group 2 - new york
TRANSCRIPT
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Name Roll No Scarlet Almeida 04
Mihir D Bhammar 05 Deepa Karappan 13
Kunal Doshi 15
Dipti Gawas 19
Siddesh Kurdikar 33
Sandeep Pandita 39
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Introduction
Product offered
Distribution channel
Regulatory Changes
Product Innovation
Recommendations
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Is a joint venture between Max India Limited & New York LifeInsurance.
74% Max India Ltd & 26% New York Life
Developed a strong corporate governance model based onCHEKIT.
Caring : Focus on customers first Honesty : It is all about trust
Excellence : Ability to perform at a consistentlyhigh level
Knowledge : Expertise
Integrity : Truthfulness
Teamwork : Togetherness
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Incorporated in 2000, started commercial operation in April 2001
Paid up capital as on 31st
August, 2010 is Rs 1973 Cr
First life insurance company to be awarded CII-EXIM Bankcommendation certificate forStrong Commitment to Excel.
Re-Insurer: SWISS RE
In its integrated voice response system, Max New York Lifecommunicates in ten regional Indian languages
Max New York Life has issued policies with a sum assured ofmore than Rs.100,000 Cr
In one year Max New York Life has added more than 1 millionnew customers
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Particulars (Rs Crores) 2009-10 2008-09
Financial Performance
New Bussines premium (First Year
Premium and Single Premium)
1,849 1,842
Adjusted First Year Premium 1,668 1,619
Renewal Premium 3,011 2,014
Commision Expences 421 392
Operating Expences 1,615 1,680
Shareholder (Profit)/(Loss) After Tax -21 -393
Key Bussines Parameter
Solvency Capital Ratio 321% 304%
Share Capital 1,839 1,782
Assest Under Managenet 10,121 5,557
No.of Policies In-Force('000S) 2,985 2,526
Sum Assured In-Force 123,287 93,593
No. of Employee 10,454 15,402
No. of Agents 72,813 84,355No. of Office 705 700
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During the financial year ended March 31, 2010, Max New York Life's gross writtenpremiums rose 26% to 48.6 billion rupees (US$1.08 billion), from 38.56 rupees the
previous year.
New business premiums at 18.49 billion rupees remained consistent at previousyear's level in spite of the financial turmoil.
Renewal premiums at 30.11 billion rupees recorded a growth of 50% as compared to
20.14 billion rupees in the financial year 2009 which reflects greater persistency.
Conservation ratio was 84% in the latest fiscal year .
Company has issued more than 2,70,000 polices in rural areas during the year,accounting for 29% of total policies
Covered more than 8 million lives under the social sector category in India.
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Max New York Life offers a suite of flexible products It now has 25 products covering both life and health insurance and 8 riders Can be customized to over 800 combinations enabling customers to choose the
policy
Product Portfolio comprises of :
Traditional Products: WLP & LPP
ULIPS: Shiksha Plus II & Shubh Invest
Universal : Secure Dreams
Health Plans: Medicash Plus & Wellness Plus
Term Plans: Platinum Protect
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Term Plan: Insurance cover for chosen tenure
No Maturity benefits
Tax benefits on premiums and Death proceeds
Additional protection through riders
Target Custom ers:Inexpensive, People having a greater financial liability
Platinum Protect Insurance cover for chosen tenure
Minimum Sum Assured: 25,00,000
Tax benefits on premiums and Death proceeds
Additional protection through riders
Target Custom ers:Inexpensive, People having a greater financial liability
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Whole Life Participating: Insurance cover up to age 100
Option to Participate in Progressive Bonuses
Tax benefits on premiums and maturity proceeds
Additional protection through riders
Bonus declared every year from 3rd policy year onwards
Target Custom ers:Life Long Cover & Asset creation for future generation
Life Partner Plus: Insurance cover up to age 75
Option to Participate in Progressive Bonuses with a Guaranteed Money Back
Tax benefits on premiums and maturity proceeds Additional protection through riders
Bonus declared every year from 3rd policy year onwards
Target Custom ers:Retirement Plan & Childrens Education Plan
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Shiksha Plus II Sum Assured up to 20 times of Annual Premium
Premium Funding incase of Death of Parent
Tax benefits on premiums and maturity proceeds
Additional protection through riders
Family Income Benefit @ 10%
Target Custom ers: Young Parents
Shubh invest Sum Assured up to 30 times of Annual Premium
Inbuilt Dread Disease rider On Death: SA + Fund Value
Low Allocation charges
Personal Investment Manager
Target Custom ers:Middle Class since case size of 15000 -24000
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Secure Dreams Premiums invested in corporate Bonds and Government Securities
Funding of Premium incase of Death of Life Insured
On Death: Sum Assured + Maturity
Sum Assured : 10 times of ATP
Premiums from 15000/- to 2,00,,000/-
Target Customers :Guaranteed returns
Smart Bond Single Premium varying between I L to 10 L
Guaranteed returns Sum Assured : First year: 5 times; Second year Onwards: 2 times
Target Custom ers:Guranteed returns & One time payment
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Medicash Plus: Hospitalization Benefit Surgical Benefit
Lower Premiums
Sum Assured restored on renewals
Target Customers :Middle class customers
Wellness Plus : 38 Critical illness covered
Sum assured up to 20 L
Sum Assured released on diagnoses of the listed diseases. Lower Premiums
Target Custom ers:Applicable to all
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Max New York Life has multi-channel distribution. For eg.
Agency distribution
Partnership distribution
Bancassurance
Alliance marketing
Dedicated distribution for emerging markets
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MNYL has mainly used ZERO Level channels to sell its products to thecustomers thus helping in removal of the intermediaries which dilutes the profit.
Various channels employed are:-
Insurance Agents
Direct Selling Agents
Internet
Banc-assurance (First level)
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Agency: In MNYL , business is done mainly through Agent Advisor
o AAP(Agency Association Program)
o CEIP
o More than 70, 000 Agent advisors across India
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Agency:o Training is given prime importance to see to that Agents deliver
the accurate Information & be process oriented.
o Incentives are launched on all India level to motivateAgents
o Regular Town Hall sessions & Agent surveys are conducted toreceive feedback and analyze the same.
o Fact Finding or Need Analysis of customers is compulsory toensure Policies sold on need and not on Greed
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Banc assurance : It is an innovative distribution channel involving banks to
sell insurance products of Insurance Companies.
10 year strategic relationship with Axis Bank
Provides Life Assurance solutions to bank customers in650 cities through more than 1000 Axis Bank Branches
Promising to serve 20 Lac customers in 5 years.
Tie Ups: Barclays Finance, Urban Cooperative banks, Yesbank
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Direc t Sales Team(DST )
Max New York Life Insurance makes a data base ofpotential customers; contact them on the telephoneto market different policy of the company.
Strategic Business Partners
Amsure
Peerless
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IRDA has instructed certain major changes to all insurance companies post 1st ofSeptember 2010
Due to which certain products were withdrawn for the MNYL Product portfolio
For eg.
Smart Invest Pension Super
Smart Express
Fortune builder
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SHIKSHAPLUS II
LIFE
PARTNERPLUS
SHUBHINVEST
LIFE PAYMONEYBACK
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Private Total
Premium
data upto
Sept 10
Individual Single Premium 2727.157
Individual Non-Single Premium 22162.68
Group Single Premium 1806.868
Group Non-Single Premium 3205.558
Premium data upto Sept 10 -Private Total
Individual Single
Premium
Individual Non-
Single Premium
Group Single
Premium
Group Non-Single
Premium
Max New York
Premium
data upto
Sept 10
Individual Single Premium 195.6871
Individual Non-Single Premium 1528.691
Group Single Premium 11.00241
Group Non-Single Premium 75.98484
Premium data upto Sept 10 MNYLIndividual Single
Premium
Individual Non-Single
Premium
Group Single Premium
Group Non-Single
Premium
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Private Total no of policies upto sept 10
Individual Single Premium 647813
Individual Non-Single Premium 11002129
Group Single Premium 738
Group Non-Single Premium 4209
no of policies upto sept 10 -private total
Individual Single
Premium
Individual Non-
Single Premium
Group Single
Premium
Group Non-Single
Premium
Max New York no of policies upto sept 10Individual Single Premium 11814
Individual Non-Single Premium 867651
Group Single Premium 31
Group Non-Single Premium 826
no of policies upto sept 10 -MNYL
Individual Single
Premium
Individual Non-
Single Premium
Group Single
Premium
Group Non-Single
Premium
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Private Total
no of livesinsuredupto sept10
Individual Single Premium 0
Individual Non-Single Premium 0
Group Single Premium 4700261
Group Non-Single Premium 40293157
no of lives insured upto sept 10- Private total
Individual Single
Premium
Individual Non-
Single Premium
Group Single
Premium
Group Non-Single
Premium
Max New York
no of livesinsuredupto sept10
Individual Single Premium 0
Individual Non-Single Premium 0
Group Single Premium 1445693Group Non-Single Premium 9769146
no of lives insured upto sept 10- MNYL
Individual Single
Premium
Individual Non-
Single Premium
Group Single
Premium
Group Non-Single
Premium
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Max Vijay Revolutionized the way insurance is procured, sold and serviced
It not only fulfils the customers primary need of protection, but also facilitates long-term savings
designed specifically for the underserved segment of the society to meet the uniquechallenges of unpredictability in life and their income flow
Easy to acquire plan. No Medical Tests. No age proof required.
Twin Benefits. Savings and Insurance too.
Invest as low as Rs 10. Convert loose change into savings.
Lapse Free policy for 10 years.*
Qualit ies
Affordable
Lapse-Free
Flexible
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Brand Ambassador: Mr. Amithabh Bachchan
Golden Peacock Award
Affordable
Three premium paying options of Rajat, Swarna and Heera enables the customer
to enter the plan at a minimal initial premium amount of Rs. 1000, Rs. 1500 and Rs.2500 respectively
Sum Assured is guaranteed Investment returns once credited to the policyholders account value
In cas e of natural death,
the claimant receives the guaranteed sum assured and the account value
In cas e of an accidental d eath,
the claimant receives the account value and double the amount of Sum Assured
Flexible
Choice to invest any amount, anytime, anywhere.
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Accessib le Insu rance at the consumers doorstep Distribution approach adopted for this product is designed to make insurance
available in the remotest areas of the country.
This product requires any financial and medical underwriting nor any supportingdocuments for age, etc
Customer is required to fill a simple one-page form and submit only an ID proof toown the policy
Lapse-free
The policy will not lapse as long as there is sufficient value in the policy account tomeet the charges
Criteria Eligibility
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Criteria EligibilityMax Vijay Rajat Max Vijay Swarna Max Vijay Heera
Death Benefit incase of NaturalDeath*
5 times the premiumreceived subject to amaximum of Rs50,000 plus thepolicyholders
account value.
5 times the premiumreceived subject to amaximum of Rs 75,000plus the policyholdersaccount value.
5 times the premiumreceived subject to amaximum of Rs 100,000plus the policyholdersaccount value.
Death Benefit incase of
Accidental
Death
An additionalamount (over &above DB payablein case of naturaldeath) equal to 5
times the premiumreceived subject to amaximum of Rs50,000
An additional amount (overand above death benefitpayable in case of naturaldeath) equal to 5 times the
premium received subjectto a maximum of Rs75,000.
An additional amount(over and above deathbenefit payable in caseof natural death) equal
to 5 times the premiumreceived subject to amaximum of Rs100,000.
First Premium
Payment Rs 1,000 Rs 1,500 Rs 2,500
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Adopted SAS technology to transform its efforts to strengthen customer retention andcross-selling to a tightly segmented customer base.
Not just retention expansion Key advantages that SAS : It provides improved speed and precision.
Demographics and previous transaction behaviors of Existing customers areanalysed.
Results into tailor specific cross-sell offers and script different contact scenariosbased on their value, their propensity to buy, their propensity to pay, and their
propensity to lapse. It pumps the right information to the right people at the right time so that they can
make the right decisions. Because of these predictions and forecasts, SAS isremoving a lot of the guesswork
Measure of Success:
MNYL has achieved remarkable improvements in retention and cross-selling.
Earlier, only 7 percent of revenue came from existing customers
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One Stop Shop for all MNYL Life Claims Status
To enable faster and smoother claims settlement,
Encourage and educate Customers to submit all the required claim documentstogether..
Details of claim documents requirement for different claim types along with all the
Claim Forms is available on our website
One can view the status of the claims.
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Launched the Interactive Voice response to help Advisors and Customers to knowabout their Commission & policy Details.
Launched a ACTIVIZOR software to be used by the front end sales team to help
them track their customer base
Various Portals to track the flow of Proposals from one queue to another.For eg.Omniflow, My Money
Intranet site to speed up the updation of premiums paid by the customers inorder toavoid lapsation.
A newly launched portal CLAIMS CONNECT to view the status of claims payables.
A start to end MIS implementation to conserve customer data, provide update onfuture premiums and commission calculation
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0
200000
400000
600000
800000
1000000
1200000
Bajaj Allianz ING Vysya Reliance Life ICICI
Prudential
HDFC
Standard
Max New
York
No. of Policies / Schemes
No. of Policies / Schemes
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0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00
3500.00
Bajaj Allianz ING Vysya Reliance Life ICICI Prudential HDFC Standard Max New York
Premium
Premium
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Concentrate on the life insurance business only & exit the health insurancesector
Special schemes for Government employees with lower premiums
Group Insurance & key man insurance for Pvt. Ltd Companies
Innovations products with bonus to be paid with compounding effect
Introduction of pension schemes with Guaranteed bonus
Insurance can be made compulsory to ensure a social security
Re-branding: Projecting the brand with an Indian ideology and name forbetter resonance
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Customer Education program where in customer would be educated about claims,policy enforcement process etc.
Product Innovation : Pictorial explanation of the product opted for by the customer
Follow up with the policy holder for ensuring cross selling & customer retention
Early re action to market challenges
SAS implementation - details to be captured
Training & development for agents with a cost on the Insurer for it.
Emphasis on the young couple marriage & Women policy
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New York life insurance company was the no 1 seller of fixed immediate annuities for women
in 2009 - 64% of its record $1.9 billion in sales we to women purchaser.
Thus new target groups can be identified in india and products be modified and launched bycustomizing the same.
Chennai based financial services company polaris is come out with a new technology which
allows insurers to sell their products and collect renewal premiums through ATM's . Change the communication i.e advertising strategy of Max it should try to project not only
insurance but also assurance . As most people do not understand the product its better to have a sound marketing done to
instill faith in consumers . 2008-2009 saw an increased nos of millionaires in india many of whom invest in fixed income
investments seeking predictable returns and cash flows modify and customise products
accordingly. Liquidity is incredibly important and people need cash flows to preserve their lifestyle but
they want to replace that cash flow in a way that does not increase their risk profile.
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