A REPORT ON

“ To understand the challenges for customer

prospecting with reference to Life

insurance ’’

Submitted By :-

Sachin B. Bone

SEM – II

Enroll No. – 10AM63613

(AEGON RELIGARE LIFE INSURANCE)

Date of submission : 14/07/2011

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CERTIFICATE

This is certify that Mr. Sachin B. Bone has

successfully completed his final report of

Management Thesis which entitled is “To

understand the challenges for customer prospecting

with reference to Life insurance’’ in fulfillment of

MBA (2010-2012) curriculum. The work has been

carried out at Amravati.

Date :

Mr. Sameer Khan Mr. Bhushan Pathe

Campus Head Faculty Guide

IIPS Amravati IIPS Amravati

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ACKNOWLEDGMENT

I express my sincere thanks toward Mr. Bhushan

Pathe (Faculty guide IIPS Amravati) who gave me

an opportunity to do project on “ To understand

the challenges for customer prospecting with

reference to Life insurance” in Amravati city and

provide valued guidance for completing Final

Report on this.

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EXECUTIVE SUMMARY/ABSTRACT

This report about the “ To understand the challenges

for customer prospecting with reference to Life

insurance ’’ prepared by Sachin Bone student of IIPS

College of Management. In today’s cut throat

competition we all are aware that every organization is

trying to increase their customer base through selling

their product and for this selling we want customer

and for this every organization undertaking one

activity that is called Customer Prospecting.

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TABLE OF CONTENT

Cover Page ………………… 1

Title Page ………………… 2

Authorization ………………… 3

Acknowledgment ………………... 4

Executive Summary/Abstract ……………….. 5

Table of content ………………. . 6

1.Introduction ……………….. 7-13

Objectives

Methodology

Limitation

2. Industry Details ……………… 14-32

3. Data Analysis ……………… 33-45

4. Secondary data ……………….46-53

Company

Customer5

Competitor

5. Conclusion and

Recommendation …………… 54-55

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INTRODUCTION

In today’s cut throat competition we all are aware that

every organization is trying to increase their customer base

through selling their product and for this selling we want

customer and for this selling we want customer and for this

every organization undertaking one activity that is called

Customer Prospecting. Simply, customer prospecting

means to search or find out any individual or group for

buying our products, which should be fulfill his needs and

wants. Effective prospecting is a critical component of

sustainable sales success. However, prospecting is not

selling. You may be a well-trained and/or experienced

salesperson. But your training may not have included

prospecting. Or perhaps you never prospected at all.

The output of prospecting is a list of qualified leads that

may buy your product or service. Selling begins only after

a lead is categorized as qualified. If you start selling too

early, you run the risk of pigeonholing your products and

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services before you have the opportunity to understand

your prospect's requirements. That generally leads to

commoditization--where price becomes the most important

buying criteria.

Winners understand that, as with effective selling,

prospecting should not be done by the seat of one's pants.

You need a plan. That means an objective assessment of

your situation, a goal, and resulting strategies and tactics to

achieve that goal. So if you aren't comfortable with

prospecting or haven't had to do it, I would like to share

with you my plan that has worked for many of those

winners.This is a simple one: Prospecting is the process by

which we turn "suspects" - those with a potential need for

our product into "prospects" - those who express a need

for our product. If we are selling dishwashers, suspects

could be home-owners living in their homes long enough

for a dishwasher to wear out - a "prospect" has told you

on a cold call that he is remodeling his kitchen. Suspects fit

a demographic. Prospecting is the process of weeding

through those suspects.8

OBJECTIVES

1)To study the Life Insurance Industry.

2)To study about different techniques of customer prospecting.

3)To study what are the impact of customer prospecting on employee.

4)To study about customer prospecting techniques in different insurance companies.

5) To study what are the challenges face by insurance player in today’s scenario regarding customer prospecting.

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METHODOLOGY

1) Selection of title – Title of this report is influenced by the problem facing by the insurance industry regarding customer prospecting.

2) Interpret the data by using the tool like Microsoft excel sheet, and on the basis of requirement use statistical tool like correlation – whatever primary data we collect it will be tabulate in excel sheet.

3) Collect the primary data and secondary data.

4) As per analysis some observation will be made and to accomplish the objectives of the study.

5) As per analysis and interpretation of collected data conclusions will be dra

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WHAT IS METHODOLOGY

Methodology, unlike method (which systematically details a given procedure or process), does not describe specific methods despite the attention given to the nature and kinds of processes to be followed in a given procedure or in attaining an objective. When proper to a study of methodology, such processes constitute a constructive generic framework; thus they may be broken down in sub-processes, combined, or their sequence changed. As such, methodology may entail a description of generic process or, metaphorically, may be extended to explications of philosophically coherent concepts or theories as they relate to a particular discipline or field of inquiry. By similar reasoning methodology refers to the rationale and/or the philosophical assumptions that underlie a particular study or a particular methodology (for example, the scientific method). In scholarly literature a section on the methodology of the researchers is typically de rigueur.

Research Methodology refers to a back philosophy of research. As an example of methodology in theoretical work, the development of paradigms satisfies most or all of the criteria for methodology. A paradigm, like an algorithm, is a ‘constructive’ framework, meaning that the so-called construction is a logical, rather than a physical, array of connected or intercalated elements.

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SAMPLING

Sampling is that part of statistical practice concerned with the selection of a subset of individuals from within a population to yield some knowledge about the whole population, especially for the purposes of making predictions based on statistical inference.

Researchers rarely survey the entire population for two reasons (Adèr, Mellenbergh, & Hand, 2008): the cost is too high, and the population is dynamic in that the individuals making up the population may change over time. The three main advantages of sampling are that the cost is lower, data collection is faster, and since the data set is smaller it is possible to ensure homogeneity and to improve the accuracy and quality of the data.

Each observation measures one or more properties (such as weight, location, color) of observable bodies distinguished as independent objects or individuals. In survey sampling, survey weights can be applied to the data to adjust for the sample design. Results from probability theory and statistical theory are employed to guide practice. In business and medical research, sampling is widely used for gathering information about a population.

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In statistics, a sampling distribution or finite-sample distribution is the distribution of a given statistic based on a random sample of size n. It may be considered as the distribution of the statistic for all possible samples from the same population of a given size. The sampling distribution depends on the underlying distribution of the population, the statistic being considered, and the sample size used. The sampling distribution is frequently opposed to the asymptotic distribution, which corresponds to the limit case n → ∞.

For example, consider a normal population with mean μ and variance σ². Assume we repeatedly take samples of a given size from this population and calculate the arithmetic mean for each sample — this statistic is called the sample mean. Each sample has its own average value, and the distribution of these averages is called the “sampling distribution of the sample mean”. This distribution is normal since the underlying population is normal, although sampling distributions will also often be normal when the population distribution is not.

This is an example of a simple statistic taken from one of the simplest statistical populations. For other statistics and other populations the formulas are frequently more complicated, and oftentimes they don’t even exist in closed-form. In such cases the sampling distributions may be approximated through Monte-Carlo simulations, bootstrap method, or asymptotic distribution theory

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LIMITATION

1) Study is limited to Amravati city.

2) In today’s recessional scenario it is might be possibility that employee refuses to us for giving appointment.

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INDUSTRY DETAILS

What is Life Insurance?

Life insurance is a contract between the policy holder and the insurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. In return, the policy holder agrees to pay a stipulated amount (the "premium") at regular intervals or in lump sums. In some countries, death expenses such as funerals are included in the premium; however, in the United States the predominant form simply specifies a lump sum to be paid on the insured's demise.The value for the policy owner is the 'peace of mind' in knowing that the death of the insured person will not result in financial hardship.

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.

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HISTORY

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers’ contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular.     1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies.       In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance

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Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.    The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business.       An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.  The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in

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the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices.      In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then.  In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973.       This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994

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wherein , among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners.

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Present Scenario

The most important aspect for any financial services institution dealing with today’s regulatory framework is the need to build an integration, risk, compliance and regulatory environment. The globalization of business, the proliferation of, and dependency on, technology, and the preservation of a trusted and secure environment to facilitate financial institutions, all require financial services organizations to have in place the mechanisms to ensure sound and reliable security and privacy. The industry's landscape is continuously changing and increasing in complexity across financial services, causing firms to face a diverse array of challenges and concerns. Role of Private sector has grown rapidly in the service industry, especially with reference to Insurance management.

The insurance industry, as an integral part of the financial services industry does not stand apart from the profound changes in the financial sector. Recently we are witnessing an enhanced competition in the insurance industry probably due to the opening up of this sector to private participants. There is a close inter-action between insurance and economic growth. As economy grows, the living standards of people increase. As a consequence, demand for insurance increases. As the assets of people and of business enterprises increase in the growth process, the demand for general insurance also increases. In fact, with the widening of the economy, the demand for new types of insurance products emerges. Insurance now extends not only to

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product market but also to service industries including finance. It is equally true that growth itself is facilitated by insurance. The global consolidation of the financial services sector is in large part driven by acquisition activity. Companies competing for a greater share of consumer funds are seeking quick access to new markets, new products and new channels of distribution, both domestically and economically.

Grounded in a deep understanding of the issue, we have tried to deal with today’s life insurance and financial services environment in a very lucid manner covering all the aspects such as productivity, management of processes, growth drivers, critical factors for success and policy implications.

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Advantage of Life Insurance

It is a general belief that life insurance is meant only for those with families. It is true that Life Insurance Policies like whole-life insurance, joint-life-insurance, pension-life-insurance etc are essential for family's financial security, but they are equally important for individuals. Term Insurance policies protect your financial resources against the uncertainties of life so you can protect your family's future.

Some of the life insurance advantages are:

If an estate owner has not accumulated enough assets for his family.

Insurance quote helps create an instant estate for the sake of the Family’s security.

Life Insurance provides the option to pass equal assets to the children who are not active in the Family business at the time the family business is passed on.

Life Insurance policies can help secure the future of children for college/educational purposes as the amount of life Insurance Policy increases on a minor’s or parent’s life.

The growth of a cash-value policy is tax-deferred - you do not pay taxes on the cash value accumulation until you withdraw funds from the policy.

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Life Insurance can be useful in paying estate taxes, along with other estate settlement amounts. Federal Estate Taxes are due nine months after death.

If there’s a Business Transfer, life insurance can provide ready cash to finance a transaction between business owners who are ready to buy the deceased owner’s share from his or her estate after death.

If there’s a home mortgage, one can pass the family residence to their spouse/children to free them of any mortgage if one has a Life Insurance Policy for the same. It is preferred to have a decreasing term policy that decreases in face amount as the mortgage balance is paid down.

Life Insurance helps retain your Business from the loss of a key employee. Untimely death of a key employee can pose severe financial loss to the business.

The right insurance proceeds can provide liquidity to pay off personal loans or business loans.

Charitable Remainder Trusts provide tax benefits. Life Insurance helps replace a charitable gift.

A lot of Insurance products presently provide good returns, which could be a beneficial way for saving necessary funds for retirement years.

Benefits are available immediately and may be used to help pay expenses such as final illness and funeral costs, eliminating the need to sell estate assets to cover these costs.

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Death Benefit: Firstly the life insurance provides benefit against the risks of your life & provides your family or nominee the insured amount or coverage in case of your unfortunate demise.

Survival/Maturity benefit : Apart from the simple death benefit you also get the maturity benefits or survival benefits wherein you get the sum assured plus the returns at the time of maturity, there is also an option of periodic withdrawals of your invested amount.

Investment & savings : Apart from the life cover, the life insurance also has prospects of providing a vehicle for investments & saving for your future needs. With different insurance plans like simple endowment plans, wholelife plans, ULIPs, you have the option of saving for your retirements through pension plans or saving for your children future needs by investing in Insurance child plans wherein you can invest your money depending on your risk profile.

Tax benefit :You can save tax upto Rs. 1 lakh on Premiums paid for Life Insurance Plans under Section 80C.

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Riders :The riders are special benefits given to the policy holders in addition to the life insurance cover wherein you are charged with some extra premium e.g. Accelerated death benefit rider, waiver of premium rider, disability income rider, accidental death rider etc.

Premium payment option :You have the option of paying premium yearly, quarterly, monthly & you also have the option of single time premium payments where you have to pay one time.

Plans as per needs :You can avail Insurance plans as per your needs & requirements, if you want to save for your child you can go for children insurance plans providing you with returns at certain important milestones of your children’s life like their education, wedding etc. If you want to save for your retirement you can invest in Pension plans either in ULIPS or in simple Endowment plans depending upon your risk appetite.

Loan option : In some life insurance polices you can also take loan against the life insurance polices, your eligibility for the loan amount depends on the type of policy, the premium amount, the term of the policy and the number of years you have paid premium for

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Life Insurance related act

The Insurance Act, 1938

The Insurance Act, 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business.

Life Insurance Corporation Act, 1956

Even though the first legislation was enacted in 1938, it was enacted in 1938, it was only in 19 January 1956, that Life insurance in India was completely nationalized, through a Government ordinance; the Life Insurance Corporation Act, 1956 effective from 1.9.1956 was enacted in the same year to, inter-alia, from LIFE INSURANCE CORPORATION after nationalization of the 245 companies into one entity. There were 245 insurance companies of both Indian and foreign origin in 1956.

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Insurance Regulatory and Development Authority (IRDA) Act, 1999

Till 1999, there were not any private insurance companies in Indian insurance sector. The Govt. of India then introduced the Insurance Regulatory and Development Authority Act in 1999,

thereby De-regulating the the insurance sector and allowing private companies into the insurance. Further, foreign

investment was also allowed and capped at 26% holding in the Indian insurance companies. In recent years many private

players entered in the Insurance sector of India. Companies with equal strength competing in the Indian insurance market.

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INTRODUCTION TO CUSTOMER PROSPECTING

Defination of customer prospecting -

Customer Prospecting is a type of marketing analysis that helps identify areas of interest for targeting new customers. Areas are determined by analyzing the demographic variables in the area that contain your current target customers.

Approach for prospecting –

1.Generating sales lead – A sales lead can be in the form of an individual or an organization that might need or buy company’s product.

2. Identifying prospect – Prospect is the individual or an organization that indicate need for the product. A sales person can identify a prospect by using various prospecting techniques.

3. Qualifying prospect – After identifying a potential lead, the sales person qualifies weather the prospect can afford to make a purchase or not.

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Various method of Customer prospecting :

1.Business Networking Events

This is real world business networking event such as power lunch, breakfast meeting, or leisure gathering.

2. Roadshows

Setting up sales booth on roadshows not only increase the exposure of your business but also increase the numbers of your prospects that could become your customers in the future.

3. Product Launching Parties

Doing a product launching party may be one of a good prospecting methods as this not only increase the exposure but also the image of your business and branding.

4. Mail Order (Snail Mail) System

This is one of the very popular conventional method in doing prospecting. This prospecting methods have evolved into email marketing as it is more targetable and more cost effective.

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5. eMail Marketing

e-mail marketing as one of the recent uprising prospecting methods has become so popular due to its efficiency, time and cost savings nature. Besides, the overall prospecting plan not only can be measured upon the effectiveness (mostly ROI), it could also provides a better prospecting ideas for future prospecting plan.

6. Social Networking Sites

People are not just horsing around with social media. It’s how your prospects and customers interact with your business now. Take this ‘Play’ seriously.

7. Asking for referrals

Remember to always ask clients, colleagues, even prospects if they know anyone who could benefit from your services.

8. Executive Networking

Let your work speak for itself. Get your client CEO’s to call or email others in their industry on your behalf. Executive-to-executive sales will always outperform seller-to-executive sales.

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9. Cold Calling

Contrary to popular belief, the reason this method keeps re-occurring in sales is that it works. No other method can increase your prospecting efforts like cold calling can.

No matter which prospecting methods you prefer or used, remember that each prospecting methods has its own target prospect groups.When you run a roadshows, you may be expecting your prospects from a very wide source of industries as these people may be just happened to drop by the shopping mall or convention center that happened to be one of your roadshow locations.

However, when you are doing prospecting via business networking events, you may already know that the prospects that turn out are somehow business people, either a business owner or self-employed person, in most cases.There is no such thing as the best prospecting methods as it pretty much depends on your prospecting ideas and your prospecting plan.If you have smaller budget and want a more targeted group and more accurate effectiveness reporting, eMail Marketing and Social Netowrking Sites may be more a better prospecting methods for this objective.

Effective prospecting is a critical component of sustainable sales success. However, prospecting is not selling. You may be a well-trained and/or experienced salesperson. But your training may not have included prospecting. Or perhaps you never prospected at all. In either case, read on.

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The output of prospecting is a list of qualified leads that may buy your product or service. Selling begins only after a lead is categorized as qualified. If you start selling too early, you run the risk of pigeonholing your products and services before you have the opportunity to understand your prospect's requirements. That generally leads to commoditization--where price becomes the most important buying criteria.

Winners understand that, as with effective selling, prospecting should not be done by the seat of one's pants. You need a plan. That means an objective assessment of your situation, a goal, and resulting strategies and tactics to achieve that goal. So if you aren't comfortable with prospecting or haven't had to do it, I would like to share with you my plan that has worked for many of those winners.

This is a simple one: Prospecting is the process by which we turn "suspects" - those with a potential need for our product into "prospects" - those who express a need for our product. If we are selling dishwashers, suspects could be home-owners living in their homes long enough for a dishwasher to wear out - a "prospect" has told you on a cold call that he is remodeling his kitchen. Suspects fit a demographic. Prospecting is the process of weeding through those suspects

Sales Prospecting is the hunt. In other words it is finding and qualifying new potential customers. The prospective customer needs to fit into the needs / capabilites match to qualify as a prospect. Why call on someone who for any number of reasons cannot buy from you? Prospecting at one time was called panning for gold and that is what sales people should be doing

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all day. Once you achieve some traction and are making money, it is a matter of finding new customers. You will be both adding and replacing to your customer base. That's when prospecting becomes a sport and is fun.

DATA ANALYSIS FOR EMPLOYEE

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Data analysis was done using Microsoft Excel. Data was analyzed by using percentage. Appropriate graph have been aligned along with the data collected more understandable and for the purpose of making report is more presentable.

Observation (On Primary data)

By analyzing the primary data following observation can be done

Graph 1:

In total sample size of 40. The 100% of the sample are agree for insurance is contact base business.

Graph 2:34

In the total sample size, according to 83% sample customer prospecting is reason and according to 17% sample employee limitation.

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Graph 3:

In the total sample size, according to 100% sample they were use customer prospecting method through advisor.

Graph 4:36

In the total sample size, according to 35% sampleuse customer prospecting method through cold call and remaining 65% not use it.

Graph 5:

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In the total sample size, according to 100% sample use customer prospecting method through reference calling.

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Graph 6:

In the total sample size, according to 22% sample use customer prospecting method through media calling and remaining 78% not use media calling.

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Graph 7:

In the total sample size, according to 100% sample peoples are avoid to invest in insurance.

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Graph 8:

In the total sample size, according to 100% sample attrition rate is high in insurance.

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Graph 9:

In the total sample size, according to 8% sample, employee were switch their job due to good package and remaining 92% sample say they were unable to prospecting that’s why switch the job.

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DATA ANALYSIS FOR ADVISOR

Graph 1:

In total sample size of 80 advisor. The 100% of the sample are using referral calling for customer prospecting.

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Facts Observation in employee data

In our total sample 100% sample are agree that Insurance is contact base business, that’s why they were recruited their advisor.

In our total sample according to 83% sample customer prospecting is the reason and 17% sample say employee limitation is the reason.

In our total sample size 100% sample are prospecting through advisor through reference, 35% through cold call, 95% through repeat call, 17% through catalog call, 67% through tele call and 22% through media.

According to all 100% sample, peoples are avoid insurance.

They given ranking top most lower one to constrain what they are facing like, 1th to short term interest of investment 2 th lack of awareness regarding insurance 3 th Intense competition 4th public company and private company, 5 th

high insurance charges, 6 th is product intangibility.

According to all employee attrition rate is high in insurance industry, according to 92% sample unable to prospect and 8% sample say good package is the reason.

According to 85%sample insurance industry offer high package for prospecting 10% say attract new employee and 5% say to reain existing one.

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Facts Observation in data

All advisor in our sample size are using reference calling method to prospecting that is 100%

Advisor also given the same ranking as employee to their constrain except one like 1th to short term interest, 2 th is lack of insurance awareness, 3th is public company and private company, 4th is intense competition, 5 th is high charges, 6 th is product intangibility.

Trend observation in the sample

We observe the trend by using our data tabulated excel sheet, findings are as follow

In our total sample observation we never find any trend in our employee data and advisor data.

We observe same general trend in all sample.

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SEONDARY DATA

COMPANY :-

The primary purpose of life insurance is to provide financial stability to families in the event the breadwinner dies. In addition, owning life insurance has many other benefits in terms of cash value, tax and estate planning. However, regardless of these benefits, purchasing life insurance can pose several challenges to the insured or policy owner.

AEGON RELIGARE LIFE INSURANCE COMPANY

Religare Enterprises Ltd. is an India based financial services company with operations around the globe. Commonly referred

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to as Religare, the company offers a range of financial services through its group companies. The services offered include broking, insurance, asset management, lending solutions, investment banking and wealth management. Serving over a million clients, Religare has around 15 billion dollars of assets under management.The Religare group of companies include Religare Capital Markets, Religare Securities, Religare Broking, Religare Online, Religare Finvest, Religare Finmart, Religare Insurance, Religare Health Insurance, Aegon Religare, Religare Mutual Funds, Religare Macquire, Milestone Religare, Religare Art. There are basically two types of life insurance: term insurance and cash value. Term insurance is pure life insurance. It has no savings account or cash value. As a result, it's much cheaper than cash value. Term insurance is purchased one "term period" at a time. Although the pure cost to insure you goes up each year due to age, the price you pay will remain the same throughout the chosen term period. At the end of the specified term period, you must renew for another term period.

Religare is an emerging markets financial services group with a presence across Asia, Africa, Middle East, Europe, and the Americas. In India, Religare’s largest market, the group offers a wide array of products and services including broking, insurance, asset management, lending solutions, investment banking and wealth management. With 10,000-plus employees across multiple geographies, Religare serves over a million clients, including corporate and institutions, high net worth families and individuals, and retail investors.

AEGON, an international life insurance, pension and investment company, Religare, a global financial services group

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and Bennett, Coleman & company, India’s largest media house, have come together to launch AEGON Religare Life Insurance Company Limited (ARLI). This venture is dedicated to build a profitable customer-centric business with scale, providing a work environment that fosters excellence and innovation. This joint venture will balance a local approach with the power of an expanding global operation.

ARLI launched its pan-India operations in July, 2008 following a multi-channel distribution strategy with a vision to help people plan their life better. The fulfillment of this vision is based upon having a complete product suite, providing customised advice and enhancing the overall customer experience through superior service.

ARLI has launched a suite of products that are focused on providing the customer with the means to meeting their long-term financial goals. At the same time product development has been founded on the tenet of providing the customer with great value. ARLI products such as AEGON Religare iTerm Plan and AEGON Religare Future Protect Plan have been ranked among the best in terms of value and have attracted many external accolades.

About AEGON

As an international life insurance, pension and investment company, AEGON has businesses in over twenty markets in the Americas, Europe and Asia. With headquarters in The Hague,

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the Netherlands, AEGON companies employ approximately 28,000 people and serve some 40 million customers across the globe. The company’s common shares are listed on three stock exchanges: Amsterdam, New York and London. AEGON has more than 160 years of experience with its roots going back to 1844. AEGON holds 26% equity in ARLI.

About Religare Enterprises Limited

Religare Enterprises Limited (REL) is a global financial services group with a presence across Asia, Africa, Middle East, Europe and the Americas. In India, Religare’s largest market, the group offers a wide array of products and services ranging from insurance, asset management, broking and lending solutions to investment banking and wealth management. The group has also pioneered the concept of investments in alternative asset classes such as arts and films. With over 10,000 employees across multiple geographies, Religare serves over a million clients, including corporates and institutions, high net worth families and individuals, and retail investors. REL hold 44% equity in ARLI.

About Bennett, Coleman & Company Limited

Bennett, Coleman & Company Limited (BCCL), part of the mammoth Times Group, is India’s largest media house. It reaches out to 2468 cities and towns all over India. The group owns and manages powerful media brands like The Times of India, The Economic Times, Maharashtra Times, Navbharat Times, Femina, Filmfare, Grazia, Top Gear, Radio Mirchi,

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Zoom, Times Now, Times Music, Times OOH, Private Treaties and indiatimes.com. All of its brands are multinational in outlook, traditional at heart and national in spirit. From the very first edition on November 3, 1838 the mammoth BCCL Group has come a long way. By way of the innovative venture of Times Private Treaties.

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CUSTOMER :-

1) Goverment employee2) Private employee

3) Businessman

4) Farmer

COMPETITOR :-

1) Aviva Life Insurance 2) Bajaj Allianz 3) Bharati AXA Life Insurance 4) Birla Sun Life Insurance 5) HDFC Standard Life Insurance 6) ICICI Prudential 7) ING Vysya 8) Kotak Mahindra 9) LIC 10) Max New York Life Insurance 11) Reliance Life Insurance 12) SBI Life Insurance 13) Shriram Life Insurance 14) Tata AIG Life Insurance

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Life Insurance Plans

AEGON Religare Life Insurance offers insurance and pension plans specifically designed to help you plan your life better. Select a plan based on your need – protection, saving, child or retirement.   

 

Protection plans

Protection plans are Term Plans which provide only life cover. These plans can help you get adequately covered and secure your family financially in case of unfortunate event. These are low cost life insurance plans. What’s more, depending on your future responsibilities and financial commitments Increasing and Decreasing Term Plans offers you the flexibility to increase or decrease the sum assured in systematic manner.

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ULIP - Unit Linked Insurance Plans

Unit Linked Insurance Policies or ULIPs as they are commonly called, are more innovative forms of life insurance that also offer returns on your investments. Every ULIP provides cover against death. In addition, these unit linked insurance plans also serve as great means of long-term savings, structured to give you miximum benefit. In simple words, investment in ulips is great combination of protection and investment.

Saving Plans

Savings Plans help you save and grow your money. Savings Plan is a category of goal-based financial solutions that offers wealth creation opportunities. At AEGON Religare Life Insurance we have created products that cater to these very needs.

 

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Retirement Plans

The rising inflation has put the fear of the unseen in every working person’s life. Today, more than ever, it is vital that you save for the golden years post retirement so that you can maintain your lifestyle as today. AEGON Religare Pension plan comes with a unique Lifestyle fund which systematically reduces the risk to your returns by reducing the equity exposure of your investments progressively throughout the policy term. Pension plans offered by life insurance companies provide you with a regular pension that will help you take care of the much needed basic necessities post retirement and assure a secured tomorrow

 

 

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CONCLUSION

What assumption or hypothesis we made is totally valid, what feedback given by the sample is totally match with our assumption.

On the basis of sample feedback we may able to say that short term short term investment interest of people are the top most constraint for insurance industry.

Product intangibility doesn’t matter for employee as well as advisor also because they it 6th rank to this constrain.

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It is again prove that insurance is the contact base business , because all employee and advisor all were using contact base prospecting tool.

It is also prove that insurance industry are offering high package to their employee only for customer prospecting.

So major problem for life insurance company is peoples are do not aware about their human life that’s why industry are facing customer prospecting problem.

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RECCOMENDATION

It is very true that in today’s scenario no one have time to wait for his investment return, so if the all insurance company will launch some term investment tool along with long term one, it may be beneficial for insurance industry.

Still insurance industry focusing on urban area, if they divert their focus from urban to rural, then it may be beneficial for them for customer prospecting.

IRDA board should take initiative for filling the gap between public company and private company, if they really want to insurance should reach to the every peoples of India, because LIC is also having its own limitation.

Before ULIP launch people were less aware about charges but now people gradually awaking about charges so all the companies should think on this point of view.

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ABBRIVATIONS

IRDA – Insurance Regulatory and Development Authority ULIP – Unit Linked Insurance Plan

TP – Traditional Plan

FMC – Fund Management Charges

GDP – Gross Domestic Product

LIC – Life Insurance Corporation

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REFERENCES:

1)  Www. Google .com

2)  Business Dictionary.com

3)  Company product manual

4) Mr. Bhushan Pathe (Faculty Guide)

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Questionnaire for employee of the company :

Employee Designation –

Company Name –

1) Do you aware about customer prospecting ?

Yes

No

2) Why you recruited advisor?

For business generation

Because company norm

3) Do you think there is specific reason for advisor recruiting?

Limitation of employee

Limitation of advisor

Customer prospecting

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4) Do you think life insurance is contact base business?

Yes

No

5) If yes then why is it so?

Contribution of business through contact is more

Other

6) Can you tell me what are the customer prospecting method you been use?

Prospecting through advisor

Cold call

Referral call

Repeat call

Catalogue calling

Tele calling (phone)

Prospecting through media

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7) Do you think most of the peoples are avoid to invest in insurance?

Yes

No

8) If yes then why is it so?

Lack of insurance awareness

Interested in short term investment

10)Do you facing any constraint regarding customer prospecting which concern to business generation?

Yes

No

11) What do you think about customer prospecting constraint and which are those?

Lack of awareness regarding insurance need

People interested in short term investment

High charges of insurance

Intangibility of product63

Intense completion

Public company and private company

12) Can you give the sequence for above customer prospecting constraint from top most to lower one?

Lack of awareness regarding insurance need

People interested in short term investment

High charges of insurance

Intangibility of product

Intense competition

Public company and private company

13) Are you think employee attrition rate is high in life insurance business?

Yes

No

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14) What do you think about employee attrition rate, what’s the reason?

Business generation (not able to prospecting)

Because of good package offer by others

15) Do you think insurance sector offer high salary as compare to other sector?

Yes

No

16) If you think yes then why is it so?

To attract new employee

To retain employee

For customer prospecting

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Questionnaire for Advisor of company

1) Do you think you are the base of your Life insurance company?

Yes

No

2) Why you think like that?

More contribution in customer prospecting

More contribution in total business of the company

3) How you prospect your customer ?

Referral calling

Cold Calling

Tele calling

4) What do you think regarding constrain in customer prospecting ?

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Lack of awareness regarding insurance need

Peoples interested in short term investment

High charges of insurance

Intangibility of product

Intense competition

Public company and private company

5) Can you give the sequence for above customer prospecting constraint from top most to lower one?

Lack of awareness regarding insurance need

Peoples interested in short term investment

High charges of insurance

Intangibility of product

Intense competition

Public company and private company

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