Summer Training Presentation OnSummer Training Presentation On

Recruitment Of Financial Consultants Recruitment Of Financial Consultants And Study Of Products Offered By And Study Of Products Offered By

HDFC Standard Life Insurance HDFC Standard Life Insurance

Presented by

Manish Nagda

MBA ( 3rd Semester)

Flow Of PresentationFlow Of Presentation Research ObjectivesResearch Objectives Joint Venture Joint Venture About HDFC-SLICAbout HDFC-SLIC Vision & ValuesVision & Values About Life InsuranceAbout Life Insurance About Financial ConsultantsAbout Financial Consultants Research MethodologyResearch Methodology QuestionnaireQuestionnaire Data InterpretationData Interpretation

Products Offered By HDFC-SLICProducts Offered By HDFC-SLIC SWOT AnalysisSWOT Analysis FindingsFindings Recommendations & SuggestionsRecommendations & Suggestions Conclusions Conclusions BibliographyBibliography

Research ObjectivesResearch ObjectivesPrimary ObjectivesPrimary Objectives:: To study about the awareness among the people for To study about the awareness among the people for

joining as agent in Life Insurance Companies.joining as agent in Life Insurance Companies.

To know the role & scope of Financial Consultant in To know the role & scope of Financial Consultant in Life Insurance Companies.Life Insurance Companies.

TTo have a complete understanding of Recruitment & o have a complete understanding of Recruitment & Selection process of FC’s in HDFC Standard Life.Selection process of FC’s in HDFC Standard Life.

Secondary Objectives:Secondary Objectives:--

To do SWOT analysis of HDFC Standard Life.To do SWOT analysis of HDFC Standard Life.

To know about different products provides by To know about different products provides by HDFC Standard Life.HDFC Standard Life.

HDFC Standard Life InsuranceHDFC Standard Life Insurance(Joint Venture)(Joint Venture)

Background : Background : PromotersPromoters

Housing Development Finance CorporationHousing Development Finance Corporation

30 Year track record30 Year track record

Strong public and market acceptanceStrong public and market acceptance

Market leader in mortgage finance - 18 Lac homes financed in over Market leader in mortgage finance - 18 Lac homes financed in over 2400 towns2400 towns

11 Lac retail deposit customer based11 Lac retail deposit customer based

Asset base of More than Rs.1500 billion Asset base of More than Rs.1500 billion

Standard Life Assurance CompanyStandard Life Assurance Company

Over 175 years experience in Life InsuranceOver 175 years experience in Life Insurance

Assets of US $ 110 BillionAssets of US $ 110 Billion

Voted Life Insurance Company of the decade by Voted Life Insurance Company of the decade by IFA’s in UKIFA’s in UK

About HDFC-SLICAbout HDFC-SLIC HDFC Standard Life was the first private Life Insurance to HDFC Standard Life was the first private Life Insurance to

get license from IRDA in October 2000.get license from IRDA in October 2000.

HDFC is the majority stakeholder in the insurance JV with HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life holds 18.6%81.4 % stake and Standard Life holds 18.6%..stake.stake.

Mr. Deepak Satwalekar is the MD and CEO of this venture. Mr. Deepak Satwalekar is the MD and CEO of this venture.

The company has covered over 9,59,000 lives year ending The company has covered over 9,59,000 lives year ending March 31, 2008.March 31, 2008.

Strength of FCS  has increased to 1,45,000.Strength of FCS  has increased to 1,45,000.  

VisionVision

“The most successful and admired Life Insurance Company, which means that we are the most trusted company, the easiest to deal with, offer the best values for money, and set the standards in the industry, In short,:-

“The most obvious choice for all”

ValuesValuesIntegrityIntegrity

InnovationInnovation

Customer CentricCustomer Centric

People CarePeople Care

Team WorkTeam Work

Joy & SimplicityJoy & Simplicity

What Is Insurance?What Is Insurance?

Insurance is a contract between two parties Insurance is a contract between two parties whereby one party called insurer undertakes In whereby one party called insurer undertakes In exchange for a fixed sum called premiums, to exchange for a fixed sum called premiums, to pay the other party happening of a certain pay the other party happening of a certain event.event.

Benefits Of Life Insurance Benefits Of Life Insurance It encourages saving and forces thrift.It encourages saving and forces thrift.

It is superior to a traditional savings vehicle.It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured. It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick It can be enchased and facilitates quick borrowing.borrowing.

It provides valuable tax relief.It provides valuable tax relief.

Eligibility Required For Eligibility Required For Being CFC By IRDABeing CFC By IRDA

Entry Age & QualificationsEntry Age & Qualifications

Minimum Age - 18 yearsMinimum Age - 18 years Minimum Qualifications - 12th standardMinimum Qualifications - 12th standard

(10th Std for rural area)(10th Std for rural area)

Rules & Regulations Rules & Regulations Regarding FCsRegarding FCs

Training Training (i) online training(i) online training (ii) offline training (ii) offline training

50 hours training certificate 50 hours training certificate

Fee (i) Rs. 825 DD for online training Fee (i) Rs. 825 DD for online training (ii) Rs. 925 DD for offline training (ii) Rs. 925 DD for offline training

Examination & certificate by IRDAExamination & certificate by IRDA

Functions Of FCFunctions Of FC An insurance agent is an important An insurance agent is an important

component of distribution channel for life component of distribution channel for life insurance business.insurance business.

Meet prospects, analyze their financial needs, Meet prospects, analyze their financial needs, and persuade them to buy a product, which and persuade them to buy a product, which provides solution.provides solution.

They represents the company & give better They represents the company & give better

services.services.

Research MethodologyResearch Methodology SAMPLE SIZE 150SAMPLE SIZE 150

SAMPLING TYPE EXPLORATORY SAMPLING TYPE EXPLORATORY

METHOD USED QUESTIONNAIREMETHOD USED QUESTIONNAIRE

PRIMARY SOURCEPRIMARY SOURCE Direct personal interview and an objectively framed Direct personal interview and an objectively framed

questionnaire.questionnaire.

SECONDARY SOURCESECONDARY SOURCE Data is taken from some published articles, papers, books and Data is taken from some published articles, papers, books and

organization website.organization website.

1. Name of the respondent…………………………1. Name of the respondent…………………………

2. Occupation………………………………………2. Occupation………………………………………

3. Age ……………3. Age ……………

4. Address 4. Address ……………………………………………….……………………………………………….……………………………………………………………………………………………………………….…….

5. Contact No………………5. Contact No………………

QuestionnaireQuestionnaire

Q.1: Do you know about HDFC SLIC ? Q.1: Do you know about HDFC SLIC ?

Ans: (a) Yes   (b) No Ans: (a) Yes   (b) No

Q.2: Are you aware about career in Insurance Q.2: Are you aware about career in Insurance Sector?Sector?

Ans: (a) Yes (b) NoAns: (a) Yes (b) No

Q.3: Do you know about the working of Q.3: Do you know about the working of Financial Financial Consultant of “HDFC SLIC”? Consultant of “HDFC SLIC”?

Ans: (a) Yes (b) No (c) Insufficient Ans: (a) Yes (b) No (c) Insufficient Information.Information.

Q.4: Do you have an idea about financial Q.4: Do you have an idea about financial market? market?

Ans: (a) Yes   (b) NoAns: (a) Yes   (b) No

Q.5: Do you have any sales experience? If Q.5: Do you have any sales experience? If yes, yes, how many years ? how many years ?

Ans: (a) Yes   (b) NoAns: (a) Yes   (b) No

Q.6: Do you have experience in selling Q.6: Do you have experience in selling financial financial product? e.g. credit card, product? e.g. credit card, insurance etc? If yes insurance etc? If yes how many years ? how many years ? Ans: (a) Yes   (b) No  Ans: (a) Yes   (b) No  

Q.7: What do you think, in today’s scenario Q.7: What do you think, in today’s scenario life life insurance is need, want or demand?insurance is need, want or demand?

Q.8: In which of the financial market you Q.8: In which of the financial market you have have invested your money? invested your money?

Ans: (a) Share (b) Mutual fund (c) Ans: (a) Share (b) Mutual fund (c) Insurance (d) Insurance (d) OtherOther

Q.9: Are you interested in getting the Q.9: Are you interested in getting the opportunity  of opportunity  of earning some additional earning some additional income as being financial income as being financial consultant of consultant of “HDFC-SLIC”  and why?“HDFC-SLIC”  and why?

Ans: (a) Yes (b) No Ans: (a) Yes (b) No 

Willingness To Be FC For HDFC Willingness To Be FC For HDFC

       TotalTotal AgreeAgree DisagreeDisagree

Working employeesWorking employees 5353 44 4949

Unemployed personUnemployed person 2828 33 2525

Students Students 5757 1010 4747

Others (Insurance Others (Insurance Agents) Agents)

1212 22 1010

TotalTotal 150150 1919 131131

Q.1Q.1 Have you heard about HDFC-SLIC?Have you heard about HDFC-SLIC?

90%

10%

Yes

NO

Q.2 Awareness about the career in Q.2 Awareness about the career in Insurance Sector –Insurance Sector –

Percentage of Respondents

30%

70%

Yes

No

Q.3: Do you know about the working of Q.3: Do you know about the working of Financial Consultant? Financial Consultant?

38%

62%

YES

NO

Q.4: Do you have an idea about financial Q.4: Do you have an idea about financial market? market?

67%

33%

YES

NO

Q.5: Do you have any sales experience? Q.5: Do you have any sales experience? If yes, how many years ? If yes, how many years ?

20%

80%

YES

NO

Q.6: Do you have experience in selling Q.6: Do you have experience in selling financial product? e.g. credit card, financial product? e.g. credit card, insurance insurance etc? If yes how many years?etc? If yes how many years?

11%

89%

YES

NO

Q.7: What do you think, in today’s scenario Q.7: What do you think, in today’s scenario life insurance is need, want or demand?life insurance is need, want or demand?

46%

17%

37% NEED

WANT

DEMAND

Q.8: In which of the financial market you Q.8: In which of the financial market you have invested your money? have invested your money?

14%

15%

23%

48%

SHARE

MUTUAL FUND

INSURANCE

OTHER

Q.9: Are you interested in getting opportunity of Q.9: Are you interested in getting opportunity of earning some additional income as being financial earning some additional income as being financial consultant of “HDFC-SLIC” and why?consultant of “HDFC-SLIC” and why?

20%

80%

YES

NO

Traditional Life insurance Traditional Life insurance Plans By HDFC-SLICPlans By HDFC-SLIC

1.Protection Plans:- 1.Protection Plans:- Term assuranceTerm assurance Loan cover term assuranceLoan cover term assurance

2.Investment Plan:- 2.Investment Plan:- Single premium for whole of lifeSingle premium for whole of life

3.Pension plan:-3.Pension plan:- Personal pension planPersonal pension plan

4.Saving plan:-4.Saving plan:- Endowment assurance planEndowment assurance plan Money back planMoney back plan Children’s planChildren’s plan

Unit Linked Investment Plans Unit Linked Investment Plans

Unit Linked Endowment Plus IIUnit Linked Endowment Plus II Unit Linked Young Star Plus IIUnit Linked Young Star Plus II Unit Linked Enhanced Life Protection Plan IIUnit Linked Enhanced Life Protection Plan II Simpli Life Simpli Life

ULEPULEP ULYSPULYSP ULELP IIULELP II

Term(years)Term(years) 10-30 10-30 10-2510-25 10-3010-30

S.A. (min)S.A. (min)

(max)(max)

Term/2×A.P.Term/2×A.P.

40×A.P.40×A.P.

5×A.P.5×A.P.

40×A.P.40×A.P.

Term/2×A.P.Term/2×A.P.

20×A.P.20×A.P.

Loyalty Benefit Loyalty Benefit .10% of unit .10% of unit .10% of .10% of unit unit

N.A.N.A.

OptionOption Life,E.L.,L&Life,E.L.,L&H, E.L.&H.H, E.L.&H.

DeathDeath

C.I.C.I.

ONLY ONLY DEATHDEATH

SimpliSimpli LifeLifeENTRY AGE (min)ENTRY AGE (min)

(max)(max)

18 Yrs18 Yrs

45 Yrs45 Yrs

Max age at maturityMax age at maturity 60 Yrs60 Yrs

TermTerm 15 Yrs15 Yrs

PremiumPremium Rs. 15,000 per yearRs. 15,000 per year

On maturityOn maturity Fund valueFund value

On miss happeningOn miss happening fund value + fund value +

S.A. of Rs. 1 lacS.A. of Rs. 1 lac

SWOT ANALYSISSWOT ANALYSIS

STRENGTHS

1 .Strong Brand Name2 .A large distribution

network .3 .Customer centric approach

4 .Excellence in Execution5 .Team Work (Together

Everyone Achieves More)6 .Proactive Innovation.

7 .Infrastructure

WEAKNESS

1 .Frequent job rotation by employees

2 .Less number of advertisement

3 .Hidden Charges

OPPORTUNITIES

1 .Scope in Jaipur as it is in the developing phase.

2 .Only 25% of insurable people have any insurance.

3 .Can introduce innovative products offering a right mix of Flexibility/Risk/Return .

4 .Share of FDI is going to raise by 26% to 49%.

THREATS

1 .LIC’s brand name.

2 .People prefer short investment rather than in insurance.

3 .Other private insurance companies.

In HDFC-SLIC I feel that Insurance sector is one of the most In HDFC-SLIC I feel that Insurance sector is one of the most growing sector among all sectors in India.growing sector among all sectors in India.

I also find that HDFC Standard Life’s Traditional Plans are very I also find that HDFC Standard Life’s Traditional Plans are very

useful for a normal person.useful for a normal person.

Jaipur is one of the most growing city and there is lot of scope in Jaipur is one of the most growing city and there is lot of scope in insurance.insurance.

Most of the people are aware of traditional plans.Most of the people are aware of traditional plans.

Electronic media has proved to be very beneficial for people to Electronic media has proved to be very beneficial for people to understand about the insurance.understand about the insurance.

FINDINGS

There is lot of opportunities for young and energetic people in There is lot of opportunities for young and energetic people in HDFC SL to build there sound career.HDFC SL to build there sound career.

HDFC Standard Life’s traditional plans like children plan, one of HDFC Standard Life’s traditional plans like children plan, one of the most popular product of the company.the most popular product of the company.

HDFC SL the Certified Financial Consultant have free HDFC SL the Certified Financial Consultant have free environment of working. There is no time boundation. environment of working. There is no time boundation.

The FC’s don’t join the product training in proper manner so they The FC’s don’t join the product training in proper manner so they don’t get the product knowledge properly that’s why they are not don’t get the product knowledge properly that’s why they are not covering the insurance market properly. covering the insurance market properly.

RECOMMENDATION & RECOMMENDATION & SUGGESTIONSSUGGESTIONS

No. of advertisements on Television & newspapers to be increased.No. of advertisements on Television & newspapers to be increased. Should use the FM-radio station as the medium of spreading Should use the FM-radio station as the medium of spreading

awareness.awareness. Changes in the policies should be communicated to the customers at Changes in the policies should be communicated to the customers at

the earliest.the earliest. Provide and adopt such policies from which customers get maximum Provide and adopt such policies from which customers get maximum

benefits.benefits. Increase the distribution network.Increase the distribution network. Provide a proper training to the workforce.Provide a proper training to the workforce. Provide lower premium policies so that we could target middle class Provide lower premium policies so that we could target middle class

people and generate good cash flow for further growth.people and generate good cash flow for further growth. Company should more oriented towards rural market.Company should more oriented towards rural market.

CONCLUSIONCONCLUSION Life insurance service sector is highly growing Life insurance service sector is highly growing

finance sector.finance sector. HDFC-SLIC is the private insurance organization HDFC-SLIC is the private insurance organization

which is developing and growing at fast rate.which is developing and growing at fast rate. Because of less advertisement, people are not aware Because of less advertisement, people are not aware

of HDFC-SLIC insurance plans.of HDFC-SLIC insurance plans. HDFC Standard Life is renowned for transparency HDFC Standard Life is renowned for transparency

and high corporate governance standards.  and high corporate governance standards.  

BIBLIOGRAPHYBIBLIOGRAPHYBooks:-1. Agent’s Hand Book – HDFC Standard Life2. Kothari C.R. Research Methodology & Techniques, 2nd Edition3. Principles and Practice of Insurance – G.S. Panda

Magazines:-1. Insurance Times (Insurance Monthly Magazine- May, 2008)

From Company:-1. Company Reports 2. Company Brochures

Websites:-www.apnabima.comwww.hdfcinsurance.comwww.indiastat.com