Raunak Report Final

8/2/2019 Raunak Report Final

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FINAL REPORT

ON

HDFC STANDARD LIFE

INSURANCE

SUBMITTED BY:

KUNAL JALAN

Roll No. 7

MBA-IRM


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ACKNOWLEDGEMENT

It is a matter of great pleasure to acknowledge the guidance, enormous

assistance and co-operation extended to me from every corner, while

proceeding with my internship.

I sincerely express my gratitude to Mr. Alok Kumar Panda (Branch Sales

Manager) for allowing me to pursue my internship in HDFC Standard Life,

Sambalpur.

I would also like to express my gratitude to all other people who had extended

their helping hand directly or indirectly throughout the internship, and without

whose help my internship would not have been completed. I would also like to

thank my parents for their guidance and support. They have remained a source

of inspiration for me.


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INTRODUCTION

An Overview of Insurance industry in India and Emergence of

Private Insurance Player in India

The Government of India liberalized the insurance sector in March 2000,

which lifted the entry restrictions for private insurance players, allowing foreign

players to enter into the Indian market and start their operations in India and

ending the monopoly of LIC in the life insurance sector in India. Each foreign

company needs to have a 26% equity capital to enter into the Indian insurancemarket. Many foreign companies have joined their hands with the Indian

companies and started their operations in early 2001. Now there is a proposal to

increase the equity capital to 49% which would attract more foreign companies

to in India.

Previously, insurance was considered as a saving instrument in India

rather than a product which offers protection and security to the person who is

insured. According to LIC survey in 1996, more than 40% of the insurancebuyers felt that insurance is a means of savings. Risk coverage is a secondary

objective.

Before emergence of private insurance player in India there was only LIC but

that was also in a scatter manner but after facing lots of problem government of

India decided to merge all insurance company and made that as LIC.

Insurance in India used to be tightly regulated and monopolized by state-run

insurers. Following the move towards economic reform in the early 1990s,

various plans to revamp the sector finally resulted in the passage of the

Insurance Regulatory and Development Authority (IRDA) Act of

1999.Significantly, the insurance business was opened on two fronts. Firstly,


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domestic private-sector companies were permitted to enter both life and non-life

insurance business. Secondly, foreign companies were allowed to participate.

COMPANY PROFILE

HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life is one of Indias leading private life insurance companies,

which offers a range of individual and group insurance solutions. It is a joint

venture between Housing Development Finance Corporation Limited (HDFC),

Indias leading housing finance institution and Standard Life plc, a leading

provider of financial services in the United Kingdom.

HDFC Standard Lifes product portfolio comprises solutions, which meet various

customer needs such as Protection, Pension, Savings, Investment, and Health.

Customers have the added advantage of customizing their Plans, by adding

optional benefits called riders, at a nominal price.

The company currently has 25 retail and 4 group products in its portfolio, along

with five optional rider benefits catering to the savings, investment, protection

and retirement needs of customers.

HDFC Standard Life continues to have one of the widest reaches among new

insurance companies through a network of 595 offices serving over 720 cities

and towns across the country. The company has also increased its depth in

existing markets with a strong base of more than 207,000 Financial Consultants.

Standard Life was awarded the Best Pension Provider in 2004, 2005 and 2006

at the Money Marketing Awards, and it was voted a 5 star life and pensionprovider at the Financial Adviser Service Awards for the last 10 years running.

The 5 Star accolade has also been awarded to Standard Life Investments for

the last 10 years, and to Standard Life Bank since its inception in 1998.

Standard Life Bank was awarded the Best Flexible Mortgage Lender at the

Mortgage Magazine Awards in 2006.


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The HDFC Standard Life generated Total Premium Income of Rs. 5564.69

cores in FY 2009-10 registering a year-on-year growth of 15%. The growth was

primarily driven by the companys structured sales processes based on

customer needs and their assessments, wide range of product portfolio and

diverse distribution network. The financial year 2009-10 was a defining year with

the unfolding of several unexpected events - sharp correction in financial

markets and a spread of recessionary trends. These events also had an impact

on the Indian life insurance industry. HDFCs new policies issued grew by 16%

over the last year. However, given the uncertainty in the overall scenario,

customers have reduced their annual premium commitment on new policies. At

the same time, existing policies continued to be in force reflected in our renewalpremium, which posted a healthy growth of 34%.

The sales of HDFC standard life is increasing year by year due to the

companys structured sales processes based on customer needs and their

assessments, wide range of product portfolio and diverse distribution network.

PARENTAGE

HDFC Limited

HDFC Limited, India's premier housing finance institution has assisted more

than 3.8 million families own a home, since its inception in 1977 across 2400

cities and towns through its network of over 289 offices. It has international

offices in Dubai, London and Singapore with service associates in Saudi Arabia,

Qatar, Kuwait and Oman to assist NRI's and PIO's to own a home back in India.

As of March 2011, the total asset size has crossed more than

Rs. 1, 32,727crores including the mortgage loan assets of more than

Rs. 1, 17,126 crores. The corporation has a deposit base of over Rs. 24,625

crores, earning the trust of nearly one million depositors. HDFC has setbenchmarks for the Indian housing finance industry. Recognition for the service

to the sector has come from several national and international entities including

the World Bank that has lauded HDFC as a model housing finance company for

the developing countries. HDFC has undertaken a lot of consultancies abroad


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Customer centric

People Care One for all and all for one

Team work

Joy and Simplicity

DECISION MAKER

Mr. Deepak S. Parekh is the Chairman of the Company. He is also the

Executive Chairman of Housing Development Finance Corporation Limited

(HDFC Limited). He joined HDFC Limited in a senior management Position in

1978. He was inducted as a whole-time director of HDFC limited in 1985 and

was appointed as its Executive Chairman in 1993. He is the Chief Executive

Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered

Accountants (England & Wales).


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Presently the Top 10 Life Insurance Companies are as follows:

Insurance Companies Market share

LIC 64%

ICICI Prudential Life Insurance 8.93%

Bajaj Allianz Life Insurance Co. 7.36%

SBI Life Insurance Co Ltd. 6.44%

Reliance Life Insurance Co Ltd. 2.96%

HDFC SLIC Ltd. 2.88%

Birla Sun Life Insurance Co Ltd. 2.11%

Max New York Life insurance Co Ltd. 1.91%

Kotak Mahindra Life Insurance Ltd. 1.19%

Aviva Life Insurance Company India Ltd. 1.05%

PRODUCTS OFFERED BY HDFC LIFE

HDFC Standard Life offers a bouquet of insurance solutions to meet every need.

The company caters to both, individuals as well as to companies looking to

provide benefits to their employees. For individuals, the company has arranged

of protection, investment, pension and savings plans that assist and nurture

dreams apart from providing protection. The customers can choose from a range

of products to suit their life-stage and needs. For organizations, they have a

host of customized solutions that range from Group Term Insurance, Gratuity,

Leave Encashment and Superannuation Products. These affordable plans apart


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from providing long term value to the employees help in enhancing goodwill of

the company. The products of the company are categorized into various

sections which are as follows:

A. INDIVIDUAL PRODUCTS

B. GROUP PRODUCTS

C. RURAL PRODUCTS

D. SOCIAL PRODUCTS

E. TAX BENEFITS

For Individuals, HDFC Standard Life has a range of protection, investment,

pension and savings plans that assist and nurture dreams apart from providing

protection. Customer can choose from a range of products to suit his life-stage

and needs.

For Organizations, HDFC Standard Life has a host of customized solutions that

range from Group Term Insurance, Gratuity, Leave Encashment and

Superannuation Products. These affordable plans apart from providing long term

value to the employees help in enhancing goodwill of the company.

Individual Products:

1. HDFC Children's Plan

2. HDFC Endowment Assurance Plan

3. HDFC Loan Cover Term Assurance Plan

4. HDFC Money Back Plan


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5. HDFC Personal Pension Plan

6. HDFC Single Premium Whole Of Life Plan

7. HDFC Term Assurance Plan

8. HDFC Unit Linked Endowment

9. HDFC Unit Linked Endowment Plus

10. HDFC Unit Linked Pension

11. HDFC Unit Linked Pension Plus

12. HDFC Unit Linked Young Star

13. HDFC Unit Linked Young Star Plus

At HDFC Standard Life realize that not everyone has the same kind of needs.

Keeping this in mind, varied range of products that customer can choose from to

suit all needs. These will help secure customer future as well as the future of

family.

Protection Plans:

Customer can protect his family against the loss of his income or the burden of

a loan in the event of his unfortunate demise, disability or sickness. These plans


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offer valuable peace of mind at a small price. HDFC Standard Life Protection

range includes Term Assurance Plan & Loan Cover Term Assurance Plan.

Investment Plans:

HDFC Standard Life Single Premium Whole of Life plan is well suited to meet

long term investment needs. HDFC Standard Life provides with attractive long

term returns through regular bonuses.

Pension Plans:

HDFC Standard Life Pension Plans help secure financial independence even

after retirement. Pension range includes Personal Pension Plan, Unit Linked

Pension and Unit Linked Pension plus Savings Plans.

Savings Plans:

HDFC Standard Life Savings Plans offer flexible options to build savings for

future needs such as buying a dream home or fulfilling childrens immediate and

future needs.

Group Products:

1. Group Term Insurance,

2. Group Variable Term Insurance

3. Group Unit Linked Plan

4. Gratuity Group Unit Linked Plan


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5. Superannuation Group Unit Linked Plan

6. Leave Encashment

HDFC offers products as per the l ife stages of the customers and their

respective needs. The insurance need will change as your life does, from

starting to work to enjoying your golden years and all the stages in between.

Each one of these stages may pose a different insurance need/cover for you. In

this section, we have drawn up the basic life stages and help you analyze

various insurance needs accordingly.

STAGE 1: YOUNG & SINGLE


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My job at HDFC Standard Life was To understand the acceptance of private life

insurance companies in India vis--vis LIC.

Today insurance forms the most integral part of every individuals financial

investments. I spent time in understanding the customer and their financialprofile and also their risk appetite.

Before getting into selling procedure I managed to get adequate knowledge of

various financial products and tried to find out where the products were best

fitted as per customer need. The most important part of any insurance is to

convince the customer. The insurance person should have empathy to find out

what a customer exactly needs. By this behavior I managed to approach

different customers explaining various products.

Most of the customers dont believe in private insurance companies due to the

fear of uncertainty as they believe that LIC is the only efficient insurance

company which fulfills their requirement pertaining to financial investment. My

job was to convince those customers by making them aware with brand image of

HDFC Standard Life. I managed to reflect them with the benefit of HDFC

Standard Life products.

OBJECTIVE

1. To create awareness among the people who are not aware of the

insurance plans.

2. To generate revenue for the organization.

3. To built up my convincing skill.

TARGET

To achieve premium of Rs. 50, 000/- per week.

CUSTOMERS


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The target customers are the middle class people basically the salaried people

who believe in saving and investment. Insurance is mean to save, so a salaried

customer is very much attracted to these policies. Life insurance is one of the

tax saving option, today tax can be saved twice on a life insurance policy once

the customers pays their premiums and once the customer receives maturity

benefits. So the customers are always in search of such policies where they get

such features and benefits and HDFC Life provides such benefits with a least

coasts. HDFC Life provides certain retirement benefits, these retirement plans

ensure customers that their post-retirement years are spent in peace and

comfort. They make sure that they have regular income after they retire and also

help them to maintain their standard of living.

These people can be as follows:

Friends

Neighbors

Co-workers

Existing client base

Members of ones club, society or association

Ones childrens teachers

Customers can also be segregated into various categories and they are:

CUSTOMERS


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ACHIEVEMENTS VS TARGET

WEEK TARGET ASSIGNED TARGET ACHIEVED

1 50000 TRAINING

2 50000 50000

3 50000 NIL

4 50000 100000

5 50000 NIL

ACHIEVEMENTS AND ANALYSIS

WEEK 1 FROM 16TH MAY TO 21ST MAY

Introduction with the company employees.

History of insurance.


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Training about all the products.

How to interact and convince the customers.

The trainer of HDFC Life gave us a complete overview of the company and not

only had that he also told us about the history of insurance companies. The

second day onwards he started with the different products of the company and

explained us each and every product in details.

ANALYSIS

The first week of my sip I analyzed that for every work we should have a proper

strategy preparation planning convincing power and many more thing. Also I

made analysis on my company.

WEEK 2 FROM 23TH MAY TO 28TH MAY

Telecalling

Appointments

The second week onwards I started with telecalling. The main purpose of

telecalling is to get appointments. I succeeded in getting a few appointments. I

met with many people but they have a mindset that private companies are not

good and LIC is the best. I was able to convince Mr. Madhav Mundra to invest

Rs. 50, 000 in HDFC SL Crest Plan.

ANALYSIS


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According to my first week analysis I started gradually my work and approached

those people who are little bit known to me and also started collecting leads by

asking for references.

WEEK 3 FROM 30TH MAY TO 04TH JUNE

Telecalling

Appointments

This week I was not able to generate any business because some personal

problem of my client in last moment. So I analyzed that I should not expect only

from 1 person I should have more clients in my hand at the end of the week.

ANALYSIS

My third week analysis was not good as my client didnt turned up and I believed

that he will be convinced.

WEEK 4 FROM 06TH JUNE TO 11TH JUNE

Telecalling


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Market survey

Appointments

I generated business of Rs. 1, 00,000 as I was able to convince Mr. Mayank

Mundra and Mr. Gopal Mundra, Kamtiwala Jewellers of Sambalpur and they

invested in the same HDFC SL Crest Plan. I also with my team mates did a

market survey in Golebazar Market and we were able to create awareness

among the people and also share their experiences in this sector.

ANALYSIS

The fourth week was a week of experience for me as I met with many people

during the survey and gained a good practical knowledge as a few people

shared their experiences and their losses in the insurance sector

WEEK 5 FROM 13TH JUNE TO 18TH JUNE

Appointments

Telecalling


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Mr. Samit Ghosh gave us some telephone techniques and the way of getting

appointments as we were facing problems in getting appointments. With this

help I took a few appointments but was unable to convince in our plans.

ANALYSIS

As per all my past 5 weeks I have analyzed many things. As above I have

mentioned all my achievement where it is there 2 of weeks are 0 and after that

every week I was able to generate some business for the company. This is only

because I analyzed the way of convincing people and approaching. Not only had

this as our trainer trained us every week that also helped me a lot. And

accordingly my performance improved as compared to before.

SWOT ANALYSIS


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STRENGTH

Strategic fit between the strategy

adopted and the offering.

Superior customer service vs.

competitors.

Consistent Brand Image

High degree of customer

Satisfaction.

Good place to work.

Lower response time with

efficient and effective service.

One of the largest private sector

insurance companies in India.

WEAKNESS

Some gaps in range for certain

sectors.

Customer service & staff need

training.

Most of the people are not willing

to invest in private insurance

company.

Lack of faith in private insurance

company.

In case of some policy premium is

much high.


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CONCLUSION

Opportunities

Profit margins will be good.

Could extend to overseas

broadly.

New specialist applications or

services could be develop

Could seek better customer

deals.

Can make foray in rural market.

Will come out with some saving

plans for students with nominal

investment.

Threats

Competitive market.

Competitors coming with different

new types of product.

Very high competition prevailing

in the industry.

Lack of infrastructure in rural

areas could constrain investment.


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Summer Training in HDFC Standard Life really helped me in gaining immense

experience and knowledge. I learned in general how an insurance industry like

HDFC Standard Life uses various marketing skills to market their range of

products. I learned:

How they take care of their customers.

How they work.

What value addition to be done for the products in order to survive in fiercely

competitive and rapidly changing scenario?

Being in HDFCSL, I gained certain practical experiences of Financial Industry. I

have also learned the rate of commission given to the agents; I elicited certain

motivational scheme which motivates insurance agents to increase their

customer base.

Customers are the key aspect of any business and its applicable for the

insurance sector too. For any insurance company, to get a new customer is 10

times costlier then to retain an existing one. Hence a sales person or insurance

agent should convince more customers in less time to significantly increase

companys efficiency to deal with more customers.

Except these, I got the experience that how the private sector insurance

companies are working in the market and what is the procedure of attracting the

customers.

Life insurance Corporation has completed more than three decades and thats

where counts, inters of brand name, different number of policies for differed

class and age group of customers.

The Private players are on the way, but they need a lot of time investment for

creating a favorable brand image. So by this I want to conclude that insurancesector is one of the booming sectors, but they can sustain only when they

provide product relevant to customer benefit and which can fulfill customer

need.

QUESTIONNAIRE


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Q.1 What is your Age?

Ans: (a) 18-23 (b) 24-29 (c) 30-35 (d) 35 and above

Q. 2 What is your marital status?

Ans: (a) Married (b) Unmarried

Q.3 What is the Educational Qualification?

Ans: (a) Under graduate (b) Graduate (c) Post graduate.

Q.4 From how many No. of years you are in Sambalpur?

Ans: (a) Less than 5 years (b) More than 5 years

Q.5 What is your Occupation?

Ans (a) Business (b) Profession (c) service

Q.6 What type of work do you prefer- job with timely salary or lucrative

commissions if you crack a deal?

Ans: (a) Timely salary (b) Lucrative commissions

Q.7 What is your annual household income?

Ans (a) Less than 2 lac (b) Between 2 to 5 lac (c) Between 5 to 8 lac

(d) More than 8 lac

Q. 8 what is your perception about insurance sector?

Ans: (a) Hard and lucrative (b) Hard but not rewarding (c) Smooth and rewarding

(d) No idea

Q.9 Do you know about HDFC standard life insurance?


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Ans: (a) Yes (b) No

Q.10 Do you have any insurance policy?

Ans: (a) Yes (b) No

Q.11 Name of Insurance Company?

Ans: (a) LIC (b) ICICI (c) HDFC Standard life (d) Others

Q.12 Do you hold any license of any insurance company?

Ans: (a) Yes (b) No

Q.13 Are you satisfied with company?

Ans: (a) Yes (b) No

Q.14 Do you know about HDFC Standard Life Insurance recruitment policies

related to Financial Consultant

Ans: (a) Yes (b) No

Q.15 Will you be interested to become Financial Consultant?Ans: (a) Yes (b) No

Q.16 If No what is the reason of not joining HDFC STANDARD LIFE?

Ans: (a) No time (b)Lack of interest (c)Satisfied with current job (d)Others

Q.17. Which insurance company would you like to join as advisor?

Ans: (a) LIC (b) HDFCSLIC (c) Others (d) None

ABBREVIATIONSBREVIATIONS

HDFC- Housing development and Finance Corporation


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SLIC- Standard Life Insurance Company

IRDA- Insurance Regulatory and Development Authority

CORPORATE OFFICE:

HDFC Standard Life Insurance Company Limited13 th Floor, Lodha Excelus,

Apollo Mills Compound,

N.M. Joshi Road,

Mahalaxmi,

Mumbai - 400011

MAHARASHTRA

BRANCH OFFICE:

HDFC Standard Life Insurance Company Limited

Kadambari Complex,

Nayapada, Golebazar,

Sambalpur - 768001

ODISHA

WORKING TIME:

Monday to Friday: 9:30 a.m to 5:30 p.m

Saturday: 9:30 a.m to 1:00 p.m

BIBLIOGRAPHY

Websites:

http://www.hdfclife.com/

http://www.irda.gov.in/

http://www.standardlife.com/

http://www.india-insurance.com/hdfc-standard-life/
http://www.hdfclife.com/http://www.india-insurance.com/hdfc-standard-life/http://www.hdfclife.com/http://www.india-insurance.com/hdfc-standard-life/

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Raunak Report Final