LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT Report
on Summer Training
HDFC STANDARD LIFE INSURANCE COMPANY
CAREER PATH IN HDFC STANDARD LIFE Submitted to Lovely
Professional University
In partial fulfillment of the Requirements for the award of
Degree of Bachelor of Business Administration
Submitted by:Mukesh Verma 3020070181DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (PUNJAB) (2007-2012) 1
CONTENTSTITLE PAGE NO.
ACKNOWLEDGEMENT.4
DECLARATION...................................................................................5
CERTIFICATE......................................................................................61.
2. 3.
EXECUTIVE
SUMMARY....................................................................8
LITERATURE SURVEY AND
REVIEW.............................................11
INTRODUCTION.13
INSURANCE INDUSTRY IN INDIA AN OVERVIEW..13 HISTORY...14 KEY
MILESTONES..15 INDUSTRY PERFORMANCE..15 PRESENT SCENARIO..16 MAJOR
COMPETITORS..17
4. INTRODUCTION TO HDFC & STANDARD LIFE.19 5. HDFC STANDARD
LIFE INSURANCE COMPANY LIMITED24 INTRODUCTION 24 BUSINESS
GROWTH..25 KEY STRENGTH..........................26 CORPORATE
OBJECTIVE..27 VISION...27 VALUES.27 BOARD MEMBERS..28 MARKET 30
MILESTONE IN THE HISTORY.31 2 SHARE..
PRODUCT &
SERVICES..................................................................................32
ADVERTISEMENT & SALES PROMOTION.................35 FINANCIAL
PERFORMANCE..36 FUTURE PLANS..39
6. CAREER PATH IN HDFC SLIC41 CAREER PATH 41 Channel Development
Department.42 Sales Department44 BUSINESS DESCRIPTION.45 DESIRE
PROFILE46 JOB DESCRIPTION FOR FINANCIAL CONSULTANTS...46
7. RECRUITMENT PROCESS OF FCs48 WHAT ARE THE ROLES OF A
FINANCIAL CONSULTANT? .49
LICENSING PROCESS..57 Step 1 : Registration 57 Step 2 : IRDA
Training...58 Step 3 : IRDA Examination....58
8. RESEARCH METHODOLOGY ....60 OBJECTIVE OF THE PROJECT... 60
RESEARCH PLAN....60 RESEARCH DESIGN61 DEVELOPING THE RESEARCH
PLAN.61 COLLECTION OF DATA.61 SAMPLING PLAN61
9. DATA ANALYSIS, INTERPRETATION AND PRESENTATION64 10.SWOT
ANALYSIS..81 3
11.CONCLUSION..84 12.SUGGESTIONS AND RECOMMENDATIONS..86
13.BIBLIOGRAPHY88 14.ANNEXURE...90
ACKNOWLEDGEMENT
I would like to thank my project guide, all professors for
supporting me during this project and providing me an opportunity
to learn outside the classroom. It was a truly wonderful learning
experience.
I would like to thank my industry guide Mr. Ashish Pratap
Sisodia (Channel Development Manager) for guiding me through my
summer internship and research project. His encouragement, time and
effort are greatly appreciated.
I would also like to thank Mr. Deepesh Kumar (Channel
Development Manager) of Subhash Nagar branch who suggested me such
a nice topic Career Path In HDFC SLIC, he actually helped us during
our initial days and was always there with us during hard times. I
would like to thank all those people who helped in filling up the
questionnaire and provided valuable feedback which helped in data
analysis and supported our research. Last but not the least I would
like to thank Mr. Bill Gates for his MS Office I could not be able
to make my Project Report in printed and attract form. 4
Mukesh Verma
DECLARATION
I hereby declare that the project report titled CAREER PATH IN
HDFC SLIC is my own work and has been carried out under the able
guidance of Mr. Ashish Pratap Sisodia, Channel Development Manager,
Subhash Nagar Branch New Delhi 110027 and , Faculty, Lovely School
of Business, Punjab. All care has been taken to keep this report
error free and I sincerely regret for any unintended discrepancies
that might have crept into this report. I shall be highly obliged
if errors (if any) are brought to my attention. Thank You.
Mukesh Verma BBA-MBA (INT.) Vth SEM. 30200701815
6
CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN
This is to certify that Mr. MUKESH OF LOVELY SCHOOL OF BUSINESS,
LOVELY PROFESSIONAL UNIVERSITY, PUNJAB has successfully completed
his
Project title CAREER PATH IN HDFC SLIC From 1st JULY, 2009 TO
14th AUGUST, 2009.
With HDFC Standard Life Insurance company Ltd.
We wish him good luck for his career. Manager CD HDFC STANDARD
LIFE INSURANCE ASHISH PRATAP SISODIA SUBHASH NAGAR BRANCH NEW
DELHI
7
CHAPTER 1
8
EXECUTIVE SUMMARY OF THE PROJECTIntroductionHDFC Standard Life
Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance
solutions and providing the career opportunities to its employees.
It is a joint venture between Housing Development Finance
Corporation Limited (HDFC Ltd.), India's leading housing finance
institution and a Group Company of the Standard Life, UK. HDFC as
on December 31, 2007 holds 72.38 per cent of equity in the joint
venture.
OBJECTIVE OF THE STUDY: 1. To study the benefits for the
employees of the organization. 2. To study the career path of the
organization. 3. Recruitment of financial consultant. 4. SWOT
analysis
SCOPE OF THE STUDY The study will limited to HDFC Standard and
its employees career path for their bright future and also
employees and Delhis people survey about the perceptions toward the
HDFC SLIC environment in the organization.
SIGNIFICANCE OF THE STUDY SWOT analysis is a tool for auditing
an organization and its environment. It is the first stage of
planning and helps marketers to focus on key issues. SWOT stands
for strengths, weaknesses, opportunities and threats. Strengths and
weaknesses are internal factors and opportunities and threats are
external factors.
9
MANAGERIAL USEFULNESS OF THE STUDY
Before insurance sector was opened to the private sector Life
Insurance Corporation (LIC) was the only insurance company in
India. After the opening up of Insurance sector in India there has
been a glut of insurance companies in India. These companies have
come up with innovative and flexible insurance policies to cater to
varying needs of the individual. Opening up of the Insurance sector
has also forced the LIC to tighten up its belt and deliver better
service. All in all it has been a bonanza for the consumer.
Research Methodology THE MARKET SURVEY (QUESTIONNAIRE) A market
survey was undertaken to get some knowledge about the working
environment of organization, salary package, career path, for the
employees and quality of work life does plays a pivotal role for
the better men power and which kind is most powerful. This survey
was undertaken Subhash Nagar of DELHI & DELHIs people and
questionnaire method was used. SAMPLE SIZE The sample size for the
survey conducted was 200 respondents SAMPLING TECHNIQUE Random
sampling technique was used in the survey conducted. of the
collected data. The data is also neatly presented with the help of
statistical tools such as graphs and pie charts. Percentages and
averages have also been used to represent data clearly and
effectively. STUDY AREA The samples referred to Delhi City &
Branch in Subhash Nagar, New Delhi City.
10
CHAPTER 2
11
LITERATURE REVIEWS1. Choosing the Right Career PathBy Michael
Dylan July, 2007
http://www.woopidoo.com/articles/dylan/career-path.htm Choosing the
right career path is one of the most defining decisions we can make
in life. Our job not only says a lot about what kind of person we
are, but will influence what type of car we drive, what kind of
house we live in, the people we associate with, and more. But above
all these things, is the fact that we spend most of our waking
moments at work!. Which means that if our job does not fulfill us
or does not allow us to pursue our life goals, than it is not the
career we should spend the rest of our life doing.
We have to get clear about what it is that gives us fulfillment
in life, what fascinates us, or what we are passionate about. Once
our interests are defined, we have to think about what career paths
are available in that area. Sometimes there will be clear paths to
take, like when our passion is designing websites, the job options
could be to become a web designer, web programmer, or similar
positions. But other interests may need more creative ways of
thinking, like if you are passionate about collecting rare coins,
your path may not be so clear. You may have to look into several
sources of income; Owning a coin dealership, writing a guide to
collecting rare coins, having a website built, and/or selling coins
online.
Because of the responsibilities of modern life and the necessity
of money to support our lifestyle and family, we can't just quit
our job and immediately pursue our passion. It may take months or
years of planning while we continue to work in our 9 to 5 job and
bring in a regular wage. The important thing is that we are moving
towards the goal of doing what inspires us in life. Without the
clear focus and continual small steps towards achieving our dream
job, we would just be kidding ourselves.
We may have to take evening or weekend classes, attend seminars,
read books, or associate with people in your area of interest. If
it's a product that you plan to sell, perhaps you could 12
start selling it from home, at weekend markets, or setting up a
website to sell it from. When we're moving towards our dream job
and have a clear path before us it makes our 9 to 5 job less of a
problem. Rather than going to work each day and hating the things
we do, we can appreciate the job for being a step towards doing
what really inspires us. It is putting food on the table, paying
the rent, and funding the way towards the right career path.
2. A recession-proof career path? Only for the lucky onesBy: Tim
Harford 8th August, 2009. Source:-
http://timharford.com/2009/08/a-recession-proof-career-path-only-for-the-lucky-ones/
How long will the economic downturn last? While some claim to
see green shoots, others such as my colleague Martin Wolf see a
slow and painful process ahead. I have little to add to that
debate, but I can guarantee that for some of us, the impact of this
downturn will last a lifetime. That is the conclusion I draw from
the research of Till Marco von Wachter, an economist at Columbia
University, who has been tracing the lasting effects of bad luck in
the job market. Having to look for a job at the wrong time can
force us into compromises whose repercussions can last years or
even decades. For example, when von Wachter teamed up with two US
government economists, Jae Song and Joyce Manchester, to study the
experiences of those hurled into unemployment by mass layoffs in
the 1982 US recession, they discovered horrendously long-lasting
effects. The recession itself one often compared with todays
downturn was savage, but it was over in less than two years. Yet
von Wachter and his colleagues discovered that those who lost their
jobs had incomes about 20 per cent lower than would otherwise be
expected, even two decades later. 13
It is possible that this result is really capturing the effect
of being a less productive (and thus expendable) worker, or of
being trapped in a declining industry. But that is unlikely. Such
mass layoffs are by their nature indiscriminate, and the
researchers tried hard to compare like with like. The results
remain robust and they match similar research done in Germany, and
earlier studies in the US with smaller data sets. Why such a big
effect? In part, it is a question of luck. Most people who have
secured a decent, secure, full-time job have enjoyed a dose of luck
in doing so. It is hard to get lucky twice, A similar problem lies
in wait for those graduating during a recession. People have to
make compromises, says von Wachter, which often means taking a
stopgap job with a less glamorous employer, and trying to switch
careers or switch employers later on. The longer this process
takes, the longer the impact on the unlucky cohort of
graduates.
3. Overcome Your Career Change Fear: 5 Expert TipsBy: Michael
Jones February 1, 2007 Source:-
http://blogs.payscale.com/content/2007/02/overcome_your_c.html If
you're ready for a career change but haven't yet figured out how to
get there, follow these tips from Harvard's Dr. Timothy Butler and
life coach C.J. Liu. Before you know it, you'll be on your way to a
new career.
1. Look at the issues that make you crave change and outline
your goals. What are you satisfied with about your current
situation? What are you dissatisfied with? Is it your boss or the
culture of your organization? Or do you really want to change
careers? Outline your goals - for example, more money, more time
off or more flexibility. Write it all down. 2. Work to understand
14 your inner critic
Observe thoughts that trap you with fear and prevent you from
achieving your objectives. Write these down on a piece of paper,
then crumple it up and throw it away to symbolize your freedom 3.
work from Recognize environment thoughts that interfere with your
in to you? goals and dreams. life it down.
recurring feel or not
patterns so good
your Write
What makes you happy? What are your recurring interests and
social needs? What makes a
4. Network and investigate career interests that map to your
goals and needs Once you've identified your patterns and desires,
start thinking about careers that make sense for you. Give yourself
one to three months to explore your curiosity by finding people who
do these jobs and talking about the pros and cons of their work.
Explore anything and everything until 5. you're Make a satisfied
plan that takes or until your your time situation runs into out.
account.
financial
Change is never simple, but having a plan that outlines your
steps and financial requirements makes it doable. Will your new
career require additional education, a small business loan, time
off from work or relocation? Make a plan with financial
considerations and a realistic timeline and that you can follow
through on.
15
4. Womens Careers Pathways & Pitfalls
By:- Suzanna Rose & Laurie Larwood Yaer 1998
Source:http://www.questia.com/read/28638447?title=Women%27s%20Careers%3a%20Pathw
ays%20and%20Pitfalls A growing interest in women's careers has
spread to personal, academic, and organizational life. The
proliferation and quality of research on women and work that we saw
as program chairs of the 1986 International Conference on Women and
Organizations inspired us to edit this book. included here. Our
goal was to select timely topics that had immediate relevance to
career women, students, and scholars of women and work. Part I of
the book begins with an introduction by the editors which
highlights five major issues that affect working women and what has
been learned about those issues in the 1980s. Other chapters are
ordered thematically. In Part II, "Personal Career Planning," the
themes touch on pathways and pitfalls confronting women as they
plan their career strategies. In Chapters 2, 3, and 4, Shapiro and
Farrow discuss the merits of mentors, Case analyzes women's speech,
and Ely explores women's leadership styles, respectively; with an
eye to how women can apply the information to their own work
situation. Family relationships also have been shown to affect
women's careers. In Chapter 5, "Husbands' Job Satisfaction and
Wives' Income," and Chapter 6, "Have Women's Career and Family
Values Changed?" questions are raised concerning the relationship
between marriage, family, and careers. In Chapter 7, Chao and Malik
present a career planning model which ties together individual,
organizational, and societal constraints and facilitators of
professional development. That highly successful conference was the
source of several chapters
16
5. Changing Careers for More Money
By: Ms. Liu May 21, 2009
Source:http://blogs.payscale.com/career-coach/2009/05/changing-careers-for-moremoney.html
I read your article online, "Ask the Career Coach" on Payscale.com.
I found it very interesting and helpful and will practice the steps
you mentioned in order to find the job of my dreams. I am very
dissatisfied at my current job. I am an office manager for a cigar
distributor company. It is a small company; I am in the office most
of the time by myself. I oversee all operations of the company. My
role includes everything from answering phones, making sales,
taking care of the books and conducting weekly meetings with sales
staff in different states to packaging and shipping cigars,
etc.
My employer is also in the process of starting a construction
company, for which I am preparing all related documents and
applications. I used to work with my current employer in a
construction company he used to own prior to starting the cigar
business.
I am unhappy because I don't see any room for growth any time
soon unless the construction company kicks off in the next few
months. But I am thinking of now; I need change now. The salary is
not bad but I want more and I don't foresee getting more any time
soon. Also, my husband owns a subcontractor company. Its small but
he has been in business for over 10 years. He owns the company
along with his mother and brother. I help sometimes since I do have
experience in construction, but can only help so much. I do not
want them to feel like I want to take over. So I decided to start
my own company with my husband to do jobs on the side with both of
us keeping our current positions. That did not work since the
license he has is already under his company's name. Now I would
need a license in order for us to be able to pull permits under our
company's license. So we are stuck in that sense and I am very
disappointed that it did not go far. 17
6. Career paths of global managers: Towards future researchBy:
Tineke Cappellen & Maddy Janssens 12 September 2005. Source:
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6W5M-4H3939T1&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId
=997154270&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_useri
d=10&md5=d748a3e12a1c4e2d409c9889f3f20dd6 The aim of this paper
is to identify potentially productive areas where future research
on global managers careers is warranted. Approaching career as a
path, we conceptualize a global career path as an intersection of
three domains: an individual, an organizational and a global
environment domain. To identify, within each domain, the most
important factors influencing a global career, we first conducted a
review of the literature on boundaryless careers and global
managers. This review allowed us to identify those factors that are
most relevant to the changing nature of careers and global
assignments. We then reviewed past empirical research on
international careers to map how previous studies have addressed
those factors, further guiding us to formulate directions for
future research on global careers. As well as indicating these
specific research implications, we propose a contextualized
research approach that facilitates understanding of different
career moves over time as well as the overall direction of a global
career path.
CHAPTER 318
INTRODUCTIONTHE INSURANCE INDUSTRY IN INDIA AN OVERVIEWWith the
largest number of life insurance policies in force in the world,
Insurance happens to be a mega opportunity in India. Its a business
growing at the rate of 15-20 per cent annually and presently is of
the order of Rs 1560.41 billion (for the financial year 2006 2007).
Together with banking services, it adds about 7% to the countrys
Gross Domestic Product (GDP). The gross premium collection is
nearly 2% of GDP and funds available with LIC for investments are
8% of the GDP. Even so nearly 65% of the Indian population is
without life insurance cover while health insurance and non-life
insurance continues to be below international standards. A large
part of our population is also subject to weak social security and
pension systems with hardly any old age income security. This in
itself is an indicator that growth potential for the insurance
sector in India is immense. A well-developed and evolved insurance
sector is needed for economic development as it provides long term
funds for infrastructure development and strengthens the risk
taking ability of individuals. It is estimated that over the next
ten years India would require investments of the order of one
trillion US dollars. The Insurance sector, to some extent, can
enable investments in infrastructure development to sustain the
economic growth of the country. (Source: www.indiacore.com)
19
HISTORICAL PERSPECTIVE 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 insurance charged for
Indian lives was more than the non - Indian lives, as Indian lives
were considered more risky to cover. The Bombay Mutual Life
Insurance Society started its business in 1870It was the same
company to charge same premium for both Indian and non Indian
lives. The Oriental Assurance Company was established in 1880. The
General insurance business in India, on the other hand, can trace
its roots to Triton Insurance Company Limited, the first general
insurance company established in the year 1850 in Calcutta by the
British. Till the end of the nineteenth century insurance business
was almost entirely in the hands of overseas companies. Insurance
regulation formally began in India with the passing of the life
insurance Companies Act of 1912 and the Provident Fund Act of 1912.
Several frauds during the 1920's and 1930's sullied insurance
business in India. By 1938 there were 176 insurance companies. The
first comprehensive legislation was introduced with the Insurance
Act of1938 that strict State Control is there over the insurance
business. The insurance business grew at a faster pace than other
business. Indian companies strengthened their hold on this business
but despite the growth that was witnessed, insurance remained an
urban phenomenon. The Government of India in 1956, brought together
over 240 private life insurers and provident societies under one
nationalized monopoly corporation and Life Insurance Corporation
(LIC) was born. Nationalization was justified on the grounds that
it would create the much needed funds for rapid industrialization.
This was in conformity with the Government's chosen path of State
led planning and development. The non-life insurance business
continued to thrive with the private sector till 1972. Their
operations were restricted to organized trade and industry in large
cities. The general insurance industry was nationalized in 1972.
With this, nearly 107 insurers were amalgamated and grouped into
four companies- National Insurance Company, New India Assurance
Company, Oriental Insurance Company and United India Insurance
Company. These were subsidiaries of the General Insurance Company
(GIC).
20
KEY MILESTONES1912: The Indian Life Assurance Companies Act
enacted as the first statute to regulate the life
insurance business.1928: The Indian Insurance Companies Act
enacted to enable the government to collect
statistical information about both life and non-life insurance
businesses.1938: Earlier legislation consolidated and amended by
the Insurance Act with the objective of
protecting the interests of the insuring public.1956: 245 Indian
and foreign insurers along with provident societies were taken over
by the
central government and nationalized. LIC was formed by an Act of
Parliament- LIC Act 1956with a capital contribution of Rs. 5 crore
from the Government of India.
INDUSTRY REFORMS Reforms in the Insurance sector were initiated
with the passage of the IRDA Bill in Parliament in December 1999.
The IRDA since its incorporation as a statutory body in April 2000
has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies. Since being set
up as an independent statutory body the IRDA has put in a framework
of globally compatible regulations. The other decision taken
simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the
launch of the IRDA online service for issue and renewal of licenses
to agents. The approval of institutions for imparting training to
agents has also ensured that the insurance companies would have a
trained workforce of insurance agents in place to sell their
products.
21
PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA The life
insurance industry in India grew by an impressive 47.38%, with
premium income at Rs. 1560.41 billion during the fiscal year
2006-2007. Though the total volume of LIC's business increased in
the last fiscal year (2006-2007) compared to the previous one, its
market share came down from 85.75% to 81.91%. The 17 private
insurers increased their market share from about 15% to about 19%
in a year's time. The figures for the first two months of the
fiscal year 2007-08 also speak of the growing share of the private
insurers. The share of LIC for this period has further come down to
75 percent, while the private players have grabbed over 24 percent.
With the opening up of the insurance industry in India many foreign
players have entered the market. The restriction on these companies
is that they are not allowed to have more than a 26% stake in a
companys ownership. Since the opening up of the insurance sector in
1999, foreign investments of Rs. 8.7 billion have poured into the
Indian market and 19 private life insurance companies have been
granted licenses.
22
WHO ARE THE COMPETITORS OF HDFC SLIC?
23
CHAPTER 4
24
INTRODUCTION TO HDFC & STANDARD LIFE
HDFCHDFC Incorporated in 1977 with a share capital of Rs 10
Crores, HDFC has since emerged as the largest residential mortgage
finance institution in the country. The corporation has had a
series of share issues raising its capital to Rs. 119 Crores. The
gross premium income for the year ending March 31, 2007 stood at
Rs. 2,856 Crores and new business premium income at Rs. 1,624
Crores. The company has covered over 31, 2007. HDFC operates
through almost 450 locations throughout the country with its
corporate head quarters in Mumbai, India. HDFC also has an
International Office in Dubai, UAE with service associates in
Kuwait, Oman and Qatar. HDFC is the largest housing company in
India for the last 27 years. , 8, 77,000 lives year ending
March
SNAPSHOT-I Incorporated in 1977 as the first specialized
Mortgage Company in India. Almost 90% of initial shareholding in
the hands of domestic institutes and retail investors. Current 77%
of shares held by foreign institutional investors. Besides the core
business of mortgage HDFC has evolved into a financial conglomerate
with holdings In: HDFC Standard Life insurance Company- HDFC holds
78.07 %. HDFC Asset Management Company HDFC holds 50.1% HDFC Bank-
HDFC holds 22.25%. Intelenet Global (Business Process Outsourcing)
HDFC holds 50% 25
.HDFC Chubb General Insurance Company HDFC holds 74%.
SNAPSHOT-II Loan Approvals (up to Dec 2007) Loan Disbursements
(up to Dec. 2007) Housing Units Financed Distribution Offices
Outreach Programs 181 90 Rs. 805 billion. (US $ 18.30 bn.) Rs.669
billion (US $ 15.20 bn) 2.5 million.
KEY PLAYERSMr. Deepak S Parekh is the Chairman of the Company.
He is also the Executive Chairman of Housing Development Finance
Corporation Limited (HDFC Limited). He joined HDFC Limited in a
senior management position in 1978. He was inducted as a whole-time
director of HDFC Limited in 1985 and was appointed as its Executive
Chairman in 1993. He is the Chief Executive Officer of HDFC
Limited. Mr. Parekh is a Fellow of the Institute of Chartered
Accountants (England & Wales).
Mr. Deepak M Satwalekar is the Managing Director and CEO of the
Company since November, 2000. Prior to this, he was the Managing
Director of HDFC Limited since 1993. Mr. Satwalekar obtained a
Bachelors Degree in Technology from the Indian Institute of
Technology, Bombay and a Masters Degree in Business Administration
from The American University, Washington DC.
26
GROUP COMPANIESHDFC Bank: World Class Indian Bank- among the top
private banks in India. HDFC AMC: One of the top 3 AMCs in India-
Preferred investment manager. Intelenet Global: BPO services for
international customers. CIBIL: Credit Information Bureau India
Limited. HDFC Chubb: Upcoming Private companies in the field of
General Insurance. HDFC Mutual Fund HDFC reality.com: Helps to
search properties in all major cities in India HDFC securities
STANDARD LIFEStandard Life is Europes largest mutual life
assurance company. Standard Life, which has been in the life
insurance business for the past 175 years is a modern company
surviving quite a few changes since selling its first policy in
1825. The company expanded in the 19th century from kits original
Edinburgh premises, opening offices in other towns and acquitting
other similar businesses. Standard Life Currently has assets
exceeding over 70 billion under its management and has the
distinction of being accorded AAA rating consequently for the six
years by Standard and Poor. 27
SNAPSHOT Founded in 1875, company supporting generation for last
179 years. Currently over 5 million Policy holders benefiting from
the services offered. Europes largest mutual life insurer.
JOINT VENTURE
Country of registration or Share class Name incorporation and
proportion held Year end Nature of business Heng An Standard Life
China Ordinary shares 50.0% 31 Dec Life assuranceHDFC Standard Life
Insurance Company Limited** IndiaOrdinary shares 18.6% 31 Mar Life
assuranceHDFC Asset Management Company Limited* ** India Ordinary
shares 49.9% 31 Mar Investment management* Owned by a subsidiary
undertaking of the Company.** The Company also has a 14.5% interest
in Housing Development Finance Corporation Limited (HDFC Limited).
HDFC Limited owns 81.4% and 50.1%of HDFC Standard Life Insurance
Company Limited and HDFC Asset Management Company respectively.
This gives theGroup an effective interest in thesecompanies of 30%
and 57% respectively. The Company does not exercise dominant
influence over either of these joint ventures.The current
operations of these companies are not significant in relation to
the accounts of the Group.
28
CHAPTER 5
29
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED
INTRODUCTION HDFC Standard Life Insurance Co. Ltd was
incorporated on 14th august 2000. It is a joint venture between
HousingDevelopment Finance Corporation Limited (HDFC Ltd.) India
And UK based Standard Life Company. Both the joint venture partners
being one of the leaders in their respective areas came together in
this 81.4:18.6 joint venture to form HDFC Standard Life Insurance
Company Limited. Mr. Deepak Satwalekar is the MD and CEO of the
venture.HDFC Standard Life brings to you a whole range of insurance
Solutions be it group or individual or NAV services for
Corporations, they can be easily customized as per specific needs.
HDFC Standard Life Insurance India boasts of covering around 8.7
lakh lives by March'2007. The gross incomes standing at a whopping
Rs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sure
to become one of the leaders and the first preference for any life
insurance customer. HDFC Standard Life Insurance Company Ltd.
offers a range of individual and group insurance solutions. It is a
joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), Indias leading housing finance institution and
one of the subsidiaries of Standard Life plc, leading providers of
financial services in the United Kingdom. The Standard Life group
has been looking after the financial needs of customers for over
180 years. It is a leading pensions provider in the UK. Both the
promoters are well known in their respective fields of activities.
For more details you may log on to http://www.hdfcinsurance.com
30
HDFC Standard Life Insurance Company Limited was one of the
first companies to be granted license by the IRDA to operate in
life insurance sector. Reach of the JV player is highly rated and
been conferred with many awards. HDFC is rated AAA by both CRISIL
and ICRA. Similarly, Standard Life is rated AAA both by Moodys and
Standard and Poors. These reflect the efficiency with which HDFC
and Standard Life manage their asset base of Rs. 15,000 Cr and Rs.
600,000 Cr. respectively. HDFC Standard Life Insurance Company Ltd
was incorporated on 14th August 2000. HDFC is the majority
stakeholder in the insurance JV with 81.4% staple and Standard of
as a staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the
venture. HDFC Standard Life Insurance Company Ltd. Is one of Indias
leading Private Life Insurance Companies, which offers a range of
individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Ltd.)
Indias leading housing finance institution and the Standard Life
Assurance Company, a leading provider of financial services from
the United Kingdom. Both the promoters are will known for their
ethical dealings and financial strength and are thus committed to
being a long-term player in the life insurance industry- all
important factors to consider when choosing your insurer.
BUSINESS GROWTHHDFC Standard Life, one of Indias leading private
life insurance companies declared its annual results for the
financial year ending March 31, 2009. The company generated Total
Premium Income of Rs. 5564.69 crores in FY2008-09 registering a
year-on-year growth of 15%. The growth was primarily driven by the
companys structured sales processes based on customer needs and
their assessments, wide range of product portfolio and diverse
distribution network. Mr. Paresh Parasnis, Principal Officer and
Executive Director, said, The financial year 200809 was a defining
year with the unfolding of several unexpected events sharp
correction in financial markets and a spread of recessionary
trends. These events also had an impact on the Indian life
insurance industry. We are happy that our new policies issued grew
by 16% over the last year. However, given the uncertainty in the
overall scenario, customers have reduced their 31
annual premium commitment on new policies. At the same time,
existing policies continued to be in force reflected in our renewal
premium, which posted a healthy growth of 34%. In line with overall
market conditions, growth in Effective Premium Income (EPI) in
respect of retail business increased by 5%, growing from Rs. 2,425
crores in 2007-08 to Rs. 2,552 crores in 2008-09. HDFC Standard
Life tracks its New Business Premium on the basis of Effective
Premium Income (EPI). EPI is calculated by giving only a 10% value
to a Single Premium policy and is an internationally accepted
indicator of an insurance companys performance. HDFC Standard Life
maintained its healthy pipeline of products last year by
launching11 products apart from slashing the premium rates of its
Term Assurance Plan premium rates by about 25% across different age
bands. Our entry into the health insurance market last year with
the launch of two products Surgi Care and Critical Care was a
significant move in line with our business objective. The low
penetration of health insurance in India gives us a tremendous
opportunity to provide quality health insurance. Our health
products along our complete range of life insurance and pensions
portfolio meet almost every aspect of an individuals requirements,
Mr. Parasnis added.
KEY STRENGTHFinancial ExpertiseAs a joint venture of leading
financial services group. HDFC standard Life has the financial
expertise required to manage long-term investments safely and
efficiently.
Range of SolutionsHDFC SLIC has a range of individual and group
solutions, which can be easily customized to specific needs. These
group solutions have been designed to offer complete flexibility
combined with a low charging structure.
Strong Ethical Values:HDFC SLIC is an ethical and Cultural
Organization. False selling or false commitment with the customers
is not allowed.
32
Most respected Private Insurance CompanyHDFC SLIC was awarded
No-1 Private Insurance Company in 2004 by the World Class Magazine
Business World for Integrity, Innovation and Customer Care.
CORPORATE OBJECTIVE Focus on the productivity of each
consultant, corporate or individual, while stressing on the quality
of proposals Quick roll out of Products Efficiency of Operations
Meet Social & Rural sector obligations
VISION'The most successful and admired life insurance company,
which means that we are the most trusted company, the easiest to
deal with, offer the best value for money, and set the standards.
.
'The most obvious choice for all'.
VALUESValues that we observe while we work: Integrity Innovation
Customer People Care Teamwork Joy and Simplicity
33
BOARD MEMBERSBrief profile of the Board of Directors Mr. Deepak
S Parekh is the Chairman of the Company. He is also the Executive
Chairman of Housing Development Finance Corporation Limited (HDFC
Limited). He joined HDFC Limited in a senior management position in
1978. He was inducted as a whole-time director of HDFC Limited in
1985 and was appointed as its Executive Chairman in 1993. He is the
Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of
the Institute of Chartered Accountants (England & Wales). Mr.
Keki M Mistry joined the Board of Directors of the Company in
December, 2000. He is currently the Managing Director of HDFC
Limited. He joined HDFC Limited in 1981 and became an Executive
Director in 1993. He was appointed as its Managing Director in
November, 2000. Mr. Mistry is a Fellow of the Institute of
Chartered Accountants of India and a member of the Michigan
Association of Certified Public Accountants. Mr. Alexander M
Crombie joined the Board of Directors of the Company in April,
2002. He has been with the Standard Life Group for 34 years holding
various senior management positions. He was appointed as the Group
Chief Executive of the Standard Life Group in March 2004. Mr.
Crombie is a fellow of the Faculty of Actuaries in Scotland. Ms.
Marcia D Campbell is currently the Group Operations Director in the
Standard Life group and is responsible for Group Operations, Asia
Pacific Development, Strategy & Planning, Corporate
Responsibility and Shared Services Centre. Ms. Campbell joined the
Board of Directors in November 2005. Mr. Keith N Skeoch is
currently the Chief Executive in Standard Life Investments Limited
and is responsible for overseeing Investment Process & Chief
Executive Officer Function. Prior to this, Mr. Skeoch was working
with M/s. James Capel & Co. holding the positions of UK
Economist, Chief Economist, Executive Director, Director of
Controls and Strategy HSBS Securities and Managing Director
International Equities. He was also responsible for Economic and
Investment Strategy research produced on a worldwide basis. Mr.
Skeoch joined the Board of Directors in November 2005. 34
Mr. Gautam R Divan is a practising Chartered Accountant and is a
Fellow of the Institute of Chartered Accountants of India. Mr.
Divan was the Former Chairman and Managing Committee Member of
Midsnell Group International, an International Association of
Independent Accounting Firms and has authored several papers of
professional interest. Mr. Divan has wide experience in auditing
accounts of large public limited companies and nationalised banks,
financial and taxation planning of individuals and limited
companies and also has substantial experience in structuring
overseas investments to and from India. Mr. Ranjan Pant is a global
Management Consultant advising CEO/Boards on Strategy and Change
Management. Mr. Pant, until 2002 was a Partner & Vice-President
at Bain & Company, Inc., Boston, where he led the worldwide
Utility Practice. He was also Director, Corporate Business
Development at General Electric headquarters in Fairfield, USA. Mr.
Pant has an MBA from The Wharton School and BE (Honours) from Birla
Institute of Technology and Sciences. Mr. Ravi Narain is the
Managing Director & CEO of National Stock Exchange of India
Limited. Mr. Ravi Narain was a member of the core team to set-up
the Securities & Exchange Board of India (SEBI) and is also
associated with various committees of SEBI and the Reserve Bank of
India (RBI). Mr. Deepak M Satwalekar is the Managing Director and
CEO of the Company since November, 2000. Prior to this, he was the
Managing Director of HDFC Limited since 1993. Mr. Satwalekar
obtained a Bachelors Degree in Technology from the Indian Institute
of Technology, Bombay and a Masters Degree in Business
Administration from The American University, Washington DC. Ms.
Renu S. Karnad is the Executive director of HDFC Limited, is a
graduate in law and holds a Master's degree in economics from Delhi
University. She has been employed with HDFC Limited since 1978 and
was appointed as the Executive Director in 2000. She is responsible
for overseeing all aspects of lending operations of HDFC
Limited.
35
MARKET SHAREHDFC Limited. HDFC is Indias leading housing finance
institution and has helped build more than 23,00,000 houses since
its incorporation in 1977. In Financial Year 2003-04 its assets
under management crossed Rs. 36,000 Cr. As at March 31, 2004,
outstanding deposits stood at Rs. 7,840 crores. The depositor base
now stands at around 1 million depositors. Rated AAA by CRISIL and
ICRA for the 10th consecutive year Stable and experienced
management High service standards Awarded The Economic Times
Corporate Citizen of the year Award for its long-standing
commitment to community development. Presented the Dream Home award
for the best housing finance provider in 2004 at the third Annual
Outlook Money Awards. Standard Life Group (Standard Life plc and
its subsidiaries) The Standard Life group has been looking after
the financial needs of customers for over 180 years It currently
has a customer base of around 7 million people who rely on the
company for their insurance, pension, investment, banking and
health-care needs Its investment manager currently administers 125
billion in assets It is a leading pensions provider in the UK, and
is rated by Standard & Poor's as 'strong' with a rating of A+
and as 'good' with a rating of A1 by Moody's Standard Life was
awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at Money
Marketing Awards, and it was voted a 5 star life and pensions
provider at Financial Adviser Service Awards for the last 10 years
running . The '5 Star' has also been awarded to Standard Life
Investments for the last 10 years, Standard Life Bank since its
inception in 1998. Standard Life Bank was 'Best Flexible Mortgage
Lender' at the Mortgage Magazine Awards in 2006 the the
accolade and to
awarded the
36
MILESTONES IN THE HISTORY HDFC is Indias leading housing finance
institution and has helped build more than 23, 00,000 houses since
its incorporation in 1977. In Financial Year 2003-04 its assets
under management crossed Rs.36,000Cr. As at March 31, 2004,
outstanding deposits stood at Rs. 7,840 crores. The depositor base
now stands at around 1 million depositors. Rated AAA by CRISIL and
ICRA for the 10th consecutive year Awarded The Economic Times
Corporate Citizen of the year Award for its longstanding commitment
to community development. Presented the Dream Home award for the
best housing finance provider in 2004 at the third Annual Outlook
Money Awards HDFC Standard Life Insurance is the first private life
insurance company to be granted a license by IRDA Rated as the
"Best New Insurer - 2003" by Outlook Money magazine, Indias number
1 personal finance magazine Rated by Business world as Indias Most
Respected Private Life Insurance Company in 2004. 47 Has the
highest brand recall, close to 80% (Source: AC Neilson ORGMARG,
April 2005) Has one of the widest branch networks with offices in
over 100 cities servicing over 440 towns
37
PRODUCTS & SERVICES
The right investment strategies won't just help plan for a more
comfortable tomorrow -- they will help you get Sar Utha ke Jiyo. At
HDFC SLIC, life insurance plans are created keeping in mind the
changing needs of family. Its life insurance plans are designed to
provide you with flexible options that meet both protection and
savings needs. It offers a full range of transparent, flexible and
value for money products. HDFC SLIC products are modern and
contemporary unitized products that offer unique customer benefits
like flexibility to choose cover levels, indexation and partial
withdrawals. (Source: www.hdfcslic.com) Innovative products, smart
marketing, and aggressive distribution have enabled fledgling
private insurance companies to sign up Indian customers faster than
anyone expected. Indians, who had always seen life insurance as a
tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer. Some of these
products include investment plans with insurance and good returns
(unit linked plans), multi purpose insurance plans, pension plans,
child plans and money back plans. (www.wikipedia.com)
38
Products of HDFC standard life insurance Individual Group Social
Individual Products We at HDFC Standard Life realize that not
everyone has the same kind of needs. Keeping this in mind, we have
a varied range of Products that you can choose from to suit all
your needs. These will help secure your future as well as the
future of your family. Protection Plans You can protect your family
against the loss of your income or the burden of a loan in the
event of your unfortunate demise, disability or sickness. These
plans offer valuable peace of mind at a small price. Our Protection
range includes our Term Assurance Plan & Loan Cover Term
Assurance Plan. Investment Plans Our Single Premium Whole Of Life
plan is well suited to meet your long term investment needs. We
provide you with attractive long term returns through regular
bonuses. Pension Plans Our Pension Plans help you secure your
financial independence even after retirement. Our Pension range
includes our Personal Pension Plan, Unit Linked Pension, Unit
Linked Pension Plus Savings Plans Our Savings Plans offer you
flexible options to build savings for your future needs such as
buying a dream home or fulfilling your children immediate and
future needs. Our Savings range includes Endowment Assurance Plan,
Unit Linked Endowment, Unit Linked Endowment Plus, Unit Linked
Endowment Plus II,
39
Unit Linked Enhanced Life Protection II, Children's Plan, Unit
Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young
Star Plus II.
40
Group Products One-stop shop for employee-benefit solutions HDFC
Standard Life has the most comprehensive list of products for
progressive employers who wish to provide the best and most
innovative employee benefit solutions to their employees. We offer
different products for different needs of employers ranging from
term insurance plans for pure protection to voluntary plans such as
superannuation and leave encashment. We now offer the following
group products to our esteemed corporate clients: Group Term
Insurance Group Variable Term Insurance Group Unit-Linked Plan
An investment solution that provides funding vehicle to manage
corpuses with Gratuity, Defined Benefit or Defined Contribution
Superannuation or Leave Encashment schemes of your company Also
suitable for other employee benefit schemes such as salary saving
schemes and wealth management schemes Social Product Development
insurance plan Development Insurance plan is an insurance plan
which provides life cover to members of a Development Agency for a
term of one year. On the death of any member of the group insured
during the year of cover, a lump sum is paid to those member
beneficiaries to help meet some of the immediate financial needs
following their loss. Eligibility Members of the development agency
and their spouses with: Minimum age at the start of the policy 18
years last birthday Maximum age at the start of policy 50 years
last birthday 41
ADVERTISEMENT AND SALES PROMOTION
Film opens in the compound of a house. Father is checking
something inside the bonnet of an old small car. His daughter,
around 27-28 years old, is working on a lap top next to him
Daughter: Dad. Father: Bolo Daughter: Nayi car lene mein hee
bhalaai hai. Dad nods in agreement without looking up. Dad:
Hmmm
Daughter continues affirmatively as she signs on a cheque.
Daughter: Aur wo bhi badi wali.
Dad looks at her Dad: Huh, Badi kyon?
and
asks.
Daughter: Relax dad, plan kiya. Dad doesnt know what to say:
Par...
Dad doesnt know what to say as he looks at the cheque. Daughter
pleads: Pleasedad
42
Super: Unit Linked Savings Plans MVO: Unit Linked Savings Plans
from HDFC Standard Life. zimmedari nibhao, Aaj bhi kal bhi
Father daughter are MVO: Sar Utha Ke Jiyo.
sitting.
43
FINANCIAL PERFORMANCEHDFC Standard Life, one of the leading
private life insurance companies in India declared its annual
results for the financial year ending March 31, 2008. The company
generated New Business Premium Income of Rs. 2,685 crores in
FY2007-08 registering a year-on-year growth of 63%. The growth was
primarily driven by the success of the company's initiative on
structured sales processes based on customer needs and their
assessments. HDFC Standard Life, one of the leading private life
insurance companies in India declared its annual results for the
financial year ending March 31, 2008. The company generated New
Business Premium Income of Rs. 2,685 crores in FY2007-08
registering a year-on-year growth of 63%. The growth was primarily
driven by the success of the companys initiative on structured
sales processes based on customer needs and their assessments. Mr.
Deepak Satwalekar, MD & CEO, HDFC Standard Life attributed this
growth to the quality of life insurance solutions offered by the
company and its increased geographical reach. He also emphasised,
We believe that our success is a result of our efforts in giving
customers, the best long-term solutions to take care of their
insurance needs. Our endeavour to provide high quality insurance
and pension solutions to customers through quality pre-sales
advice, based on a sound need-based solutions approach, and
post-sales service has started to pay off. Highlights of Financial
Year 2007-08 New Business Premium Income up by 63% to Rs. 2,685
crores. Total Premium Income is up by 70% at Rs. 4,859 crores as
against Rs. 2,856 crores in FY2006-07 Alternate Channels including
bancassurance has recorded an impressive growth of over 63% to
contribute 41% to the Effective Premium Income (EPI) Group business
funds under management have increased to Rs. 959 crores,
registering a growth of 83% over FY2006-07 The average premium has
increased to Rs. 33,000 Company products and services are now
available in 726 cities and towns across the country Strength of
Financial Consultants has increased to 1,45,000. 44
HDFC Standard Life tracks its New Business Premium on the basis
of Effective Premium Income (EPI). EPI is calculated by giving only
a 10% value to a Single Premium policy and is an internationally
accepted indicator of an insurance companys performance. The total
premium income (including renewal premium) grew by 70% to touch a
figure of Rs. 4,859 crores. High levels of persistency have
resulted in higher level of renewal premiums. Although there has
been a slight dip from 89% to 86%, we continue to have the highest
persistency level in the industry. The cumulative sum assured for
all policies issued upto March 31, 2008 crossed Rs. 87,000 crores.
In offering unit linked products, the structured sales process
adopted by the company has paid rich dividends. We believe that we
should be able to lengthen the maturity profile of our policy
portfolio, now that the regulatory disincentive has been removed
with effect from April 1, 2008, added Mr. Satwalekar. HDFC Standard
Life offers, both, life insurance policies as well as pension
products on a unit linked platform as also the conventional with
profits platform. Over 50% of the sum assured as on March 31, 2008,
is in respect of non unit-linked policies. Over 30% of funds under
management are in respect of non-linked business, which reflects
the balanced book between conventional and unit-linked business in
the total portfolio of the company. The companys national
relationships with large public and private sector banks have also
helped it reach out to a larger number of customers across the
country. The company plans to further strengthen these
relationships through the introduction of products specially
designed for this channel. HDFC Standard Life continues to have one
of the widest reaches among new insurance companies. The company
strengthened its number of offices from 103 to 572 across the
country in less than 3 years. Through these offices, the company
today services customer needs in over 726 cities and towns. The
company also increased its depth in existing markets by increasing
its Financial Consultant strength from 74,000 as on March 31, 2007
to 1,45,000 as on March 31, 2008. There has been a huge jump of
300% over the last 3 years in the number of 45
its Financial Consultants who have qualified to become members
of the prestigious Million Dollar Round Table (MDRT) Club. The
strength of MDRT qualified members has gone up to 496 as on
December 31, 2007. As against the regulatory requirement of writing
18% of all policies in rural areas, HDFC Standard Life has issued
over 217,000 policies accounting for 23% of all policies issued
during 2007-08. Additionally, during 2007-08, HDFC Standard Life
has covered 51,326 lives under the social sector category, as
against the requirement of 25,000 lives. Overall, the company has
covered over 9,59,000 lives during the year ending March 31, 2008.
To meet the demands arising from the companys rapid growth,
shareholders have contributed additional Rs. 470 crores of equity
to take the paid-up share capital as on March 2008 to Rs. 1,271
crores. HDFC Standard Life, one of the leading private life
insurance companies in India declared its annual results for the
financial year ending March 31, 2008. The company generated New
Business Premium Income of Rs. 2,685 crores in FY2007-08
registering a year-on-year growth of 63%. The growth was primarily
driven by the success of the company's initiative on structured
sales processes based on customer needs and their assessments.
46
FUTURE PLANSHDFC Standard Life, plans IPO in '09 Mumbai, HDFC
has booked a profit of around Rs 120 cr in a Rs 200 cr transaction
involving sale of 7.15% stake in HDFC Standard Life to its British
partner. The promoters of HDFC Standard Life have said also said
that they will dilute stake through an IPO before 2009. New HDFC
Standard Life policy Mumbai, HDFC Standard Life has launched a new
product called "Unit Linked Wealth Maximiser Plus". This is a
single premium investment cum protection plan, with a minimum
premium of Rs 1 lakh. The policyholder has the option to choose
from five fund options Money Plus Fund, Bond Opportunities Fund,
Large-cap Fund, Mid-cap Fund, and Manager's Fund. HDFC Standard
Life will offer regular loyalty units of 0.10 per cent every year
as long as the policy is not surrendered. The accumulated value of
the funds is received at the end of the policy term. In the event
of unfortunate demise of the policyholder during the policy tenure,
HDFC Standard Life will pay the greater of the Sum Assured (less
all applicable withdrawals) and the total fund value to the family
members of the policyholder. The policy offers life insurance cover
until the age of 99 years
47
CHAPTER 6
48
CAREER PATH IN HDFC SLICHDFC Standard Life Insurance Company
Ltd. is one of India's leading private insurance companies, which
offers a range of individual and group insurance solutions and
providing the career opportunities to its employees. It is a joint
venture between Housing Development Finance Corporation Limited
(HDFC Ltd.), India's leading housing finance institution and a
Group Company of the Standard Life, UK. HDFC as on December 31,
2007 holds 72.38 per cent of equity in the joint venture.
CAREERChannel Development Department Sales Department
Area Manager (AM) Channel Development Manager (CDM)
Territory Manager (TM) Business Development Manager (BDM)
Channel Development Executive (CDE) Recruitment Consultant49
Sales Development Manager (SDM) Financial Consultant (FC)
The Career Path in HDFC Standard Life Insurance Company Ltd.
mainly has two operations in its all branches. HDFC Standard Life
Insurance Company Ltd. has divided its operation into two
departments for the better management. These departments are:
Channel Development Department 1. Area Managers 2. Channel
Development Managers 3. Channel Development Executives 4.
Recruitment Consultant Sales Department 1. Territory Manager 2.
Business Development Managers 3. Sales Development Managers 4.
Financial Consultants
ChannelDevelopmentDepartment
ChannelDevelopmentDepartmentisdepartmentwhichplaysamajorroleintheorganization.
ThisdepartmentisengagedinrecruitingtheeffectiveandefficientFCsfortheorganizationso
thepeopletheyarerecruitingiscapabletobringthebusinessfortheorganizationandfulfill
the organizationalgoalsandobjectives. RecruitingtheFCs
notonlytaskforthechannel development department but to provide the
IRDA training to the selected candidate and
preparingfortheIRDAexamsforgettingtheIRDAlicense.AftergettingtheIRDAlicensea
candidateisabletoselltheinsuranceproductandbecometheFinancialConsultant,andhe/she
transferredtothesalesdepartmentforthefurtherprocess. 50
RoleofCDMs&CDEs
1.TeambuildingThefirststepforanyCDMismakeateamfortherecruitmentprocess.A
CDMcanusethedifferentresourcefortherecruitmentlikeRecruitmentConsultants,Project
Trainees,E2Evendors&RPs.ThroughtheseresourceofrecruitmentaCDMcanmoveforthe
furtherprocess. 2.Training&Induction
Thenextstepistoprovidethetraining&inductionprogramsfor
his/herteam(i.e.recruitmentresource)andhe/sheshouldhastodofieldworkwithhis/her
team.
3.Planning&ImplementationofLeadGenerationActivities.ACDMrequiredminimum
one BOP per week, he can use the canopy, road shows, BTL activities
as well for better recruitmentfortheorganization.
4.ResourceMotivationandDrive.
OneVendorReviewmeetperWeek(ChannelDevelopmentManagertoReview)
OneVendorMeetperMonth(AMCDtoAddress)
Felicitation&Rewardstotopperformers
5.IRDATraining&Examination
ACDMhastoarrangeFCs50hourstrainingtracking
throughLC&RCs.andIRDAExaminationTrackingthroughLC&RCsandincreasingI/O
Ratio.
6.MIS&DocumentationACDMkeepstherecordsofdocumentationofvendorcontracts&
paymentmodesandMISonrecruitment&licensingOfFCBM/TMwise
KeepinganEyeonfirstBusinesstrack,activisationthroughLCandHOBizUpdate.
7.RelationshipManagementatLocalLevelACDMhastoberegularbranchvisitstokeep
thebetterrelationshipwithlocallevel:
RelationshipManagement(RM,TM,BM,SDM&Ops)
AllocationofFCsthroughTM/BMRetail
FCRecruitment,Licensing&BusinessUpdatestoRetailfunctions 51
UpdatingOpsAgencyCoOrdinatoronProcessChanges
8.CheckingQualityParameters QScore QScore>3isnotallowed
FCPreLoginInterviewSheet FulfillmentofRIdocuments
9.RecruitmentActivityMonitor EnsureyouupdateRAMdaily
100%adherence
SalesDepartment
Sales Department is the most important department for any
organization, without it no organizationmovefurther.
Allthebusinessisdependsonthesalesdepartmentandallthe
operationsaredoneforpromotingthesales.Soi.e.thebettermanagementandbettersales
executivearerequireforincreasingthesaleofInsuranceproducts(InsurancePolicies).
The
TerritoryManagermonitorsthebranchandalltheBDMsarethesubordinateofhim.
TM keeps
theeyesonalltheactivitiesorabranchandhis/hersubordinateslikeBDMs,SDMs,
CDMs,FCsandothers.
TheChannelDevelopmentdepartmenthelpsinrecruitingthebest
FinancialConsultanttotheorganizationsohe/shewouldbeabletotakemorebusiness(large
amountofPremiums)andhelpsinachievingtheorganizationalgoal.AftergettingtheIRDA
licenceFCsaretransferredtosalesdepartmentfromchannel development
department under different SDMs & BDMs. Then sales department
provides them product and other training which can make them to go
in the market and to sell the insurance policies.
Be a Financial Consultant52
Be a part of
HDFCStandardLifeInsuranceCompanyLtd.andgrabtheunlimitedopportunitiesandenjoythereward,recognitionandmanymore
Tap into an unlimited earning potential Utilize spare time
productively Get National & International Recognition Invest
time and not money* Build stronger and life-long relationship
Reinvent your life
53
BUSINESS DESCRIPTIONBe our Certified Financial Consultant Join
HDFC Standard Life Insurance as a Financial Consultant and help
analyze your customers financial needs, provide customized
financial solutions to each one and conduct reviews on a regular
basis to keep your customers on track. Along with being a great
career move you get associated with HDFC Standard Life Insurance,
Indias Most Respected Private Life Insurance Company. We at HDFC
Standard Life also offer you unmatched support with various
training programmes to help you excel in your endeavour. A great
career move in every way Zero investment, there is no start-up
capital. You can work full-time or part-time, depending on your
convenience Sunrise industry Support every step of the way At HDFC
Standard Life, training is an inherent element of our support
system - at no extra cost - for our new Financial Consultants
EXCELLENT OPPORTUNITY
Join HDFC Standard Life Insurance as a Financial Consultant and
earn a rewarding career Flexible work timings You can work whenever
you like. You can work full-time or part-time, depending on your
convenience. However, the time you invest will determine your
success
Any one can join - Young graduates, Housewives, Retired
Personnel, Self-employed or Working Professionals. Zero Investment
- There is no start-up capital required. Be your own boss with
flexible working environment, unlimited earning potential and
opportunities to be part of a world class sales team.
Attractive Remuneration - Company offers excellent commissions,
award and rewards for the performers. You have unlimited earning
potential. Commission structure is pretty handsome and is 1540% and
renewal commission of 5% second year onwards till the policy is in
force.
Certificate by IRDA- You will get world class training free of
cost and certification by Insurance Regulatory Development
Authority. 54
TRAINING- Perfects your knowledge about the insurance industry
as well as our products IRDA Training- Prepares you for your career
as a Financial Consultant and enables you to pass the IRDA
examination easily Disha Training- Hones your selling skills,
enables you to understand customer needs and provide need-based
insurance solutions
Advanced Training- Upgrades your capability and knowledge
through sophisticated training programs customised for the changing
world of financial products and markets
DESIRED PROFILE:Age: 18 Yrs to 65 Yrs Education: Intermediate or
more Experience: Not Mandatory Type of Job: Full Time or Part
Time
JOB DESCRIPTION FOR FINANCIAL CONSULTANTSPre sales role
Identifying prospective clients. Meeting prospective clients.
Understanding the need of the client. Presenting solutions to
client. Closing sales.
Post sales role Taking 1-2 references from the client Providing
timely updates to the client for maintaining Lifelong
relationship.55
CHAPTER 7
56
RECRUITMENT PROCESS OF FCsFill up of Agency form
IRDA Training (100 hrs) IRDA Exam
Fail
Pass
Exit
Product Training
Traditional Pr.
ULIP Product
Internal Assessment
Fail
Pass
Exit57
Certification
WHAT ARE THE ROLES OF A FINANCIAL CONSULTANT? Meet people and
present services Understand their financial needs Customize Life
Insurance Plans Provide efficient after-sale support Help customers
protect their lifestyles, Realize their dreams and enjoy their
lives
HDFCStandardLifeInsuranceCompanyLtd.theWorldofOpportunities
HDFC Standard Life welcomes you in the world of opportunities,
HDFC SLIC is providing the great opportunities to its employees and
its Career Path in HDFC is the competitive edge in this competitive
era. The HDFC SLIC has great opportunities: Our Team The
Opportunities Choosing the right place/company Rewards Recognition
and respect Support function Training Marketing Sales
Unlimited Earnings 58
Our TeamHDFC Standard Life Insurance Company Ltd. has finest
team over 70,000+ FCs (Financial Consultants) comprises of retired
persons, Professionals, Brokers, housewives, students Entrepreneurs
/ Businessmen, Charted Accountants and salaried persons which is
providing the competitive advantage to the organization to compete
its competitors in the insurance sector as competitive human
resource.
OUR TEAM COMPRISES OF
Retired Persons Professionals Salaried
Brokers
Finest Team Of over 70,000 FCs
Charted Accountant
Housewives Students
Entrepreneurs /Businessmen
59
The Opportunities
HDFC SLIC is providing the opportunities not only for the
limited people, the HDFC SLIC is providing the world wide
opportunities to all people to support their family income,
financial Independence, start business with zero investments,
experience in the Financial domain, no work pressure, supplement
income, complete/diversified product portfolio, lifelong
relationships, build relationships with a noble cause, time
flexibility and many more opportunities. HDFC SLIC providing
opportunities to:-
Women Supplement family income Financial Independence
Young Entrepreneurs Start business with ZERO investment Own boss
Hands-on experience in the financial domain
Financial Professionals Supplement income A complete/diversified
product portfolio Build lifelong relationships
Retired Make your second innings stronger than first Build
relationships with a noble cause 60
Financial Independence
Choosing the right place/company
HDFC Standard Life Insurance Company Ltd. is one of India's
leading private insurance companies, which offers a range of
individual and group insurance solutions and providing the career
opportunities to its employees. It is a joint venture between
Housing Development Finance Corporation Limited (HDFC Ltd.),
India's leading housing finance institution and a Group Company of
the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per
cent of equity in the joint venture. Why you should join the HDFC
Standard Life Insurance Company Ltd. amongst all insurance
companies: HDFC Standard Life Insurance Company Ltd. is the first
Private Life Insurance Company to licensed by IRDA Large network of
over 300 branches Over 10lacs. Satisfied customers Over 70,000
Financial Consultants Maximum no. of MDRT qualifiers
Rewards, Recognition and respect
HDFC Standard Life Insurance Company Ltd. is providing the
rewards, recognition & respect to its family member for
motivation and to create sprit of self belongingness so that the
employees can able to give their potential to the company and to
achieve the organizational goals and objective. For Increasing the
productivity of the employees HDFC Standard Life Insurance Company
Ltd. is providing the different facilities through rewards,
recognition & respect: 61
Star on Debut Club for newcomer FCs Clubs like Bronze, Silver,
Gold & Centurion to enhance the earnings Monthly contests
Toppers C lub Sales Conventions at Exotic locations MDRT, COT &
TOT Eligibility
Support FunctionHDFC Standard Life Insurance Company Ltd. has
created a world class support functions which help its FCs to
increase his earning. Thought you are your own boss but you are
never alone, in case of need/help in this profession HDFC SLIC
Support system is always with you. For example you are not able to
convince your prospect due to some reason like information and
other then you can take help from S.D.M.(Sale Development Manager)
as well as B.D.M. (Business Development). HDFC SLIC has excellent
training and development facilities and different Customer Contact
programs which improves and sharps the knowledge, communication
skills, convincing power and everything which would help you to
increase the business or to aid sales of the organization. Support
system: World class training Support of numerous Customer Contact
Programs to aid sales On-field Support from the Sales team Strong
Brand Recognition 24 hours Customer Support Superior Product
Portfolio (Lowest Fund Management Charges) 62
Unlimited EarningsCommission on issuance of every policy.
Commission directly credited to bank account of FCs within 15 days.
These commission varies from 7.5-40% according to plan. BASIC
COMMISSION First year Commission payable on regular premium
conventional policies issued on or after 21st march 2007 Name of
the plan Endowment Assurance plan Money Back plan Childrens plan
Term Assurance plan Lone cover Term Assurance plan Personal Pension
Plan 1st year commission 40% 40% 40% 25% 25% 7.5%
RENEWAL COMMISSION: Renewal commission would be paid from the
2nd year onwards on regular premium policies. Renewal commission is
not payable on single premium plans. Name of the plan Endowment
Assurance plan Money Back Plan Childrens plan Lone cover Term
Assurance Plan Term Assurance plan Personal Pension Plan BONUS
COMMISSION 63 Renewal commission 2nd year onwards 5% 5% 5% 5% 5%
2%
Bonus commission would be payable on the first year premium
received and adjusted on the regular premium policies under the
following plans, 1.Endowment Assurance Plan 2.Money Back Plan
3.Childrens Plan 4.Term Assurance Plan 5.Lone Cover Term Assurance
Plan Bonus commission is not payable on the single premium plans
and on the policies issued under the Personal Pension Plan and all
Unit Linked Plans. Bonus commission rate would depend on financial
consultant crossing the minimum RNEP(Received Net Effective
Premium) within one year.
Period
RNEP 1,00,000 1,50,000 2,25,000
Bonus commission % of the 1st year Premium received 5% 10%
15%
In one year
How do I earn, say, Rs. 25,000pm?
You need to sell Policy worth Average Premium Need to sell
Rs. 1,25,000/-
Rs. 32,000/-
4 Policies i.e. 1person in 2 days
Need to meet at least 12 people.
64
Art of Earning
No. Of Policies
4 in a month (Yearly 50) Rs. 32,000/-yearly
Average Premium Incentive Earn Expected Business Growth
20% in 1st Year & renewal 4%
20%
Year1 2 3 4 5*Indicative figures
Business16.00 Lac 19.20 Lac 23.00 Lac 27.60 Lac 33.00 Lac
Commission320000 384000 460000 552000 660000
Renewals64000 140800 232800 343200
Total*320000 448000 600800 784800
1003200
Eligibility Criteria to become a Financial ConsultantMinimum
Eligibility Criteria (Any 3/5 Criteria required, first criteria
being mandatory) Age : 18 and Above Education : 10th+2 or higher.
Has spent > 3 years in the city of current residence. Income
> 3 Lakhs per annum.
65
Pre-requisites required to become a Financial Consultant Should
undergo IRDA Training for 50 hrs. Should Pass the pre-recruitment
exam conducted by Insurance Institute of India.
Licensing ProcessStep 1 : Registration Step 2 : IRDA Training
Step 3 : IRDA Examination
Documentation Required for Acquiring a License Forms STEP 1 :
REGISTRATION Agency Application form Form VA Exam Form Agreement
Copy ( all pages to be signed by the FC ) Know Your Customer ( KYC
) Addendum
Supporting Personal Documents required
9 Passport size photographs Age Proof Proof of Education Proof
of Identity Proof of Residence PAN Card or PAN Application 66
Fee : Rs. 925 /- ( Off Line ) Fee : Rs. 825 /- ( On Line )
STEP 2 IRDA TRAININGAll Candidates have to undergo and complete
50 hours of IRDA Training.
Types of Training1. Off Line (Class Room) Training 2. On Line
Training IRDA Refresher Classes are conducted for the FC before the
IRDA Exam.
STEP 3 IRDA EXAMINATIONPre Recruitment Examination can be done
by 2 Modes, 1. On line 2. Off line Exams are conducted by Insurance
Institute of India (III)
67
CHAPTER 8
68
RESEARCH METHODOLOGYRESEARCH METHODOLOGY All the findings and
conclusions obtained are based on the survey done in the working
area within the time limit. I tried to select the sample
representative of the whole group during my job training. I have
collected data from Chartered Accountants, Tax Consultants,
Businessman, Share Brokers, Lawyers, Working Professionals, House
Wives and Retired Persons in Pune. 1. OBJECTIVES OF RESEARCH
PROJECT: PRIMARY OBJECTIVES: To recruit more and more Financial
Consultant and to promote the benefits those are provided by HDFC
Standard Life to its Financial Consultants To find the different
way of recruiting and selecting the Financial Consultants who can
produce more and fruitful results. To study awareness of the HDFC
Standard life insurance SECONDARY OBJECTIVES: To determine the need
and purpose of Financial Consultant. To understand the deciding
criteria for people to become Financial Consultant. To collect and
analysis the information of prospect candidates in order to make
them appear in front of management so that they can be selected as
Financial consultant. To offer suggestions based upon the findings.
2. RESEARCH PLAN: 1. Preliminary Investigation: In which data on
the situation surrounding the problems shall be gathered to arrive
at The correct definition of the problem. An understanding of its
environment. 2. Exploratory Study: To determine the approximate
area where the problem lies. 69
3 RESEARCH DESIGN: Research was initiated by examining the
secondary data to gain insight into the problem. By analyzing the
secondary data, the study aim is to explore the short comings of
the present system and primary data will help to validate the
analysis of secondary data besides on unrevealing the areas which
calls for improvement. 4. DEVELOPING THE RESEARCH PLAN: The data
for this research project has been collected through self
Administration. Due to time limitation and other constraints direct
personal interview method is used. A structured questionnaire was
framed as it is less time consuming, generates specific and to the
point information, easier to tabulate and interpret. Moreover
respondents prefer to give direct answers. In questionnaires open
ended and closedended, both the types of questions has been used.
5.COLLECTION OF DATA: 1: Secondary Data: It was collected from
internal sources. The secondary data was collected on the basis of
organizational file, official records, news papers, magazines,
management books, preserved information in the companies database
and website of the company. 2: Primary data: All the Chartered
Accountants, Tax Consultants, Insurance Agents, Auto loan providers
were personally visited and interviewed. They were the main source
of Primary data. The method of collection of primary data was
direct personal interview through a structured questionnaire.
6. SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes
necessary to take sample from the universe to know about its
characteristics.
70
Sampling Units: Chartered Accountants, Tax Consultants, Lawyers,
Business Man, Professionals and House Wives of Delhi. Sample
Technique: Random Sampling. Research Instrument: Structured
Questionnaire. Contact Method: Personal Interview.
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CHAPTER 9
72
DATA ANALYSIS, INTERPRETATION & PRESENTATION1.Your Age?
TABLE Sr. No. Category No. of Respondents 1 2 3 4 Percentage
18-23 Years24-29 Years 30-35 Years 35 & above Total
40 70 60 30 200
20% 35% 30% 15% 100% Base 200 respondents
GRAPH
Interpretation From the table and graph above it can be seen
that 20% respondents age are 18 to 23 years. 35% respondents age
are 27 to 29 years. 30% respondents age are 30 to 35 years. 15%
respondents age are 35 to above years.
73
2. Marital status? TABLE Sr. No. Category No. of Respondents 1 2
Married Unmarried Total 140 60 200 70% 30% 100% Base 200
respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 70% respondents are married. 30% respondents are
unmarried.
74
3. Educational Qualification? TABLE Sr. No. Category No. of
Respondents 1 2 3 Under graduate Graduate Post graduate Total 50 80
70 200 25% 40% 35% 100% Base 200 respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 25% respondents are Under graduate. 40% respondents are
Graduate. 35% respondents are Post graduate.
75
3. Number Of Years Are You in Delhi? TABLE Sr. No. Category No.
of Respondents 1 2 Less than five years More than five years Total
78 122 200 39% 61% 100% Base 200 respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 39% respondents are in Pune is less than five years. 61%
respondents are in Pune is more than five years.
76
5. Your Occupation? TABLE Sr. No. Category No. of Respondents 1
2 3 Business Profession Service Total 40 108 52 200 20% 54% 26%
100% Base 200 respondents GRAPH Percentage
Interpretation From the table and graph above it can be seen
that 20% respondents Occupation is Business. 26% respondents
Occupation is Profession. 54% respondents Occupation is
Service.
77
6. Your annual household income? TABLE Sr. No. Category No. of
Respondents 1 2 Less than 2 lacs Between 2 to 5 lacs Between 5to
8lacs More than 8 lacs Total 98 62 30 10 200 49% 31% 15% 5% 100%
Base 200 respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 49% respondents annual household income is less than 2 lacs.
31% respondents annual household income is between 2 to 5 lacs. 15%
respondents annual household income is between 5 to 8 lacs. 5%
respondents annual household income is more than 8 lacs. 7. Are you
a member of a club/gymkhana? 78
TABLE Sr. No. Category No. of Respondents 1 2 Yes No Total 84
116 200 42% 58% 100% Base 200 respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 42% respondents are member of a club/gymkhana. 58% respondents
are not member of a club/gymkhana.
79
8. What is your perception about insurance sector? TABLE Sr. No.
Category No. of Respondents 1 2 3 4 Hard and lucrative Hard but not
rewarding Smooth and rewarding No idea Total 60 18 82 40 200 30% 9%
41% 20% 100% Base 200 respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 30% respondents perception about insurance sector is Hard
& lucrative. 9% respondents perception about insurance sector
is hard but not rewarding. 41% respondents perception about
insurance sector is Smooth & rewarding. 20% respondents
perception about insurance sector that they have no idea. 9. Do you
know about HDFC Standard Life Insurance? 80
TABLE Sr. No. Category No. of Respondents 1 2 Yes No Total 164
36 200 82% 18% 100% Base 200 respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 85% respondents are known about HDFC Standard life insurance.
15% respondents are not known about HDFC Standard life
insurance.
81
10. Do you have any Insurance Policy? TABLE Sr. No. Category No.
of Respondents 1 2 Yes No Total 160 40 200 80% 20% 100% Base 200
respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 80% respondents have insurance policy. 20% respondents do not
have insurance policy.
82
11. Name of Insurance Company? TABLE Sr. No. Category No. of
Respondents 1 2 LIC ICICI HDFC SLIC OTHERS Total 104 16 8 32 160
65% 10% 5% 20% 100% Base 160 respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 65% respondents are insured by LICI. 10% respondents are
insured by ICICI. 5% respondents insured by HDFCSLIC. 20%
respondents insured by OTHERS. 12. Do you hold any license of any
insurance company? TABLE 83
Sr. No.
Category
No. of Respondents
Percentage
1 2
Yes No Total
70 130 200
35% 65% 100% Base 200 respondents
GRAPH
Interpretation From the table and graph above it can be seen
that 35% respondents are holding license of any insurance company.
65% respondents are not holding license of any insurance
company.
84
13. Are you satisfied with the company? TABLE Sr. No. Category
No. of Respondents 1 2 Yes No Total 42 28 70 60% 40% 100% Base 70
respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 60% respondents are satisfied with their insurance company.
40% respondents are not satisfied with their insurance company.
85
14. Do you know about HDFC Standard Life Insurance recruitment
policies related to financial consultant? TABLE Sr. No. Category
No. of Respondents 1 2 Yes No Total 82 118 200 41% 59% 100% Base
200 respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 41% respondents are known about HDFC Standard Life Insurance
recruitment policies related to financial consultant. 59%
respondents are not known about HDFC Standard Life Insurance
recruitment policies related to financial consultant. 15. Will you
be interested to become Financial Consultant? 86
TABLE Sr. No. Category No. of Respondents 1 2 Yes No Total 60
140 200 30% 70% 100% Base 200 respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 30% respondents are interested to become financial consultant.
70% respondents are not interested to become financial
consultant.
87
16. Would you like to earn an additional income through a
business opportunity with HDFC STANDARD LIFE? TABLE Sr. No.
Category No. Of Respondents 1 2 Yes No Total 54 6 60 90% 10% 100%
Base 60 respondents Percentage
GRAPH
Interpretation From the table and graph above it can be seen
that 90% respondents are interested to earn additional income. 10%
respondents are not interested to earn additional income
88
CHAPTER 10
89
SWOT ANALYSISHDFC and Standard Life came together for a possible
joint venture, to enter the life Insurance market, in January 1995.
It was clear from the outset that both companies shared similar
values and beliefs and a strong relationship quickly formed. In
October 1995, the companies signed a 3-year joint venture
agreement. 1. STRENGTH 1. Domestic image of HDFC supported by
Prudentials international image is strength of the company. 2.
Strong and well spread network of qualified intermediaries and
sales person. 3. Strong capital and reserve base. 4. The company
provides customer service of the highest order. 5. Huge basket of
product range which are suitable to all age and income groups. 6.
Large pool of technically skilled manpower with in depth knowledge
and understanding of the market. 7. The company also provides
innovative products to cater to different needs of different
customers. 2. WEAKNESS 1. Heavy management expenses and
administrative costs. 2. Low customer confidence on the private
players. 3. Poor retention percentage of tied up agents. 3.
OPPORTUNITIES 1. Insurable population According to ING only 10% of
the population is insured, which represents around 30% of the
insurable population. This suggests more than 300m people, with the
potential to buy insurance, remain uninsured. 2. There will be
inflow of managerial and financial expertise from the worlds
leading insurance markets. Further the burden of educating
consumers will also be shared among many players.
90
3. International companies will help in building world class
expertise in local market by introducing the best global practices.
4. THREATS 1.Other Private Insurance Companies Also vying For The
Same uninsuranced Population. 2.Big Public Secter insurance
Companies Like LIC India, National insurance Company Ltd, Oriented
Insurance Ltd, New India Assurance Company Ltd, And United
Insurance Company Ltd. People Trust Them And go to them more.
3.Poaching of Customer by other companies. 4.Most People donot
understand the need or are not willing to take insurance policies
in general.
91
CHAPTER 11
92
CONCLUSIONSHDFC Standard Life, the insurance arm of HDFC is
expected to go on stream. Promoted by HDFC & Standard Life,
already has good number of employees on board and is recruiting
Financial Consultants heavily to take the headcount to many more.
It is on the brim of increasing its client through its attractive
schemes and offer. The project opportunities provided was market
segmentation and identifying prospective clients in potential
geographical location and for recruiting them as financial
consultant so to explore new Business Opportunity. Through this
project, it could be concluded that people are not much aware about
the various benefit of being Financial Consultant that are
currently prevailing in the insurance industry. Insurance was
considered as unsought good which require hard core selling, but in
changing trend in income and people becoming financially literate,
the demand for insurance is increasing day by day. So, it is the
company that first approaches gets its share of reward. Proper
after sale service can help the advisors to generate more business.
Gradually people are realizing the fact that insurance is not a
necessary evil but means to attain worry free life. This activity
much attract unemployed people as for them a source of income is a
great help for developing there future. Companys promotional
activities for recruiting Financial Consultant are also very less.
So, at last the conclusion is that there is tough competition ahead
for the company from its major competitors in terms of number of
Financial Consultants. Last but not the least I would like to thank
HDFC SLI for giving me an opportunity to work in the field of
Financial Consultant. I hope the company finds my analysis
relevant.
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CHAPTER 12
94
SUGGESTIONS AND RECOMMENDATIONSFinally some recommendations for
the company are as fallows: To make people aware about the benefit
of becoming HDFC Standard Lifes Financial Consultant, following
activities of advertisement should be done through 1. Print Media.
2. Hoarding & Banners. 3. Stalls in Trade Fares 4. Distribution
of leaflets containing details information. 5. Company can recruit
sales promoters so that maximum information can be provided to the
potential client. By showing additional and alternative income
source along with various schemes for Financial Consultant in the
company so that more and more FC can be recruited. Free life cover
for every active Financial Consultant. Discounted rate premium for
its family members. Make people understand about the meaning of the
IRDA authorization and its validity. Company should organize the
program in the society, so that people will be aware about the
company Separate time slot for Working Professionals, House Wives
and Retired people. Agency of non-life products should also be
provided along with life. Company should open more branches in
different cities The importance of alliances and tie-ups means that
companies will have to integrate related but separate providers
into their systems to ensure seamless delivery. Build strong
relationship with intermediates such as agents. Advertise about the
rural market as it has huge potential Create a positive perception
about insurance Making purchase of policies a less cumbersome
process Promote insurance in corporate houses and colleges.
Attracting youth by educating about higher rate of return as
compared to banks. 95
Try to sell the plan according to his need and not according to
the agents commission.
96
CHAPTER 13
97
BIBLIOGRAPHYThe following companies and associations web sites
were referred while co