals to ensure that the products meet the innovation criteria before they were passed on to the consumer votes/survey round. the leading global research firm. Entries were accepted from products that demonstrate innovation in their product function. The Product of the Year is selected through an independent consumer survey across the country in 26 countries for the past 20 years. Product of the Year is an Internationally Recognized Standard that celebrates and rewards the best innovations in consumer products and services. double and triple benefits. Young Star Super is an unit linked Children Plan with unique benefits such as bumper additions. and seven different funds.
First investment of Rs168 Crore funded by HDFC Limited and Standard Life Assurance Company in the 1st week of November.000/Outlook Money magazine awards "HDFC SL" as one of the top 3 new Life Insurance Companies 2002 2002 Launch of HUB at Malad in December 2002 to create a centralized processing Unit. Second branch opened in NEW DELHI ON 16th March 2001.www. First claim settled 23rd September 2001 marked the beginning of the larger purpose for which we had launched the company. First branch opened in churchgate on 1st November 2000. 2000.hdfcinsurance. The management is accessible to all at all time and sincerely seeks feedback from its employees through program such as „Sparsh‟. making it the largest such study in India. First Customer Helpdesk for internal customer was set up in January 2001. The best company to work in India is a study conducted by the great place to work Institute. Launch of website . 22 2001 2001 2001 2001 2001 2001 2002 . MILESTONES Year 2000 2000 2000 2000 Event The Insurance Regulatory and Development Authority flags off the first private sector life insurance company .HDFCSL on 23rd October 2000.an endeavor to offer value added services to our Financial Consultants and educating customers about insurance and company products.com .the 1st public sector bank to sign up as a Corporate Agent in December 2002. Building the HUMAN CAPITAL by engaging the 100th employee on 3rd May 2001.national quiz. India in partnership with The Economic Times. Union Bank of India. We paid the first claim amount of Rs 25. and only 50 companies made it to the best companies to work list. which received overwhelming response from more than 400 companies. First bonus declared along with Founder's bonus and also the First Company in the private sector to do so in October 2001. 100th life covered on 12th February 2001. The 2010 edition is the seventh study in India.
Children's plan launched in February 2003.Business and Marketing (a Business and Marketing magazine published by Plan man Media). New products like HLPP. HDFCSL expanded its reach in the Bancassurance channel by arrangements with co-operative banks in the rural areas.A plan designed to offer employers an efficient way of investing the funds set aside to meet various employee liabilities. 1st Group Superannuation policy issued in November 2004.Group Unit Linked Plan approved in May 2003 . This was complemented by use of technology that enabled capture of all interactions with customers across all touch points. SAP. Received the CIO award for achieving excellence in strategic enterprise IT deployment. by putting in place a robust mechanism to capture 'Voice of the Customer' through service audits across its offices. Introduction of a structured Management Trainee Scheme. Biggest NGO covered on 28th March 2006 with 14000 lives.2003 2003 The first exclusive product for policyholder in helping him to plan his child's future .a dedicated service helpline for customers. The Employee Stock Option Scheme was launched for long-term employee benefits on 1st September 2005. Launch of HDFC Standard Life . Unit Linked funds launched in July 2003. Branding HDFCSL as the preferred employer in management institutes. First Unit Linked plan . Launched DRISTHI . Continued to increase its focus on quality service. First policy sold by Tele-Marketing team on 9th November 2004.UL Endowment in December 2003. for being one of India's Top 25 'Most Innovative Companies' in an exclusive survey conducted by ICMR (Indian Council of Market Research) and 4Ps . HDFCSL was rated as "The Most Respected Private Insurance Company" by a survey conducted by the Business World.more than twice the size of BKC Office.'Sar Utha Ke Jiyo'. first TV Advertising Campaign on 17thJanuary 2005. and been admitted as "CIO 100 Honoree 2005". Inauguration of the Corporate office at Trade Star Andheri . HDFC selected as the '4Ps Power Brand 2006'. 2003 2003 2003 2004 2004 2004 2004 2005 2005 2005 2005 2005 2006 2006 2006 2006 23 . First Individual Unit Linked product . HAP and Suvidha Range of products were brought in to match suitability and convenience needs of channel partners.
Received the 2008 CIO Bold 100 Award for its mobile workforce portal and the Special 2008 CIO Security Award for a secure computing environment. training. 21. the leading business publication of India. providing centralized control over a vast geographical spread for key business units such as inventory. The company had been awarded the "Intelligent Enterprise" Award by the Express Computer Magazine – Part of the Indian Express Group. The 3 awards are the highest won by any single brand in the financial services business (including banking. Sar Utha Ke Jiyo was honoured as 'Among India's 60 Glorious Advertising Moments. HDFC Standard Life's advertising created high awareness for the brand and bagged 2 silver and 1 bronze awards at the ADFEST 2007 National Awards organized by the Advertising Agencies Association of India (AAAI). Deepak M Satwalekar Awarded QIMPRO Gold Standard Award. Mr. In addition the company also bagged the EMC storage award for being the most innovative users of storage and storage management. As against a regulatory requirement of writing 18% of all policies in rural areas. for investing in workflow and imaging technology which helped in increasing volumes without affecting service standards. licensing. mutual fund. the applications for its financial consultants. including identity management respectively. etc.000 policies accounting for more than 23% of all policies issued during the year.2006 Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to a study conducted by the Brand Equity – Economic Times. its path-breaking implementation of an enterprise-wide workflow system. Received the PCQuest Best IT Implementation Award 2007 for Wonders. HDFCSL expanded its reach in the Bancassurance channel by arrangements with co-operative banks in the rural areas. the company issued over 1. The advertisements of the company were ranked 6th amongst 'The 10 most effective Advertisements' in September 2007. Received the PCQuest Best IT Implementation Award 2008 for Consultant Corner. 2006 2006 2007 2007 2007 2008 2008 2008 2008 24 . insurance and other financial services).
5 2 1.5 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 25 .DISTRIBUTION REACH.OFFICES AND FINANCIAL CONSULTANT offices in thousands 600 500 400 300 200 100 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 offices 2.5 financial consultant in lakhs 1 0.
Economic: Savings mobilization In this objective part. The main objective of this project is Current Scenario and scope of development in recruiting distribution channel in East for HDFC Life. we can divide it into three categories which are: Broad: Increased coverage of the population Specific: Customer has a wider choice & range of products and Service standards to customer. 3: To learn what is the process of recruitment and selection that should be followed. It tries to serve its customer with significant way. So. 26 . it deals with innovative plans and schemes for the wider choice of people and different range of products of its competitors. In the second part.OBJECTIVE OF THE STUDY It is largely understood that in Insurance Sector. it can be easily possible in Insurance Sector. So the main motto is to increase more and more people for insurance and for more insurance there is need of more and more financial consultant. Because after recruiting financial consultant. HDFC life invest the investment in the share market through the unit link plan and get & give significant return from the markets and satisfy their customer. we have 1: To study the recruitment procedure followed in HDFC LIFE INSURANCE 2: To study the various sources of recruitment followed in HDFC Life. 4: To search people whose skill fits into the company‟s value. the first part deals with its market share because it deals with all people who live in India and it has a broad market potential.
Sharm a-Jaipur TM-Ajay Tekchan daniMumbai TM-Vijay GargPune TM-Yaraf Husaini 6 AMCD 4 AMCD 3 AMCD 3 AMCD 5 AMCD 2 AMCD 6 AMCD 29 CDMs 19 CDM/E 13 CDM 19 CDM 26 CDM 14 CDM 40 CDM 27 .Suvendu Panda HO Backend-2+1 Off roll TMPradeep SharmaDelhi TMAnkit AgarwalDelhi TMParikshit SharmaChandiga rh TM-Vijay K.CHANNEL DEVELOPMENT TEAM OF HDFC LIFE Head Agency.AS Jayasinha AVP.
Research can be sub divided into different classifications according to their academic application disciplines. Those steps are:28 . interpreting and development of methods and systems for the advancement of human knowledge on a wide variety of facts of our concern. It may be understood as a science of studying how research is done scientifically. It is the debatable body of thought which offers an alternative to practical problems in search for knowledge. There are 2 main types of research methodology1) Quantitative methodology 2) Qualitative methodology Quantitative methodology is the type by which one can test the significance of hypothesis. Qualitative methodology is the by which one depends on its observations and descriptions. In this project series of steps has been followed to do the research effectively.RESEARCH METHODOLOGY Research can be defined as the search for knowledge or as any systematic investigation to establish facts. Research Methodology is a way to systematically solve the research problem. Research methodology has many dimensions and research methods do constitute a part of the research methodology. Research is funded by public authorities by charitable organization and by private groups. Research also seen as „practice-based research‟. The primary purpose for research is discovering. can take form when creative works are considered. including many companies. Research relies on the application of methods. In it we study the various steps that are generally adopted by a researcher in studying the research problem along with the logic behind them. accuracy and truth. the research provides information and theories for explanation of the problem and analysis for the problem. It makes practical applications possible.
disguised questionnaire is one where the listing of the questions is in prearranged order and where the object at the purpose of enquiry is revealed to the respondent. During this period I was in constant touch with my senior and area sales manager and I had to submit daily report of my work and full information about phone calls and questionnaires. primary data were collected. Research objective Research design Sample design (sampling and sample size) Questionnaire Collection of data Statistical analysis used to analyze the data QUESTIONNAIRE: Questionnaire is the tool by which we collect the requisite information. using a structured-non-disguised questionnaire. A structured non. Questionnaires can be classified into 4 types: Structured – non-disguised. I had to approach various people for the recruitment of financial consultant in HDFC Life. As a part of that insurance company. Non-structured – non-disguised Non-structured – disguised In this study through communication method. Structured – disguised. I have collected data from some parts of KOLKATA. I had to also convince the people to join HDFC Life insurance company because this is the only one insurance company which is booming rapidly and it is the joint venture between financial corporation and standard life. Questionnaires basically consist of open-ended questions was used for the collection of information. WORKING PROCEDURE In my summer training I have targeted EAST side of KOLKATA. 29 .
especially for the purposes of making predictions based on statistical inference.SAMPLE AREA Sampling is that part of statistical practice concerned with the selection of a subset of individuals from within a population to yield some knowledge about the whole population. My working area was EAST zone of KOLKATA. SAMPLE UNIT: 100 Tiljala Road 40 Darga Road 30 Park Street 30 And got only 60 people contact number and gave them call Tiljala Road 25 Darga Road 15 Park Street 20 contacted people 20 25 15 30 . So I had collected data from this area only and I targeted those people who are atleast graduate because we know an educated people can make understand only the situation of insurance sector or for the development of an insurance sector.
Research provides information that assists and organization to define opportunities for product development and market strategy. marketing and communications activities.Secondary data are those data which are being already collected by someone else and which have already been passed through the statistical process. we 31 . To be more specific. My project is being undertaken in HDFC Life in which Financial Consultant recruitment program and current scenario and scope of development in recruiting distribution channel in East for HDFC Life. Market research tends to confirm issues that are well-known in a market initially. to monitor the effects of decisions taken. And for the development of recruiting distribution channel in EAST for HDFC Life. Secondary Data:. magazines and newspaper. but if planned well and effectively it will also identify new opportunities. I can divide those into two parts which are thus: Primary Data:. Whatever data is collected by me during the internship in the HDFC Life. is to reduce uncertainty indecision making. or ways by which to improve sales. It works by assessing whether marketing strategies are accurately targeted. I have collected my data through phone calling and through direct communication with respondents in one form or another or through personal interviews. and identify the performance of a company or a product in the market. Sometimes I verify the truth of statements made by informants in the context of a questionnaire or a schedule. and by identifying market opportunities or changes that are required by customers. During internship in development in recruiting distribution channel was related with the distribution enhancement of the insurance policies of HDFC Life. First of all.DATA COLLECTION Data is the significant part of any kind of research. As we know that all research depends upon the data. I have collected my published date form Internet and the books. The role of market research. therefore. HDFC Life tied up with world class insurance product.Primary data are those which are collected fresh and for the first time and thus happen to be original in chapters. Through observation method I was able to record the natural behavior of the group. market riches.
namely to: a. b. e. Companies. Best results come when their marketing and sales planning is influenced by the results of research. but it also provides a means of checking and refining views as operations proceed. It is useful ahead of any action. Test out strategic and product ideas which help to define the most effective customer-led strategies. shape. c. Investigate the strengths and weaknesses of competitive products and the level of trade support a company enjoy. I took the help of phone calls and my network.can list five key uses for market research.” And we know very well marketing strategy is the basic root of finding the Financial Consultant and to recruit them. The variety of purposes listed above makes it clear that market research is not simply a “first check. So. so as to understand the market and marketing opportunities. d. During that period for the recruitment of financial consultant when I talked to people about it firstly they did not want to talk with the name of insurance because they think it is a very challenging job and because of business of the life insurance they don‟t want to come in the profession. to recruit Financial Consultant and development in recruiting distribution channel in EAST for HDFC Life. 32 . and nature of a market. Monitor the effectiveness of strategies. especially those for which budgets always seem tight. promotions and targeting need to be adjusted or improved. who have selected one of these uses for market research are always concerned to make the research a worthwhile investment. Identify the size. It will define when marketing expenditure. For the recruitment of Financial Consultant. PROCEDURE OF RECRUITMENT OF FINANCIAL CONSULTANT During summer training I had to recruit financial consultant. we can say that marketing research plays an important role in Insurance Company. But I convinced so many people to join Financial Consultant in HDFC Life.
e. anyone i.When we think of recruiting financial consultant for HDFC Life Insurance Company there is a definite question that strikes in our mind that who can be an advisor for the company? The question is very simple as. flexible and outgoing can become financial consultant of HDFC Life Insurance Company. Criteria for being financial consultant in HDFC Life: Minimum age should be 18 years. from housewives to entrepreneurs. having qualities like enterprising. ENTERPRENUERSHIP Proactive attitude Self starter and self motivated Be your own boss Drive to make money for self and HDFC Life SELLING AND INFLUENCING Ask intelligent and meaningful questions Listen actively. teachers to part time workers. responds and summarizes for understanding Active prospecting to attract and acquire customers Close the deal Handling rejection Bouncing back after rejection Consistently working towards the goal Positive attitude RELATIONSHIP BUILDING CUSTOMER SERVICE Interest in meeting people and keeping in touch 33 . well networked. Minimum qualification should be 10+2.
4. 1. 7. 8. Name of the company Life Insurance Company ICICI Prudential State Bank of India Life Insurance Tata AIG Life Insurance Bajaj Allianz Reliance retail Limited Met Life Insurance Aviva Life Insurance Sahara Life Insurance 34 . 5. 6. 9. 3. 2. Puts the relationship with the customer before the “sale” in order to build goodwill and credibility Warm and outgoing personality Sense of integrity COMMUNICATION Create understanding Listening and observing carefully Inspiring trust and confidence Engaging the client in a meaningful conversation COMPETITOR OF HDFC LIFE No.
35 .9 lakh lives. 13. Birla Sunlife Insurance Oriental Life Insurance ING Vyasa MAX New York Life Insurance Kotak Mahindra Life Insurance Company Market Share of top five Insurance Companies are: 60 50 40 30 20 10 0 LIC ICICI HDFC LIFE BIRLA SUN LIFE TATA AIG In private insurance company HDFC Life has the highest market share.2% after it covered 4. Till today LIC is covering more market share than the other private insurance companies.9% of the market covering 1. 14. LIC‟s market share was at 72.9 lakh lives. 11. In terms of group insurance schemes.10. 12. Private insurance company had 27.
The 12 private company in the country together mopped up Rs 385crore in premium in the first two months selling over 2 lakh policies. Max New York Life.6%).9% It is followed by BIRLA SUNLIFE with a market share of 2.5%).4%) and SBI Life (1.2%). KOTAK Life. HDFC Standard Life (1. TATA AIG (1. 36 .6%. ICICI Prudential Life leads with market share of 5. ING VYSYA and MetLife had less than 1% market share but posted high growth in business.Each of the other private players like AVIVA. BAJAJ ALLIANZ (1.
For the collection of data various questionnaire is prepared by me and I have gotten certain result from it. encompassing diverse techniques under a variety of names. After collection the data the most important part comes which is data analysis. For the collection of data I had gone to the market. It is the most significant part of the research. science. various places like malls. in different business.FINDINGS AND ANALYSIS Analysis of data is a process of inspecting. During the period of summer training I have collected my data in the area of EAST KOLKATA. fun places. Data analysis has multiple facets and approaches. and the other places and through phone calls and my personal network helped me a lot where I can get the potential financial consultant. Cinema halls. Whole work regarding data depends upon the data collection. and supporting decision making. suggesting conclusions. and social science domains. These question and results are thus:QUESTION 1: How many people have targeted for financial consultant at the time of training? RESPONSE RESPONDENTS SHARE(%) YES 60 60% NO 40 40% TOTAL 100 100% 37 . I targeted graduate people or educated people who can easily understand about the insurance and who can convince other people to join HDFC Life as a financial consultant. As the plans of HDFC LIFE. and modeling data with the goal of highlighting useful information. cleaning. transforming.
OF RESPONDENTS SHARE% LIC 25 41.6% BIRLA SUN LIFE 6 10% TATA AIG 4 6.yes no INFERENCE:Of the sample size of 100 surveyed respondents 60% of the respondents listened and paid interest for Financial Consultant 40% of the respondents didn‟t listen. QUESTION 2: How many respondents give preference to join as a financial consultant in different insurance companies? COMPANY‟S NAME NO.6% 38 .7% HDFC LIFE 15 25% ICICI 10 16.
respondents for financial consultant lic hdfc life icici birla sun life tata aig INFERENCE:Till now maximum people want to join financial consultant of LIC. It is governmental insurance company that‟s why people firstly prefer to join LIC. QUESTION 3: What age-group‟s person want to join insurance company as a financial consultant? AGE GROUP Below 18 19-25 26-35 36-45 46-60 Above 60 PERCENTAGE 0% 20% 40% 20% 14% 6% 39 . Because.
percentage below 18 19-25 26-35 36-45 46-60 above 60 INFERENCE:I have seen that. 26-35 age group‟s person want to join more insurance company as a financial consultant. QUESTION 4: Male or Female. which one more prefer to do job as financial adviser in HDFC Life? GENDER MALE FEMALE PERCENTAGE 60% 40% percentage male female 40 .
we find out male want to join as a financial consultant more than female.INFERENCE:On the basis of survey. QUESTION 6: What should be the qualification required for financial consultant? EDUCATIONAL QUALIFICATION 12th Graduation PERCENTAGE 37% 42% 41 . 80% married people join and 20% unmarried people join insurance company as a financial consultant. QUESTION 5: How many married people join as a financial consultant in insurance company? MARITAL STATUS MARRIED UNMARRIED PERCENTAGE 80% 20% percentage married unmarried INFERENCE:According to survey.
QUESTION 7: What are the sources for recruitment and selection of financial consultant? sources internal external both 42 .Post graduation Others 18% 3% percentage 12th graduation post graduation others INFERENCE:Minimum educational qualification required is 12th but Graduate people basically join more as a financial consultant in insurance company.
QUESTION 8: Which method do you mostly prefer for recruitment and selection preferred way of recruitment? way of recruitment indirect direct third party INFERENCE:About 65% of people go for direct recruitment whereas 32% go for indirect recruitment and 3% people go through the third party. It will develop faith on the industry 43 . It shows company‟s advertisement is making place in the mind of the customer.INFERENCE:Most of the people. QUESTION 9: How many people aware about the slogan of HDFC Life “SIR UTHA KAR JIYO”? When I talked to the people in this regard like they have ever heard about HDFC‟s slogan “Sir Utha Kar Jiyo” then they replied that they are aware about this and I am talking about HDFC Life Insurance Company. They are aware of HDFC Life Insurance company. they prefer both internal and external sources for recruitment and selection of financial consultant whereas only 9% go for internal sources and 18% go for external sources.
they are aware about HDFC Life Insurance company that‟s why it cannot be so much difficult to make understand them and it become easy to recruit financial consultant. For the distribution enhancement of the policy of 44 . Financial Consultant plays main role in the insurance sector regarding sales of policies. RESPONSE YES NO RSPONDENTS 60 0 In % 100% 0% percentage yes no INFERENCE:Most of the people. QUESTION 10: Why the people cannot invest money in insurance company without consulting financial consultant? In this survey I have analyzed that most of the people dependent upon financial consultant for the investment of their money in the insurance sector.and help to the financial consultant of the HDFC Life to convince the customer because advertisement have made their work to tell them it is a renowned company and they will not cheated by this company.
In the market. QUESTION 11: How many people interested to join as a financial consultant of HDFC Life? RESPONSE INTERESTED NOT INTERESTED TOTAL RESPONDENTS 32 28 60 SHARE 53. it is most important that it should give more preference to its financial consultant.5% people are not interested.HDFC Life.5% 100% percentage interested not interested INFERENCE:53. there is certainly ICICI prudential have more financial consultant than HDFC Life insurance.5% 46. 45 . There are 17 insurance companies in the market and they are trying to increase their market share and for this purpose they will definitely give more benefit to public so that they may agree to become financial consultant.5% people are interested to join HDFC Life on the other hand 46. It is financial consultant who consults with the people and convinces them for investing their money in the respective insurance company. It should offer attractive commission to the financial consultant so that they work for the organization by heart.
I find that 26-35 age group‟s person are more conscious to work as financial consultant. It has also gotten most trusted company award of 2010.RECOMMENDATIONS In this analysis. view. HDFC Life gives priority to quality only. vision. people think that he/she should join it or not. Married people join insurance company more than unmarried people. but other company like ICICI gives priority to quantity then quality. Still today people give more priority to LIC than the other insurance company but they don‟t know HDFC Life gives 40% commission to this Financial Consultant on the first premium but LIC gives only 15 % premium to their Financial Consultant. Still people focus to join LIC‟s financial consultant rather than private insurance company‟s financial consultant. Because of the high registration fee for financial consultant. Today HDFC Life is no. 46 . Quantity doesn‟t matter for it. Graduate people want to do job as a financial consultant in insurance company. Minimum qualification must be 12th. I can say that the criteria. mission of HDFC Life is not comparable to the other company and because of these it gives more reliability. Men are more conscious to work as financial consultants compare to female. one position in insurance. and benefits to their employee and their customer. The main competitor of HDFC Life is ICICI PRUDENCIAL and LIC. In EAST Kolkata region is spreading their branch for more and more market share and help in getting business.
It was eclipsed by ICICI prudential with its media and sales blitz making it second largest player in the Insurance market.4%. I learned many things in HDFC Life. 2006 saw a shakeup in this market with Bajaj Allianz edging out ICICI from the second spot. 47 . Overall “Development of distribution channel” was a fair attempt from me and I was able to understand that HDFC Life is the renowned industry in the insurance sector. The post of Sales Development Manager is based on payroll. Although a slow starter HDFC Life was having a small share of the pie. Now-a-days we are seeing a lot of media action from this company. He will get package of 2. Financial Consultant has to give 36 policy or 3. this sector is witnessing more marketing actions than even the FMCG sector. It gives more priority to professional like MBA. The very first thing I learned to handle different kind of objections from different kind of persons. With the private sectors leading the growth story. Working on deadline for achieving target is most crucial process in this sector and I am thankful to all who were always behind me to support and helps me to complete my project. Engineers.CONCLUSION My experience with HDFC Life will always grateful for me. Financial Consultant has chance to become sales development manager within six month when he fulfills the target. It gives more facilities to their employ and provides better opportunity to their employ for promotion because it has minimum target for fulfillment. HDFC Life has total 12 group companies.75 lakh per year. It is the first insurance company which has gotten the license of insurance firstly by IRDA. Lawyers and other professionals for joining as a Financial Consultant in Insurance Sector. In the insurance sector main work is done by the financial consultant who brings business to the industry.6 lakh‟s premium within six months which less in comparison to the other insurance industry and for EAST KOLKATA region where the transaction of money is too high. It gives more priority for the recruitment of financial consultant. It believes in quality not in quantity. CA. Doctors. The insurance market is dominated by the public sector insurance company LIC with a market share of around 71.
So.5%. 48 .Bajaj have a market share of around 8% and HDFC Life and ICICI fighting at 3 rd place with around 7. Overall I learned various things as well as I shared a lot of activities with my colleagues and telephonic conversation as well as meeting different kind of person gave me a positive direction to build my confidence and ever in bad phase of response I learnt the art of making calmness.
supermarket. It should give monthly party to the Financial Consultant for the attachment with the industry. If the company will less this charge then it will get more Financial Consultant.. and hypermarket for the purpose of recruitment Financial Consultant and getting business form them. It works as a performance appraisal of the Financial Consultant. Regular canopy should be established such areas like metro Stations.750. I have faced some difficulties when they don‟t agree to pay this much amount. 49 .SUGGESTION When we talk about suggestion I got small experience after completion of my summer internship that whatever I have pointed out which are thus: In the recruitment of financial consultant I found that most of the people don‟t want to pay Rs. It should organize weekly meeting with Financial Consultant for the business and give appraisal training to them. It should launch new innovative insurance policy which will entice people for insurance in HDFC Life. It should give facility to CDM or RC for the recruitment of Financial Consultant and if it will give facility to Financial Consultant then they can give more facility. and malls. college campus. Generally we buy thing whatever we see. It means that HDFC Life should do more advertisement like other insurance industry The role of recruitment is not easy so it should increase commission or give salary instead of commission so that RC will take more interest in the recruitment on financial consultant.
LIMITATIONS The information given in the above part is based on market survey and for the Current scenario and scope of development in recruiting distribution channel in East for HDFC Life. . and phone calls. I analyze that the person who is needy for money. greedy about fast life and believes in speed join insurance because this sector gives a platform for unlimited earning and life time earning like life time validity. and the other medium like internet and browser of HDFC Life. My project is based upon the interaction with the people for the purpose of recruitment of Financial Consultant. My study is totally based on the perception of the people that what they think about the insurance when someone offer him to work in the insurance sector. meeting with the people. 50 .
com www.hdfclife.BIBLIOGRAPHY Megazines Browser given by HDFC Life Megazine related with HDFC Life Internet www.irdaindia.google.wikipedia.com Books related to human resources 51 .com www.com www.
Above 60 years 5. 26-35 years IV. 100000-150000 II. Below 18 years II. 45-60 years VI. Marital Status: I. Occupation: I. Businessman 7. Gender: I.QUESTIONNAIRE:1. Female 6. Married II. Student II. Male II. Name: 2. 36-45 years V. 250001 & Above V. Less than 100000 8. 200001-250000 IV. Educational Qualification: I. Phone. Address: 3. 150001-200000 III. Unmarried 9. Post graduation 52 . Serviceman III. Age group: (please tick whichever is applicable) I. Level of Income in yearly basis: I. Unemployed IV. Graduation III. 12th II. No.: 4. 19-25 years III.
Investments IV. If you are getting a job in insurance company. Yes II.IV. Tata AIG 14. would you like to join? I. LIC II. What do you know about availability of present job market? I. Easily available 11. According to you in 100% rating scale which of the following is a leading insurance company? I. Yes II. No 53 . Would you like to work in Insurance Company? I. No 12. What do you understand by insurance in a 100% rating scale? I. Others 10. HDFC Life III. Wastage of money 13. Not available II. Protection from uncertainties II. Savings III. Moderately available III. ICICI IV.
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