marketing project on sbi channel development
DESCRIPTION
Marketing ProjectTRANSCRIPT
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PROJECT ON
“CHANNEL DEVELOPMENT
ATSBI LIFE INSURANCE”
Submitted by
Ran Singh
( Roll No. 510728502 )
A Report submitted in partial fulfillment of the
requirements for the degree of
Master of Business Administration
of Sikkim Manipal University, India.
Sikkim Manipal University of
System Domain# 548, Shyam Complex, 1st Floor
Above Vivek - CMH Road Indira Nagar, Bangalore
Centre Code: 2779
“Channel Development at
SBI Life Insurance”Submitted by
Ran Singh
( Roll No 510728502 )
A Report submitted in partial fulfillment of therequirements for the degree of
Master of Business Administration
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of Sikkim Manipal University, India.Sikkim Manipal University of Health, Medical
and Technological SciencesSyndicate house, Manipal - 576 104
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I hereby declare that the project
report entitled
“Channel Development at
SBI Life Insurance ”
Submitted in partial fulfillment of the requirements for the degree of
Master of Business Administration
To Sikkim Manipal University, India, is my
Original work and not submitted for the award of
any other degree, diploma, fellowship, or any
other similar title or prizes
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Place: Bangalore RAN SINGH
Date: October 2008 Roll No. 510728502
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The Project Report of
RAN SINGH
“Channel Development at
SBI Life Insurance”
is approved and is acceptable in quality and
form
(Ravinder Kumar) (Anurag Yadav)MA, MBA Manager
SBI LIFE INSURANCE
Internal Examiner External Examiner
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This is to certify that the Project report entitled
“Channel Development at
SBI Life Insurance”
Submitted in partial fulfillment of therequirements for the degree of
Master of Business
AdministrationSikkim Manipal University of Health,Medical and Technological Sciences
Submitted by
RAN SINGH
Who has worked under my supervision and guidance and that no part of this report has
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been submitted for the award of any other degree, Diploma, Fellowship or other similar titles or prizes and that the work has not been published in any journal or Magazine
(Anurag Yadav)ManagerSBI LIFE INSURANCE
ACKNOWLEDGEMENT
1. Project work is never the accomplishment of one individual,
rather it is an endeavour efforts, ideas and involved co-operations of a
number of individuals.
2. It gives me immense pleasure to take this opportunity to thank
all those who helped in successfully completing the project.
3. First & foremost I would like to thank Mr Ravinder Kumar my
internal guide who provided me with this opportunity. Words are
inadequate to thanks Mr Ravinder Kumar for his constant
inspiration, heartily cooperation and timely support. Without his
support this project could not be completed in time.
4. I am extremely thankful to my external guide
Mr. Anurag Yadav, Manager, SBI Life Insurance, for his timely
guidance, support advice and cooperation during the project. His
guidance is invaluable in this project otherwise project would not have
been according to the given format.
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5. I feel deeply indebted to all respondents, particularly those who
spent time with me to discuss the topic, for their valuable suggestions
in my study.
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TABLE OF CONTENT
TOPIC PAGE NO.
1. Executive Summary 9
2. Scope of the study 13
3. Introduction 15
4. Company Profile 28
5. Project Profile 34
6. Objective 70
7. Research methodology 72
8. Data analysis and interpretation 76
9. Recommendation and Suggestions 91
10. Conclusion 94
11 Annexure 97
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PREFACE
1. This research is a part of my MBA degree programme which is
included in the curriculum of my Master of Business Administration. We
can not rely merely upon the theoretical knowledge. It is to be
complimented by practical know-how for it to be fruitful. A positive and
correct result of the distance learning needs realities of practical situation.
2. The training enables the management students to see the working
conditions under which they have to work in the future. It gives them a real
feel of the corporate world, which helps them to better equip themselves
with the required skills. It has been a great learning experience for me.
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EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
1. Insurance is a contract where by, in return for the payment of
premium by the insured. The insurer pays the financial losses suffered by
the insured as a result of the occurrence of unforeseen events.
2. In India the first company known as Sun Insurance Office Ltd. was
set up in year 1710. During the early years of 19 th century, a large number
of life insurance companies were formed in India. Some of these
companies preferred to amalgamate their business with other companies
and a good number failed to function effectively. In order to stabilize and
strengthen the insurance business, life insurance act 1923 was passed and
later amended in 1946, 1958 & 1967.
3. Insurance has always been a politically sensitive subject in India.
With less than 10 years of independence, the Indian govt. nationalized
private insurance companies in 1956 to bring this vital sector under govt.
control to raise much needed development funds. Prior to the Indian sector
had become 246 companies in the insurance sector. Then, Life Insurance
Corporation Of India was formed and all other life insurance companies
gave their business to the corporation. The basic intention was to pay the
concept of life insurance to the gross root level of the Indian society.
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4. Life Insurance is a very important part of personal financial planning
because it is the quickest and easiest source of cash for the family upon the
death of a person. Within days, the insurance company will deliver
cheques to the person’s designated beneficiaries. This provides the money
needed for funeral expenses, as well as for family living expenses.
5. In 1999, the Insurance Regulatory and Development Agency was
formed and from July 1, 2000, private players entered the insurance
market.
6. India, has an amorphous middle-class of about 300 million people
who can afford to buy life, health and disability and pension plan products.
Out of this 20% have insurance and that too covers only 25% of their
needs and financial capacity. The remaining 80% have no insurance cover.
The Life Insurance market of India therefore is practically untapped. The
average business of LIC gets per active agent is Rs. 1.26 million.
7. Insurance needs to have social objectives and new covers will not
have that commitment. But now with the opening of the insurance sector to
private participants insurance is fast emerging as a much better alternative
tax planning in terms of returns as well as security.
8. The current budget has been a wake up call for Indian investors. The
era of fixed return instruments is over. This budget makes a point very
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clear one should be investing according to his financial goals and not with
the only objective to save tax. Investors should save and invest more for
his protection and meeting his future needs. His saving should not be
dependent upon governmental sops.
9. Regardless of the tax compulsion, one can never undermine the
importance of insurance in one’s financial plan insurance as it is rightly
said cannot be taken as a simple investment; rather it is a hedge against
uncertainty. And an uncertainty needs to be planned for simply because it
is uncertain. Moreover it’s an obligation that one has towards to the family
to ensure that the members are financially well off in any eventually.
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SCOPE OF THE STUDY
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SCOPE OF THE STUDY
1. The sector chosen for study is “Channel Development” for the
simple reason that it offers exciting opportunities to have an insight into
the extensive distribution and sales network and study the functioning of
the channel structure, the hierarchy and the after-sales services procedure
that is being followed therein.
2. The area for the study was preferably south Delhi but as per the
requirement & the availability of the respondents some use to stay at very
corners of the state.
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INTRODUCTION
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INTRODUCTION
1. Historians believe that insurance first developed in Sumer &
Babylonia. The merchants & traders of these societies transferred &
pooled their money to protect themselves from pirates.
2. In the 18th century BC, Babylonian king Hammurabi developed a
code of law known as the code of specific rules governing the practices of
early risk-sharing activities.
3. Insurance developed during the 1700’s in the North American
colonies. In 1730, Benjamin Frank contributed for the Insurance of Houses
from Loss by Fire. The company collected contributions & this money
went into an investment fund. Interest on this fund went towards paying
claims dividends to those who contributed money.
4. The Industrial Revolution in the US, in the early & mid 1800’s
prompted dramatic group. During this time, many companies were
establishes to sell life insurance policies & annuities. Several shared profits
among policy holders, also developed. In addition, some life insurance
companies charged premiums according to age of people & health.
5. Life insurance, in its present form, came to India from the United
Kingdom with the establishment of a British firm, Oriental Life Insurance
Company in Calcutta in 1818, followed by Bombay Life Insurance
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Assurance Company in 1823, the Madras Equitable Life Insurance Society
in 1829, & the Oriental Government Security Life Assurance Company in
1874. Prior to 1871, Indian lives were treated as sub-standard & charged
extra premium of 15% to 20%. Bombay Mutual Life Assurance Society,
an Indian insurer which came into existence in 1871, was the first to cover
Indian lives at normal rates.
6. The Indian Life Assurance Companies Act, 1912 was the first
statutory measure to regulate life insurance business. Later in 1928, the
Indian Insurance Companies Act was enacted, to enable the govt. to collect
statistical information about both life & non-life insurance business
transacted in India by Indian & foreign insurers, including the provident
insurance society. Comprehensive arrangements were, however, brought
into effect with the enactment of the Insurance Act, 1938. Efforts in this
direction continued progressively & the Act was amended in1950, making
far reaching changes, such as requirement of equity capital for companies
carrying on life insurance business, stricter controls on investment of life
insurance companies, ceiling on the expenses of management & agency
commission etc.
7. By 1956, 154 insurers, 16 non-Indian insurers & 75 provident
societies were carrying on life insurance business in India. On 19 th January
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1956, the management of the entire life insurance business of 229 Indian
insurers & provident insurance societies & the Indian life insurance
business of 16 non-Indian life insurance companies then operating in India,
was taken over by the central govt. & then nationalized on 1st September
1956 when Life Insurance Corporation came into existence.
8. An ordinance was passed in 1968 to amend the Insurance Act to
regulate/control non-life insurance resulting in set up of GIC in 1973.
Malhotra committee submitted its report in 1994 & recommended means
to reintroduce an element of competition by withdrawing the exclusivity of
LIC & GIC. In 1997, Insurance Regulatory Authority (IRA) was
established which was later re-styled as IRDA in 1999.
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LIBERALIZATION OF THE INSURANCE SECTOR
1. Liberalization commitments of the country to help in disciplining
future economic policies will include the insurance reforms. When the
world over, insurance, markets have been opened up, India cannot remain
in isolation. Globalization is the new economic reality, which is here to
stay, heralding a new era of insurance in India. With the opening of the
insurance industry, India stands to gain the following major advantages:
(a) Globalization will provide improved opportunities to the
customers for better products, with more reasonable & affordable
pricing.
(b) The customer will get quicker servicing.
(c) It will enhance the savings rate.
(d) Long term funds for infrastructure development will be
available to the country.
(e) It will secure for India larger inflows of foreign capital needed
to sustain our GDP growth.
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Major players
LIFE INSURANCE
BUSNIESS
NON-LIFE INSURNACE BUSNIESS
Life Insurance Corporation General insurance Corporation
ICICI Prudential Life Insurance National Insurance Company
HDFC Standard Life Insurance The New India Assurance Company
Max New York Life Insurance The Oriental Insurance Company
Birla Sun Life Insurance United India Insurance Company
OM Kotak Mahindra Life
Insurance
Reliance General Insurance
Reliance Life Insurance TATA-AIG Insurance
Allianz Bajaj Life Insurance Royal Sundaram Alliance General Ins.
Dabur CGU Life Insurance Bajaj Allianz General Insurance
ING Vyasa Life Insurance ICICI Lombard Insurance
SBI Life Insurance SBI
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WHAT IS INSURANCE?
1. Insurance is a legal contract that protects people from the financial
costs those results from loss of life, loss of health, lawsuits, or property
damage. Insurance provides a means for individuals & society to cope up
with some of the risks faced in every day life by every body. People
purchase contracts of insurance, called a Policy, from various insurance
companies.
2. Almost every person existing in this world is associated with
insurance, directly or indirectly. Directly, in the sense that he/she has
insured his/her life by some kind of insurance policy from any
company. Indirectly, in the sense they must have insured the assets of
their own for example their house, car, or any thing else.
Insurance can be divided into three categories.
(a) Life Insurance
(b) General Insurance
(c) Health Insurance.
3. Life insurance is a contract for payment of a sum of money to the
person assured (or failing him/her, to the person entitled to receive the
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same) on the happening of the event insured against. Usually the contract
provides for the payment of an amount on the date of maturity or at
specified intervals or at unfortunate death. The contract also provides for
payment of premium periodically to the corporation by the assured.
4. General insurance includes many areas of insurance like marine,
motor, engineering, health, fire, etc. The contract provides for the payment
of an amount on the happening of some contingency. These types of
contracts are annual in nature.
REASON FOR INSURANCE
5. In life, losses are sometimes unavoidable. People may fall seriously
sick or lose income or savings to pay off medical bills. Individuals or their
relatives may come across untimely death, whatsoever the reason may be.
The assets of people may get damaged due to some heavenly act or by
some nuisance creator.
6. No one knows in advance when a loss will occur or how serious that
loss will be. The uncertainty surrounding potential losses is known as Risk.
Insurance offers a way for people to replace risk with known costs- the
costs of buying & maintaining insurance policies.
Insurance pools risks shared by many people, thereby, reducing the risks
faced by a group. People pay to buy insurance coverage (protection from
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risk). In exchange, all policy holders (people who own insurance policies)
receive a promise that the group of policy holders as represented by the
insurance organization will pay when any policy holder experience any
kind of loss.
IMPORTANCE OF INSURANCE
7. Insurance benefits society by allowing individuals to share the risks
faced by many people. But it also serves many other important economic
& societal functions. Insurance provides the capital that communities need
to quickly rebuild & recover economically from natural disasters.
Insurance itself has become a significant economic force in most of the
industrialized countries. Businessmen buy insurance to cover their
employees against work related injuries & health problems. They also
insure their assets against any kind of wear n tear by natural forces &
forcibly.
8. Insurance companies perform a type of monetary redistribution- they
collect premiums & eventually redistribute that money as payments.
Depending on the type of insurance, redistribution can take place
anywhere from a month to many decades. Because of this delay between
collecting & paying out funds, insurance companies invest their funds to
bring extra revenue. Such investments help business & government finance
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their operations, & few profits from these investments support the
operations of insurance companies. With these investment earnings,
insurance companies can keep rates much lower than would otherwise be
possible.
ADVANTAGES OF LIFE INSURANCE
It is superior to an ordinary saving plan: Unlike other saving
plans, it affords full protection against risk of death. In case of death,
the full sum assured is made available under a life assurance policy;
whereas under saving scheme the total accumulated saving alone will
be available. The later will be considerably less than the sum assured, if
death occurs during early years.
Easy settlement & protection against creditors: The life assured
can name person(s) called Nominee to whom the policy money would
be payable in the event of his death. The proceeds of a life policy can
be protected against the claim of the creditors of the life assured by
effecting a valid assignment of the policy.
Ready marketability & suitability for quick borrowing: After an
initial period, if the policy holder finds him unable to continue payment
of premiums, he can surrender the policy for a cash sum. Alternatively,
ha can tide over a temporary difficulty by taking loan on the sole
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security of the policy without delay. Further, a life insurance policy is
sometimes acceptable as security for a commercial loan.
Tax Relief: The Indian Income-Tax Act allows deduction of certain
portion of the taxable income which is diverted to payment of life
insurance premiums from the total income tax liability. When this tax
relief is taken into account, it will be found that the assured is in effect
paying a lower premium for his insurance.
PURPOSE AND NEED OF INSURANCE
9. Assets are insured, because they are likely to be destroyed, through
accidental occurrences. Such possible occurrences are called perils, Fire,
floods, breakdown, lightning, earthquakes, etc, are perils. If such perils can
cause damage to the asset, we say that the asset is exposed to that risk.
Perils are the events. Risks are the consequential losses or damages. The
risk to a owner of a building, because of the peril of an earthquake, may be
a few lakhs or few crores of rupees, depending on the cost of the building
and the contents in it.
10. The risk only means that there is a possibility of loss or damage. The
damage may or may not happen. Insurance is relevant only if there are
uncertainties. If there is no uncertainty about the occurrence of an event, it
cannot be insured against. In the case of a human being, death is certain,
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but the time of death is uncertain, In the case of a person who is terminally
ill, the time of death is not uncertain, though not exactly known. He cannot
be insured.
11. Insurance does not protect the asset. It does not prevent its loss due
to the peril. The peril cannot be avoided through insurance. The peril can
sometimes be avoided, through better safety and damage control
management. Insurance only tries to reduce the impact of the risk and the
owner of the assets and those who depend on that asset. It only
compensates the losses – and that too, not fully.
12. Only economic consequences can be insured. If the loss is not
financial, insurance may not be possible. Examples of non economic losses
are love and affection of parents, leadership of managers, sentimental
attachments to family heirlooms, innovative and creative abilities, etc.
There are two type of insurance:-
Life insurance
Non-life insurance or General insurance
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13. These insurance are provided both by government and private
insurance companies. Now, what an insurance company is?
14. The IRDA Act, 1999 amending the Insurance Act, 1938 in Section 2
sub-section 7(a) state:
15. The important activities of a life insurance company are:-
(a) Procuring from prospective buyers proposals to grant life
insurance cover;
(b) Checking up and specifying the terms of acceptance called
Understanding;
(c) Issue contractual documents called policy incorporating
various terms and condition;
(d) Provide after sales services including payment of money as
per contract;
(e) Conducting other supporting activities like, investment of
funds, carrying out solvency measures, finalization of accounts,
getting or causing audit of accounts, actuarial valuation including
updating mortality tables; and
(f) Developing new products, sales promotion activities
including publicity, training of its personal (Sales/ administration).
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COMPANY PROFILE
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COMPANY PROFILE
SBI Life Insurance Company Limited
1. SBI Life Insurance is a joint venture between the State Bank of India
and CardifSA of France. SBI life Insurance is registered with an authorized
capital of Rs. 1000 crore and a paid up capital of Rs. 500 crores. SBI owns
74% of the total capital and Cardif the remaining 26%.
2. State Bank of India enjoys the largest banking franchise in India.
Along with its 7 Associate Banks, SBI Group has the unrivalled strength of
over 14,500 branches across the country, arguably the largest in the world.
Cardif, the life insurance unit of BNP Paribas Assurance, has operations in
36 countries and over 35 million personal protection insurance clients
worldwide. A world leader is Creditor Insurance, BNP Paribas Assurance
is the life and property & casualty insurance unit of BNI’ Paribas – a
European leader in banking and financial services. BNP Paribas ranks
among the worlds top 15 banks by market capitalization and is one of the
oldest foreign banks with a presence in India dating back to 1860.
3. SBI Life Insurance’s mission is to emerge as the leading company
offering a comprehensive range of Life Insurance and pension products at
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competitive prices, ensuring high standards of customer service and world
class operating efficiency.
4. SBI Life has a unique multi-distribution model encompassing
Bancassurance, Agency and Group Corporates.
5. SBI Life extensively leverages the SBI Group as a platform for a
cross-selling insurance products along with its numerous banking product
packages such as housing loans and personal loans. SBI’s access to over
100 million accounts across the country provides a vibrant base for
insurance penetration across every region and economic strata in the
country ensuring true financial inclusion.
6. Agency Channel, comprising of the most productive force of more
than 25,000 Insurance Advisors, offers door to door insurance solutions to
customers.
7. After recording its fastest growth in the first nine months of the
current financial year SBI Life Insurance is planning to infuse additional
capital by February–March. The Life Insurance subsidiary of State Bank of
India, part on by owned by Cardiff, a BNP Paribas company reported
101% growth in total premium for the first nine months. To support the
business growth in the last quarter, which is the best quarter for insurance
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companies SBI Life plans to infused Rs. 300 crore to 400 crore additional
capital “ growth picked up considerably in the last quarter after having
been subdued till September” said U.S. Roy, M.D. & CEO of SBI Life
Insurance.
8. Asked about the issue of the capital infusion as the holding company
structure proposed by parent SBI Roy said “ if we don’t here from RBI
within a month or show, we would taken independent decision”. He said
the valuation process is on and an initial public offer of shares would also
be considered to raise capital. Assets under management stands at Rs. 7300
crore and the paid up capital is 600 crore.
9. SBI Life which ranks the third among the private life insurance in
India was the first to report profits in last quarter. It has wiped out
accumulate losses. While agency channel contributed 49% of its business,
44% came though the bancassurance channel, insurance products sold
through the 14,500 plus SBI Branches.
10. SBI Life net Rs. 38 cr, plans IPO in 2 years
101% growth in total premium collections to Rs. 2748.28 crore during
the first nine months of FY 2007-2008 and a net profit of Rs.37.74
crore YTD December, 07.
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SBI Life sustains leadership in lives covered at 7.2 million lives.
Bancassurance controlled to 44% through continued leveraging of the
robust State Bank Group branch network.
Agency contributed to 49% of SBI Life’s total premium collection as a
result of its highly productive Insurance Advisors.
The company’s Assets under Management have crossed Rs. 7300
crores, as on December, 2007.
SBI Life ranks 3rd amongst private life insurance companies in terms of
premium collection and has a market share of 12.08% amongst private
peers as of Nov, 07 as per the latest IRDA reports.
SBI Life’s Mission Statement:
11. SBI emerge as the leading company offering a comprehensive range
of life insurance and pension products at comprehensive prices, ensuring
high standards of customer satisfaction and world class operating
efficiency, and become a model firm in the liberalized life insurance
industry in India.
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12. The Organisation Chart of the company is as follows:
ORGANIZATIONAL CHART
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Managing Director
Head of Sales (HOS)
Zonal Sales Manager (ZSM)
Territory Manager(TM)
Branch Manager (BM)
Area Sales Manager (ASM)
Senior Agency Manager (SAM)
Agency Manager (AM)
Unit Manager (UM)
Assistant Unit Manager (AUM)
Advisors/Trainees
PROJECT PROFILE
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PROJECT PROFILE
Insurance Products
1. Unit Linked Insurance Plans
SBI Life – Horizon II : A unique non-participating plan with
Automatic Asset Allocation according to term to maturity. You don’t
have to be an expert to enjoy the benefits of the market related
returns plan.
SBI Life – Unit Plus II Single – Regular : A flexible non-
participating plan designed to meet the changing requirements at
various stages, in life, i.e., the plan can be utilized as an investment
or an endowment plan, a money back or children’s plan, or like a
whole life plan.
2. Unit Linked Pension Plans
SBI Life – Horizon II Pension: A safe and a hassle free non-
participating plan to build up your retirement kitty with Automatic
Asset Allocation according to Term to Maturity. You don’t have to
be an expert to enjoy the benefits of the market linked returns.
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SBI Life – Unit Plus II Pension : A flexible pension plan designed
to take control of the golden years ahead. The plan offers a wide
choice to invest and control four different funds as per one’s risk
appetite.
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3. NON UNIT LINKED PRODUCTS
Savings-cum-Protection Plans
SBI Life – Sudarshan: A flexible participating endowment plan
with a unique option of 5% p.a. increasing Sum Assured.
SBI Life – Money Back Plan: A participating lie insurance plan
that gives protection, savings-cum-guaranteed regular cash inflow.
Thus helps meet various expenses like marriage, education, birth of a
child, new home, etc.
SBI Life – Scholar II: A participating endowment plan for child’s
future which ensures, you / your nominee receives the required
resources to fund the higher educational needs of the child and at the
same time insures your life.
SBI Life – Swadhan (Individuals): A non-participating term
assurance term assurance plan with refund of partial/total premium
at maturity.
SBI Life – Lifelong Pensions: The most flexible participating
pension plan that offers everything for comfortable retirement
planning.
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SBI Life – Shield: A pure term assurance plan that offers substantial
life cover at a very low cost with an option to choose for increasing
Sum Assured.
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4. Group Insurance Plans
SBI Life’s – Swadhan (Group): The plan provides simple life
insurance simple life insurance solutions to keep your loved one
protected. It provides protection to State Bank Group account
holders with refund of a percentage of net premium.
5. Micro Insurance Plans
Grameen Super Suraksha: A group micro term insurance scheme
that enables the members and their families to have financial
independence and security at a lowest possible cost.
Grameen Shakti: A group micro term insurance scheme with
refund of premium that enables the members and their families to
have financial independence and security at affordable premium
rates.
6. REGULATIONS-THE AGENCY LAW
The basics of the insurance business in india are governed by the agency
law, which is part of the indian contracts act,1872. Further, after the
industry got opened up the regulatory authority has been the insurance
regulatory and development authority (IRDA).
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7. Agent-the definition
According to the section 182 of the Indian contract act ,1872, “an agent is
a person employed to do any act for another or to represent another in
dealing with a third person”.
In the insurance sector the term “agent” is ordinarily applied to a person
engaged by the insurer to procure new business.
8. Powers of the agent
An agent can act only to the extent of authority may be expressed or
implied. An authority is said to be expressed when it is given by words
spoken or written. It is implied when it is to be inferred from the
circumstances of the case.
9. LIFE INSURANCE AGENT
The insurance act ,1938 defines an agent as “one who is licensed under the
act and is paid consideration of his soliciting or procuring insurance
business including business relating to continuance, renewal or revival of
the policies of insurance.”
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THE INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY
DUTIES, POWERS AND FUNCTIONS
10. Section 14 of IRDA act,1999 lays down the duties, powers and
functions of IRDA.
Subject to the provisions of this act and any other law for the time being
in force, the authority shall have the duty to regulate ,promote and
ensure orderly growth of the insurance business and re-insurance
business.
Without prejudice to the generality of the provisions contained in sub-
section(1),the powers and functions of the authority shall include,
(a) Issue to the applicant a certificate of registration, renew,
modify, withdraw, suspend or cancel such registration;
(b) Protection of the interests of the policy holders in matters
concerning assigning of policy, nomination by policy holders,
insurable interest, settlement of insurance claim, surrender value of
policy and other terms and conditions of contracts of insurance;
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(c) Specifying requisite qualifications, code of conduct and
practical training for intermediary or insurance intermediaries and
agents;
(d) Specifying the code of conduct for surveyors and loss assessors;
(e) Promoting efficiency in the conduct of insurance business;
(f) Promoting and regulating professional organizations connected
with the insurance and re-insurance business;
(g) Levying fees and other charges for carrying out the purposes of
this act;
(h) Calling for information from, undertaking inspection of,
conducting enquiries and investigations including audit of the
insurers, intermediaries, insurance intermediaries and other
organizations connected with insurance business;
(i) Control and regulations of the rates, advantages, terms and
conditions that may be offered by insurer in respect of general
insurance business not so controlled and regulated by the tariff
advisory committee under section 64U of the insurance act,1938(4
of 1938)
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(j) Specifying the form and manner in which books of account
shall be maintained and statement of accounts shall be rendered by
insurers and other insurance intermediaries;
(k) Regulating investment of funds by insurance companies;
(l) Regulating maintenance of margin of solvency;
(m) Adjudication of disputes between insurers and intermediaries
or insurance intermediaries;
(n) Supervising the functioning of the tariff advisory committee;
(o) Specifying the percentage of premium income of the insurer
to finance schemes for promoting and regulating professional
organizations referred to in clause(f);
(p) Specifying the percentage of life insurance business and
general insurance business to be undertaken by the insurer in the
rural or social sector; and
(q) Exercising such other powers as may be prescribed;
Essentials for the license
11. The IRDA has prescribed both qualifications and disqualification for
a person to be given a license.
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QUALIFICATIONS
12. The person must :-
Be at least 18 years of age;
Have passed at least 12th standard or more (if he is appointed
in a place with population 5000 or more),10th standard otherwise;
Have undergone training for at least 100 hours in life or
general insurance business as the case may be from an institution,
approved and notified by the authority;
Should have also passed the pre-recruitment examination
conducted by the Insurance Institute of India or any other examination
body recognized by the authority.
In case of an applicant for the composite insurance agent,
he/she should have completed at least 150 hours practical training in life &
general insurance business, which may be spread over six to eight weeks.
DISQUALIFICATION’S
13. The factors that would debar a person from obtaining a license are
that he/she
14. Has been found to be of unsound mind by a court of competent
jurisdiction
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15. The license once issued can be cancelled whenever the person
acquires a disqualification. In the case of companies & firms who want to
become agents, the test of qualification & disqualification would be
applied to all the directors or partners.
16. There are two separate forms, one for individuals & another for
those other than individuals, in which the applications are to be made. The
two forms are numbered by irda-agent vb & are annexed to the regulation.
The applications in the respective forms have to be made to the designated
person appointed buy the insurer sponsoring the application.
The application for the license should be accomplished by proofs.
Of fee having been remitted to the authority.
Of age
Of having completed the training & passed the prescribed
examination.
17. The fee to be sent to the authority directly is Rs. 250 for new license
& for renewals applied for within the prescribed period, viz, at least 30
days before the date of expiry. If the application is made after the date of
expiry it would be normally refused. But, if the authority is satisfied that
hardship would be caused otherwise, the license may be renewed. Prior to
renewal of the license of the license the agent should have completed at
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least 25 hours practical training in life or general insurance business or at
least 50 hours practical training in life & general insurance business in the
case of a composite insurance agent.
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The Duties & Obligations of the Agent
18. As per the IRDA guidelines every advisor must be trained &
licensed to sell life insurance. The responsibilities & obligations of the
advisors have been clearly defined.
Every insurance agent should himself & the insurance company that
he represents along with the license particulars.
The advisors should take into the actual needs of the clients before
recommending a plan.
All requisite information in respect of the products recommended
should be provided with a ‘Sales Illustration’ & the premium to be paid.
The agent is obligated to disclose the scales of commission likely to
be earned by him through sale of the recommended product, should the
client wish to know it.
The nature of information required in the application form should be
adequately explained along with the requirement for supporting
documents.
Once the proposal is submitted, the advisor shall inform the status of
decision by insurer promptly.
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In case of a claim, the advisor is required to render necessary
assistance in complying with the requirements for settlement of claims by
the insurer.
He/she should not interfere with any proposal introduced by any
other any insurance advisor/agent or force the client to terminate an
existing policy taken from him/her & take a new proposal within 3 years.
An advisor cannot induce the client to omit any material information
or submit any wrong information in the proposal form.
Further no rebating or offering any inducements in lieu of taking a
policy is allowed.
Code of Conduct for the Agent
19. The licensing of Insurance Agent Regulations, 2000 lays down a
code of conduct for the agents which state that the agent shall
Disclose the license to the prospect on demand.
Explain all available options to the prospect.
Disclose the scales of commission, if asked for by the prospect.
Impress upon the prospect need to disclose all information
Inform the insurer about any adverse habits & materials facts of the
person to be insured.
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Convey to the proper about the acceptance or rejection of the proposal.
Render necessary assistance to policy holders or claimants or
beneficiaries in complying with the requirements, asked for by the
insurer. Advise policy holders to affect nomination.
Make every attempts to ensure remittance of premiums by the policy
holders within the stipulated time by giving notice orally or in written.
Not induce the prospect to submit any wrong information.
Not interfere with the proposal introduced by other insurance agents.
Not demand or receive share of proceeds under an insurance contract.
Not cause the termination of an existing policy with a view to effect a
new proposal.
THE IMPORTANCE OF ADVISORS
20. SBI life insurance co. ltd. aspires to provide state of the art of
customer service & opportunities & avenues for enterprising people to
grow & prosper. The company wish to grow exponentially that is backed
by the latest technology, hence offering its customers:
Complete & diversified product portfolio.
Faster & more accurate service.
Multi-channel distribution systems.
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Highly trained professional sales people offering quality pre & post
sales service.
21. It is in the above mentioned areas of personal specialization where
the importance of an advisor clearly stands out the advisor not only
contribute in brining in new business for the company, but also plays an
important part in offering world class pre & post sales service to the clients
to the clients with the support of the organization. But the company in its
principles clearly states out that an advisor to means “much more than a
salesman or a saleswoman, we at SBI Life Insurance recognize our
advisors as the ambassadors of our organization in the market place & we
consider the advisor force would be our biggest differentiating factor in the
coming years”. The advisor is an important asset not only for the
organization from the business point of view but also to the society on the
whole as he/she is someone who provide valuable service to the
community be helping people attain financial security & build funds for
their future needs thereby assisting them in getting their financial freedom.
If looked from the other side of the business where the company is
operating the competitive Indian market & more so in the business of life
insurance where the customers looks for self-belief & faith then the
advisor certainly holds the vital link in the overall business proposition.
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They represent the company’s face & words on which the customers can
trust because the customer knows that face. The advisor helps to create a
web for the business to grow & driving the customer to come to the
company with complete trust & faith.
THE PRINCIPLE OF CHANNEL DEVELOPMENT
22. The company in its vision out the urge to become the dominant
player in the industry. The company believes that a high level of self-
motivation & a coherent team work for the organization can only achieve
this on the whole. The company stresses great emphasis on its core values
which are:
INTEGRITY
CUSTOMER FIRST
BOUNDARY LESS
OWNERSHIP
PASSION
30. These are the foundation on which the organization works & the
base for the overall business environment of the company. Based on the
above mentioned ‘Pillars’ of the company the management has devised the
basic principles for the program as a whole which are as following:
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EMPOWERED TEAMS
23. Each employee is a stake holder in the organization & its growth. It
is the one of the important specialty here that the responsibility comes with
a degree of autonomy & accountability. The area of operation & growth is
to be decided by the individuals himself. But the communication is across
the channels & ranks whereby the targets are sent & the corrective
measures & rewards also come to them. The most important factor is the
employee participation & empowerment.
REWARDS & RECOGNITION
24. The rewards in the company are directly proportional to the work &
targets achieved & gone beyond. You work hard you earn more. The
contributions done are recognized in the most objective & transparent
manner & on the demonstrated competence level. But yes there is certainly
an extra for the people who go beyond then what is expected from them.
SHARED VISION & PURPOSE
25. The company focuses on having the organizations striving towards a
common goal, which is easily done through the effective communication
& work channel. Large scale interactive process at the organization &
group level helps in getting the employees know of what is expected of
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them & how has been achieved. This factor encompasses through all the
critical intervention by the team members or the mentor of the team.
THE WORKING ENVIRONMENT
26. The company is in a continuous search for the best of talents in the
market, which align with the vision & mission of the organization. The
company states out its working culture in certain important factors for the
interested incumbents:
Urge from the incumbent to be a part of a world class sales steam.
The freedom of working from his/her own office/residence.
The flexibility of working hours i.e., full time or part time.
Opportunity to earn commission, bonus & incentives.
Unlimited earnings- directly proportional to your efforts.
Most important- the chance of flexible career.
27. The company is aware of the current trends in the market & the
essential factors of increasing the personal & human feeling to business.
Thus, the company has got some underlying facts & reasons for the
working in a specific manner.
28. The company gives the space & time required to grow, achieve & to
seek new domains & opportunities. The changing dynamics of business
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makes it evident that the new opportunities will come from the gaps &
needs in the market. Therefore, the need is to be alert enough to notice
these new happenings & tap them as & when they arise. The people in the
company are its most important asset but the real focus should be on
delivering on the promises undertaken.
29. The company also stresses out that the incumbents should have that
urge & self belief so that they are confident enough of driving the
innovation & change drives that they think are essential. The company
believes in being innovative & tenacious enough to open a new domains &
horizons of business & hence regularly in the process of developing new
products & offerings state of art services to all its clients, brokers & agents
in the business. Further, with the growing symbiosis of technology in the
business the company also focuses on this aspect in the sense that it takes
e-commerce & technology on a very high priority with increasing resource
being targeted at the new business economy & the internet.
THE PROFILE OF AN ADVISOR
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30. QUALIFICATIONS
(a) Age should be ideally between 25-60 years.
(b) Minimum education qualification is 10 + 2.
(c) Good & convincing communication skills.
(d) Capacity to build an impressive network.
(e) Engaged in gainful business or corporation.
(f) Willing to undergo extensive training & development
programs
(g) Pleasing personality.
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JOB PROFILE
31. As an advisor for the company, the role of the individual is no way
limited to sell the policies of the company. But the role basically starts
from the basics of explaining the life insurance aspects & the potential
benefits to the customers. Further he is required to assist them in deciding
upon the plan that suits them the best in terms of finance and security
provided. Therefore the opportunity provided to the advisor is unlimited in
no way and the typical benefits can be mentioned as followings:
There is absolutely no need of a startup capital.
There is the benefit of flexible working hours.
The freedom to work from anywhere & being one’s own boss.
The unlimited earning benefits in form of remuneration &
incentives.
And the privilege of being a part of a world class sales team.
32. The role of an advisor is multifaceted in the sense that his work
scope is in no way limited. But in a nut shell the expectations from an
advisor has been laid down by the management in the following manner
under two main headings:
(a) Providing continuous financial advise to clients
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Identifying prospective clients.
Making appointments
Conducting reviews with the prospective/existing clients.
Closing the sales contracts
Getting more referrals so as to increase the network
Providing pre & post sales services to clients
(b) The advisor is also required to regularly follow the internal
sales & the internal reporting system so as to get the feed back &
further leads for the prospective areas of business & improvement.
BENEFITS & SUPPORT PROVIDED
33. The benefits have already been mentioned very often in the previous
section but it’s necessary to look into them as a comprehensive criterion.
The main benefits & supports that an advisor would be availing of are the
distinct SBI life advantages:
REWARDING CAREER
34. The job profile as mentioned earlier is unlimited & an advisor will
help people realize their dreams & provide them the financial &
psychological security & faith. The ultimate rewards will be the
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differences made to all these lives & that would be most satisfying in the
real sense.
SUCCESSFUL TEAM
35. Being at SBI gives the opportunity to be a part of India’s best team
of life insurance advisors. The company is numero uno among the private
players in the industry & has won numerous recognition & awards that
give it the international edge.
ATTRACTIVE REMUNERATION
36. SBI offers the most competitive remuneration benefits at person in
the industry, which proves to be very useful from long term perspective of
financial security. There is absolutely no limit to one’s earnings & the
added incentives just help as advisor to get more than what he/she expects.
INDEPENDENCE
37. At SBI, the advisor is a boss in himself & in the real sense. There is
the freedom to choose the workplace, the work timings & the amount of
earnings one wants to have. Moreover there is no need of any initial capital
investment, yet one can become an entrepreneur in the most unexpected
manner.
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WORLD CLASS TRAINING
38. The company leverages on the international linkages that it has got
to provide the best training available in the industry at the present. The
company aims to impart the necessary skills & competencies to all even if
there is no previous experience with the individual. The presence of trained
in-house trainers & professionals provide the necessary aspects of training
required. Moreover, the training is being provided with the help of
professional institutions & centers like the RNIS College.
CAREER AGENCY SYSTEM
39. SBI’s commitment to Career Agency System imparts support to the
advisors at every stage of the business. The company believes in
encouraging the advisors to the highest level of success all through their
career. One of the distinct factor is the opportunity & the option of a
management career option for the successful performers.
BEST INFRASTRUCTURE
40. The huge investments that the company has made to develop the
state of art infrastructure throughout the business. The infrastructure
provides the necessary tools, technology & human support that enable to
build a profitable long term relationship.
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EXTENSIVE PRODUCT PORTFOLIO
41. The company has got more than four hundred policies for its
customers. This consists of the unique individuals, groups, & rider
policies. This extensive, diversified & comprehensive range provides the
competitive edge that no other advisor would be having in the market.
SALES & MARKETING SUPPORT
42. The company has got unique sales & marketing tools to help &
support the advisors at every stage of the career. The sales, promotions &
marketing collaterals that the company posses help to achieve just that.
FINANCIAL STRENGTH
43. SBI Life offers the advisors & the customers’ unmatched financial
strength & solidity. The huge amount of paid up capital & growing
revenues are an indicator of the same.
SUPPORT PROVIDED BY THE UNIT MANAGER
Field visits for the incumbents
Training on products & selling skills
Regular business reviews to monitor the progress
The UM acts both as a coach & a mentor
The UM recognizes the high performers
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Helps in becoming financially independent
BUT- THE EXPECTATIONS FROM THE TEAM
To achieve the sales targets given
To participate in all the meetings being placed
Attending all the training programs being arranged
Report for the weekly reviews at the office
Regularly following the sales process
And the advisors are also required to follow the weekly reporting
process.
CAREER PROGRESSION
THE TIGER TEAM
44. It is an exclusive program achievers among the advisors but the
scope of progression is limited only to a few hand picked all round
performers. The TIGER TEAM represents a fast track career path for the
advisors. The successful candidates are recognized as Tigers. One
continues to do his/her business but the benefits comes added on. The
criteria for selections are:
Age 25-40 years
At least one year of working in the system
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Case count should be at least of two per month.
THE MOBILE TIGERS
45. This program offers the following benefits:
Part time career as a trainee
To conduct foundation programs
Opportunity to share the best field practices
Chance to replicate one’s own business
Freedom to continue with one’s business
46. The selection criteria for this program are:
Age 25-40 years
At least six months of working in the system
Case count of at least two per month
THE PINNACLE PROGRAM
47. This program is for the high achievers in the system & the major
benefits that are on offer are as following:
A full time career as a Unit Manager
The possibility of growth within SBI Life
Greater earning potential
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The scope for personal development
48. The selection criteria for this program are:
Age 25-40 years
At least six months of working in the system
Case count of at least two per month
FAST TRACK PINNACLE PROGRAM
49. This program offer following features:
Offering a full time career as a Unit Manager
Opportunity of growth within SBI Life
Scope of greater earning potential
The scope for personal development
50. The selection criteria for this program are:
Age 25-40 years
At least six months of working in the system
Case count of at least five per month (for 6 months)
AGENCY CHAMPION
51. This is the highest level of career progression on offer. It has got
several distinct features, which sets it apart from all the above mentioned
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programs. This program aims at rewarding the super-achievers working
with the company. The features of this program are as follows:
The chance of taking one’s business to higher level.
To develop one’s own business, i.e. to develop into an entrepreneur
The freedom of recruiting new advisors & making one’s own team
The potential of increased reach of network
52. The selection criteria for this program are as following:
At least one year of working I the system
Minimum of 36 policies & Rs. 3.60 lacs premium
Selection process (assessment center)
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THE TYPICAL CAREER PROGRESSION PATH
SALES MANAGER
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UM Trainer 12-18
MonthsAdvisor
Trainer RoleBSM
ASMTrainer 12-18
MonthsAgency Manager
COMMISSION STRUCTURE
53. The production targets shall be split into two stages:
(a) Minimum Business Guarantee (MBG)
(b) Bonus Target
Minimum Business Guarantee (MBG)
54. The Minimum Business Guarantee are as below :-
The minimum business that has to be achieved
Every quarter required to sell at least three policies & collect Rs.
20,000 as FYP
Weightage for premium on single premium is 10%
Only the premium received in a quarter will be considered
FYP implies premium for all new business in that quarter
Annual target of Rs. 80,000 FYP & 12 policies to be met
BONUS TARGET
55. The advisors are aptly rewarded for higher levels of productivity that
they achieve. The bonus targets for such achievers are as following:
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SBI Life Insurance
56. SBI Life Insurance Company is a joint venture between SBI
Bank, a premier financial powerhouse and Cardif SA of France, a
leading international financial services group headquartered in the
France. SBI Life Insurance begins its operation in 2002 after
receiving approval from the Insurance Regulatory Development
Authority (IRDA).
57. For the year ended March 31, 2006, the company garnered Rs
24.12 billion of weighted new business premium and wrote 837,963
policies. The sum assured in force stands at Rs 458.88 billion. The
company has a network of over 72,000 advisors; as well as 9 banc
assurance partners and over 200 corporate agent and broker tie-ups.
It is also the only life insurer in India to be assigned AAA credit
rating from Fitch Ratings. For the past five years, SBI Life 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. SBI Bank and Cardiff SA of
France hold 74 percent and 26 percent stake respectively.
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OUR VISION
58. To make SBI Life Insurance the dominant Life and Pensions player
built on trust by world-class people and service.
This we hope to achieve by:
Understanding the needs of customers and offering them superior
products and service
Leveraging technology to service customers quickly, efficiently and
conveniently
Developing and implementing superior risk management and
investment strategies to offer sustainable and stable returns to our
policyholders
Providing an enabling environment to foster growth and learning for
our employees
And above all, building transparency in all our dealings.
59. The success of the company will be founded in its unflinching
commitment to 5 core values -- Integrity, Customer First, Boundary less,
Ownership and Passion. Each of the values describes what the company
stands for, the qualities of our people and the way we work.
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60. We do believe that we are on the threshold of an exciting new
opportunity, where we can play a significant role in redefining and
reshaping the sector. Given the quality of our parentage and the
commitment of our team, there are no limits to our growth.
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OBJECTIVE
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OBJECTIVE
i. Objective One
1. The objective of the research done for the company was to know
about the current perception about the company & its products. Moreover
the secondary aim was also to increase the company’s database of
prospects by getting the contacts of the respondents.
ii. Objective Two
2. However, if looked into the questionnaire the purpose of attracting
the incumbents towards the company & its network of channel was on
whole quite successful exercise.
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
SIGNIFICANCE OF THE STUDY
i. Significance to the industry.
1. The company would know on what areas to improve, to face the
competition, and also ways and means to beat it. It helps the company to
know about the consumer behavior and their likings etc.
ii. Exploratory/descriptive/experimental Research etc
Practical knowledge.
Working environment of the company
We learnt how to bring our theoretical knowledge into practice.
RESEARCH DESIGN
2. Primary Data: For the purpose of collecting primary data, the
researcher has adopted the method of survey. Survey can be telephonic, by
mail personal and by the diary. For the purpose of collected detailed
information, researcher has chosen surveys based on personal interview –
by means of questionnaire.
3. Secondary Data: It has been collected from various books and
internet sites. Researcher has adopted this method of data collection, as the
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researcher liters no access to magazines and journal but a plenty of
material was available on the internet sites.
SAMPLING METHODOLOGY
4. Sampling Technique:
a. Convenient sampling techniques is used to determined the customer
satisfaction of SBI Life Insurance Products and HDFC Standard Life
Insurance products.
b. Random sampling is done to determine the market share of the
company over other competitors.
5. Sampling Area: Delhi
6. Sample Size: Sample size for the study of customer satisfaction is
100 customers who have taken Life Insurance plans by SBI Life Insurance
Company.
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LIMITATIONS OF THE STUDY
1. As we all know that for every good work there should be some
leakages also. Here leakages means some drawbacks. What I had found are
expected to be as follows:
Lack of proper advertisement over the market.
Growing awareness is very low.
Segmented area is very specific.
Network over the work is very exhaustive.
Company always believes their own channels.
Flow of information moves very slow.
Carelessness in selection procedure.
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DATA ANALYSIS AND
INTERPRETATION
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DATA ANALYSIS
1. When you hear the word insurance, what comes to your mind first?
L.I.C. Investment Tax Saver Don’t Know
42% 18% 37% 3%
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2. Insurance companies are now privatized?
Yes No Don’t Know
70% 27% 3%
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3. Can you name a few insurance companies?
PSU’s Private Both Don’t Know
32% 28% 38% 2%
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4. Do you have an insurance policy?
Yes No
82% 18%
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5. The main aim to buy insurance policies is to
Save tax As investment Both
40% 25% 35%
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6. Do you plan to buy insurance policy in next 3-4 months?
Yes No Can’t say
43% 25% 32%
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7. Would you be willing to buy insurance policy from a private
company?
Yes No Can’t say
28% 42% 30%
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8. Do you know which channel of distribution is most popular in
selling insurance?
Advisors Brokers Banc assurance All Don’t Know
30% 17% 9% 43% 1%
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9. How much is the earning of an advisor?
Limited Unlimited Don’t Know
46% 22% 32%
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10. Do you have any idea about the benefits of an advisor?
Career Progression No Growth Chance No Idea
33% 27% 40%
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11. Do you currently have an agency for any insurance company?
Yes No
37% 63%
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12. Would you like to join as an insurance advisor?
Yes No Can’t Say
15% 70% 15%
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INTERPRETATION
Most of the people contacted were aware of the company but were very
much unaware of the company’s product & their comparative
advantages over the competition in the market.
Being an insurance advisor is seen as an additional source of income &
not a full time employment by most of the people, least a career.
There were respondents who were existing advisors of other companies
but were interested in getting their family members registered as the
company’s advisor
The target population for the study was mostly the self-employed
segment so the urge to earn more money sitting at home was very much
evident
The biggest hurdle in getting the process completed was the
obligation to undergo 100 hours of training. Most of the people were
very reluctant in undergoing training which was time consuming &
disturbing to their primary work
Even the option of online training was not that impressive to them due
to lack of computer knowledge
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Further, the next problem that was evident was the prescribed fee of Rs.
1,000 was at times too much for the people specially for those who
come in the lower middle class but who do possess a good social
network & could be a viable option for the company
As regard the perception of the company is concerned the most
outstanding factor that stood out was the inability, on the respondent’s
side, to differentiate between the SBI Life & the LIC. Moreover the
policies of the LIC were also casting their effect on the benefits being
spelt out to the prospect.
Another important factor for the company was that all the respondents
were aware of the SBI brand name & hence the company’s name & its
international linkage is likely to pay off in the coming period of time
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RECOMMENDATIONSAND
SUGGESTIONS
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RECOMMENDATIONS AND SUGGESTIONS
1. The insurance company has to continuously upgrade its products by
continuously assessing the changing needs of the prospects and clients.
There should be a up gradation of the employees by giving them training
from time to time and motivation with the ingredients of professionalism
like ethics, service, compliance and quality.
2. The company has not exploited various sources which have a huge
business potential. for e.g. I gave 7 recruitments from a desk of SBI bank
very near to our branch office at videocon tower. Still there are lot of
willing and potential people who can give very good business to the
company.
3. Better marketing activities are required, so that the awareness can be
increased specially among corporate.
4. More products, which give assured returns, should be there for the
investors because most of the investors ask about security part of the
policies especially during the time of slow down of the economy and to tap
the investors who at present investing in fixed deposit.
5. Better follow-up activity is required to tap the potential customers.
Tax saving scheme should be modified according to the requirements of
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the investors because a lot of persons are saving to reduce their tax
liability. The policies should be made such that it is viewed as hedging
tools to earn risk-free returns i.e. it should be considered more than just a
risk cover.
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CONCLUSION
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CONCLUSION
1. The company is in the regular process of investing considerably in
expanding the advisor base & administration & building infrastructure to
meet demand in the increasing market. The company’s group business is
also beginning to show results, with restructured group gratuity,
superannuation & term products attracting 85 corporate clients. A new
employee goes through a two day induction module which introduces
him/her to the life insurance industry, concepts of life insurance, the shared
values of the company as well as information on the company & core
business processes, which is reinforced through an intranet based induction
module which can be accessed anywhere, anytime
2. Training focuses on a learning architecture addressing both
development of generic & functional competencies comprising the four
areas of leadership, business mastery, personal effectiveness & functional
mastery
3. The attrition for the company is 1.5%. it believes that people stay
with for the excitement & learning they get at the workplace. The
compensation strategy is based on the threefold model of pay for
Performance, Pay for the Job & Pay in line with the market.
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4. The company anticipates the market place to get increasingly
competitive & it believes that its first mover advantage will pay rich
dividends & enable to consolidate the leadership position amongst the
private sector insurance players.
5. Being an SBI Life insurance advisor can be one of the most
rewarding careers you will find. It is also hard work. But at SBI life, your
hard works pays off in the form of compensation & recognition
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ANNEXURE
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REFERENCES
Books:
Financial Management (Prasanna Chandra, Chap- 40, Page 1064)
Marketing Research (N.K Malhotra. Ed-4th, Cap-12,)
Magazines:
Economic Times
The Hindu
Site Referred:
www.sbilife.co.in
www.economictimes.com
www.irdaindia.org
www.sbibank.com
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QUESTIONNAIRE
1. Do you awareness of SBI l Life Insurance?
Yes No
2. Are you aware of the tie-up between SBI and Cardiff of France?
Yes No
3. What you think about the products offered by SBI Life ?
Good Average
Bad Can’t Say
4. How important for you life insurance?
Very important Important
Not important Not aware
5. Insurance products are :
Investment plans Tax saving plans
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Life Concern All of the above
6. What you think about the career in insurance sector?
Exciting Like any other career
Not interesting Can’t say
7. What do you think is most important in the market linked plans of SBI
Life ?
Flexibility Life concern
Better return
8. Why do you want to join the insurance sector ?
Good Incentives Working Flexibility
Growth Brand Name
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