Embed Size (px)
Citation preview
A PROJECT REPORT ON:
CHANNEL DEVELOPMENT STRATEGYIN MNYL INSURANCE
COMPANY GUIDE PROJECT GUIDE
Mr. Subhasish Sabat K.V.Ramana
MNYL Insurance Project guide
Bhubaneswar
Submitted BySeema BhdadraRegd. No: s0858
HOST ORGANISATION:
Max New York Life Insurance, Bhubaneswar
Centurion School of Rural Enterprise Management, Paralakhemundi
TABLE OF CONTENT
SECTION: A
1. Industry Profile
a. Insurance
b. Insurance sector in India
i. Insurance Act
ii. IRDA Act
c. Milestones in the Life Insurance business in India
d. Life Insurance market growth
2. Company Profile
a. Max India Limited
b. New York Life Insurance
c. Joint Venture between Max India Ltd. & New York Life Insurance
3. Max New York Life Insurance
a. Reward and Recognition
b. Vision
c. Mission
d. Values and Beliefs
e. Culture
4. Major players in Insurance industry
5. Market share of different insurance companies
6. Marketing Mix of MNYL
7. Business growth of MNYL
SECTION: B
8. Agent Adviser
a. Who can (be) the AA
b. Company’s expectation from AA
c. Eligibility model for becoming an AA
d. Benefits of being an AA
9. Training program
10. Development strategies
SECTION: C
11. Channel development process
a. Name gathering
b. Short listing
c. Contacting
d. Initial Screening
e. NAT
f. Career seminar
g. Career interview
12. Cold/Warm/Hot
SECTION: D
13. About the Project
14. Objective of the project
15. Strategies followed
16. Achievements
17. Research methodology
18. Explanation
19. Field methodology
20. Limitations
21. SWOT analysis of channel development strategy in MNYL
22. Tabulation and analysis
23. Importance of advisors in MNYL
24. Chart for how to get potential advisors
25. Findings
26. Conclusion
27. Suggestions
28. Questionnaire
29. Bibliography
ABBREVIATIONS:MNYL Max New York Life AA Agent AdvisorPO Personal ObservationNAT Numerical Ability TestAAS Associate in Applied ScienceIRDA Insurance Regulatory & Development
AuthorityCoI Centre of InfluenceATP Annual Target PremiumMDRT Million Dollar Round TableCSR Corporate Social ResponsibilitySM Sales ManagerSCA Sustainable Competitive Advantage
BDM Business Development Manager
PAT Profit after Tax
ULIP Unit Linked Insurance Plan
Acknowledgement
I would, first of all, like to thank Prof. D.N.Rao and Dr. Muktikant Mishra, the managing trustee,
Prof. Kumar Alok and Prof. Jeevan J. Arakal, member of placement committee and CSREM for
providing me the opportunity to work with MNYL and allowing me to take up this project.
I would like to thank my host organization MNYL, BBSR, for giving me an opportunity to work
with them and also for providing me with all the needed support. I would like to mention my
special gratitude to Mr. Subhasis Sabat, the Assistant sales manager and my reporting officer, who
was always there to help us.
I would like to thank all the employees of MNYL for their support.
I also thank our faculty guide Prof. K.V.Ramana, whose guidance and support provided me useful
insights and helped me to undertake this study in an objective manner.
I also thankful to the people of Bhubaneswar state for providing me with deeper insights and
information related to this project and made my project simpler.
Last but never the least, my sincere regards to all the students and teachers for their co-operation
and support and who made this study possible for me.
Seema Bhadra (s0858)
DECLARATION
I hereby declare that his project report entitled “A DETAILED STUDY OF CHANNEL
DEVELOPMENT PROCESS IN INSURANCE INDUSTRY WITH A SPECIAL FOCUS
TO MAX NEW YORK LIFE INSURANCE” held at BHUBANESWAR, is the result of
Original work Carried out by me during 60 Days, (From 6 th April to 6th June) in intensive
study of the field, for the award of the Degree of POST GRADUATE DIPLOMA IN
MANAGEMENT.
This Report has not been copied from anywhere, up to the best of my belief and knowledge.
It has not been submitted anywhere else for Award of any other Degree/diploma.
Seema Bhadra (s0858)
Executive Summary
Title: Channel Development Strategy in Max New York Life Insurance, Bhubaneswar,
Odisha
Organization’s Name: Max New York Life Insurance
Reporting Officer:
Faculty Guide: Prof. K.V.Ramana
Participant’s Name: Seema Bhadra (s0858)
Objectives:
1. To study about the development strategy
2. To understand the internal recruitment process at Max New York Life Insurance.
3. To identify the areas where there can be scope for improvement
4. To give suitable recommendations to streamline the hiring process.
Scope of the Study: The study was conducted in Bhubaneswar and the different areas which are
near by Bhubaneswar.
Methodology: Content analysis of project proposal and all reports and articles related to it.
The thorough study of past performances of MNYL, Analysis of all financial records of
MNYL was also performed. Survey was conducted through small questionnaires to know the
awareness of the different products, people’s interest and their income, willingness of people
to generate more money. Field visits, meeting with different people as well as villagers were
conducted. Meeting with some insurance agent and financial consultancy were also
conducted. We went to the different petrol pumps of BBSR to gather the information also.
Main findings and conclusion: I have first tried to find out what the MNYL’s present
financial condition and how much they have invested in the BBSR branch, the brand
awareness among the people. After finding out all these, I made a project model to get more
information and create awareness among the people. I also developed some ideas about how
to convince the people and convince them to become an Agent Adviser for MNYL. For this I
went to some private institutes to tell them about the present scenario of MNYL and its
business growth. I tried to aware all the persons starting from college level to business level
to make them aware about MNYL.
Life is a roller coaster ride and is full of twists and turns. You cannot take anything for granted in
life. Insurance policies are a safeguard against the uncertainties of life. Insurance is system by
which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a
protection against financial loss arising on the happening of an unexpected event. Insurance policy
helps in not only mitigating risks but also providing a financial cushion against adverse financial
burdens suffered.
INDUSTRY PROFILE
INSURANCE:
Insurance can be defined as assurance for uncertainty. Insurance is about something going wrong.
Its’ often about things going right; One of the Wonders of human nature is that we never believe
anything can actually go wrong.
Insurance is a contract between two parties; one is the insurer or the insurance company, and the
other one is the insured or the person seeking the cover. Within this contract, the insurer agrees to
pay the insured person or the nominees for financial losses arising out of any unforeseen events or
risks in return for a regular payment of premium. Thus, these insurance plans are also called as a
Risk Cover Plans, which means to financially compensate for losses that occur uncertainly through
accident, illness, theft, natural disaster. As you can not fight against these man-made and natural
calamities, so at least be prepared for them and their aftermath by taking insurance policies.
The insurance sector in India has come with a full circle from being an open competitive market to
nationalization and back to liberalized market again. Tracking the development in Indian insurance
sector reveals the 360 degree turn witnessed over a period of almost two centuries.
The business of life insurance India in its existing form started in India in the year 1818 with the
establishment of Oriental Life Insurance Company in Calcutta. Some of the important milestones
in life insurance business in India are.
1912: The Indian Life insurance Companies Act enacted as first statue to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical
information about life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by (be/buy) the insurance Act with the
objective of protecting the interests of the insuring public.
1965: 245 Indian and foreign insurers and provident societies were taken over by the
central government and nationalized. LIC formed by an act of parliament viz. LIC Act, 1956, with
a capital contribution of Rs. 5 Crore from the government of India.
ABOUT INSURANCE SECTOR IN INDIA:
Insurance sector in India is one of the booming sectors of the economy and is growing at the rate
of 15-20 percent per annum. Together with banking services, it contributes to about 7 per cent to
the country's GDP. Insurance is a federal subject in India and Insurance industry in India is
governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance
Business (Nationalization) Act, 1972, Insurance Regulatory and Development Authority (IRDA)
Act, 1999 and other related Acts.
The origin of life insurance in India can be tracked back to 1818 with the establishment of the
Oriental Life Insurance Company in Calcutta. It was conceived as a means to provide for English
Widows. In those days a higher premium was charged for Indian lives than the non-Indian lives as
Indian lives were considered riskier for coverage. The Bombay Mutual Life Insurance Society that
started its business in 1870 was the first company to charge same premium for both Indian and
non-Indian lives. In 1912, insurance regulation formally began with the passing of Life Insurance
Companies Act and the Provident Fund Act.
By 1938, there were 176 insurance companies in India. But a number of fraudulent companies
during 1920s and 1930s tainted the image of insurance industry in India. In 1938, the first
comprehensive legislation regarding insurance was introduced with the passing of Insurance Act of
1938 that provided strict State Control over insurance business.
Insurance sector in India grew at a faster pace after independence. In 1956, Government of India
brought together 245 Indian and foreign insurers and provident societies under one nationalized
monopoly corporation and formed Life Insurance Corporation (LIC) by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs.5 crore.
The (non-life) insurance business/general insurance remained with the private sector till 1972.
There were 107 private companies involved in the business of general operations and their
operations were restricted to organized trade and industry in large cities. The General Insurance
Business (Nationalization) Act, 1972 nationalized the general insurance business in India with
effect from January 1, 1973. The 107 private insurance companies were amalgamated and grouped
into four companies: National Insurance Company, New India Assurance Company, Oriental
Insurance Company and United India Insurance Company. These were subsidiaries of the General
Insurance Company (GIC).
In 1993, the first step towards insurance sector reforms was initiated with the formation of
Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra. The
committee was formed to evaluate the Indian insurance industry and recommend its future
direction with the objective of complementing the reforms initiated in the financial sector.
Malhotra Committee also proposed setting up an independent regulatory body - The Insurance
Regulatory and Development Authority (IRDA) to provide greater autonomy to insurance
companies in order to improve their performance and enable them to act as independent companies
with economic motives.
Insurance sector in India was liberalized in March 2000 with the passage of the Insurance
Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private
players and allowing foreign players to enter the market with some limits on direct foreign
ownership. There is a 26 percent equity cap for foreign partners in an insurance company. There is
a proposal to increase this limit to 49 percent. The opening up of the insurance sector has led to
rapid growth of the sector. Presently, there are 16 life insurance companies and 15 non-life
insurance companies in the market. The potential for growth of insurance industry in India is
immense as nearly 80 per cent of Indian population is without life insurance cover while health
insurance and non-life insurance continues to be well below international standards.
SNAPSHOT:
Insurance sector is an opportunity for India.
This business is growing at the rate of 15-20 per cent annually.
Presently it covers market of RS.450 billion.
Together with banking sector it contributes about 7% to GDP.
Gross premium collection is about 2% of GDP.
Still 80% of Indian population is without life insurance.
This is an indicator that growth potential for the insurance sector is immense.
Insurance sector contributes a lot in economic development.
It provides long term fund for infrastructure development.
It is estimated that over the next ten years India would require investments of the order of
one trillion US dollars.
The Insurance sector, to some extent, can enable investments in infrastructure development
to sustain economic growth of the country.
There are two legislations that govern the sector, which are (A) Insurance Act 1938 (B) IRDA Act
1999
Insurance Act:
The Insurance Act, 1938 was the first legislation governing all forms of insurance to provide strict
state control over insurance business.
Insurance Regulatory and Development Authority:
Insurance Regulatory & Development Authority is regulatory and development authority under
Government of India in order to protect the interests of the policyholders and to regulate, promote
and ensure orderly growth of the insurance industry. It is basically a ten members' team comprising
of a Chairman, five full time members and four part-time members, all appointed by Government
of India. This organization came alive in 1999 after the bill of IRDA was passed in the Indian
parliament.
Powers and Functions of IRDA
It issues the applicants in insurance arena, a certificate of registration as well as renewal,
modification, withdrawal, suspension or cancellation of such registrations.
It protects the interests of the policy holders in any insurance company in the matters
related to the assignment of policy, nomination by policy holders, insurable interest, and
resolution of insurance claim, submission value of policy and other terms and proposals
in the contract.
It also specifies obligatory credentials, code of conduct and practical instructions for
mediator as well as the insurance company. Apart from these, it also defines the code of
conduct for the surveyors and loss assessors involved with the insurance business.
One of the major functions of IRDA includes endorsing competence in the insurance
business. Apart from this, upholding and regulating professional organizations in
insurance and re-insurance business is also a major function of IRDA.
IRDA is also entitled for asking information, undertaking inspection and investigating the
audit of the insurers, mediators, insurance intermediaries and other organizations related
to the insurance sector.
It is also concerned with the regulation of the rates, profits, provisions and conditions that
may be offered by insurers in respect of general insurance business if it is not controlled
or regulated by the Tariff Advisory Committee.
It is also entitled to supervise the functioning of the Tariff Advisory Committee.
IRDA specifies the terms and pattern in which books of accounts are to be maintained
and statement of accounts shall be provided by insurers and other insurance mediators.
It also regulates investment of funds by insurance companies as well as the maintenance
of margin of solvency.
It is also empowered to be involved in the arbitration of disagreements between insurers
and intermediaries or insurance intermediaries.
It is meant to specify the proportion of premium income of the insurer to finance policies.
IRDA also specifies the share of life insurance business and general insurance business to
be accepted by the insurer in the rural or social sector.
Impact of IRDA on Indian Insurance Sector:
The creation of IRDA has brought revolutionary changes in the Insurance sector. In last 10 years
of its establishment the insurance sector has seen tremendous growth. When IRDA came into
being; only players in the insurance industry were Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC), however in last decade 23 new players have
emerged in the field of insurance. The IRDA also successfully deals with any discrepancies in the
insurance sector.
Historical Perspective
In 1818 it was conceived as a mean i.e., the money and other resources that somebody has
to live on to provide for English Widows.
The Bombay Mutual Life Insurance Society started its business in 1870.
It was the first company to charge same premium for both Indian and non-Indian lives.
The Oriental Assurance Company was established in 1880.
Till the end of nineteenth century insurance business was almost entirely in the hands of
overseas companies.
Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the provident fund Act of 1912.
Several fraudulent companies during 20's and 30's sullied insurance business in India.
By 1938 there were 176 insurance companies.
The first comprehensive legislation was introduced with the Insurance Act of 1938 that
provided strict State Control over insurance business.
The insurance business grew at a faster pace after independence.
The Government of India in 1956, brought together over 240 private life insurers and
provident societies under one nationalized monopoly corporation and Life Insurance
Corporation (LIC) was born.
Nationalization was justified on the grounds that it would create much needed funds for
rapid industrialization.
IMPORTANT MILESTONES IN THE LIFE INSURANCE BUSINESS IN INDIA:
Insurance Sector Reforms
In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N.
Malhotra- was formed to evaluate the Indian insurance industry and recommend its future
direction. The Malhotra committee was aimed at creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping in mind the structural
changes currently underway and recognizing that insurance is an important part of the overall
financial system where it was necessary to address the need for similar reforms. In 1994, the
committee submitted the report and some of the key recommendations included:
i) Structure: Government stake in the insurance Companies to be brought down to 50%.
Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can
act as independent corporations. All the insurance companies should be given greater freedom to
operate.
ii) Competition: Private Companies with a minimum paid up capital of Rs.1bn should be allowed
to enter the sector. No Company should deal in both Life and General Insurance through a single
entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic
companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State
Level Life Insurance Company should be allowed to operate in each state.
iii) Regulatory Body: The Insurance Act should be changed. An Insurance Regulatory body
should be set up. Controller of Insurance- a part of the Finance Ministry- should be made
independent
iv) Investments: Mandatory Investments of LIC; Life Fund in government securities to be reduced
from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (their
current holdings to be brought down to this level over a period of time).
v) Customer Service: LIC should pay interest on delays in payments beyond 30 days. Insurance
companies must be encouraged to set up unit linked pension plans, Computerization of operations
and updating of technology to be carried out in the insurance industry.
The committee felt the need to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act as independent companies with economic
motives. For this purpose, it had proposed setting up an independent regulatory body- The
Insurance Regulatory and Development Authority.
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector insurance
companies. Since being set up as an independent statutory body the IRDA has put in a framework
of globally compatible regulations. The other decision taken simultaneously to provide the
supporting systems to the insurance sector and in particular the life insurance companies was the
launch of the IRDA online service for issue and renewal of licenses to agents. The approval of
institutions for imparting training to agents has also ensured that the insurance companies would
have a trained workforce of insurance agents in place to sell their products.
The functions of Insurance can be bifurcated into two parts:
Primary Functions
Secondary Functions
Other Functions
The primary functions of insurance include the following:
Provide Protection - The primary function of insurance is to provide protection against future risk,
accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly
provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing
the risk with others.
Collective bearing of risk - Insurance is a device to share the financial loss of few among many
others. Insurance is a mean by which few losses are shared among larger number of people. All the
insured contribute the premiums towards a fund and out of which the persons exposed to a
particular risk is paid.
Assessment of risk - Insurance determines the probable volume of risk by evaluating various
factors that give rise to risk. Risk is the basis for determining the premium rate also
Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty.
Insurance is device whereby the uncertain risks may be made more certain.
The secondary functions of insurance include the following:
Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to
prevent unfortunate consequences of risk by observing safety instructions; installation of automatic
sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the assured by the
insurer and this will encourage for more savings by way of premium. Reduced rate of premiums
stimulate for more business and better protection to the insured.
Small capital to cover larger risks - Insurance relieves the businessmen from security investments,
by paying small amount of premium against larger risks and uncertainty.
Contributes towards the development of larger industries - Insurance provides development
opportunity to those larger industries having more risks in their setting up. Even the financial
institutions may be prepared to give credit to sick industrial units which have insured their assets
including plant and machinery.
The other functions of insurance include the following:
Means of savings and investment - Insurance serves as savings and investment, insurance is a
compulsory way of savings and it restricts the unnecessary expenses by the insured's For the
purpose of availing income-tax exemptions also, people invest in insurance.
Source of earning foreign exchange - Insurance is an international business. The country can earn
foreign exchange by way of issue of marine insurance policies and various other ways.
Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free
with the help of different types of policies under marine insurance cover.
The end of the year 2000 marks a significant change and growth of 'India Insurance' industry
scenario. Monopoly of Public Sector Insurance company marks an end and Private companies
makes inroad. Foreign companies, both Life and General flocked, collaborated and helped
astronomical growth of 'Insurance Industry in India'.
'India Insurance' growth was long overdue. Within 1st 12 months of liberation of 'Indian Insurance
Industry' 10 licenses for selling life insurance products and 6 licenses for selling non-life products
were issued to private companies. The Public sector giant LIC started losing its market share at the
cost of stupendous growth of private players. Now 'India Insurance' industry has more than a dozen
private life insurance players and 9 private general insurance companies. Aggressive and
penetrative marketing strategy coupled with wide product bandwidth was an instant success among
the ignorant masses. Most of the private companies registered more than 100% growth till then and
are still continuing with such monstrous growth figures. Although, 'Insurance in India' is not
regarded as a basic need but it is getting popular among semi urban to rural masses. Top rank
private companies like ICICI Prudential Life Insurance, Tata AIG, Bajaj Allianz etc are
aggressively researching and innovating products for huge untapped rural 'India Insurance' market.
Collaboration with micro finance companies, post offices, rural banks and village management
authorities for selling insurance is doing wonders.
Life insurance products cover risk for the insurer against eventualities like death or disability. Non-
life insurance products cover risks against natural calamities, burglary, etc. They are not as popular
as life products in the ' Insurance India's' portfolio. Until very recently it had only corporate buyers,
but with natural disasters like, earth quakes, tsunamis, storms and floods becoming more frequent
and damaging there has been a sudden spurt in sales of general insurance amongst individuals.
Consumerism of life style goods and modern amenities has also contributed to its growth. With
more awareness and wide bandwidth of insurance product portfolio the growth for 'India
Insurance' story will only get more competitive and more affordable to all sections of Indian
society.
Present Scenario
The Government of India liberalized the insurance sector in March 2000 with the passage of the
Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for
private players and allowing foreign players to enter the market with some limits on direct foreign
ownership. Under the current guidelines, there is a 26 percent equity cap for foreign partners in an
insurance company. There is a proposal to increase this limit to 49 percent.
The opening up of the sector is likely to lead to greater spread and deepening of insurance in India
and this may also include restructuring and revitalizing of the public sector companies. In the
private sector 15 life insurance companies have been registered. A host of private Insurance
companies operating in life segments have started selling their insurance policies since 2001. The
following are the current market players in the life Insurance Industry (Source IRDA).
Bajaj Allianz Life Insurance Co. Ltd. Birla Sun Life Insurance Co. Ltd.
HDFC Standard Life Insurance Co. Ltd. ICICI Prudential Life Insurance Co. Ltd.
ING Vysya Life Insurance Co. Ltd. Life Insurance Corporation of India
Max New York Life Insurance Co. Ltd. Met Life India Insurance Co. Pvt. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. SBI Life Insurance Co. Ltd.
Tata AIG Life Insurance Co. Ltd. Reliance Life Insurance Co. Ltd.
AVIVA Life Insurance Co. India Pvt. Ltd. Sahara India Life Insurance Co. Ltd.
Shriram Life Insurance Co. Ltd. Bharti AXA Life Insurance Co. Ltd.
Life Insurance Market Growth
The Life Insurance market in India is an underdeveloped market that was only tapped by the state
owned LIC till the entry of private insurers. The penetration of life insurance products was 22
percent of the total 400 million of the insurable population. Most customers were under- insured
with no flexibility or transparency in the products. With the entry of the private insurers the rules
of the game have changed.
Life insurance business in terms of first year premium has shown a growth of more than 95% over
the previous year and non life, or general insurance, is not far behind either, growing at 22%
during 2006-07.The 15 private insurers in the life insurance market have already grabbed nearly 24
percent of the market in terms of premium income. The new business premium of the 15 private
players has tripled over last year. Meanwhile, state owned LIC's new premium business has fallen.
Figure shows comparison between premiums being collected by private and public limited players
in year 2006 and 2007.
Innovative products, smart marketing and aggressive distribution, that’s the triple whammy
combination that has enabled fledgling private insurance companies to sign up Indian customers
faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new innovative
products on offer.
The growing popularity of the private insurers shows in other ways. They are coining money in
new niches that they have introduced. The state owned companies still dominate segments like
endowments and money back policies. But in the annuity or pension products business, the private
insurers have already wrested over 33 percent of the market. And in the popular unit-linked
insurance schemes they have a virtual monopoly, with over 90 percent of the customers.
The private insurers also seem to be scoring big in other ways- they are persuading people to take
out bigger policies. For instance, the average size of a life insurance policy before privatization
was around Rs 50,000. That has risen to about Rs 80,000. But a rejuvenated LIC is also trying to
fight back to persuade new customers.
COMPANY PROFILE:
Max India Ltd.
Max India Limited multi business corporate, driven by the spirit of enterprise and focused on
people and service oriented businesses. The company’s vision is to be one of the India’s most
admired corporate for Service Excellence.
The Group's principal activities are to manufacture specialty plastic products and provide life
insurance, healthcare, clinical research, medical transcription, software development, and
communication and business investment services. The Group operates in seven segments. The
Group's healthcare service institution provides patient care, scientific knowledge and medical
education. The Group offers individual and group life insurance solutions through Max New York
Life, a joint venture between Max India Limited and New York Life. The specialty plastic segment
manufactures BOPP films, metalized BOPP films, thermal plastic films and leather transfer
finishing foils. The Group has international operations in Hong Kong, United Kingdom,
Netherlands, Costa Rica and the United States.
Key Subsidiaries:Max New York Life (MNYL) is a joint venture between Max India Ltd. and New York Life, a
Fortune 100 company. MNYL, incorporated in 2000, is one of the India’s leading private life
insurance companies. The Company offers both individual and group life insurance solutions. It
has established a wide distribution network across India. Through its wide network of highly
competent life insurance agent advisors and flexible product solutions, MNYL is creating a
partnership for life with its customers in India to help them meet their life stage needs.
Max Healthcare (MHC) is the country's first comprehensive provider of standardized, seamless
and world-class healthcare services. It is committed to the highest standards of medical and service
excellence, patient care, scientific and medical education. MHC operates eight centers in Delhi &
NCR, offering services in over 30 medical disciplines. MHC has state of the art tertiary care
facilities at Saket in South Delhi, secondary care hospitals at Pitampura, Patparganj, Gurgaon and
Noida, an out patient facility, the Max Med centre and a Speciality centre focused on Eye and
Dental care at Panchsheel Park. The tertiary care hospitals at Saket include Max Devki Devi Heart
& Vascular Institute, a Centre of Excellence in Cardiac Services and the Max Super Speciality
Hospital, a super speciality facility in Orthopaedics & Joint Replacement, Neurosciences,
Paediatrics, Obstetrics & Gynaecology, Aesthetic & Reconstructive Plastic Surgery and Internal
Medicine. In addition, it has an Institute of Allied Medical Services where it provides General and
Laparoscopic surgery, Urology, Eye & ENT, Oncology, Nephrology, Dermatology, Department of
Mental Health & Behavioral Sciences amongst others.
Max Bupa Health Insurance Limited (MBHI) is a joint venture between Max India Limited and
UK-based Bupa Group, a leading international health and care organization. The Company is
headquartered in Delhi and is set to launch its operations in 2009. Dr. Damien Marmion has
recently joined as the CEO and the Company is in the process of putting together its top
management team.
Max Neeman Medical International (MNMI) is a Clinical Research service provider offering
services across the value chain of new drug development to a growing list of Pharmaceutical,
Biotech and Clinical Research clients, in India and abroad. MNMI continues to focus on
developing alliances with mid sized pharma and biotech companies to transition their drug
development work to India. It has an employee base of 200 and five Regional offices in India &
one business development office in USA.
Max Speciality Products (MSP) specializes in manufacturing of wide range of sophisticated
barrier and packaging films. The BOPP division of MSP has an installed capacity of 29,000 tons
per annum. MSP’s leather finishing foil business division manufactures a range of leather finishing
and laminating foils.
New York Life Insurance Company:
The New York Life Insurance Company (NYLIC) is the largest mutual life-insurance company in
the United States, and one of the largest life insurers in the world. Other New York Life affiliates
provide an array of security products and services, as well as institutional and retail mutual funds.
The company is listed as #82 in the 2008 Fortune100. In 2007, standard and poor’s upgraded New
York Life Insurance Company's insurance financial strength rating to AAA, the highest rating
Standard and Poor's assigns. The company is now one of only three life insurers to hold the highest
possible rating from all four major rating agencies.
The company was founded in 1845 as the Nautilus Insurance Company in New York City, with
assets of just $17,000. It was renamed the New York Life Insurance Company in 1849. Its first
headquarters were at 112-114 Broadway; the first president was James DePeyster Ogden. The
current New York Life headquarters was designed by noted architect Cass Gilbert and completed
in 1928. The New York Life building, at 51 Madison Avenue, was constructed during the
presidency of Darwin P. Kingsley. He expanded the company’s operations and developed new
types of insurance. As with other early insurance companies in the U.S., in its early years the
company insured the lives of slaves for their owners. In response to bills passed in California in
2001 and in Illinois in 2003, the company reported that Nautilus sold 485 slaveholder life
insurance policies during a two-year period in the 1840s; they added that their trustees voted to end
the sale of such policies 15 years before the Emancipation Proclamation. Remove the link.
The company became known for innovative business practices. In 1860, well before state laws
required it, New York Life developed the non-forfeiture option, the predecessor to the guaranteed
cash values of modern policies, under which a policy remains in force even if a premium payment
is missed. It was also the first American life insurance company to pay a cash dividend to
policyholders, and the first U.S. Company to issue policies to women at the same rates as men.
Susan B. Anthony was one of their first female policy holders, and her father worked for NYLIC.
In 1896, New York Life became the first company to insure people with disabilities and the first to
issue a policy with a disability benefit that presumes total disability to be permanent after a
predetermined period.
In the late 1990s New York Life was one of several large mutual life insurers to back a bill that
would allow demutualization into a structure known as a mutual holding company (MHC). CEO
Sternberg himself argued strongly in favor of the bill which was ultimately defeated. The NYLIC
board of directors subsequently reversed course, with the company strongly and publicly
embracing their mutual nature in a series of advertisements.
According to their Report to Policyholders 2007, in early 2007 the company's managers became
concerned about the state of credit markets, so in February 2007 "based on our belief that the
markets were acting irrationally" New York Life decided to move much of its cash flow into safer
investments such as US Treasury bonds. "By August 2007, the credit market problems we had
feared were front page news," the Report notes.
In November 2008, the company announced it will not participate in the Troubled Asset Relief
Program. "The company can meet all of its strategic objectives without government capital, its
businesses are strong and profitable, and it is committed to remain as a mutual company operating
for the sole benefit of its policyholders," states a company press release.
Both NYL (its primary American insurance subsidiary, New York Life Insurance and Annuity
Corporation) are licensed to do business in all 50 states and the Districts of Columbia. The
company also sells annuities and long-term care insurance; mutual funds through its subsidiary
NYLIFE Securities, a registered broker-dealer; and provides institutional asset-management and
retirement-plan services from subsidiary New York Life Investment Management (NYLIM).
MISSION:
Our mission is to provide financial security and peace of mind through our insurance,
annuity and investment products and services.
By continuing to be a mutual company, we are uniquely aligned with our customers.
By maintaining superior mutual strength, we protect their future.
By acting with integrity and humanity, we earn their trust and loyalty.
Every decision we make, every action we take has one overriding purpose: to be here when
our customers need us. That's why we call ourselves The Company You Keep.
New York Life Insurance Company
Type Mutual
Founded 1845
Headquarters New York, New York, USA
Key people Ted Mathas, CEO
Industry Insurance: Life & Health
Revenue $28.3651 Billion USD (2006)
Net income $2.3 Billion. USD (2006)
Employees 12,650 (2005)
Website www.newyorklife.com
JOINT VENTURE (MAX INDIA LTD. & NEW YORK LIFE INSURANCE)
“Max New York Life wants people to view insurance as a financial protection and wealth
creation instrument and not just a tax-saving tool.”
Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune
100 company and Max India Limited, one of India's leading multi-business corporations. The
company has positioned itself on the quality platform. In line with its vision to be the most
admired life insurance company in India, it has developed a strong corporate governance model
based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The
strategy is to establish itself as a trusted life insurance specialist through a quality approach to
business.
New York Life is a Fortune 100 company that has over 160 years of experience in the life
insurance business. Max India Limited is a multi-business corporate dealing in Clinical Research,
IT and Telecom Services, and Specialty Plastic Products businesses.
Max New York Life Insurance started its operations in India in 2000. It is the first life insurance
company in India to be awarded the IS0 9001:2000 certification. Max New York offers customized
products tailored to suit individual's needs. With its various Products and Riders, there are more
than 400 product combinations to choose from. Today, Max New York Life Insurance has a
network of 57 offices spread over 37 cities all over India.
In line with its values of financial responsibility, Max New York Life has adopted prudent
financial practices to ensure safety of policyholder's funds. The Company's paid up capital is Rs.
657 crore, which is more than the norm laid down by IRDA.
Max New York Life has identified individual agents as its primary channel of distribution. The
Company places a lot of emphasis on its selection process, which comprises four stages -
screening, psychometric test, career seminar and final interview. The agent advisors are trained in-
house to ensure optimal control on quality of training.
Max New York Life invests significantly in its training program and each agent is trained for 152
hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in
the marketplace. Training is a continuous process for agents at Max New York Life and ensures
development of skills and knowledge through a structured program spread over 500 hours in two
years. This focus on continuous quality training has resulted in the company having amongst the
highest agent pass rate in IRDA examinations and the agents have the highest productivity among
private life insurers.
It has established a wide agency distribution network with 172 offices and representatives across
120 cities in India. The company has established additional channel with 22 bancassurance
relationships, corporate tie-ups and a strong Direct Sales Team. Through its wide network of
highly competent life insurance agent advisors, flexible product solutions and strong customer
focus, Max New York life is creating a partnership for life with its customers in India.
Max New York Life, one of India’s leading life insurance companies, expanded its presence in the
southern region by opening its first general office in the city of Mysore. Max New York Life now
has established a countrywide network of 172 offices and representatives across 120 cities in India.
Max New York Life, which has till date sold over 1.53 million policies and recorded a sum assured
of over Rs. 46,000 crore, has positioned itself on the quality platform. The company has developed
a strong corporate governance model based on defined core values of caring, knowledge,
excellence and honesty. Its strategy is to establish itself as a trusted life insurance specialist on the
bedrock of quality of advice. The company has over 25,300 agent advisors, who are widely
considered the best in the business.
Max New York Life aspires to be the "life insurance brand of first choice" amongst Indian
consumers. To achieve this the company will draw on New York Life's demonstrated competence
in developing and managing a superior personal sales network. For the last 46 years consecutively,
the largest number of agents qualifying for membership to the Million Dollar Round Table
(MDRT) have been from New York Life. The MDRT is the industry's most prestigious
organization comprising the world's most successful insurance agents. Max New York Life, a
merit oriented and equal opportunities employer, is looking for a few good men and women who
will spearhead the effort to realize this vision.
“Max New York Life wants people to view insurance as a financial protection and wealth creation
instrument and not just a tax-saving tool. Since the launch of our operations, our focus has always
been on providing risk protection and long-term wealth creation solutions to our customers. With a
diverse product portfolio to meet customer requirements, it is evident that we are setting
benchmarks in the marketplace and are well on course of realizing our vision to become India’s
most admired Life Insurance Company.”
“An ever expanding presence of Max New York Life offices across India reinforces our
commitment to serving the nation. We are extremely pleased with our progress in the region and
feel that opening an office in Mysore would help us educate people about the true potential and
benefits of life insurance. As life insurance specialists, Max New York Life will continue to help
consumers make the right choices to meet their financial goals, both for the short and long-term,
through sound quality advice offered by our agent advisors and a right mix of product offerings.”
he added.
Max New York Life has been instrumental in changing the paradigm of life insurance in India. It is
the first life insurance company in India to introduce cause related marketing.
Children are at the very heart of Max New York Life's strategy. SOS Children's Villages of India is
internationally recognized for its work in giving underprivileged children a wholesome life. The
mission of SOS is "to help orphaned and abandoned children, by providing them with a family, a
permanent home, education and strong foundation for an independent life." It's mission ties in with
Max New York Life's philosophy of helping people secure the future of their near and dear ones.
SNAPSHOT OF THE COMPANY:
Headquarters Delhi Area, India
Industry Insurance
Type Privately Held
Status Operating
Company Size 15,500 employees
Founded 2001
Website
http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww
%2Emaxnewyorklife%2Ecom&urlhash=eh2t
Max New York Life Insurance Company Ltd. is a joint venture between New York Life
and Max India Limited.
New York Life is a Fortune 100 company and Max India Limited is one of India's leading
multi-business corporations.
The company has positioned itself on the quality platform.
Its core values are excellence, honesty, knowledge, integrity and team work through which
it is able to develop a strong corporate governance model.
The strategy is to establish itself as a trusted life insurance specialist through a quality
approach to business.
In line with its values of financial responsibility, Max New York Life has adopted prudent
financial practices to ensure safety of policyholder's funds.
The Company's paid up capital is Rs. 657 crore, which is more than the norm laid down by
IRDA.
Max New York Life has identified individual agents as its primary channel of distribution.
The Company places a lot of emphasis on its selection process, which comprises four
stages –
SCREENING
PSYCHOMETRIC TEST
CAREER SEMINAR
FINAL INTERVIEW
The agent advisors are trained in-house to ensure optimal control on quality of training.
Max New York Life invests significantly in its training programme.
Each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by
the IRDA before beginning to sell in the marketplace.
Training is a continuous process for agents at Max New York Life and ensures
development of skills and knowledge through a structured programme spread over 500
hours in two years.
This focus on continuous quality training has resulted in the company having amongst the
highest agent pass rate in IRDA examinations and the agents have the highest productivity
among private life insurers.
201 agent advisors have qualified for the Million Dollar Round Table (MDRT)
membership in 2005.
MDRT is an exclusive congregation of the world’s top selling insurance agents and is
internationally recognized as the standard of excellence in the life insurance business.
Having set a best in class agency distribution model in place, the company is
spearheading a major thrust into additional distribution channels to further grow its
business.
The company is using a five-pronged strategy to pursue alternative channels of distribution.
These include the franchisee model, rural business, direct sales force involving group
insurance and telemarketing opportunities and corporate alliances.
Max New York Life offers a suite of flexible products.
It now has 26 life insurance products and 8 riders that can be customized to have more than
400 products.
REWARD AND RECOGNITION:
CEO
MDRT
Ex. Council
Paul Colgan Trophy
Centurion
Agent of the year
Persistency, Rider, Referral and CEIP Leader
Career Foundation Club
Career Producer Award
Career Success Award
Hi-Flier
Ten-A- Month
Position Qualifying Criteria/ Reward & Recognition
Rs. 1lakh AFYP per month / Mention in Leaders Report & Lunch
July 2006 to June 2007: 8,00,000 Council Credits Jan 2007 to June 2007: 3,20,000 Council Credits/ below
MDRT FYC Rs. 7,19,800 Premium Rs.14,39,600 / below
July 2006 to June 2007: 4,30,000 Council Credits, 40 paid cases in the council period/Trip to malasia for ECM
Highest FYC with 100 or more paid cases and 95% Or more 13th month persistency/Recognition Trophy
100 net paid cases in a year /Centurion Trophy
Highest point in each GO/recognition award
Top agent in each category in each GO/Recognition Plaque
50 paid cases & Rs 1.8 lak FYV in june, july/ CFC Meeting Attend
25 paid cases & Rs 80 th. FYV in 6month/ Recognition award
15 paid cases & Rs. 40,000 FYC in 3month/Recognition Award
20 applications monthly/MNYL silver medal, crystal glass & LR
10 applications monthly & 30000 / MNYL crystal glass &LR
Premium Leader
Rewards and Recognition:
MDRT: MDRT dues for all qualifiers. Top 35 by FYC will bear domestic travel and visa costs.
Next 15 will bear Registration fees, domestic travel and visa costs. Rest All will bear international
airfare, domestic travel and Visa costs.
CEO: Trip to Amsterdam to attend the CEO Council meeting.
VISION:
To become the most admired life Insurance Company in India.
MISSION:
1. To become one of the top quartile life Insurance companies in India.
2. Be a national player.
3. Be the brand of the first Choice.
4. Be the Employer of the Choice.
5. Become principal of choice for agents.
Values and Beliefs:
This vision to become India's most admired life insurance company will be realized through our
unique set of values, which are as follows:
Excellence
"In every aspect of work, ranging from the in-house training institute to the detailed Personal
Insurance Plan, Max New York Life is focused on achieving the highest standards of quality in
every aspect of their business".
Honesty
"Is the heart of the Life Insurance business. Max New York believes that above all, Life Insurance
is based on trust. Transparency, Dependability and Integrity will form the cornerstones of the Max
New York Life experience."
Knowledge
"Is what makes experts. Max New York Life is focused on the Life Insurance business. Perfectly
combining global expertise with local knowledge, Max New York Life is the Indian Life Insurance
specialist."
Caring
"For the customer, Max New York Life is redefining the Life Insurance paradigm to focus on the
needs of the customers. The Max New York service process is responsive, personalized, humane
and empathetic."
Achievements
First life insurance Company in India to have IS0 9001:2000 certifications.
Top five most respected private life insurance in India according to Business World survey.
Continuous presence in Top 50 MDRT global list.
CSR
Max New York Life has been instrumental in changing the paradigm of life insurance in India. It is
the first life insurance company in India to introduce because related marketing.
Children are at the very heart of Max New York Life's strategy. SOS Children's Villages of India is
internationally recognized for its work in giving underprivileged children a wholesome life. The
mission of SOS is "to help orphaned and abandoned children, by providing them with a family, a
permanent home, education and strong foundation for an independent life." It's mission ties in with
Max New York Life's philosophy of helping people secure the future of their near and dear ones.
The company donates a part of the total money collected on all policies sold, to SOS Children's
Villages of India at the end of the year.
CULTURE:
Customer comes first Do it right the first time
Bias for result oriented action Financial strength and discipline
Clarity of purpose International quality standards
MD
Zonal Mgr.
Regional Mgr.
Retail Marketing Alternative Channel Operational Channel HR
Territory Mgr. Territory Mgr. Team Mgr. HR Executive
Sales Dev. Mgr.
Business Dev. Mgr
Channel ExecutiveAsst. Branch Mgr.
Operation Mgr.Branch Mgr.Branch Mgr.
Inclusive Meritocracy Learning opportunities
Fun at work Commitment to published value system
BUSINESS GROWTH:
Max New York Life Insurance, one of the leading life insurance companies of India, announced its
First Year Premium (FYP) income for financial year ended March 2008.
During the year the company has recorded a growth of 70 per cent in individual first year premium
adjusted for single pay. The adjusted individual FYP for FY 2008 stood at Rs. 1, 308 (crore) as
compared to Rs.769 (crore) during previous financial year.
During the last quarter of the financial year (January-March 08), the company grew by 95 per cent
over the corresponding period last year. The adjusted individual FYP for quarter ended March
2008 stood at Rs.471 (crore) as compared to Rs.241 (crore) for quarter ended March 2007.
Commenting on the continued high growth of the company, Gary Bennett, Managing Director and
CEO, Max New York Life Insurance, said: We have built a robust and values driven business
model. We have the best in class agent advisors who are acknowledged for their quality of advice.
We always had a strong focus on customer needs and during past one year we further sharpened
our customer centricity. This reflects in our entry into new product segments like health insurance
and retirement planning and superior customer service and claims record. These efforts are
reflected in our financial performance for the year and will help us continue on this growth trend,
he added.
Max New York Life Insurance sold 8.7 lakh policies during the financial year 2008, an increase of
58 per cent over 5.5 lakh policies sold during financial year 2007. The company has acquired
around 23 lakh policies since inception. In the financial Year 2008 the assets under management
also doubled to over Rs.3,600 (crore) as compared to Rs.1,800 (crore) at the end of previous
financial year.
During the Financial Year 2008, Max New York Life further strengthened its distribution network.
The company launched 77 new offices and now has presence in 157 cities across the country
through 242 offices.
The rural business of Max New York Life Insurance started its hub and spoke operations in
Haryana after witnessing stupendous success in Punjab.
The company also strengthened its partnership distribution channel by signing four corporate
agency relationships, five broking house tie-ups and eight referral tie-ups with banks.
Max New York Life Insurance launched 13 new products during the financial year and now has a
portfolio of 38 products and eight riders for individuals. The company entered the health insurance
segment with the launch of Life Line Health Insurance Plans in February 2008. It also
strengthened its ULIP portfolio through launch of like maker range of products and retirement
portfolio through Smart Invest.
Max New York Life Insurance has a strong growth focus. The company plans to significantly
expand its distribution footprint by opening more than 100 new offices every year for next 3-4
years. The number of agent advisors is expected to touch 2,00,000 from current 36,500 to till June
of 2008.
The growth in agency distribution will be complemented by strong growth in partnership
distribution. The company currently has an equity base of Rs.1,032 (crore). To support this growth
plan, the shareholders are committed to increase the capital base to Rs. 2,650 over the next 3-4
years.
Now it is looking at maintaining a double digital growth rate both in terms of premium collection
and number of policy holders this year, despite volatile market condition with more tailor made
products. This year it launched its new unit linked insurance product unit builder in Kolkata and
planning to double digit growth rate as explained above despite the meltdown with increased focus
on customer service and newer products.
MAJOR PLAYERS IN INSURANCE INDUSTRY:
(A) LIFE INSURANCE CORPORATION
Life insurance made its debut in India well over 100 years ago. Its salient features are not as
widely understood in our country, as they ought to be. What follows is an attempt to acquaint
readers with some of the concept of life insurance, with special reference to LIC. It should,
however, be clearly understood that the following narration is by no means an exhaustive
description of terms and conditions of LIC policy or its benefits or privileges.
For more details, please contact our branch or divisional office. An LIC it will be glad to help you
choose the life insurance plan to meet your needs and render policy servicing.
(B) ICICI PRUDENTIAL
ICICI Prudential Life Insurance Company is a joint venture between ICICI bank, a premier
financial powerhouse and prudential plc. A leading international financial service group
headquartered in the United Kingdom. ICICI prudential was amongst the first private sector
insurance company to being operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA), ICICI Prudential equity base 74% and 26% stake
respectively. In the period April-December 2004, the company garnered Rs. (?) Billion of new
business premium for a total sum assured of over Rs 73.6 billion and wrote nearly 345000 policies.
The company has a network of over 50000 advisors; as well as 7 bank assurance tie-ups. Today,
ICICI Prudential has emerged as the No -1 Private Life Insurance Company in the country. With a
wide range of flexible products that meet the needs of the customer at every step in life.
(C) BAJAJ ALLIANZ: SHARED VISION
A household name in India teams up with a global conglomerate…Bajaj Auto Ltd, the flagship
company of the Rs. 8000 corers Bajaj group is the largest manufacturer of two- wheelers and
three-wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image and locality synonymous with
quality and customer focus. With over 15000 employees, the company is a Rs. 4000 auto giant. It
is the largest 2/3 wheelers manufacturer in India and the 4th in the world. AAA rated by crises,
Bajaj auto has in a operation for over 55 years. It has joined hands with Allianz to provide the
Indian consumer with a distance option in terms of life insurance products. As a promoter of Bajaj
Allianz Life Insurance Co. Ltd. Bajaj auto has following to offer-
1. Financial strength and stability to support the Insurance Business.
2. A Strong brand-equity.
3. A good market reputation as a world class organization.
4. Adequate experience of running a large organization.
5. A 10 million strong base of retail customers using Bajaj Products.
MARKET SHARE OF DIFFERENT PRIVATE PLAYERS:
In the year 2004:
Life Insurance Corporation of India’s market share dropped over 75% to 82.39% with private
players increasing their toehold in life insurance industry. The industry grew by 64% recording Rs.
1,354 crore in premium income from new business in June alone, with LIC contributing Rs. 1,096
(crore).
During the first quarter, the life insurers mopped up Rs. 3,659 (crore) in premium, according to
figures complied by IRDA. Private players led by ICICI Prudential commanded 17.61% of life
insurance market till June. The business of different private players is as follows:
1096
222
94
6653 51 50
LICICICI
Birla Sun LifeBajaj AllianzHDFC
SBITATA
In the year 2005:
For the year 2004-05, again LIC of India has the highest business. And among the private players,
ICICI had the highest business growth followed by Birla Sun Life Insurance. The following
diagram will show the various businesses in crore of different insurance companies.
115
178
186
259
279
331
682
9007
MNYL
TATA
HDFC
SBI
Bajaj Allianz
Birla Sun
ICICI
LIC
Series1
In the year 2006:
Life Insurance Corporation of India dominated the market with its market share increasing from
71% to 77.51%. This happened in spite of the challenges faced by LIC since there were fifteen
private players in the industry. This happened mainly because LIC introduced ULIP products. The
industry registered a 161% rise in premium income in the same period. First premium income for
all insurers including LIC was 29664.64 crore against Rs. 11,323.13 crore, in the previous first
half.
Private players, how ever saw their cumulative market share dip from 26% in the first half of
2005-06 just over 20% in the first half of 2006-07. They managed to register a total premium
income of Rs. 6,229.56 crore till September 2006 against Rs. 2,914.03 crore in the previous
corresponding period. LIC holds about 91% of the individual single premium product market
which mainly comprises unit-linked products.
In the year 2007:
Even though LIC of India increased its market share to 74% in terms of total new business
premium policies in March 2007, compared with 72% in March 2006, it has lost market share in
new individual non-single premium policies. Meanwhile, Bajaj Allianz overtook ICICI Prudential
in terms of monthly market share in non-single premium policies in March for the first time ever
Bajaj’s market share among private players in the segment for March stood at 29.1% against ICICI
Prudential’s 23.8%.
The company wise market share for ICICI was 6.97%, Bajaj Allianz enjoyed a market share of
5.66%, and then Reliance had a market share of 1.23% and Birla Sun Life Insurance 1.22%.
In the year 2008:
LIC of India still remains the largest life insurance company accounting for 64% market share. Its
share, however, has dropped from 74% a year before, mainly owing to entry of private players
with innovative products and better sales force.
ICICI Prudential is the biggest private life corporation company in India. It experienced growth of
58% in new business premium, accounting for increase in market share to 8.93% in 2007-08 from
6.97% in 2006-07.
Bajaj Allianz has reported a growth of 52% and its market share went up to 6.98% in 2007-08
from 5.66% in 2006-07. The company ranked second (after LIC) in number of policies sold in
2007-08 with a total market share of 7.36%.
SBI in terms of new number of policies sold, the company ranked sixth in 2007-08. New premium
collection for the year was Rs. 4792.66 crore in 2007-08, an increase of 87% over last year.
Reliance Life Corporation Company Limited, total collections was Rs. 2792.76 crore and its
market share went up to 2.96% from 1.23% a year back. It now ranks fifth in new business
premium and fourth in number of policies sold in 2007-08.
HDFC, with an income of Rs. 2680 crore in FY2007-08, registering a year-on-year growth of 64%.
Its market share is 2.88% and it ranks sixth among the insurance companies and fifth amongst the
private players.
Birla Sun Life Insurance, market share of the company increased from 1.22% to 2.11% in FY
2007-08. The company moved to the seventh position in 2007-08 from the year before, pushing
down MNYL.
MNYL has a reported growth of 73% in 2007-08. Total business generated was Rs. 641.83 crore
as against Rs. 387.51 crore. The company was pushed down to the eighth position from seventh in
2007-08.
Kotak Mahindra Old Mutual Life Insurance Limited, the fiscal 2007-08, the company reported
growth of 80% moving from the eleventh position to ninth position. It captured a market share of
1.19% in 2007-08. Last year the company doubled its brand networks to 150 from 74.
Aviva Life Insurance Company Limited ranking dropped to tenth in 2007-08 from ninth last year.
It has presence in more than 3000 locations across India via 221 branches and close out to 40 Banc
assurance partnership. Aviva Life Insurance plans to increase its capital base by Rs. 344 crore with
the fresh investment, total paid up capital of the insurer would go up to Rs. 1348.8 crore.
648.9
6.98
6.32
52.962.882.111.19
LIC
ICICIBajaj Allianz
SBI LifeMNYLReliance
HDFC Standard LifeBirla Sun Life
Kotak Mahindra
The above diagram shows the market share of each company making LIC the first, ICICI the
second with a market share of 8.90% and internal growth of 58%, then making Bajaj Allianz the
third with a share of 6.98% and an internal growth of 52% followed by SBI Life having a market
share of 6.32% and growing internally by 87%. The fourth place is held by MNYL with a share of
5%, followed by Reliance at 2.96%. The sixth position was held by HDFC Standard Life with a
share of 2.88%, seventh is Birla Sun Life with 2.11% and the least market share is of Kotak
Mahindra but it grew internally at 80%.
If we see the trend analysis, the market share of MNYL has remained more or less in the bracket of
1-2 percent over a period of five years. However its rigorous marketing activities are helping it
increase its market share and come among the top five insurance companies. To be different from
other companies, MNYL attempts the following:
1. whole life participating plan which offers a coverage from the age of 91 days to 99 years
2. claim settlement (max. 9 days) and for this they have been received an ISOO9000
certification
3. for medical it offer safety net safety cover and wellness which do not give a specified cover
but have been broken in to units.
4. training given to the agents
5. joint venture with New York Life which is almost 200 years old company and the
marketing strategies are followed as per the guidelines given by New York Life
None of the above points started with capitals
The marketing objective of MNYL can be summarized as follows:
1. to expand its business, MNYL is setting a best in class agency distribution model in place,
the company is spearheading a major thrust into additional distribution channels to further
grow its business
2. customer service be it claim settlement of customizing their products MNYL leaves no
stone unturned
3. it focused more on tradition based products rather than ULIP because the customers have
become more cautious these days and have lost faith in the market share and since ULIP
products are associated with the market share
In the year 2009
The above diagram shows the different percentage of market share held by different private
insurance companies in the year 2009. Among them, ICICI prudential secures the highest
percentage as compare to the other private players. SBI Life, Bajaj Allianz, Reliance Life, Birla
Sun Life and HDFC Standard Life Insurance secured the second, third, fourth and fifth position
respectively. Max New York Life Insurance secured the sixth position by having 5.6% of the
market shares. Similarly the lowest market share held by ING Vysya.
MARKETING MIX:
The 4P’s of marketing are also known as the marketing mix that a company adopts to market its
products. The 4P’s are product, place, price and promotion.
product
pricepromotion
place
Product:
MNYL offers an intangible product that is an insurance cover. MNYL offers a suite of flexible
products. It now has 43 life insurance products and 8 riders that can be customized to over 800
combinations enabling customers to choose the policy that best fits their need. The products that
are offered by MNYL are broadly divided into:
Various types of Life Insurance policies:
Endowment policies: This type of policy covers risks for a specified period and at the end
of the maturity sum assured is paid back to policy holder with the bonuses during the term
of the policy.
Money back plan: This type of policy is for periodic payments of partial survival benefits
during the term of the policy as long as the policy holder is alive.
Group insurance: This type of insurance offers life insurance protection under group
policies to various groups such as employers-employees, professionals, co-operatives etc.
it also provides insurance coverage for people in certain approved occupations at the
lowest possible premium cost.
Term life insurance policy: This type of insurance covers risk only during the selected
term period. If the policy holder survives the term, risk covers come to an end. These types
of policies are for those people who are unable to pay larger premium required for
endownment and whole life policies. No surrender, loan or paid up values are in such
policies.
Whole life insurance policies: This type of policy runs as long as the policy holder is
alive and is covered for the entire life of the policy holder. In this policy the insured
amount and the bonus is payable only to nominee on the death of the policy holder.
Joint life insurance policies: These policies are similar to endownment policies in
maturity benefits and risk cover, but joint life policies cover two lives simultaneously such
as married couples, sum assured is payable on the first death and again on the death of
survival during the term of the policy.
Pension plan: A pension plan or annuity is an investment over a certain number of years
but doesn’t provide any life insurance cover. It offers a guaranteed income either for a life
or certain period.
Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover as
well as return on premium paid over a certain period of time. The investment is denoted as
units and represented by the value called as net asset value (NAV).
The various products offered by Max New York Life Insurance are:
Life Partner Plus Plan 20yrs. Endownment (Par) Plan
Life Gain Plus 20 participating Plan Life Gain Plus 25 Participating Plan
Life Gain Endownment Plan Endownment to Age 60 (Par) Plan
Children Plan Whole Life Participating Plan
Smart Investment Pension Plan 5yr. Renewable and Convertiable Plan
Level Term Plan Life Line Medicash Plus Plan
Life Line Wellness Plan Life Line Medicash Plan
Life Line Safery Net Plan Life Pay Money Back
Life Maker Gold Plan Smart Assure
Life Invest Plan Smart Express
Life Maker Premium Investment Plan
Place:
Eight years old MNYL is present around 364 cities with 555 offices, out of these 139 offices are
dedicated to rural business. The company has multi-channel distribution that includes the agency
distribution, partnership distribution, Banc assurance distribution, focused on emerging markets
and alliance marketing through employed sales force. MNYL currently has 33 Banc assurance
relationships, 14 co-operate agency tie-ups and direct sales force at 14 locations. The company has
put in place a hub-and-spoke model of distribution to deeper employees. MNYL has most of its
offices near the station, hence making the connectivity very high. The company places a lot of
emphasis on its selection process, which comprises four stages: screening, psychometric test,
career seminar and final interview. The AA is trained in house to ensure optimal control on quality
of training. This helps the agent have a better knowledge and a standard platform to pitch or open a
sales call.
Promotion:
MNYL does its promotion through television, radio and even by having handles bearing their
names in the local trains of Mumbai. It has now tied up with the Indian Railway which is the first
Public Private Partnership (PPP) of its kind in the insurance sector. MNYL has acquired the rights
for the Rajdhani Express running on three routes. The trains public address systems will carry the
brand’s messages. Opportunities for brand visibility, such as posters, table top covers and
pamphlet/leaflet dispensers are also a part of the package. MNYL is authorized to place insurance
agents in the trains to explain various insurance plans to prospective customer.
There are many ways of promotion that MNYL has taken to promote its brand and generate
business.
Price:
The price variation is not much possible however MNYL has come up with the innovative channel
known as CEIP, where it offers its product at a discounted premium hence in stead of loosing the
customer due to non-affordability. They tap the customer by lowering the premium; this is done
through the corporate channel which basically aims at getting customers at a bulk. The additional
services that offered gives MNYL an upper hand, MNYL is said to have the best claim settlement
amount; the industry the claims are settles with in 9days. It’s said that the claims are settled at an
average of 4days and only 0.16%, the claims stand unsettled.
“The customer services offered by MNYL are of top class and there is not a single
dissatisfied customer”.
WHO CAN BE THE AGENT ADVISER?
Section 42(4) of the amended Insurance Act, 1938 states an agent to be one who is not:
A minor.
Found to be sound mind by a court of competition jurisdiction.
Found guilty of criminal background.
Found guilty of having knowingly participated in or connived at any fraud /dishonesty or
misrepresentation against an insured.
COMPANY’S EXPECTATION FROM THE AA:
Regular input activity.
Follow the sales process.
Achieve sales targets.
Attend training program.
Participate in weekly reviews.
Follow the MNYL ethics and business standards policy.
ELIGIBILITY MODEL FOR BECOMING AN AA:
From the following eligibility model company can judge prospective person. The company follows
unique eligibility criteria for AA selection by which company is able to always justify its mission.
The basic objective of having an eligibility model for recruitment is to have good retention and
greater effectiveness in the delivery of service.
Four criteria’s for AA selection
1. 25 plus years of age:
This age shows attainment of maturity and responsibility. People are more consistent in this age.
2. Married:
Married people have more eager to earn money. Family pressures increase responsibility and
secondly customers are convinced more by the stability of a married AA.
3. Staying in the same city for more than 5 years:
Person who stays for more than 5 years has huge natural market which helps him to get more
business in short period.
4. Graduate:
Graduate people have basic skills like communication skills, numerical ability, I.P relation,
convincing abilities etc. so it is easy to teach them further.
Other criteria for AA selection:
1. Financial stability:
MNYL is focuses on classes and not on masses thus they select strong agent advisors.
2. To have a rich and active social circle:
It helps to get higher case rate and case size. Also the chances of policy lapsing can be less and
renewals can be more.
3. Greed for money:
Firm selects advisors who understand the language of commission. Because people who want fix
amount as their earnings are not suitable for this business.
4. Independent:
MNYL select people who want to be entrepreneur. Housewives or brokers who want flexible hours
for work are prospective persons for this business.
5. Persuasion:
He should be persuasive in nature because the AA needs to follow up on regular basis with
prospective and new clients without being a nuisance value.
6. Excellent interpersonal skills:
Because developing and maintaining good relations can get policies. Secondly since most of the
insurance companies provide a plethora of similar products, sales depend on the convincing ability
of the AA and the rapport the AA is able to build.
7. Excellent communication skills:
Since AA needs to communicate about the organization, products, career as AA, about why
insurance is important, which product will suit (his/her) requirement etc.,
Desirable Candidates:
House wives
Employees having VRS
CA’s
Mutual Fund brokers
NSC brokers
Tax Consultants
Businessmen / Businesswomen
Doctors
Travel Agents
Lawyers
Diamond merchants
Social workers
BENEFITS OF BEING AN AGENT ADVISER:
(A) Agent Adviser, the right way to start career:
As an Agent Adviser consultant the role will be to identify prospective customer(s). You will make
presentations, as to how you can help analyse their financial needs, provide customize financial
solution to cater to their respective needs and conduct reviews on regular basis to keep customers
on thank.
(B) Easy way to start on career:
Zero investment: There is no start-up capital. Be an own boss with a flexible working
environment, unlimited earning potential and the opportunity to be part of world class sales team.
(C) Flexible work timings, part time or full time: AAs can work whenever he/she likes and from
wherever he/she like, AAs can work full time depending on their convenience its like no other job
however, the time.
(D) Sunrise industry: Life insurance in India has a huge potential for growth Statistics reveal that
only 25% of the insurable population in India is insured and those insured are in need of still
higher insurance cover. The over 100% growth displayed by private life insurers indicates this
huge untapped potential.
WHY TO CHOSE MNYL:
1. Strong partnership between Max India Limited and New York Life Insurance company.
2. A powerful brand – MNYL Insurance:
3. We were one of the top private life insurance companies to be granted a license by IRDA.
4. We have been rated by business world magazine. As India’s fourth most respected private
life insurance company.
5. We have grown over 95% in the last.
6. The adjusted individual FYP for FY 2008 stood at Rs.1, 308 crore as compared to Rs.769
crore during previous financial year.
PROFESSIONAL TRAINING PROGRAM AND CONTINUID GUIDANCE:
At MNYL standard training is an inherent element of our support system for AAs. Some of our
training and support initiative are as:
IRDA Training: Online training of 100 hrs. prepares for career as AAs and enables to pass the
IRDA examination. After the IRDA license, first step towards a successful career as a FC.
Basic Training and Induction: Independence of work experience, this training will give perfect
knowledge about the insurance industry along with comprehensive knowledge about the insurance
and MNYL Products.
Disha training: This is a professional sales skill program eased by us to one selling skills. Those
programs enable to understand customer need and provide need based insurance solution.
Advance Training: Once FC have settled down as a FC professional we will continuously
upgrade capability and knowledge through sophisticated training program, fit for this dynamic
world of financial products and markets.
DEVELOPMENT STRATEGIES:
Management team has developed certain strategies in order to expand channel distribution
network. These models are followed across the country uniformly and top management feels that
these rules are the building block of MNYL’s success in India as well as across the world. There
are 2 basic principles that are required in order to execute these strategies such as
1) Prospecting: Identify the right person who fits in the eligibility model.
2) Selection: Select them for further plan of actions.
RULE OF 31
Rule of 31 is associated with the daily activities which is follow to recruit quality advisors. It says
that everyday collect at least three names of the prospective AA and do one screening every day.
Ways of Name Gathering
There are several ways for gathering names in order to follow rule of 31.
Natural Market:
A natural market consists of people to whom you know well from your family, friends circle,
relative can be a good prospect. The most admired way for recruitment in MNYL is through
natural market. Natural market persons are easily approachable and most of the successful
recruitment in MNYL is from natural market.
Personal Observation:
It means identify the right person through observation. For e.g. a person residing in your locality
and known in taking initiative in social activities can be a good prospect.
Nominator Call:
A nominator is a person who is very much influential in the market as well as in societies. Name
gathering and identification is easy in this case, but these people are highly unapproachable. These
people can be very productive in giving references of the prospect. They are not prospect by
default.
Centre of Influence (CoI) Call:
A centre of influence person is people who are influential and you know them personally. They are
approached for giving references of the client.
Prospect Call:
Prospects itself are approached. They can be anyone from natural market, Nominator’s reference,
CoI’s reference or by other means.
Activities:
Doing activities such as brand awareness in Public places such as mall, multiplexes can be a good
strategy for name gathering. We can have a questionnaire format to fill by applicant for the lucky
draw.
o Phoenix mill.
o Nakshatra mall.
o Hirra panna.
o Siddhivinayak temple.
o Nirmal life style.
o BSE.
CHANNEL DEVELOPMENT PROCESS:
NAME GATHERING IN P200:
START
Name Gathering
Short listing
Contacting
EndInitial Screening
NAT
Career Seminar
Interested Not interested
End
Career Interview
AAs
Contract
IC-33
Cleared Not cleared
Interested Not interested
End Reappear
Agent
Name gathering in P200 consists of people whom you know from natural market and references
you get from their sources. As a management trainee, we were given a task to gather 200 names.
The following figure shows the P200 format in which the database is created.
Name of the prospective Agent
Address of ContactAgeMarital StatusQualificationNo. of years in the CityFinancial StatusProfessionAnnual IncomeNatural MarketComments
SHORT LISTING
Candidates are short listed from the P200 as per the eligibility criteria laid down by the company.
Only eligible candidates are considered for the next process.
CONTACTING
Candidates are called either as nominator, CoI, Prospective Agents and a meeting is fixed with
them according to the convenience of both the parties. Here script plays very important role in
fixing appointment with the prospect.
INITIAL SCREENING
Initial screening is taken if candidate is found eligible using 4 point model. In initial screening, a
sales manager first gives the introduction about the company. Then several questions such as his
family background, his natural market, traits for a sales person, and his present and past
experiences of his jobs are questioned.
Every candidate is required to get at least 3 points in eligibility model the company. The eligibility
standards for AA selection are as follows. In case of score less than 3, special zonal head approval
is required.
FIVE POINT SYSTEM:
Age 25 and over 1 pointGraduate 1 pointMarried 1 pointLived in city more than 5 years
1 point
NAT score 1 point (if passed)
NAT
Numerical Ability test is taken. Passing Score is 50%.
CAREER SEMINAR AND P200
All the prospects are required to attend career seminar at MNYL which provides broader aspects of
growth as an Agent Advisor.
P200 is a worksheet which is given to each prospect to judge his natural market. The prospects are
required to mention at least 100 contacts from their natural market.
CAREER INTERVIEW
P200 is evaluated in Career Interview. If candidate’s market is found worth, he/she is selected to
attend training and Development program.
AAS
All the selected candidates are required to attend 22 day training session for receiving the license
from IRDA to become an Agent Advisor.
CONTRACT
All the successful candidates having legal license of IRDA are contracted with MNYL.
COLD/ WARM/ HOT
This is another method that helps the management trainee and the sales managers keep a track of
the names he/she has from his natural market as well as through name gathering
COLD
WARM
HOT
(A) Cold
Cold is like what u are having. In this column we include all the names which we have as a
prospect. It includes C o I names, references, nominators, PO names and so on. It is a list of all the
names that we wish to contact in future.
(B) Warm
Once the names mentioned in the cold column are contacted and if any appointments scheduled at
the office wherein initial screening is then conducted the candidate is then entered in the warm list.
(C) Hot
After being entered in the warm list if any candidate has attended any of the seminars held at Max
New York Life after the initial screening done and if the candidate has been given P200 (project
200) then the prospective agent is then said to be entered in the hot list.
ABOUT THE PROJECT:
The main objective of the “Channel Development” is to recruit quality agent advisors (AA) for
the company for providing life Insurance solutions to the customers. AA plays a vital role in the
growth of company with respect of company’s earnings as well as they create value for the
organization after achieving some milestones. AA are integral part of the team and sales manager
assigned to them, help them to groom them in terms of personality development, selling skills and
handling objections of customers.
OBJECTIVES OF THE PROJECT:
Every task is undertaken with an objective. Without any objective a task is rendered meaningless.
The main objectives for undertaking this project are as follows:
To understand the internal Recruitment process at Max New York Life Insurance.
To identify the areas where there can be scope for improvement
To give suitable recommendations to streamline the hiring process.
STRATEGIES FOLLOWED:
Strategies applied by me to achieve the target are as follows:
Telephone Calling
Contacting the person directly
Collect references
Some important steps to make effective telephone calling are:
Open the call in a friendly and positive way.
State the name, position and company name.
Check the prospect has time to speak.
State the reason for the call.
Clearly succinctly explain how the meeting will be benefiting the prospect.
ACHIEVEMENTS:
Recruited Two Agent Adviser for company.
Increase in confidence level.
It increased my skills of people management and team building.
It helps me to understand the financial service sector.
Gained experience of being a manager with a leading life insurance organization.
Got the knowledge about, how to differentiate our product form that of LIC.
Made more and more people aware about my companies Products (Policies)
Taken some appointments for policies and got positive response from five persons with the
help of my BDM.
METHODOLOGY:
The insurance sector is marked with a high level of attrition and therefore recruitment process
becomes a crucial function of the organization. At MNYL Insurance, recruitment is all time high
during May-June and Oct-Nov. The attrition is high among the sales managers, unit mangers
mostly in the sales profile. The recruitment is high during these months due to the fact that March
and September are half year closing and business is high during Jan-Mar. Thus it is only after
March that people move out of the companies.
Since my summer training was in the months of April-June, it gave me the opportunity of
involving myself directly with the recruitment process and analyzing the process so that suitable
recommendations can be given. This project is centered on identifying best hiring practices in the
insurance industries. It therefore requires great amount of research work. The methodology
adopted was planned in advance so as to collect data in the most organized way.
My area of focus was the recruitment of AA at MNYL Insurance. I was directly involved with the
recruitment for people for the AA profile. I was particularly involved with the sourcing of
candidates for the regions of BBSR and the near areas.
Before any task was undertaken, we were asked to go through the HR policies of MNYL Insurance
so that we get a better understanding of the process followed by them.
The first task was to understand the various job profiles for which recruitment was to be
done.
The next step was to explore the various job portals to search for suitable candidates for the
job profile.
Once the search criteria were put, candidates went through a telephonic interview or
personal interview to validate the information mentioned in their resume.
A candidate matching the desired profile was then lined for the first round of Face to Face
interview in their respective cities.
Firstly the candidate had filled up the personal data form.
Then the candidate INTERVIEW EVALUATION SHEET which is provided by
interviewer was crosschecked by the HR team. If they think that the candidate was good to
hire or not.
RESEARCH METHODOLOGY:
Research can be defined as systematic effort to gain knowledge. A research is carried out by
different methodology, which has it’s own pros and cons.
Research methodology is a way to solve research problem along with the logic behind them. Thus
when we talk of the research methodology we not only take of research method but also context of
our research study and explain why we are using a particular method or techniques and why we are
not using other so that research result are capable of being evaluated either by the researchers
himself or by others.
Research methodology means the method carried out to study the problem. It shows the type of the
sample design used, its size and the procedure used to dew sample.
Research methodology has following steps:
1. To decide the objective of the study.
2. To design research design.
3. To determine the source of data.
4. To design data collection form.
5. To determine sample size and sample design.
6. To organize and conduct fieldwork.
7. To process and analyze the collected data.
8. To prepare the research report.
EXPLANATION:
Step: 1 To decide the objective of the study to be carried out.
To study about MNYL Insurance.
To find the prospective AA for the company.
To find retention strategies which will be provide to AA
Step: 2 To decide the research design.
What is research design?
Research design is a plan, structure, strategy of investigation conceived so as to obtain answer to
research question and control variance. There are three types of research design system.
Explanatory Research.
Descriptive Research
Causal Research.
Among the above mentioned types descriptive research design has been chosen. Descriptive
research is to find an efficient sales force, of AA. In order to study the characteristics and
variables, cross sectional analysis was conducted by using field survey method. In the process of
field survey, a questionnaire was developed and circulated to the respondents, which formed the
basis for entire research.
Step: 3 To determine the source of data.
Data source are the data resources or collection of fresh data to obtain results. There are two types
of data sources, thus happen to be original in character.
Primary Data: Primary data is that which is collected fresh and thus happen to be original in
character.
Secondary data: Secondary data is any data, which have been gathered earlier for some other
purpose. The various sources of secondary data are study of the recruitment policy, websites,
published articles, websites, journals, magazines and books.
Among the above mentioned types of data, primary data was used for the study and analysis of the
objective of this project, also the secondary data proved to be helping hand in framing up the
industry scenario and also the relevant topics in the entire project report.
Reason for selecting primary data:
In terms of primary data structure questionnaire was prepared to interview the professional,
unemployed students, housewives, investment consultants, business men/women, different brokers
and other in Bhubaneswar. Analysis clearly reflected the views and preferences regarding the
perception of the people towards joining MNYL Insurance.
Step 4: To design data collection.
There are two types of way to collect the data:-
Observation method.
Survey method.
As for as the data collection method for this project is concerned, designing the data
collection forms or survey forms is applicable to the project. The method selected is survey
method.
A survey can be conducted by:-
Personal interview.
Telephonic interview.
Amongst the above methods personal interview method was conducted to gather information in
detail. This method was chosen because along with the study of project’s primary objective i.e.
study of people and convince them to join as AA for MNYL Insurance.
Step 5 To determine sample design sample size.
Sample size specification is 100 which include professionals, unemployed students, Housewives,
investment consultants, business men/women.
Snapshot:
Data source:
Primary source: Through Questionnaires
Secondary Sources: Through internet, journals, News papers and misc.
Data Collection procedure: Survey method
Research Instrument: Structured Questionnaire
Sample size: 100
Sample area: Work done on BBSR
Sample Procedure: Random sampling
PROJECT SCHEDULE:-
First week :-Training program from the company.
Second week :-Collecting the primary and secondary data.
Third Fourth week :-Study Recruitment & Selection Process
Fifth week :-Designing the questionnaire.
Sixth week :-Conducting the survey in RO.
Seventh week :-Analysis of Data Collection.
Eighth week :-Final Report preparation and presentation.
FIELD METHODOLOGY:
The methodology adopted in the field to collect the data represented diagrammatically below:
LIMITATIONS:
Some of the difficulties and limitations faced by me during my training are as follows:
Lack of awareness among the people – This is the biggest limitation found in this sector. Most of
the people are not aware about the importance and the necessity of the insurance in their life. They
are not aware how useful life insurance can be for their family members if something happens to
them.
Perception of the people towards Insurance sector –People still consider insurance just as a Tax
saving device. So today also there is always a rush to buy an Insurance Policy only at the end of
the financial year like January, February and March making the other 9 months dry for this
business.
Insurance does not give good returns – Still today people think that Insurance does not give
good returns. They are not aware of the modern Unit Linked Insurance Plans which are offered by
most of the Private sector players. They are still under the perception that if they take Insurance
they will get only 5-6% returns which is not true nowadays. Nowadays most of the modern Unit
Filling up questionnaire and Schedule
Meeting with people
Segmentation of People
Linked Insurance Plans gives returns which are many times more than that of bank Fixed deposits,
National saving certificate, Post office deposits and Public provident fund.
Lack of awareness about the earning opportunity in the Insurance sector – People still today
are not aware about the earning opportunity that the Insurance sector gives. After the privatization
of the insurance sector many private giants have entered the insurance sector. These private
companies in order to beat the competition and to increase their Insurance Advisors to increase
their reach to the customers are giving very high commission rates but people are not aware of
that.
Increased competition – Today the competition in the Insurance sector has became very stiff.
Currently there are 14 Life Insurance companies working in India including the LIC (life insurance
Corporation of India). Today each and every company is trying to increase their Insurance
Advisors so that they can increase their reach in the market. This situation has created a scenario in
which to recruit Life insurance Advisors and to sell life Insurance Policy has became very very
difficult.
SWOT ANALYSIS OF MNYL INSURANCE’S CHANNEL DEVELOPMENT
STRATEGY:
Considering all the above mentioned factors, I try to do a “SWOT analysis” to get more clear
picture regarding Strengths, Weaknesses, Oppertunities and of course Threats, so that I can work
on all these factors which will have a deeper impact on this project and without tackling these I
can’t able to go further in a required manner. These are those factors which I had find that working
on these is essential also, there is a great possibility that some more factors should taking into
consideration apart from factors mentioned below:
TABULATION AND ANALYSIS:
In order to determine the willingness of the people to become AA for MNYL Insurance in
Bhubaneswar, data collected by surveying is treated as analysis. Responses are made on the
parameters like professionals, unemployed students, housewives, investment consultants, and
business persons.
Willingness to be AA for MNTL Insurance:
Environmental Scan
Internal Analysis External Analysis
Strength
-Strong Brand Name
-Customer loyalty
-Product quality
-Good reputation among customers
Weaknesses
-Insufficient product promotion
-Unawareness about the product
Opportunities
-Unfilled customer needs
-Plans to focus on group insurance for its next phase
of aggressive growth
Threats
-Emergence of substitute products
-Resistence to change
-Non response from the target
customers
Category Yes No Total
Professional 0 10 10
Working Employees 2 12 14
House Wives 1 5 6
Students 5 45 50
Investment Consultants 0 3 3
Business Persons 1 4 5
Others 0 12 12
Total 9 91 100
10
14
6
50
35
12 ProfessionalWorking Employees
House WivesStudentsInvestment Consultants
Business PersonsOthers
The above pie chart shows the different number of people from different categories which I
surveyed during my summer project period. Out of these people, some are interested to join in
MNYL as adviser agent and some have no interest, which are shown in the below diagram.
0 2 15
0 1 0
10 125
45
3 4
121014
6
50
3 512
0
10
20
30
40
50
60
Profes
sional
Worki
ng Emplo
yees
House
Wive
s
Students
Investm
ent C
onsulta
nts
Busine
ss P
erson
s
Others
YesNoTotal
The above table shows the number of persons interested from different category and the number of
persons not interested for becoming an Agent Adviser.
Awareness among the people about MNYL:
Category Aware Unaware Total
Professionals 8 2 10
Working Employees 12 3 14
House Wives 3 3 6
Students 40 10 50
Investment Consultants 3 0 3
Business Persons 5 0 5
Others 8 4 12
Total 78 22 100
812
3
40
3 5 82 3 3
10
0 04
1014
6
50
3 512
0
10
20
30
40
50
60
Profes
sional
Working
Emplo
yees
House W
ives
Students
Investm
ent C
onsu
ltants
Busines
s Per
sons
Others
Aware
Unaware
Total
The above chart shows the awareness of MNYL among different categories of people in
Bhubaneswar.
Now the following table shows the different reasons for not joining MNYL by the different
category of people. There are basically four main reasons of not joining the MNYL which are:
They are already agents of another Insurance company
Lack of awareness about the company
No time for doing the work of Agent Adviser
Not interested towards insurance sector
Category
Agent of other
companyLack of
Awareness No TimeNot
Interested TotalProfessionals 1 2 6 1 10
Working Employees 4 3 4 1 14House Wives 0 3 1 1 6
Students 8 10 7 20 50Investment Consultants 1 0 2 1 3
Business Persons 1 0 1 2 5Others 4 4 1 3 12
The following is the diagram of the above table, by seeing which every one can easily understand
the various reasons.
1 40
81 1 42 3 3
10
0 046 4 1
72 1 11 1 1
20
1 2 310
146
50
3 512
0
10
20
30
40
50
60
Profes
siona
l
Wor
king E
mploye
es
House
Wive
s
Studen
ts
Inves
tmen
t Con
sulta
nts
Busine
ss P
erso
ns
Others
Agent of other companyLack of AwarenessNo TimeNot InterestedTotal
IMPORTANCE OF ADVISORS IN MNYL INSURANCE:
The following diagram shows the importance of an agent advisor in an insurance company. The
hierarchy in an insurance company is as follows:
From the above diagram we can find out that the advisor plays an important role for the success of
the business. Without them, the sales manager cannot achieve his/her target, which ultimately
indicate that the company didn’t achieve its goal.
Sales Manager
Area Sales Manager
Area Sales Manager
Area Sales Manager
Unit ManagerUnit Manager Unit Manager
Advisor Advisor Advisor
Five persistent concerns:
As a manager, everyone have to be fully committed in building a high performance, growing
agency. This being true, if it follows these five concerns and it must be constant in their annual
planning.
1. The search for talent
2. The evaluation of potential advisors
3. The attention of advisors
4. The retention of advisors
5. The productivity of advisors
Any manager who attains satisfying results in these five areas will enjoy:
1. Satisfying sales results
2. Outstanding persistency of business
3. An enviable reputation as a MNYL agency builder
4. A momentum which comes from the synergistic benefit of success
Chart showing how to get potential advisors:
The above chart shows how to get potential advisors. It shows simply the flow of proceedings to
get a good and potential advisor for an insurance company.
FINDINGS:
1. Customers are less aware about the private insurance company in market.
2. Some customers are likely to join MNYL as AA because it is a Part-time.
3. Many professions like CA, tax planner want a corporate agency rather than to be an AA.
4. MNYL is too selective in making an AA rather than to appoint any one like LIC.
5. Customers don’t want to join as AA because it’s on commission basis and they want job
on salary basis.
6. Educated customers are now vending towards private insurance Companies, due to the
attractive packages and services provided by various new insurance companies.
7. LIC has created a branded image in 3-4 decades, due to which new insurance companies
are facing trouble in capturing market share.
8. If the customers are joining MNYL Insurance the segment is more of tax consultant,
investment for consultant and other people who are engaged in investment business that is
because they want to diversify their portfolio.
9. MNYL Insurance is having good retention strategies for their AA.
Search, Where to look for
Attract, How to attract to life insurance
Evaluate, How to evaluate
Productivity
Retention
Reasons for not joining MNYL Insurance:
Associated with another company.
Do not have time
Low sales.
Private Player.
Lack of awareness.
More players in the market
CONCLUSION:
After collection; of data interpretation is done, on that basis of that some conclusion is drawn
which are as follows:
People prefer government insurance company other than private insurance companies due to its
reliability.
Customers are more brand oriented rather than product oriented.
Customers are less aware about the private insurance companies.
Private Players in order to encase maximum number of customers are introducing new and
innovative scheme for their AA.
Customers like to invest in other investment zones due to the hectic rules and regulations
associated with, entering into a contract with insurance companies.
Customers do not feel secure with private insurance companies.
Customers don’t want commission base job and they want salary base job.
The central problem with the insurance companies is having that they are trying to convince
customers for a product which do not have any present relevance, i.e. each policy which the
customer is going to purchase will have a future set of action and benefits. Due to which most of
the people like to invest in those securities or investment, which will give them a fruitful return in
short period of time.
Life Insurance Corporation has completed more than three decades and by this it created a brand
image in the people mind and it is offering different number of policies for different class and age
group of customers.
The Private players are on the way, but they need to invest a lot of time for creating a favorable
brand image in the minds of the people for their insurance company.
SUGGESTIONS:
Customers should be made aware of the brand name of Insurance Company through
advertisement.
The fear in the customer mind should be removed by the company.
The insurance companies should try to nurture their brand name timely and attractive facility
provide to customer.
QUESTIONNAIRE:
Q.1: Name any three insurance companies coming across in your mind.
Q.2: Do you know about MNYL Insurance?
Ans: (a) Yes (b) No
Q.3: Do you know about the working of Agent Adviser of “MNYL”?
Ans: (a) Yes (b) No (c) Insufficient Information.
Q.4 Do you currently have an agency of any life insurance Company?
Ans: (a) Yes (b) No
Q.5What would be the size of your social contact base who knows you on first name basis?
(e.g: Friendly, family, relative, colleagues if any ………etc.)
Ans: Mention in appropriate nos.
Q.6 How many members of your family are dependent on the income earner of the family?
Q.7 Do you have an idea about financial market?
Ans: (a) Yes (b) No
Q. 8 Do you have any sales experience? If yes, how many years?
Ans: (a) Yes (b) No
Q.9 Do you have experience in selling financial product? E.g. credit card, insurance etc? If yes
how many years? (If yes to question 6)
Ans: (a) Yes ( ) (b) No ( )
Q.10 What do you think? In today’s scenario life insurance is NEED, WANT AND DEMAND?
Ans:
Q.11 In which of the financial market(s) you have invested your money?
Ans: (a) Share (b) Mutual fund (c) Insurance
Q.12 Are you aware of the earning potential in Insurance sector?
Ans: (a) Rs. 20,000-30,000
(b) Rs. 30,000-40,000
(c) Rs. 40,000-50,000
(d) Rs. 50,000-60,000
Q.13 Are you interested in getting the opportunity of earning some additional income as being
Agent Adviser of “MNYL Insurance” and why?
Ans: (a) Yes (b) No
Q.14 Which is the quality according to you that would be required for being successful in
business?
Ans: (a) Communication
(b) Networking
(c) Both
NAME: ______________________________________
ADDRESS: ______________________________________
______________________________________
CONTACT NO: ______________________________________
ANNUAL SALARY: ______________________________________
Thank You for your valuable time and for your information. The agency business in insurance
sector is successfully pursued by businessmen/businesswomen, housewives, freelancers, IT
Consultants/CA, professionals like Doctors, Architects, Trader Segments, Auto, Real Estate, etc.
BIBLIOGRAPHY:
Reference: To obtain more information regarding present study and to subordinate it with
theoretical proof following references were made.
Books Referred:
Personal management.
Book of license training programme for insurance advisers.
IC 33 book of Max New York Life.
www.maxnewyorklife.com
www.google.com
www.wikipedia.com
Certificate
This is to certify that the project report entitled “Development Channel Strategy” at MNYL
Insurance is a bonafide record of work done by Seema Bhadra and submitted in partial
fulfillment of the requirements of PGDM program of CSREM, Paralakhemundi.
Prof. K.V.Ramana
Faculty Guide
CSREM
Paralakhemundi
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. Pritam Ray, doing PGDM at CSREM Business School, Paralakhemundi
has done a project entitled “Channel Development Strategy at MNYL” at MNYL,
Bhubaneswar Branch from April 6, 2009 to June 6, 2009.
Mr. Subhasis Sabat
Assistant Sales Manager
Bhubaneswar Branch
