A SUMMER PROJECT REPORT ON
RECRUITMENT OF ADVISORS IN ICICI PRUDENTIAL LIFE INSURANCE
Submitted in the partial fulfillment of degree of Bachelor of Business Administration (Banking (Ban king &insurance) (2010- 2013)
Under the guidance of: MS. BINDU VASHISTH
Assistant Professor, FIMT
Submitted by: AKSHAYA PREM
Enrollment No.: 01090101810 BBA(B&I) 5rd Semester
FAIRFIELD INSTITUTE OF MANAGEMENT AND TECHNOLOGY Affiliated to Guru Gobind Singh Indraprastha University, Delhi. Kapashera, New Delhi- 110037
Table of Contents
Page nos.
...................................... .......................... .......................... ......................... .................... ........ i Student declaration......................... Certificate by the guide............................................................................. ii Certificate by company........................ ..................................... ......................... .........................................iii .............................iii
..................................... .......................... .................................... ...................................iv ............iv Acknowledgement ........................
Chapter-1 Research Objectives of the study.......................... study...................................... .....................................2 .........................2 Research Methodology Methodology of the study.............. study........................... ......................... ......................... ....................3 .......3 Limitation............. Limitation.......................... ......................... ......................... .......................... .......................... ......................... ......................5 ..........5
Chapter-2
Introduction..................................................................................7 Chapter -3 Company Profile ........................ ..................................... ......................... ..................................................9 ......................................9
Chapter -4 Data analysis and interpretation interpretation .................................... ..............................................................40 ..........................40
Chapter -5 Findings............ Findings......................... .......................... .......................... ......................... ......................... .......................... .......................48 ..........48
Chapter-6 Suggestion.......... Suggestion...................... ......................... .......................... .......................... ......................... ...................................50 .......................50
Chapter -7 Conclusion.......... Conclusion....................... .......................... .......................... ......................... ......................... .......................... ......................52 .........52 Bibliography Bibliography ........................ ..................................... .......................... ......................... .................................. ............................53 ......53 Annexure............. Annexure.......................... ......................... ......................... .......................... .......................... ......................... .....................54 .........54
STUDENT DECLARATION I hereby declare that the project entitled “Recruitment of Advisors in ICICI prudential life submitted in the partial fulfillment fulfillment insurance” under the guidance of “Ms. Bindu Vashisth” submitted of degree of Bachelor of Business Administration (Banking & Insurance) from “Fairfield Institute of Management and Technology , affiliated from GGSIPU New Delhi”. This is my
original work and this project work has not formed the basis for the award of any Degree to the best of my Knowledge.
Name: Akshaya Prem Enrolment No: 01090101810 Place: New Delhi Date:
i
Certificate by the Guide This is to certify that project title “Recruitment of Advisors in ICICI prudential life semester and has been insurance” is the original work of Akshaya Prem student of BBA 5 th semester duly completed her project under my guidance and supervision up to my satisfactory level. This work has been done in partial fulfillment fulfillment of the requirement requirement for the award of the degree of Bachelo Bachelorr of Busines Businesss Adminis Administrat tration ion from Fairfield Fairfield Institute Institute of Manageme Management nt and Technology, GGSIPU and has not been submitted anywhere in any other university for the
award of any degree.
Bindu Vashisth Senior Assistant Professor Management Department FIMT
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Acknowledgement It is pleasure to acknowledge many people who knowingly and unwittingly helped me, to complete my project. First of all let me praise god for all the blessings, which carried me through all those years. I am particularly indebted to Director Mr. R.K Garg Singh of the Fairfield Institute of inculcated in me utmost respect for human values and Management and Technology which inculcated groom groomed ed me up in the field field of softw software are technol technology ogy to take take on the challe challenge ngess of the the competitive world. First and foremost, I would like to express my regards to Ms. Bindu Vashisth for her constant encouragement and support. I would also like to express my immense gratitude towar towards ds my guide guide for provi providin ding g the inval invaluab uable le kno knowl wled edge, ge, guidan guidance, ce, encour encourage ageme ment nt extended during the completion of this project. Last but not the least; I am grateful to my parents, my sister, my brother, my friends and my guide for their moral support and encouragement during the entire period of time
Signature of the student
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CHAPTER-1
Research Objectives of the study
Research Methodology of the study
Limitation
1
OBJECTIVES OF THE STUDY
Main Objective: To study the Recruitment of Advisor policies for ICICI prudential life insurance.
Sub Objective: To understand the clientele profile To study the recruitment, selection and training process of the advisors. To study about the various products offered by the company. To provide an enabling environment to foster growth and learning for advisors. To expand the channel base of Priority Circle.
2
RESEARCH METHODOLOGY This is an endeavor to locate right kind of people possessing the right kind of skills to become successful financial consultants. The study also tries to find out the kind of people and skills that would further enhance the insurance business. ICICI Prudential insurance business aims at recruiting recruiting those who have entrepreneurial skills and necessary drive to survive and flourish in the present competitive and ever increasing insurance industry.
The universe of study was limited to Delhi. The universe was divided in different segments. The process of segmentation was primarily aimed at simplifying the universe into smaller parts so each segment can be handled according according to its unique features. These These segments were as follows:
•
Students
1. B.Com and MBA pass outs 2. Students perusing CA, MFC.
•
Enterprising Women Women
1. Hobby class operators 2. Beauty Saloon owners 3. Fashion boutiques 4. Kitty Party groups 5. Agents of direct Selling.
•
Property Dealers Dealers
•
Commission Agents
•
CA’s, Advocates and other Tax Consultants Tax Consultants..
•
VRS Scheme holders/ Retired Members
The research methodology is discussed in detail later. However, the following is the summary of the same.
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Students: Research methodology: Mail + Call activity Data Source: colleges and respective institutions.
Enterprising women: Research Methodology: Telecalling Data source: Personal contacts + Local Directories
Property dealers: Research Methodology: Telemarketing Data source: Yellow pages + Local newspaper.
CA’s, income tax consultants and advocates: Research Methodology: Personal Contact Data Source: Yellow Pages.
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LIMITATIONS OF THE STUDY
1. Area Area covered covered was was confin confined ed to some some regi regions ons only. only.
2. People were reluctant reluctant to to join this this job as it doesn’t provide provide any any fixed salary.
3. People People perceiv perceived ed this profe professio ssion n as a low status status profes profession sion..
4. Availab Availabilit ility y of data data to contact contact peopl peoplee was a proble problem. m.
5. Due Due to the the pres presen ence ce of larg largee numb number er of LIC LIC agen agents ts,, peop people le refu refuse sed d to beco become me advisors of any company as according to them there exists a huge competition.
6. Insurance business itself doesn’t enjoy a good reputation reputation in the society. society.
7. The candidates candidates like CA’s, CA’s, Advocates Advocates and Tax Tax consultants consultants could could not arrange a meeting with ASM in spite of their interest.
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CHAPTER-2
Introduction
INTRODUCTION The objective of this project was to assist ICICI Prudential Life Insurance in expanding their channel by recruiting Advisors for the company. For the company to successfully continue its 6
operations, it needs to undergo change to get new business and to get new ideas. Moreover insurance is such a growing sector that it has full potential to have new customers. So it is very essential to have new people in the system, which can add new customers to the company.
The first objective of the study was to look for different different segments of the people. The second objective of the project was to analyze the person to find whether he is fit for doing insurance. The third objective of the project was to finally introduce some people in the system by recruiting them as advisors of the company.
The research methodology consisted of secondary data, which was collected from different colleges, Tata Press Yellow Pages etc and personal interview with people in Delhi.
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CHAPTER-3 Company profile Company vision Service standard ICICI prudential priority circle Meaning of insurance
The insurance industry
The global insurance
COMPANY PROFILE Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI and Prudential plc of U.K. In November November 2000, 2000, ICICI Prudential Prudential Life Insurance was granted Certification Certification of Registr Registratio ation n for carryin carrying g out life life insuranc insurancee Business Business by the Insuranc Insurancee Regulat Regulatory ory &
8
Development Authority of India. The Company issued its f first policy on December 12, 2000. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7-banc assurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.ICICI Prudential Life Insurance's new business has grown 77% in '04-05 to cross Rs 1,000 crore, with annualized new business premium of Rs 1,256 crore. The company's total received premium, which includes renewal premium, has crossed Rs 2,363 crore for '04-05.
In the year 2004-05, 80% of the premium has been generated generated from unit- linked plans, with nearly 40% of the premium collections collections going into equity. equity. Indian policyholders policyholders have been increasingly opting for unit-linked plans, which offer o ffer higher exposure to equities, eq uities, ever since lower interest rates have forced insurers to cut bonuses on traditional policies. In contrast, contrast, the private life insurance agent force has grown by leaps and bounds. The The need for higher geographical penetration has seen insurance companies companies recruiting aggressively. At last count, they added up to a massive 1,50,000. ICICI PruLife topped the list among the private players, which had h ad close to 50,000 50 ,000 agents, ag ents, while Bajaj Allianz Allian z had 30,000 agents. At least six of the 11 private life insurance players had an agent force of 10,000 and plus. This included Tata AIG, Max New York, HDFC Standard and Birla Sun Life. All these insurance companies companies have allocated allocated large amounts amounts of fresh capital to build the agent network across major cities in the past few years.
9
COMPANY’S VISION To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service.
10
The company hopes to achieve this by: •
Understanding the needs of customers of customers and offering them superior products and service
•
Leveraging technology to service customers quickly, efficiently and conveniently
•
Developing Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to their policyholders
•
Providing an enabling environment to foster growth and learning for their employees employees
•
And above all, building transparency in all their dealings.
The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Integrity, Customer First, Boundary less, Ownership and Passion. Each of the value describes what the company stands for, the qualities of their people and the way they work. .
They do believe that they are on the threshold of an exciting new opportunity, where they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment co mmitment of their team, there are no limits li mits to their growth.
Promoters ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company, which has today emerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to YOU. Riding on the success of this relationship, the two companies joined hands once more in 2000, to form ICICI Prudent Prudential ial Life Life Insuranc Insurance, e, with with a commit commitment ment to provide provide leading leading-edg -edgee life life insurance solutions. ICICI Bank has 74% stake in the company, and Prudential plc has 26%.
(NYSE:IBN) is India’s second largest bank with an asset base of Rs. 106812 ICICI Bank (NYSE:IBN) crore crore.. ICIC ICICII Bank Bank provi provides des a broad broad spect spectrum rum of financ financia iall servi services ces to indivi individua duals ls and companies. This includes mortgages, car and personal loans, credit and debit cards, corporate and agricultural finance. The Bank services a growing customer customer base of more than 7 million customer customer account accountss and 5 millio million n bondhold bondholders’ ers’ accounts accounts through through a multi-c multi-chann hannel el access access network. This includes about 450 branches and extension counters, 1675 ATMs, call centres and Internet banking. ICICI Bank posted a net profit of Rs.1, 206 crore for the year ended 11
March 31, 2003. ICICI Bank is the only Indian company to be rated above the country rating by the international rating agency Moody’s and the only Indian company to be awarded an inves investm tment ent grade grade inter internat natio ional nal credi creditt rati rating. ng. Th Thee Bank Bank enjoy enjoyss the highes highestt AAA AAA (or (or equivalent) rating from all leading Indian rating agencies.
Established Established in 1848, Prudential international financial financial services company Prudential plc is a leading international in the UK, with around US$250 billion funds under management and more than 16 million customers worldwide. Prudential has brought to market an integrated range of financial servic services es produc products ts that that now includ includes es life life assura assurance nce,, pensio pensions, ns, mu mutu tual al funds funds,, bankin banking, g, investment management and general insurance.
About the promoters ICICI Bank is India's second-largest bank with total assets of about Rs.112,024 crore and a network of about 450 450 branches and offices offices and about 1750 ATMs. ATMs. It offers offers a wide range range of banking products and financial financial services to corporate and retail customers customers through a variety of delivery channels and through its specialized specialized subsidiaries subsidiaries and affiliates affiliates in the areas areas
of
inves investm tment ent
bankin banking, g, life life
and and non non-l -lif ifee insura insurance nce,, ventur venturee
capit capital, al, asset asset
management management and information technology. technology. ICICI Bank posted posted a net profit of Rs.1, 637 crore for the year ended March March 31, 2004. ICICI ICICI Bank's equity shares shares are listed in India India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange Exchang e of India Limited and its American Depositary Receipts Receip ts (ADRs) are listed on the New York Stock Exchange (NYSE). Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 millio million n custome customers, rs, policyh policyholde olderr and unit holders holders worldwi worldwide. de. As of June 30, 2004, 2004, the company had over US$300 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential Prudential is the leading European life insurance company company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
Distribution 12
ICICI Prudential Prudential has one of the largest distribution networks networks amongst private life insurers in India, having commenced operations in 69 cities and towns in India. These are: Agra, Ahmedab Ahmedabad, ad, Ajmer, Ajmer, Allahab Allahabad, ad, Am Amrits ritsar, ar, Auranga Aurangabad, bad, Bangalo Bangalore, re, Bareil Bareilly, ly, Bhatind Bhatinda, a, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam, Kottayam, Lucknow, Ludhiana, Ludhiana, Madurai, Mangalore, Mangalore, Meerut, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Salem, Siliguri, Surat, Surat, Thane, Thane, Thrissu Thrissur, r, Trichy, Trichy, Trivand Trivandrum rum,, Udaipur, Udaipur, Vadodar Vadodara, a, Vapi, Vapi, Varanas Varanasi, i, Vashi, Vashi, Vijayawada and Vizag. The company has seven bank assurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some co-operative banks, as well as over 160 corporate agents and brokers. It has also tied up with organizations like Dhan Dhan for distr distribu ibuti tion on of Sala Salaam am Zinda Zindagi, gi, a policy policy for the socia socially lly and and econom economica icall lly y underprivileged sections of society.
Distribution Channels: Till date insurance agents still remain the main source through which the insurance products products are sold. The concept is very well established in the country like India. But still the increasing use of other sources is imperative. imperative. It therefore makes sense that the well-balanced well-balanced alternative alternative channel of distribution. At present the distribution channels that are available in the market are: •
Direct selling
•
Corporate agents
•
Group Selling
•
Brokers and corporative Societies
•
Bank assurance
SERVICE STANDARDS Six Sigma ICICI prudential prudential realized early on that quality could be a significant differential differential with respect to the competition. competition. Hence it launched a six-sigma initiative as a quality measurement measurement tool to 13
understand and fulfill customer needs, set industry benchmarks and make its operations salable with a focus on customers and costs. Through Six sigma there has been a continuous focus on the customer, which fits in ideally with a focus on the customer, which fits in ideally with ICICI Prudential’s customer centric approach.
Investment Philosophy Their investment philosophy aims to proactively achieve superior risk-adjusted returns on our funds funds und under er manag managem ement ent.. Th Thee focus focus is on ensur ensuring ing longlong-ter term m safet safety, y, Stabi Stabili lity ty and profitability of portfolio. p ortfolio. The framework to achieve this objective is based on sound investment process and controls couple coupled d with with a rigor rigorous ous and sop sophis histic ticat ated ed risk risk manag managem ement ent strat strategy egy.. Th Ther eree is clea clearly rly articula articulated ted asset asset allocat allocation ion strategy strategy dependin depending g on risk characte characterist ristics ics of correspo correspondin nding g liability. Portfolio Portfolio management is a function of extensive research and is based on data and reasoning. Debt investments investments target a judicious mix of credit and interest rate risk. Investments Investments in equity target long term appreciation and follow a value oriented investment style.
Information Technology At ICICI Prudential, the strategic use of technology provides the consumer with value –added services. There is a robust system, which is employed as the backbone of the company. Initiatives have been taken so that the consumer can access complete information on the policies online, from accessing a ccessing payment details det ails to sending in the premium. pr emium.
The following companies have the following market share of the insurance industry:
NAME OF THE PLAYER
MARKET SHARE (%)
14
L IC
82.3
ICICI PRUDENTIAL
5.63
BIRLA SUNLIFE
2.56
BAJAJ ALLIANZ
2.03
SBI LIFE
1.80
HDFC STANDARDLIFE
1.36
TATA AIG
1.29
MAX NEW YORK
0.90
AVIVA
0.79
OM KOTAK MAHINDRA
0.51
ING VYASA
0.37
AMP SANMAR
0.26
METLIFE
0.21
15
The market share was distributed among the private players. Though LIC still holds 82.3% of the insurance sector, the upcoming natures of these private players are enough to give more competition to LIC in the near future .
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ICICI PRUDENTIAL PRIORITY CIRCLE The Priority Circle Priority circle is an opportunity to diversify the business and widen the gamut of services and solutions offered to the clients. One can now enhance the business with capital investment and yet earn high returns. Step into the arena of private life insurance, one of the most dynamic dynamic industries industries today with Priority Circle of ICICI prudential life insurance company ltd, the leader in today’s private life insurance industry.
Tie ups with India’s leading banks like ICICI bank, Bank of India, federal bank and south Indian bank ICICI prudential customers enjoy the privilege of approaching the company as per their convenience. convenienc e. Its vast reach across acros s India places the company co mpany far ahead of its pears. pe ars.
The company maintains its undisputed leadership by proactively achieving superior risk adjusted returns on its funds. The prime focus is on ensuring long-term safety, profitability, stability of the portfolio.
The Advisors Forte
An advisor at ICICI Prudential is one of the main strengths of the company. It’s a partnership that results in unlimited growth opportunity with the company.
The role
To identify prospective customers, provide tailor-made solutions to cater to their individual needs, conduct regular reviews to keep customers on track and last but not the least, achieve targets.
The benefit
A premium product portfolio that caters to a wide range of financial needs, excellent backend support, attractive returns and benefits, round the clock customer service and extensive training for that edge over the competition
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MEANING OF INSURANCE In su ra nc e or as su ra n ce is devic devicee for inde indemn mnify ifying ing or or guaran guarante teein eing g an indi individ vidual ual aga agains instt loss. Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed contributed certain specified amounts, called premiums. Payment for an individual individual loss, divided among many, does not fall heavily upon the actual loser. The essence of the contract of insurance, called a policy, is mutuality.
The entity that is transferring the risk — which may be an individual or association of any type, including a government or government agency — is called the "insured". The entity accepting the risk is called the "insurer". The agreement between the two by which the risk is transferred is called the "policy": this is a legal contract that sets out exactly the terms and conditions conditions of the coverage. The fee paid by the insured to the insurer for assuming the risk is called the "premium". This is usually determined by the insurer to fund estimated future claims paid, administrative costs, and profit.
For example, let us assume that a couple buys a home costing $ 100,000. Knowing that the loss of their home would bring them financial ruin, they acquire insurance coverage in the form of a homeowner's policy. That policy will pay them the cost of replacing or repairing their home in the event of a catastrophe. The insurance company charges them a premium of $1,000 a year. Risk of loss has been transferred from the homeowners to the insurance company.
The major operations of an insurance company are underwriting, underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks. The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk candi candidat dates. es. In preve preventi nting ng advers adversee selec selecti tion, on, the the und underw erwri rite terr mu must st consid consider er phy physic sical al,, psychological, and moral hazards in relation to applicants. Physical hazards include those dangers which surround the individual or property, jeopardizing the well-being of the insured. The amount of the premium is determined by the operation of the law of averages as calculated by actuaries.
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The insurance industry
The insurance industry forms an integral part of the global financial market, with insurance companies companies being significant institutional institutional investors. investors. In recent decades, the insurance insurance sector, like other other financia financiall service services, s, has grown grown in economic economic importance importance.. This This is through direct direct contributions to gross domestic product (GDP) via increased levels of employment within the sector; and indirectly through higher levels of risk transfer and financial intermediation.
Expanding Expanding further on this issue, it must be remembered remembered that the insurance industry’s primary func functi tion on is to supp supply ly indi indivi vidu dual alss and and busi busine ness sses es with with cove covera rage ge agai agains nstt spec specif ifie ied d contingencies.
Insuranc Insurancee compani companies, es, therefor therefore, e, engage engage in underwri underwritin ting, g, managin managing, g, and financin financing g risks. risks. According to Sigma (2001) the largest insurance sectors are to be found in the U.S. and Japan, which together generates more than fifty percent of global premium income; followed by the th e UK, Germany, France and an d Italy. Furthermore, during the last la st four fou r decades the global insurance sector has on average outpaced global economic growth. Between Between 1984 and 2001, the global insurance industry grew at an overall rate of 483.6 percent (roughly comprising of 664.8 percent from the life insurance sector, and 334.3 percent from the non-life sector. The life insurance sector, has continued to grow at a fast rate.
The global insurance industry
The insurance industry forms an integral part of the global financial market, with insurance companies companies being significant institutional institutional investors. investors. In recent decades, the insurance insurance sector, like other other financia financiall service services, s, has grown grown in economic economic importance importance.. This This is through direct direct contributions to gross domestic product (GDP) via increased levels of employment within the sector; and indirectly through higher levels of risk transfer and financial intermediation.
Expanding Expanding further on this issue, it must be remembered remembered that the insurance industry’s primary func functi tion on is to supp supply ly indi indivi vidu dual alss and and busi busine ness sses es with with cove covera rage ge agai agains nstt spec specif ifie ied d contingencies.
Insuranc Insurancee compani companies, es, therefor therefore, e, engage engage in underwri underwritin ting, g, managin managing, g, and financin financing g risks. risks. According to Sigma (2001) the largest insurance sectors are to be found in the U.S. and 19
Japan, which together generates more than fifty percent of global premium income; followed by the th e UK, Germany, France and an d Italy. Furthermore, during the last la st four fou r decades the global insurance sector has on average outpaced global economic growth. Between Between 1984 and 2001, the global insurance industry grew at an overall rate of 483.6 percent (roughly comprising of 664.8 percent from the life insurance sector, and 334.3 percent from the non-life sector. Over the last few years, growth in the global non-life insurance market has significantly slowed down and has only grown in line with with general economic economic growth (Sigma, (Sigma, 2001). This is in contrast contrast to the life insurance insurance sector, sector, which which has continued continued to grow at a fast rate. rate. Sigma Sigma (2002a) estimates
this to be in the region of 5.4 percent percent worldwide worldwide since 2000. Measured in total total premiums, premiums, OECD countries accounted for 95.52 percent and 93.99 percent of the life insurance business, and 91.19 percent and 92.50 percent of non-life insurance premium volume in 1994 and 2001, respectively.
Outside of the OECD, a more recent development since the early nineties has been the ability of the emerging markets to strengthen their global market share in the life insurance segment, with growth rates often reaching double-digit figures. Furthermore, insurance markets within the OECD countries have faced falling premium income, reduced capital market yields and low interest rates, rates, all of which has put insurers insurers under some pressure (Sigma, (Sigma, 2002a). Also, the growing importance of the insurance industry in emerging markets is reflected in growing insurance density and insurance penetration of the non-OECD insurance markets (Sigma, 1996, 2001). Nevertheless, and despite these developments, emerging markets still have some way to go before matching the relative sizes and importance that the insurance industry has in industrialized countries.
Role of insurance in economic development
Investments are necessary for Economic development. Life Insurance plays a major role in mobilization of public savings.
Savings out of life insurance funds are utilized in investments for growth.
Looking for general insurance business industry trade would be seriously handicap in the absence of insurance cover relating to fire and engineering risk. 20
Social factors
Insurance can also be seen as a product that is valued valued subjectively subjectively by its consumer. In fact Hofstede (1995) points out that the level of insurance within an economy depends on the national culture and the willingness of individuals to use insurance as a means of dealing with risk. It is not surprising that Douglas and Wildavsky (1982) show that the demand for life insurance in a country may be affected by the unique culture of the country to the extent that culture culture affects affects the degree degree of risk aversion aversion.. Moreover Moreover,, Schlesi Schlesinger nger (1981) (1981) reveals reveals that an optimal insurance decision is directly related to the level of risk aversion of the insured person and shows, following Pratt (1964) and Szipiro (1985), that the more risk adverse an individual is the higher the amount insured.This is in line with the work by Outreville (1996), which emphasizes that education promotes an understanding of risk and hence aids insurance demand.
Insurance market in INDIA
The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for India Indian n live livess than than the the non non-In -Indi dian an lives lives,, as India Indian n lives lives were were consid considere ered d mo more re risky risky for for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first compan company y to charg chargee same same premi premium um for for both both India Indian n and and non non-I -Indi ndian an lives lives.. Th Thee Orie Orient ntal al Assurance Company was established in 1880. The first general insurance company- Tital Insurance Company Limited was established in 1850. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies.
Insura Insurance nce regula regulati tion on form formall ally y began began in India India with with the passin passing g of the the Life Life Insur Insuranc ancee Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive 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. independence. Indian companies companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon.
21
Thee Gover Th Governm nment ent of India India in 195 1956, 6, brough broughtt toget together her over over 240 240 priva private te life life insur insurers ers and provident societies under one nationalized nationa lized monopoly
corporation and LIC was born. Nationalization was justified on the grounds that it would create create much-nee much-needed ded funds funds for rapid rapid industri industriali alizati zation. on. This This was in conform conformity ity with with the Government's chosen path of State lead planning and development.
The (non-life) insurance business, however, continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.
By any yardstick, India, with about 200 million middle class households, presents a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors with the per capita income in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels, the demand for insurance is expected to grow at an attractive rate in India. An independent consulting company, The Monitor Group has estimated that the life insurance market will grow from Rs.218 billion in 1998 to Rs.1003 billion by 2008 (a compounded c ompounded annual growth of 16.5%).
22
LIFE INSURANCE MARKET IN INDIA Many may not be aware that the life insurance industry industry of India is as old as it is in any other part of the world. The first Indian life insurance company was the Oriental Life Insurance Company, which was started in India in 1818 at Kolkata. A number of players (over 250 in life and about 100 in non-life) mainly with regional focus flourished all across the country.
However, the Government of India, concerned by the unethical standards adopted by some players against the consumers, nationalized the industry in two phases in 1956 (life) and in 1972 (non-life). The insurance business of the country was then brought under two public sector sector comp compani anies, es, Life Life Insur Insuranc ancee Corpo Corpora rati tion on of India India (LIC (LIC)) and and Gener General al Insur Insuranc ancee Corporation of India (GIC).
In line line with with the the econ econom omic ic refo reform rmss that that were were ushe ushere red d in Indi Indiaa in earl early y nine nineti ties es,, the the Government set up a Committee on Reforms (popularly called the Malhotra Committee) in April April 199 1993 3 to sug sugge gest st refor reforms ms in the the insura insurance nce sector sector.. Th Thee Comm Commit ittee tee recom recomme mende nded d throwing open the sector to private players to usher in competition and bring more choice to the consumer. The objective was to improve the penetration of insurance as a percentage of GDP, which remains low in India even compared to some developing countries in Asia.
Reforms were initiated with the passage of Insurance Regulatory and Development Authority (IRDA) Bill in 1999.
IRDA was set up as an independent regulatory authority, which has put in place regulations in line with global norms. So far in the private sector, 12 life insurance companies and 9 general insurance companies have been registered
23
Why Do We Need Life Insurance? We need life insurance in order to ensure that your loved ones can cope financially with your loss. That's the bottom line. The reasoning behind life insurance is most evident when you consider sole breadwinners, but applies to everyone who has h as dependents, de pendents, even stay-at-home spouses. If you (as ( as the stayat-home spouse) were to suddenly die, your family would have to find other ways to: ensure care of children; get the family home cleaned; handle dry cleaning and laundry; do grocery shopping; and many other tasks which you currently handle. While your services appear to be 'low cost' because no one is paying you directly, if your family has to replace you with paid help you will quickly see your 'value'.
Facts of life insurance industry
Life insurance premium accounts accounts for 72% of the total premium collection collection in India as against the global average of 59%.About LIC in 2001 LIC sold close to 20 million new Individual Policies in year 2000 the turnover of LIC was worth Rs. 261 Billion. LIC has close to 2048 branches, 100 divisions divis ions and 7 zonal offices offic es market Potential.
24
The size of the Insurance market is 31.2 Crore which makes it one of the hottest destination for any company while 5 crore people have a capacity to pay an annual premium of Rs 10000 per annum, 10 crore people have a capacity to pay Rs 7000 per annum , and another an other 15 crore people have a capacity capacit y to pay Rs 3500 per annum. ann um.
No. Of Players
Before nationalization of Insurance in 1956, there were 254 life Insurers and 106 general insurers to serve the population of 36 crore in India UK has more than 500 insurance companies to serve a population of 6 crore USA has over 2200 insurance companies to serve a population of 26 Crore Even Japan has 90 Insurance Companies to serve its population of 12 Crore
The Industry
The growth rate of the insurance sector is about 10% which is expected to go up to 12% Before opening up the growth rate was 14% which means there is a dip of 4.5% which could be traced trac ed to the prevailing economic recession .The per capita insurance premium in India is just US $ 8 which is less than even Malaysia M alaysia which is US $144 growth of the pension market today: groups as well as individual. Emerging health insurance market with third party administrators (TPAs) trying to make a place for themselves as and when the regulations are in place New types of products –Unit –Un it linked single premium-becoming premium-b ecoming popular.
Current trends and strategies
New distribution channels are evolving and public will have greater choice even in the matter of point of purchase. Distribution Distribution and servicing servicing are becoming becoming more technology intensive intensive and close closely ly regula regulate ted. d. Insur Insurer erss are tryi trying ng to disti distingu nguish ish their their produc products ts but only only time time and and experience will tell.
Emerging trends
People are slowly moving from purely savings oriented products to products that offer higher degree of life cover. The realization that insurance is basically about protection . So far insur insuranc ancee has has been been widel widely y und unders ersto tood od by the the marke markett as anoth another er tax saving saving orient oriented ed investm investment ent option. option. There There are several several products products becoming becoming available available in the market market that are 25
suited to the life style of the people. There is a lot of scope for tailor made products depending upon the need of the customer.
Bank assurance
Insurance products products distributed through the bank counters all over the country can bring vast improvement in the insurance coverage in the quickest possible time banks today are the most credible agencies .The public has immense faith in them regulators keep a tight vigil over them them mill millio ions ns of bank bank staff staff are highl highly y educat educated ed and trai trained ned Banks Banks can accept accept lowe lower r commissions, and the benefit goes on to the consumer by charging a lower premium rate Half of insurance policies sold in Europe is through banks.
Insurance and IT
Key areas areas where where differ different entiat iatio ion n is consi conside dered red crit critic ical al for the the futur futuree of the insura insurance nce companies include the following: •
Product Development
•
Back Office
•
Customer Service
•
Distribution
26
REGULATORY REGIME
After the release of the Malhotra Committee report in 1994, changes in the insurance industry appeared appeared imminen imminent. t. Unfortu Unfortunate nately, ly, changes changes in the central central governm government ent slowed slowed down down the process. The dramatic d ramatic climax came on 7 December 1999 when the government finally fin ally passed the Insurance Regulatory and Development Authority (IRDA) Act. This Act repealed the monopoly conferred to the Life Insurance Corporation in 1956 and to the General Insurance Corporation Corporation in 1972. The authority created created by the Act is called the Insurance Regulatory Regulatory and Development Authority (IRDA).
The table below summarizes some of the milestones of India’s regulation industry:
27
28
RECRUITMENT PROCESS
The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strat strategi egicc advant advantage age for the organi organiza zatio tions. ns. Recr Recruit uitme ment nt proce process ss invol involves ves a systematic procedure from sourcing the candidates to arranging and conducting the interviews
and
requires
many
resources
an d
time.
Thee recrui Th recruitm tment ent proces processs begin beginss with with the the hum human an resour resource ce depart departme ment nt recei receivi ving ng requisitions for recruitment from any department of the company. These contain: •
Preparing the job description and person specification.
•
Locating and developing the sources of required number and type of employees (Advertising etc).
•
Short-listing and identifying the prospective employee with required characteristics.
•
Arranging the interviews with the selected candidates.
•
Conducting the interview and decision making
29
1. Iden Identi tify fy vac vacan ancy cy 2. Prepare Prepare job job descrip description tion and and person person specif specificat ication ion 3. Advert Advertisi ising ng the the vacanc vacancy y 4. Mana Managi ging ng the the res respo pons nsee 5. Shor Shortt-li list stin ing g 6. Arra Arrang ngee int inter ervi view ewss 7. Conduct Conducting ing inte intervie rview w and and decisio decision n making making The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities.
30
JOB PROFILE At priority circle, the nature of the job included recruitment of the channel members who were further assigned to solicit insurance. The database was prepared, which had the names of selected people across Delhi. They were invited to the office for the first meet with the manager- priority clients. The MPC’s job is to explain the course of action followed to join the business.
After the first meet if the prospect is satisfied he is given a document called ‘market 100’ to explor exploree his conta contacts cts which which would would help help him grow grow his his bus busin iness ess.. Th Thee prosp prospec ectt fill fillss the the document and brings it to the office. The MPC scrutinizes the document. The next step is to meet the territory manager manager who would judge the prospect whether he is capable to do the job or not. If the territory manager is satisfied, then the person fills other formalities like form, age proof and other documents and is ready to receive the training.
The lead trainer of the branch conducts the training for about 9 days, following which an exam is held. After clearing the exam the IRDA license is given, post, which the advisor is ready to sell insurance and do financial consulting for his clients.
Characteristics of good insurance advisor These were some of the qualities that we searched in a person who could be an asset to the company and could give business .It is not necessary to have good academic background but a good salesman should have the following qualities:
• He should be speedy, needy and greedy. • He should be presentable. • He should have good communication skills. • He should be ready to serve with a good smiling face. At ICICI Priority circle, the aim is to achieve Production Growth through recruitment. Part of this growth is accomplished by improving the productivity of the existing Agency members. However, bringing sufficient numbers of high quality new producers into the sales
31
organization each year is a must. The main focus thus remains recruitment of HNI (High Network Individuals) Clients.
Recruitment is the prospecting, identification and training of advisors so as to enable him to do business, post licensing.
Broadly recruitment can be identified as a 5-step process:
• Search for talent • Engage the prospective advisor • Evaluation of potential advisor • Confirmation of intent • Licensing of advisors
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SEARCH FOR TALENT In this stage we need to identify the advisors we need to recruit to become a successful team. We need to clearly understand the profile we are looking out for. The search must be Continuous and systematic – just like prospecting for sales. We must search among several Sources on a regular basis.
Thee sou Th sourc rces es were were divid divided ed into into diffe differen rentt segm segment entss for a mo more re syste systema mati ticc and focu focused sed approach. These were: 1. The first segment to be taken under study was that of students with some commerce
The segment is further sub-grouped as follows: background . The a) Pass Pass out B.Co B.Com m stude students nts b) Students pursuing C.A c) Stud Studen ents ts of M.F. M.F.C C d) Pass Pass out out stud student entss of MBA. MBA. Our Our main main sell sellin ing g poin pointt for for this this segm segmen entt was was that that thes thesee stud studen ents ts have have some some fina financ ncee knowledge. knowledge. We gave them a career opportunity opportunity as they could be promoted promoted as a unit manager as soon as they meet the required target.
The required information of such students was collected from there respective institutions. Those students whose response was positive were called in the premises of ICICI Prudential for an informal interview where they were told about the job and the opportunities involved.
2. The second segment was that of enterprising women. The segment was further divided
into sub groups, which were as follows. a) Hobby Hobby classe classess oper operat ators ors.. b) Beauty Saloon owners. c) Fash Fashio ion n bou bouti tiqu ques es.. d) Kitt Kitty y part party y grou groups ps.. e) Agents Agents of direct direct selli selling ng products products like like Tupperw Tupperware, are, Avon. Avon. Our main Point in approaching them was that these women already had a well-established network in their respective fields and hence in a position to exploit them further. If they are aware of the opportunities and are ready to take risk then they just needed to tap the market that is already there for them. 33
To locate this segment of prospective financial consultant we used our personal contacts. The women who were positive were then told about the company’s project of locating financial consultant.
3. The third segment segment of property dealers, commission agents, retired members from banking industry banking industry The method of research was telemarketing.
Under Telemarketing, a telephone call was made to the targeted person wherein the intention was to make the person aware of the objectives under study. For this purpose we tried to allure the target customers to become an agent. However the call must be made keeping this in mind a few things such as:
a) The intended person must have time to listen to us. b) We must not offend them in any way. c) We should be considerate enough to respect the value of their time and must not waste his
time in unnecessary Jargons. d) Care must be taken while introducing main subject , so that we are able to arouse interest. e) The person should feel important rather than irate customer.
4. The last segment was of CA’s, Income Tax Consultants and Advocates.
The data source of this segment was through Yellow Pages . We adopted the method of direct interview after taking appointments on phone.
a) Firstly Firstly we called called up people people and explaine explained d them about about the work profile profile .If we found found them interested, an appointment was fixed with the MPC. The Manager clearly explains the business opportunity and studies the prospective candidates profile. Candidates another round round of screen screening ing was was done done by Unit Unit Manag Manager er with with his respec respecti tive ve ASM ASM (chan (channel nel development) development) and they short listed the most capable candidates. candidates. Capability doesn’t mean that the person should have some specific qualifications. Capability meant that the chosen candidates must have at least interpersonal skills and should be keen enough to learn during training process. He must also realize the importance of marketing in the field. We
34
preferred people with finance background backg round as it becomes easier for them to understand und erstand the insurance industry.
b) The second seco nd round of selection selectio n was consisted of an informal interview int erview with the candidate. can didate. There were main three purpose of this: i) To reinfor reinforce ce the purpos purposee of study i.e. i.e. selec selectin ting g the right right kind of people people.. ii) To make make the candidates candidates aware aware of growing growing opportuni opportunitie tiess in this line line of work and make them aware about the developments in the insurance industry. iii) To make the candidates candidates understand understand about nominal investment investment on their part, as they already infrastructure and resources and increasing returns. The selected candidate has to fill an application form along with the fees of Rs.1500 which includes Rs.450 as license fees which is issued by IRDA and Government of India ,rest includes the examination fees.
35
TOOLS Recruitment Presenter A tool to sell “Advisor” as a business opportunity to the prospective candidates.
Business Opportunity Presentation At the branch level, the managers may get together an invite a group of prospective prospective advisors to the office. The Senior Manager on the business opportunity will then make a formal presentation. It is a very v ery effective tool and you will be able to convince a greater number of advisors with this activity.
Branch Visit The branch visit should give him the feel of the “Priority Circle” Concept and create interest in Insurance Advisor- as a career with ICICI Prudential.
Preferred qualities
• • • • • • •
Passion to succeed Result oriented Well networked Communication Skills Need for Money Need for Recognition / Achievement Achie vement Committed and Hardworking
Training batch size estimation The minimum batch size for a full time batch is 15 and for a part time batch is 20. Depending Depending on the number of completed completed applications received from Monday to Thursday; Thursday; the manger will determine the training batch size numbers split cases will be considered while determining the batch size.
Licensing / training period Licensing is the final step in recruitment of the advisor. Training is conducted in the last stage. The prospective prospective should complete complete 100 hours of their training. At ICICI Prudential Prudential,, we 36
understand the importance of training in a dynamic business environment. The advisors go throu through gh both both generi genericc and speci specifi fic, c, profe professi ssiona onall progr program amss that that help help them them rema remain in well well informed informed and knowledgeable knowledgeable about the company’s company’s products in the market. market. There is a further focus on soft skills such as communication, managing long-term relationships and selling skills, which are very relevant in a service-driven industry like life insurance.
State of the art infrastructure training facilities coupled with an excellent faculty, guarantee an exceptional learning environment. For advisors who might be occupied with their daily business/professional business/profes sional routines, ICICI Prudential also offers convenient training options such as
online
and
self-learning
are
also
provided
by
th e
organization.
A 17-day training schedule covers the mandatory IRDA training requirements and ICICI Prudential product-training module. Revision session ensure that the candidates thoroughly unders und ersta tand nd the course course conten contents ts and are are well well prepa prepared red for the the lice licensi nsing ng exam examina inatio tion. n. Theoret Theoretical ical trainin training g is interspe interspersed rsed with with practica practicall appoint appointment ment settings settings with with potential customers, customers, giving advisors a feel of how their business will work from the very first day. All through, the Unit Manager and the management provide continuous support to the advisors in achieving independence towards garnering business.
Afte Afterr the train training ing they they have have to und underg ergo o online online exami examinat natio ion n conduc conducted ted by IRDA IRDA,, after after quali qualify fying ing the the exami examina natio tion n they they get a cert certifi ifica cate te from from RNIS RNIS (Rit (Ritu u Nanda Nanda insti institut tutee of insurance)
Types of training The selected candidates were given a option to select the type of training depending upon their comfort and convenience. There were two types of training available.
Online Training
In this type type of training training the person has to complet completee his IRDA training training for 100 hours on the internet. After that he is required to attend the six days product training manually. So the person who is busy with his h is job this training is quite q uite suitable for them.
37
Manual training
In this type training he has to complete both the product training and the IRDA training manually. So he has to attend the continuous training for fifteen days. This training is suitable for the person who is ready to take out his fifteen days. During the manual training, the company provides free lunch.
The exam Upon completing the training the candidate is eligible to appear either for an online (internet) exam or a manual (paper based) exam, based on the guidelines issued by IRDA for that city. The exam slots should be booked such that the exam is scheduled no later than 4 days from the date of completion of the training. After the prospective advisor has taken the exam and his result are obtained and he has cleared them, the company handovers a ‘WELCOME KIT’ to the candidates comprising of:
• Welcome letter • Laminated identity card • Copy of the agency agreement • IRDA License • Bank Account introductory letter • 100 visiting cards (from the branch) • Commission Booklet • Reward and recognition booklet • ICICI Pru partner Email ID and Password • Pin mailer to access ICICI Prudential websites.
38
CHAPTER – 4
Data Analysis and Interpretation Interpretation
39
DATA ANALYSIS AND INTERPRETATION The main purpose of the study was to locate the right kind of people possessing the right mix of interpersonal and marketing skills. The research process helped in locating such people. After obtaining the positive response from the various selected segment another round of screening was done. The research helped in locating the interested people. Now the company had to selec selectt the the mo most st capabl capablee one. one. Capab Capabil ility ity does does not not mean mean people people havin having g speci specifi ficc Qualifications, capability means that the chosen candidates must at least possess interpersonal skills and should be keen enough to learn during the training process. She/he must also realize the importance of the project.
40
The research results were as follows:
Students: Sample size: 75 Positive responses: 19 Candidates Selected: 2
In the complete segment, we had a good response. We contacted passed out students who were unemployed. The screening process was intentionally designed to be a little difficult, as they have to move into the hierarchy of the company after meeting the targets. This was the reason behind the selection of only two
60
56
50 40 30 20
Negative responses
19
10 0
2
Positive Responses
Candidates Selected
41
Enterprising Women Sample size: 25 Positive Responses: 10 Candidates selected: Nil In this segment there was good response in the sense that there were many positive candidates, though none was selected. The main reason was that in spite of their interest, they lacked in decision-making skills. It was found that their husband took all their decisions. The company wanted their consultants to be decision makers not decision takers. Hence there was no financial consultant taken from this segment.
% %
Negative Respon
Positive Response R esponses s
42
Property Dealers Sample Size: 35 Positive response: 9 Candidates selected: 2
In spite of contacting so many property dealers only two were converted. The reason for this was that that property property dealers dealers are not good at keeping appointm appointments ents.. It was difficult to personally contact even those who were interested. Hence it was a time consuming process and many were dropped because they could not give time to compan company’ y’ss repre represen senta tati tive. ve. Mo More reove over, r, the nature nature of work work in proper property ty deali dealing ng is unpredictable. unpredictable. Some time there are no deals while there may be times that a big party makes a deal. Therefore only those dealers who understand the risk were selected.
Commission Agents 43
People Contacted: 7 Positive Response: Nil
This segment was dropped because there were no positive responses. The reason for this was that all the commission agents were engaged in the selling of the products of other insurance companies.
Retired Members / VRS holders People contacted: 23 Positive Responses: 5 Candidate Selected: 1 The response from this segment was moderate but only one candidate was converted. The reason was that such people were neither energetic energetic nor enthusiastic enthusiastic to work despite of having the knowledge of the industry.
18 18 16 14 12
Negative responses
10 8 6
Positive responses
5
4 2
Candidate selected
1
0
44
CA’s, Tax Consultants, Advocates
People Contacted: 5 Positive Response: 2 Candidates Selected: 2
The response from this segment was the best of all. There were a couple of reasons for that. First of all, all thesse candidates were contacted on the basis of references. Secondly, these people are risk takers. They are willing to enter into new ventures and also have the kind of resources that are useful for insurance.
45
SWOT ANALYSIS STRENGTHS:
1. No. 1 Priv Private ate Playe Playerr in the insura insurance nce indust industry ry in India. India. 2. Life Life Insuran Insurance ce linke linked d with with Inves Investme tments nts 3. Tax be benefi efits 4. Secu Securi rity ty aga again inst st loa loans ns 5. Helps Helps in future future planning planning and provide providess financial financial consul consultanc tancy. y. 6. Cover overss ris risk.
WEAKNESS:
1. Negativ Negativity ity relat relating ing insur insurance ance and ‘Agents’ ‘Agents’.. 2. No fixe fixed d Sal Salar ary y.
OPPURTUNITIES:
1. High High Netw Networ ork k Indiv Individu iduals als (HN (HNI) I) 2. A cle clear ar care career er path path 3. All round round support support through exclusive exclusive advertising, advertising, own own in house house consultant, consultant, and and worldworldclass training. 4. A compre comprehen hensiv sivee benefi benefitt package package..
THREATS: 1. Dyna Dynami micc envi enviro ronm nmen entt 2. Incre Increasi asing ng Comp Competi etiti tion on 3. NonNon-cr crea eati tivi vity ty 4. An Unf Unfoc ocus used ed app appro roac ach h
46
CHAPTER-5
Findings
47
FINDINGS
The findings are based on the survey undertaken and interview of individuals and I came across that although the training process was beneficial but they still lack confidence in this business and mostly take it as part time business. The other findings are summarized as follows:
•
People don’t show interest in trainings.
•
People can have only one license which also restricts them to become an agent.
•
People don’t afford the training period.
•
People are not interested to invest Rs.1000 for an agent’s job.
•
People like to have a fixed salary job.
48
CHAPTER – 6
Suggestions
49
SSUGGESTIONS Agents are the lifeblood of the insurance industry’s distribution channel. They are the main forces that bring business to the company. Unless and until the agents are qualified qualified and have the caliber to understand the current market scenario, they cannot remain long in the business. Hence, an optimally selected sales force is the need of the hour, for an industry like insurance.
The following are the recommendations to the company:
1. There should should be weekend batches of training training for the people people who cannot take take their full six days of the week from their busy schedule. 2. Anythin Anything g can click click in this line line of work and hence hence the compa company ny should should evaluate evaluate the candidates subjectively. 3. Advertisements Advertisements should be given in in the newspapers newspapers so that number of people intereste interested d in such an opportunity increases. 4. Various MBA MBA institutes institutes should should be targeted targeted to get get people with with good marketing marketing as as well as interpersonal skills. 5. There There should should be some some fixed fixed salary salary with with some some fixed fixed target targets. s.
50
CHAPTER – 7
Conclusion
Bibliography
Questionnaires
51
CONCLUSION ICICI Prudential is the No.1 private insurance company, so people are more attracted towards it. The only thing required by the company is to give a stable career and more benefits. Due to LIC, people have a negative mindset towards the word ‘Agent’ as well as the insurance industry in general. But ICICI prudential through its pinnacle program and other facilities is providing a very bright career to the youth. There is lack of information about this career; therefore, the company needs to capitalize on this opportunity by providing the right kind of information to people and present it in a bright. The results of the study can be concluded as follows:
The segment of students gave a good response but due to hard screening only two were converted.
The segment of enterprising women was not that responsive and hence consultant was obtained.
The segment of retired members did not possess that energy that was required. So, the conversions were less.
From the results we can conclude that the selection model of ICICI Prudential Life Insurance Company for the purpose of selecting the right profile of the distribution channel is very comprehensive and fulfills the objective optimally. Such selection process would help in:
Reducing Attrition No or Minimum advertising Training of consultants
The training module of the company involves:
The better understanding of the product provided by the company.
Regular interaction between Unit Managers and the consultants.
Discussions on the changes occurring in the industry
Train Training ing the consu consult ltant antss on how to access access the needs needs and requi requirem rement entss of the customers.
Giving Incentives in the form of competition among consultants and memberships.
52
BIBLIOGRAPHY
Books: o
Gupta Gupta P.K, (2004), (2004), Insurance Insurance and Risk Management, Management, Himalya Himalya Publishing House
o
M.N. M.N. Mishra Mishra,, (2006) (2006),, Princ Principl iples es and Practi Practices ces of Insura Insurance nce,, S.Chand & Co. (Lt.Ed.)
o
Tripathy, N.P., (2008), Insurance: Theory & Practice, Prentice Hall of India.
o
Practice of Life Insurance (I.C.02), Insurance Institute of India, Mumbai.
Websites: o
www.iciciprulife.com
o
www.bima.com
o
www.wikipedia.org
o
www.insuranceguide.com
o
www.financialepress.com
53
QUESTIONNAIRE
1.
Name :
2. Age
:
3. Sex Sex
:
Male Male
Fema Female le
4. Occu Occupa pati tion on
5.
•
Government Employee
•
Private employee
•
Student
•
Others
Are you satisfied with the training provided to you? •
•
Yes No
6. Do you think think insurance insurance agent agent business business is career career oriented? oriented? •
•
Yes No
7. How will will you rate ICICI’ ICICI’S S training training program program??
54
•
Excellent
•
Good
•
Fair
•
Poor
8. Were you you able to to acquire acquire skills skills from from training? training? •
•
Yes No
9. Given a chance chance would would you like to make make extra extra money from from other business? •
•
Yes No
55
