Consumer Perception towards Max New York Life Insurance Products part 1

CHAPTER-1

COMPANY’S PROFILE

1.1 INTRODUCTION

Indian economy has been passing through a phase of unprecedented transition since the

beginning of the last decade. It’s a transition from a Nehruvian socialistic pattern of economic

system, to a free market economy. The transition is being manifested through economic reforms.

The process of economic reforms, which virtually started in 1991, has not confined itself to the

real sectors; it is also perceptible in the financial sector, because there exists a high degree of

interdependence between the two sectors. In the financial sector though the process of economic

reforms was initially initiated in the banking sector, by the year 2013 it found a place in the

Indian insurance sector as well. Indian insurance sector before its reforms was characterised by

state monopolies. In the life insurance business it was only the Life Insurance Corporation (LIC)

and in the non life insurance business it was only the General Insurance Corporation (GIC). The

liberalisation in the insurance sector opened the door for private and foreign entities to do

insurance business in India.

The basic philosophy behind insurance sector reform is no different from the reforms initiated in

the other sectors of the economy. The philosophy draws its inspiration basically from two

sources. One is the failure of the state capitalism and the other is the economic prospect in the

resurgence of the neo classical ideas. Over the years the state dominance across the economies

though has made substantial progress in the face of poverty, illiteracy and little existence of the

market, at the same time there has been an erosion of operational efficiency. The operational

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inefficiencies in the insulated economies and regulated market are more pronounced when one

compares them with that of the market oriented economies. On the other hand, the resurgence of

neo classical economics due to fall in the level of informational asymmetry owing to

technological revolutions, holds bright prospects. Economic reforms by removing barriers to

entry will make the transition from a regulated economy to a market oriented one. A market-

oriented economy with its inherent incentive structure will inbreed a degree of competition.

Competition will improve economic efficiency by increasing productivity and reducing

transaction costs. Ultimately, there will be better customer services.

Thus, the economic reforms in general and the reforms in the insurance sector in particular, aim

at strengthening the domestic capacity and improving efficiency and competitiveness and

ultimately enhancing economic growth.

In the aftermath of liberalisations in Indian insurance sector, a large numbers of private insurance

players both domestic and foreign have made their presence felt in the market. Although the

public sector companies still dominate the insurance business, the private players are slowly

gaining a foothold.

1.2 ADDRESS

1st Floor, India Mall,

New Friends Colony

Community Centre

Near Hotel Crown Plaza

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REGISTERED OFFICE

6thFlr., Peninsula Chambers,

Peninsula Corporate Park,

GanpatraoKadamMarg,

Lower Parel (W),

Mumbai-400013, India

1.3 NATURE AND BUSINESS

Max Life Insurance offers comprehensive life insurance and retirement solutions for long-term

savings and protection to over thirty two lakh customers. It has a country-wide diversified

distribution model including the country's leading agent advisors, exclusive arrangement with

Axis Bank and several other partners. Max Life Insurance is a quality business focused on

delivering excellence to customers through advice based sale process, customer centric approach

to business, financial stability & investment expertise and strong human capital.

In the financial year 2013-14 Max Life Insurance ranked fourth among private life insurers with

a market share of 10.3%. The Company has been one of the fastest growing life insurance

companies with Gross Written Premium of Rs. 7,279 crore and Shareholders Profit After Tax of

Rs. 436 crore for the Financial Year 2013-14. The Company's share capital of Rs. 2,127 crore

with a solvency margin of 485% is indicative of its financial strength and stability. As on 31st

March 2014, Max Life Insurance had assets under management of Rs. 24,716 crore.

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Max Life Insurance has a diversified distribution network spread across more than 750 cities.

The distribution is based on three pillars – agency distribution, bancassurance and partnership

distribution. Agency distribution forms its core distribution channels with advice based sales

process through its well trained and knowledgeable agent advisors. These agent advisors are

equipped to engage with prospective customers and offer customized solutions for their life stage

needs.

In bancassurance, the Company has a strong relationship with Axis Bank which in a short span

has become the largest non-captive bancassurance relationship in India with its network of over

2000 branches providing life insurance solutions to its customers. Partnership Distribution, the

third pillar of Max Life Insurance's distribution model is equally important and successful with

long standing relationship with large distributors of financial products such as Amsure and

Peerless. These three key distribution channels are compelmented by Group Insurance and

Customer Advocacy teams.

Max Life Insurance offers a comprehensive suite of Long Term Savings and Protection oriented

products. It currently has 12 products covering and 3 riders that can be customized to suit every

life stage need of the customer. Besides this, the company offers 3 products and 1 rider in group

insurance business.

At Max Life Insurance, providing a superior customer experience is central to its vision and the

Company is committed to provide superior service experience to the customer. As a proactive

step towards service excellence, Max Life Insurance has launched the "Treating Customer

Fairly" (TCF) policy. The TCF policy aims to raise standards in the way the Company interacts

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with customers at every touch point right from the pre-sales engagement to the payment of

benefits.

Max Life Insurance follows a prudent investment philosophy to optimize risk management in its

bid to provide maximize returns to policyholders. Investments are in instruments which are safe

and provide good returns in the long run.

The company values human capital and considers it to be its competitive advantage. Max Life

Insurance believes that people are its biggest organizational assets and hence lays a strong

emphasis on employee friendly practices leading to high levels of employee engagement and

motivation. This is reflected in the recognition that the company received from the Great Places

To Work Institute, India, as one of the best workplaces in the industry.

Max Life insurance works closely with Max India Foundation, an independent social service

organization of the Max India Group for all its CSR activities. The company has taken up

immunization programme as a societal agenda to ensure protection against major ailments for the

next generation of the country. The programme covers vaccines like BCG, Hepatitis B vaccine,

Polio drops, DPT, D Tap, Measles vaccine, MMR, Typhoid, dT and TT.

Max Life Insurance has always believed in setting new benchmarks in quality of service and

product offerings to its stakeholders and its efforts have been duly recognized over the years.

Some of the awards and accolades won by Max Life Insurance in the recent year are as follows:

'Superbrand of the Year' 2013-14Ranked 8th amongst the Most Trusted Life Insurance

companies in Brand Equity (The Economic Times) survey Golden Mikes 2014, the most coveted

Indian Radio awards, for Max Life Insurance i-genius Amongst the top 100 'Great Place to

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Work'- 3rd year in a rowAwarded 'Celent Model Insurer Asia - Distribution Agent Channel' for

New Work System 'BIG Data & Business Analytics Award' for Business Analytics and

Performance Management Leadership Project Unnati recognized at the ASQ World Conference

2013

1.4 VISION AND MISSION OF THE COMPANY

1.4.1 VISION

Tobethe most admired life insurancecompany by securing the financial future of our customers

1.4.2 MISSION

They are an honest life insurance company, committed to doing what is right They serve their

customers through long-term savings, protection and retirement solutions, delivered by their high

quality Agency and Multi Channel Distribution Partners They are a business with strong social

relevance and contribute to society by supporting causes in health and well-being

1.5 VALUES

Caring :Listens with respect and values differences – Acts with compassion

Credibility : Demonstrates knowledge and creates trust in others

Collaborative : Works together to achieve results

Excellence : Pursues highest quality

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1.6 OBJECTIVES OF THE STUDY

Briefly study about the company and its products

Over view of company’s marketing strategies

How the sales process is carried out in the company.

Issues and challenges faced by the company in today’s world.

1.7 Organisational Structure Of The Company

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Fig 1 – Organizational Structure Of The Company

1.8 Size (in terms of manpower & financial turnover) of

organisation.

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1.8.1 Financial turnoverThe Company has been one of the fastest growing

life insurance companies with total revenue of Rs.6,391 crore and

enterprise profit of Rs.733 crore for the Financial Year 2011-12. The

Company’s share capital of Rs. 2,127 crore with a solvency margin of 534%

is indicative of its financial strength and stability. As on 31 March 2012,

Max Life Insurance had assets under management of Rs.17,215 crore.a

1.8.2 Manpower turnover

Around 8900 employees working in max life insurance company

1.9 Market share & position of the company in the industry

In the financial year 2011-12 Max Life Insurance ranked fourth among

private life insurers with a market share of 8.6%.

1.10 RESEARCH METHODOLGY

1.10.1Research Design

This is a descriptive research as it will clarify the doubts about training and development in

HDFC bank. It would give us a clear picture on the effectiveness and level of efficiency of

training and development in HDFC bank compared to the other banks.

1.10.2 Sources of Data Collection

Data are collected through:

1.10.2.1 Primary Data

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Data has been collected from first – hand – experience is known as primary data.

Primary data has not been published yet and is more reliable, authentic and

objective.The primary data is collected through surveys, personal interviews with

the help of designed questionnaire, observation.

Collection of data is done with help of designed questionnaires and personal

interviews. Questionnaires are closed end, like scale method is been used to

design the questionnaire. Primary data is collected through questionnaire and

personal interviews of management level and worker level employees.

1.10.2.2 Secondary Data

Data collected from a source that has already been published in any form is called

secondarydata. The secondary data refers those, which are already stored

somewhere for someone’s requirement or reference. It can be collected from

sources like books, internet etc. For my study purpose I have also used various

sources of secondary data. I have used sources such as Internet, books, discussing

with friends, etc..

Secondary data is collected through company periodical, broachers etc. of the

company.

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Sample frame: - Customer’sof MAX LIFE INSURANCE

Sample size : 100 customer’s for the questionnaire

Fig 2- Sources Of Data Collection

1.11 Product Range

Max Life Insurance offers Long Term Savings and Protection oriented products. It currently has 23 products covering and 9 riders that can be customized. Besides this, the company offers 4 products and 7 riders in group insurance business.

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Sources of collection of data

Primary Sources Through Employees of the Company

Through Financial Statements of the Company

Secondary Sources Through Newspaper

Through WebsiteThrough Telephone

Through Company Brochures

CHAPTER 2: SWOT ANLAYSIS

STRENGTHS

Knowledge based

Being quality conscious rather than quantity oriented

Providing in-house training to advisors rather than online training

Cost effective organization

Persuasiveness of customer service representative to address the problems.

Effective customer Personal consulting for customized policy.

Perceived financial loyalty programmers.

Customized policies that cover the specific terminal disease.

WEAKNESSES

Less Brand Awareness

Time consuming ( in picking advisors)

Process Oriented( process are too lengthy)

Fewer suggestions in terms of precautionary measures for avoiding perils.

Are pulled by the engine of powerful brands like TATA AIG and Bajajallianz.

OPPORTUNITIES

It can enter in the General insurance sector.

Opportunity in the rural sector as there is an under-penetrated insurance market in

rural sector.

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Relative market potential in not only the rural markets but also the semi-urban

markets.

Better customer services like utmost promptness in issuance of the policy, giving

cheque pick up facilities and not making customers waiting for months.

Making more loyal customers and attracting other customers with better service.

THREATS

LIC being the major market share holder

Competitors in the private sector

With players like SBI Life and ICICI Prudential spending lot in advertisements, it

may take away the market.

Focusing more on innovating new products takes the fruitfulness out of good

products.

Less number of agents compared to other companies leading to a bad distribution

network.

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CHAPTER 3: FUNCTIONAL ANALYSIS

3.1 MARKETING OF INSURANCE PRODUCTS OF MAX

LIFE3.1.1 INSURANCE

Marketing, as we know deals with all those processes required to put the products in the hands of

the ultimate consumer. Marketing is the delivery of customer satisfaction. The key to successful

marketing lies in identifying not just consumer needs but also the consumer wants. And since

wants are dynamic and more personality based, the marketing lies in identifying not just

consumer needs but also the consumer wants. And since wants are dynamic and more personality

based, the marketing professional should be in a position to feel the pulse of his consumer.

Financial services whether it’s Banking or Insurance have the characteristics of intangibility,

inseparability and presihability, which are common to all service and more importantly deal with

‘money’. And since the service by nature has to be personalized, effective internal & interactive

marketing is a must for success.

There is a tremendous difference in the way insurance is marketed to the corporate and the retail

segment. Fire, marine, motor and engineering business are in the nature of ‘compulsory’ business

i.e., insurance is either required by the financial institutions or, as in case of motor, is legally

mandatory. Thus these products are ‘bought’ rather than ‘sold’. On the other hand, the personal

insurance products need to be pushed.

The insurance companies have failed to raise insurance awareness among the retail customer.

Thus, the customer views insurance as a luxury rather than a necessity. In fact, in the long- term

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management of financial assets, insurance is a critical safeguard against unforeseen asset loss.

The foremost reason for poor penetration is lack of distribution channel, which is one of the

important parts of marketing.

3.1.1.1 OPPORTUNITIES IN THE FIELD OF DISTRIBUTION

Distribution will become a very important aspect for the new insurance companies for two

reasons: one the existing players in both life and non-life segments have an army of agents to

reach out to the huge masses, this acts as a major entry barrier for the new companies. Two the

IRDA has prescribed the percentage of business to be procured from rural, social and

unorganized sectors. Insurance companies are looking for fresh avenues to reach existing & new

customers. The distribution network of banks is what a lot of players are interested in. marketing

alliance with people/companies having a physical presence is a good distribution strategy too.

3.1.2 CHANNELS OF DISTRIBUTION

All likely insurers have a big drawback when compared with incumbents. The network of

distribution that will have to evolve, either on their own or through some sort of alliance will see

them incur very heavy costs. Distribution network of banks is what a lot of players are interested

in. the online world is not going to be left behind. A number of sites have started offering

policies online. What needs to be borne in mind is that no matter what channel one may use, the

following factors will be critical in deciding the success or failure of the venture:

Initial set up cost

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This will be like a capital expense that the company will incur to spread its reach to market

its products.

High margin to agents/brokers

While the law pertaining to the remuneration is still a bit unclear, it is said that the

commission to agents could be high to induce them to sell more and better products.

Trained and experienced personal will be critical to the success of the insurer

This is so because unlike any other product like car loan or home loan, the level of expertise

required is quite high in selling of insurance products. Moreover law will allow only

qualified people to sell the product. This will increase the personal cost and also ensure

professional and lawful service to the customers.

An internal control mechanism to keep tab on expenses

The above mentioned points will ensure that the debit side of the Profit & Loss account will be

higher no matter what is shown on the credit side. This will make cost control and growth a fine

balancing act for the insurers.

Initially, insurance is seen as a complex product with a high advice and service component.

Buyers prefer a face-to-face interaction and place a high premium on brand names and

reliability. As products become simpler and awareness increases, they become off-the-shelf,

commodity products. Sellers move to remote channels such as the telephone or direct mail. Some

potential Indian player hopes that their anticipated technology advantage will allow them to

increase their reach, partly by using remote channels.

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In India, insurance, especially life insurance is still a service product. Indeed, even the successful

international direct insurers focus on standard covers as motor insurance. We therefore believe

that in India technology will not replace a distribution network, though it will offer advantages

like better customer service. Yet, we expect changes in distribution along other parameters.

Banks and finance companies will emerge as an attractive distribution channel for insurance.

This trend will be led by two factors which already apply in the other world markets. First,

banking, insurance, fund management and other financial services will all form a set of services

rather than disparate ones. Second, banks and finance companies are being driven to increase

their profitability and provide maximum value to their customers. Therefore, they are themselves

looking for a range to distribute.

Another potential channel that reduces the need for an owned distribution network is worksite

marketing. Insurers will be able to market pensions, health insurance and even other general

covers through employers to their employees. These products may be purchased by the employer

or simply marketed at the workplace with the employer’s co-operation.

Different distribution channels bring their own challenges. First, companies will have to ensure a

string brand identity. Distribution through third parties means that it is those companies rather

than the insurers who often reap the benefits of customer loyalty. This accelerates the shift of

insurance to a commodity product. Second, since many new companies already offer other

financial services products, they will be tempted to sell only their own products. They must

balance this against the advantages of offering customers a wide product range. This is especially

important because there will be rise in pure financial service retailers who do not have any

owned products and offer a broad range of products from different providers to consumers.

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3.1.2.1 ROLE OF INTERNET IN THE INSURANCE SECTOR

Insurance companies have often been considered to be quite slow in embracing e-commerce.

Different factors have influenced the insurers reluctance to sell on the Internet. Dependence by

the individual on face–to-face interactions with his trusted local agent to obtain financial

planning advice & products. Direct contact with the customer is important for two reasons:

1. It provides the company with ample information about the customer’s habits and preferences

as well as the opportunity to use these data to create customized products and to cross-sell

other products such as insurance or mutual funds.

2. It presents an opportunity to develop customer’s loyalty.

Therefore, the insurance space is likely to witness a lot of investment from both insurers and

insurance distributors in the near future and the industry could try to make up for its slowness in

responding to the Internet so far. For insurance industry the one prediction that can however be

safely made is that the quantum of Internet play within the industry will only increase in the

immediate future and has been witnessed in other financial services products categories, some

newer and different ways of offering products and transacting business online may emerge

within this industry as well.

In the years to come the field of financial services will witness certain revolutionary

development and the launch of new and innovative instruments. This area is likely to grow by

leaps &bonds. The players will strive to provide the customer with constant value addition &

innovation in order to remain in the race. The players are all set to try and satisfy every wish of

their customers.

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From ‘one company one monopoly’ we are moving to an open market. In the now open sector on

Insurance following factors will determine the success of the company in a particular and

industry in general.

3.1.2.2 LIKELY FACTORS OF SUCCESS

A change in the attitude of the population

Indians have always been wary of employing their hard earned money in a venture that will pay

them on their death. Insurance has always been used as a tax saving tool. No more, no less. It is

up to the insurers to educate the people to secure/insure their future against any unknown

calamity and makes a shield around their families and business.

An open and transparent environment created under the IRDA

The reasons for this being on the top of our understanding is that whenever we have seen any

sector open up in India there are always Grey areas and unsure policies. These are not exactly

what any players, be it Indian or foreign, looks for. It crates an air of uncertainties in all the

decision making process. Insurance as a sector requires players who are strong financially and

willing to wait for returns. Their confidence can be bolstered only if there is an open and

transparent policy guideline. This will also help the consumers feel safe that the regulatory is an

active one and cares to do every thing possible to keep things under control and help the

insurance environment grow maturely.

A well-established distribution network

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To cater the largest democracy in the world is by no means a cakewalk. Insurance profits are

directly related to number of insured and this is in turn related to the reach. The case in example

is of the State Bank of India. The joint ventures announced have a flavor of network being a

critical decider. This is so because as per the guidelines 15% of the policies written by the 5 th

financial year will have to come by rural areas. The banks are the only ones who have that

reach.\

Trained professionals to build and sell the product

It is said that the insurance agent is the best salesman in the world. He makes you pay, regularly,

an amount promising to pay back only on your deaths. Thus the players will require an excellent

sales team to sell their products in the new competitive environment. The importance can be seen

from the fact that the new players are poaching a lot of LIC & GIC personnel.

A more rationale approach to the investment criteria

This is a very critical area as far as the government and the players are concerned. The

government has fixed up the investment pattern for the players to meet its social obligations. The

players feel that the compulsion is unjust and will affect their return on investments. One may

wonder that why it is that it has been listed as a success factor. The reason is that it is in the

larger interests of the society. The more the people insured, the better the revenues, followed by

better security, followed by better morale and productivity. On a national level the criteria’s

ensure that the money does not go out of the nation. We also need to bear in mind that the

insurers are here not for charity but for profits. So their interests are also to be kept in mind.

Encouragement of newer and better products and letting the hackneyed ones die out

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This will itself ensure the market grows and that every class/society gets a product that best

suits them.

A stringent accounting practice to prevent failures amongst the insurers

Every insurer will have hard-earned money of the masses. Any failure of the insurer on account

of unwarranted profligacy will cost the nation in general and the insured in particular. To prevent

any underhand workings of the insurer and to prevent them from going bust, a stringent

accounting practice is imperative.

A level playing field at all stages of development in the sector for all the players

An unbiased environment is where the best comes out of the players. Their real strength shines

through. This is the duty of capitalism that we are trying to achieve in our customized manner.

This will only help the industry grow and so will the society.

3.1.3 CHANNEL DEVELOPMENT AND RECRUITMENT

Max Life Insurance aspires to provide state of the art customer service and opportunities and

avenues for enterprising people to grow and prosper. The company wise to grow exponentially

that is backed by the latest technology, hence offering its customers.

Complete and diversified product portfolio

Faster and more accurate service

Multi-channel distribution systems

Highly trained professional sales People offering high quality pre and post sales service

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It is in the above mentioned areas of personnel specialization were the importance of an adviser

clearly stands out. The adviser not only contribute in bringing in new business for the company,

but also plays an important part in offering world class pre and post sales service to the client

with the support of the organization. But the company in its principle clearly states out that an

adviser to means "Much more than a sales man or a sales women, we at Max Life Insurance

recognized or adviser as the ambassadors of our organization in the market place and we

consider the adviser force would be our biggest differentiating factor in the coming year. The

adviser is an important asset not only for the organization from the business point of view but

also to the society on the hole as he/she is someone who provides valuable service to the

community by helping people attain financial security and build funds for there future needs

thereby assisting them in getting there financial freedom.

If looked from the other side of the business where the company is operating the competitive

Indian market and more so in the business of life insurance where the customer looks for self-

belief and faith then adviser certainly hold the vital link in the overall business proposition. They

represent the company's face and words on which the customer can trust because the customer

knows that face. The adviser helps to create a web for the business to grow and driving the

customer to come to the company with complete trust and faith.

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Fig 3 -MAX LIFE INSURANCE VARIOUS DISTRIBUTION PARTNERS

3.1.3.1 TIED AGENCY

Tied Agency is the largest distribution channel of Max Life Insurance, comprising a large

advisor force that targets various customer segments. The strength of tied agency lies in an

aggressive strategy of expanding and procuring quality business. With focus on sales & people

development, tied agency has emerged as a robust, predictable and sustainable business model.

3.1.3.2 BANK ASSURANCE AND ALLIANCES

Max Life Insurance was a pioneer in offering life insurance solutions through banks and

alliances. Within a short span of two years, and with nearly a large number of partners, B & A

has emerged as a vital component of the company’s sales and distribution strategy, contributing

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to approximately one third of company’s total business. The business philosophy at B&A is to

leverage distribution synergies with our partners and add value to its customers as well as the

partners. Flexibility, adaptation and experimenting with new ideas are the hallmarks of this

channel.

3.1.4 SALES STRETAGY

Max Life Insurance has a great strategy for sales department. Company has a three type of

strategy for sales and that are as follow:

FIG 4 - Type Of Strategy For Sales

3.1.5 COMPANY STRATEGY:

Now company applies the project “Turning Point” and in this project to decide the selection

criteria for LIFE ADVISOR and life advisor is the basic requirement for sale the policy.

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Company Stretegy

External Stretegy

Internal Stretegy

3.1.6 THE PRINCIPLES OF CHANNEL DEVELOPMENT

The company in its vision states out the urge to overcome the dominant player in the industry.

The company believes that a high level of self-motivation and a coherent teamwork will allow

the organization to achieve this on the hole. The company stresses great emphasis on its core

values, which are:

INTEGRITY

CUSTOMER FIRST

BOUNDRYLESS

OWNERSHIP

PASSION

These are the foundation on which the company works and the base for the overall business

environment of the company. Based on the above-mentioned 'Pillar' of the company the

management has devised the basic principle for the program as a whole which are as following.

3.1.6.1 RECRUIT THE BEST

Experts in knowing what exactly their customer wants the company is well versed in spotting the

talents from the pool and recruiting only whose who have the intellect, energy drive and the

passion to initiate new beginning and even u lot of changes if they reel so. The incumbents are

treated as winner’s and the 'customer hiring' principle necessitates the factor of having the right

person at the right place with the right work. And definitely-no compromises on expertise and

competencies

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3.1.6.2 PERSONAL RESPONSIBILITY

The company believes that it is the prerogative of the company to create the team that it wants.

Therefore it aims at providing the learning and development conduits to employees to enhance

the domain of knowledge the important leadership and learn skills.

3.1.6.3 EMPOWERED TEAM

Each employee is a stakeholder in the organization and its growth. It is the one of the important

specialty here that the responsibility comes with a degree of autonomy and, accountability. The

area of operation and growth is to be decided by the individual himself. But the communication

is across channels and ranks where by the targets are sent and the corrective measures and

rewards also come to them. The most important factor is the employee participation and

empowerment.

3.1.6.4 REWARDS AND RECOGNITION

The reward in the company is directly proportional to the work and target achieved and gone

beyond. You work hard - you earn more. The contributions done are recognized in the most

objective and transparent manner and on the demonstrated competence level.. But yes there is

certainly an extra for the people who go beyond then what is expected to them

3.1.6.5 SHORED VISION AND PURPOSE

The company focuses on having the organization towards a common goal, which is easily done

through the effective communication and work channel. Large-scale interactive process at the

organization and group level helps in getting the employees know of what is expected of them

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and how has been achieved. This factor encompasses through all the critical interventions by the

team member or the mentor of the team.

3.1.7 THE WORKING ENVIRONMENT

The company is in a continuous search for the best of talents in the market, which align with the

vision and mission of the organization. The company states out its working culture in certain

important factors for the interested incumbents

Urge from incumbent to be a part of a world-class sales team

The freedom of working from his/her own office or residence

The flexibility of working hours-full time or part time

Opportunity to earn commission, Bonus and Incentives

Unlimited earnings-directly proportional to your efforts

Most important- the chance of a Flexible Career

The company is aware of the current trends in the market and the essential factor of increasing

the personal and human feeling to the business. Thus the company has got some underlying facts

and reasons for the working the specified manner.

The company gives the space and time required to grow, achieve and to seek new domains and

opportunities. The changing dynamics business makes it evident that the new opportunities will

come from the gaps and needs in the market. Therefore the need is to be alert enough to notice

these new happenings and tap them as and when they arise.

The people in the company are its most important asset but the real focus should be on delivering

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on the promises undertaken.

The company also stresses out that the incumbents should have that inner urge and self belief so

that they are confident enough of driving the innovation and change drives that they think are

essential. The company believes in being innovative and tenacious enough to open new domains

and horizons of horizons of business and hence regularly in the process ofdeveloping new

products and offering state of art services to all its clients, brokers and agents in the business.

Further with the growing symbiosis oftechnology in the business

The company also focuses on this aspect in the sense that it takes e-commerce and technology on

a very high priority with increasing resources being targeted at the new business economy and

the Internet.

3.1.8 THE PROFILE OF AN ADVISOR

3.1.8.1 QUALIFICATIONS

1. Age should ideally be between 25-60 years

2. Minimum educational qualification is 10+2

3. Good convincing and communication skills

4. Capacity to build an impressive network

5. Engaged in gainful business or occupation

6. Willing to undergo extensive training and development programs

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3.1.8.2 SKILLS AND COMPETENCIES

As quoted by Mr. ShoubroMitra, head HR, ICICl Prudential Life Insurance the company is

always on a lookout for people who have the following skills and competencies that we require

in business are:

Actuarial skills

Investment Management skills

Core Operations skills

Core Underwriting skills

Relationship management skills

Project Management skills

3.1.8.3 LEADERSHIP AND TEAM SKILLS

A person for achieving results

High energy levels and infectious enthusiasm

Open to ideas

Strong team players High caliber and ability

And, above all, unyielding

3.1.9 JOB PROFILE

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 basic of explaining the life insurance aspects

and the potential benefits to the customers. Further he is required assist them in deciding upon

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the plan that suits them best in terms of finance and security provided. Therefore the opportunity

provided to the advisor is no way and the typical benefits can be mentioned as following:

There is absolutely no need of a startup capital

There is the benefit of flexible working hours

The freedom to work from anywhere and being one's own boss

The unlimited earning benefits in from of remuneration and incentives

And the privilege of being part of a world class sales team

The role of an advisor is multifaceted in the sense that his work scope is in no way limited. But

ill a nutshell the expectation from an advisor has been laid down by the management in the

following manner under two main headings.

1. Providing continuous financial advice for clients

Identifying prospective clients

Making appointments

Conducting reviews with the prospects/existing clients

Closing the sales contracts

Getting more referrals so as to increase the network

Providing pre and post sales service to client

2. The advisor is also required to regularly follow the internal sales and the intema1 reporting

system so as to get the feedback and further leads for the prospective areas of business and

improvement.

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3.1.10 BENEFITS AND SUPPORT PROVIDED

The benefits have already been mentioned very often in the previous section but its necessary to

look into them as a comprehensive criterion. The main benefits sand supports that an advisor

would be availing of are the distinct Max Life Insurance Advantages.

Rewarding Career

The job profile as mentioned earlier is unlimited and an advisor will help people realize their

dreams and provided them the financial and psychological security and faith. The ultimate

rewards will be the difference made to all these lives and that would be satisfying in the real

sense.

Successful Team

Being at Max Life Insurance gives the opportunity to be a part of India's best team life insurance

advisors. The company is numero-uno among the private players in the industry and has won

numerous recognition and award that give it the international edge.

Attractive Remuneration

Max Life Insurance offers the most competitive remuneration benefits at present in the industry,

which proves to be very useful from a long-term perspective of financial security. There is

absolutely no limit to one's earning added incentive which help an advisor to get more than what

he/she expects.

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Independence

At Max Life Insurance the advisor is a boss in himself and in the real sense. There is the freedom

to choose the workplace, the timings and the amount of earning 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.

World-Class Training

The company leverages on the international linkages that it has got to provided the best training

available in the industry at the present. The company aims to impart the necessary skills and

competencies to all even if there is no previous experience with the individual. The presence of

trained in-house trainers and professional provide the necessary aspects of training required.

Moreover the training is being provided with the help of professional institute and centers like

the RINSCollege.

Career Agency System

Max New York's commitment to the Career Agency System imparts support to the advisor at

every stage of the business. The company believes in encouraging the advisor to the highest level

of success all through their career. One of the distinct factors is the opportunity and the option of

a management career option for the successful performers.

Best Infrastructure

The company has made a huge investment to develop the state of the art infrastructure

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throughout the business. The infrastructure provides the necessary tools, technology and human

support that enable to build a profitable long-term relationship.

3.1.10.1 EXTENSIVE PRODUCT PORTFOLIO

The company has got more than four hundred policies for its customer. This consists of the

unique individual, group and rider policies. This extensive, diversified and comprehensive range

provides the competitive edge that no other advisor would be having in the market.

3.1.10.2 SALES AND MARKETING SUPPORT

The company has got unique sales and marketing tools to help and support the advisor at every

stage of the career. The sales, promotions and collaterals provide help to achieve it.

3.1.10.3 FINANCIAL STRENGTH

Max offers the customer unmatched financial strength and solidity. The huge amount of paid up

capital and growing revenues are an indicator of that.

3.1.10.4 SUPPORT PROVIDED BY THE UNIT MANAGERS

Field visits for the incumbents

Training on products and selling skills

Regular business reviews to monitor the progress

The UM acts both as a coach and a mentor

The UM recognizes the high performers

Help in becoming financially independent

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3.1.10.5 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

3.1.11 CAREER PROGRESSION

3.1.11.1 THE TIGER TEAM

It is an exclusive program for the high potential achieving between the advisor and the scope of

the progression is limited only to few handpicked all round performers. The TIGER TEAM

represents a fast track career path for the advisor. The successful candidates are recognized as the

Tigers. One continues to his/her business but the benefits come added on. The criterion is as

following:

Age 25-40 years

At least one year of working in the system

Case count should be at least of two per month

3.1.11.2 THE MOBILE TIGERS

This program offers the following benefits:

Part time career as trainer

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To conduct foundation programs

Opportunity to share the best field practices

Chance to replicate one's own business

Freedom of continuing with one's business

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 in per month

3.1.12 THE PINNACLE PROGRAMME

The program is for the high achievers in the major benefits that are on offer are as following:

A full time career as a Unit Manager

The possibility of growth 'within ICICI prudential

Greater earning potential

The scope for personal development

The selection criteria for the pinnacle Programme:

Age 25-40 years

At least one year of' working in the system

Case count of average two per month

3.1.12.1 FAST TRACK PINNACLE PROGRAMME

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The program consists of' the following features:

Offering a fulltime career as an Unit Manager

Opportunity of' growth within Max Life Insurance

Scope of greater earning potential

Scope for persona I d envelopment

The selection Criteria for tile particular program are:

Age 25-40 years

At least six months of' working ill the system

Thirty issucll1ces within six months

3.1.13 AGENCY CHAMPION:

This is highest level of career progression on offer. It has got several distinct features, which sets

it apart from all the above-mentioned programs. This programs aims at rewarding the super-

achievers working with the company. The features of this programme are as following:

The chance of taking one's business to the higher level

To develop one's own business, i.e.; to develop into an entrepreneur

The freedom to recruit new advisors and making one's own team

The potential of increased reach of network

Increased earning potential

The selection criteria for the program are as following

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Atleast one year of work experience in the system

Minimum of 36 policies and Rs. 3.60 lacs premium

Selection process (assessment center)

3.1.14 THE PROCEDURE OF BECOMING AN ADVISOR

Max believes in getting people who can align with the company's principal and beliefs well

enough to, grow on their own. In the word of the management the company believes that one

becomes an advisor for the leader only and if he/she has the:

Confidence

Self-motivation

Persuasion

Urge to be financial independent

Relationship skills

The broad steps that best describes the procedure of becoming an advisor in the company are as

following:

Confirmation of mutual interest as between the company and the individual

Appearing and clearing the selection interview

Profiling of the test dates between parties

Draft payment favoring Max Life Insurance

Finalizing of the Training dates and venue.

The company provides for the all-round development of the individual and any previous

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experience or inexperience in the related field is not an obstacle. The professional approach of

the company in the training module helps it to train the incumbent in the best possible manner.

The company has got aprofessional in-house training staff that is one of the best in the practice.

The company has laid down for a state-of-the-art Training on:

Selling skills

Product knowledge

Relationship skill

Tile Irail1ing is delivery through several convenient options keeping in view the requirement of

the individuals and the target of the company. The training is done at the timing and venue

decided upon by the parties concerned.

The incumbents have to complete hundred of training in any mode that they choose from.

The guideline laid down for the training are as per the books of IRDA. The training concept can

be classified according to very different aspects, which can be the delivery medium and the time

involved.

On the basis of the delivery medium the process can be of:

Face to Max training

Online training

Self-learning

Online basis of the time involved the process can be or:

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Full time training - involving 15 days

Part time training - involving 27 days

Online training - involving 2 months

So, if we summarize the steps and formalities involved in the whole process, the formalities for a

candidate to become the advisor as per the IRDA are:

3.1.14.1 FILLING UP OF THE INSURANCE ADVISOR FORM

3.1.14.2 DOCUMENTS REQUIRED

7 passport size photograph

Acceptable age proof

Acceptable education proof

Acceptable residence proof'

3.1.14.3 PAYMENT THROUGH THE DEMAND DRAFT

3.1.14.4 COMPLETION OF THE TRAINING

The main objective of the “Channel Development” is to recruit quality agent advisors (AA) for

the company for providing life Insurance solutions to the customers. AA plays a vital role in the

growth of company with respect of company’s earnings as well as they create value for the

organization after achieving some milestones. AA are integral part of the team and sales manager

assigned to them help them to groom them in terms of personality development, selling skills and

handling objections of customers.

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3.1.14.5 BENEFITS OF BECOMING AA FOR ML

Fig 5 - BENEFITS OF BECOMING AA FOR ML

3.1.14.6 COMPANY’S EXPECTATIONS FROM AA

Follow the sales process.

Achieve sales targets.

Attend training program.

Participate in weekly reviews.

Follow the ML ethics and business standards policy.

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3.1.15 JOB DESCRIPTION

I was placed in the recruitment section of channel development at ML. I had to recruit agent

advisors for the organization by following the steps involved in the channel development

process. I was paid a commission for every agent advisor who undergoes the screening process

and clears the agent advisor examination.

It was a pleasant job as it had no work pressure and extremely flexible working hours. I had a

great sales manger to assist me all throughout.

Following are the steps undergone in my job:

Making a list of known capable people and giving them a call over phone and fixing an

appointment with a senior officer.

Taking further contacts from the call-list in the form of references.

Identification of potential candidates to be contracted as agent advisors.

Calling upon the potential candidates and explaining the business opportunity to them.

Enable the candidates to talk to a higher authority and undergo initial screening.

Get necessary forms filled by the candidates and collect supplementary documents like education

proof, identity proof, date of birth proof etc.

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3.1.16 CHANNEL DEVELOPMENT STRATEGIES

3.1.16.1 ELIGIBILTY MODEL

From this eligibility model, the company judges a prospective person. The company follows

unique eligibility criteria for AA selection by which company is able is to always justify its

mission. The basic objective of having an eligibility model for recruitment is to have good

retention and greater effectiveness in the delivery of service.

Four criteria’s for AA selection

1. 25 plus years of age:

This age shows attainment of maturity and responsibility. People are more consistent in this age.

2. Married:

Married people have more eager to earn money. Family pressures increase responsibility and

secondly customers are convinced more by the stability of a married AA.

3. Staying in the same city for more than 5 years:

Person who stays more than 5 year has huge natural market which helps him to get more

business in short period.

4. Graduate:

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Graduate people have basic skills like communication skills, numerical ability, I.P relation,

convincing abilities etc. so it is easy to teach them further.

Other criteria for AA selection:

1. Financial stability:

ML is focuses on classes and not on masses thus they select strong agent advisors.

2. To have a rich and active social circle:

It helps to get higher case rate and case size. Also the chances of policy lapsing can be less and

renewals can be more.

3. Greed for money:

Firm selects advisors who understand the language of commission. Because people who want fix

amount as their earnings are not suitable for this business.

4. Independent:

ML select people who want to be entrepreneur. Housewives or brokers who want flexible hours

for work are prospective person for this business.

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5. Persuasion:

He should be persuasive in nature because the AA needs to follow up on regular basis with

prospective and new clients without being a nuisance value.

6. Excellent interpersonal skills:

Because developing and maintaining good relations can get policies. Secondly since most of the

insurance companies provide a plethora of similar products, sales depend on the convincing

ability of the AA and the rapport the AA is bale to build. Also results in C of I’s.

3.1.16.2 WORK PROFILE

This is an entrepreneurial opportunity with flexible working hours and the potential to earn

unlimited income without any capital investment. As an agent with Max Life, you are a financial

advisor, businessperson and your own boss. The only limit to your growth is your own

imagination and drive.

3.1.16.3 THE ROLE

Identify prospects and conduct need analysis

Provide customized solutions for long term financial protection and wealth creation

Close sales

Deliver the policy

Provide after sales service and build references for future sales

3.1.16.4 BENEFITS

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A career at Max Life has innumerable advantages. With low start up investment you can become

a part of a world-class organization and make a positive difference to people’s lives.

Our agents sell more policies and make more money than agents of any other life insurance

company. The financial rewards are in the form of

Commissions on new sales

Ongoing renewal commissions

Performance linked bonus

Referral commissions

Training reimbursement

3.1.16.5 THE FIVE DIFFERENTIATORS

3.1.16.5.1 SELECTION PROCESS

Our selection process is designed to help the candidate and the organization make a decision in

mutual best interest. The first step in the process is an initial interview followed by a test of

numerical ability. Candidates who make the cut are invited to attend a career seminar. The

procedure facilitates a process of discovery, as both sides develop an understanding of each

other’s profile and requirements. The final stage in the selection process is an assessment of the

candidate's natural market and potential for growth.

3.1.16.5.2 TRAINING PROGRAM

Max Life has the finest training program for agents in the industry. We run training and

development programs for agents throughout their career. The training consists of a two-year

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formal classroom based program. Max Life has two full-time professional trainers in each office

whose sole job is to train and guide new agents.

The success of our training programs owes a lot to the strength of our partner, New York Life.

The training program developed by New York Life in the United States is widely recognized as

the best in the insurance industry. We have customized this outstanding program for the Indian

market.

In the United States, New York Life had more members in the Million Dollar Round Table, the

worldwide organization of top professionals in the insurance industry, for 50 consecutive years.

Since 2001, Max Life has had more qualifiers for the prestigious Million Dollar Round Table

than all the other private sector insurance companies taken together.

3.1.16.5.3 MANAGEMENT LOYALTIES

One of the many advantages of working with Max Life is that managers are not allowed to sell

insurance products to their own customers. Compensation in management is derived entirely

from the success of agents and the overall growth of the organization. Managers at all levels are

totally committed to the success of agents and do not pursue any conflicting goals.

3.1.16.5.4 OUR PRODUCTS

No organization can claim to have the number one product in the insurance industry for a long

period of time. It is a matter of great pride that our products have always been rated among the

best in the industry. These products have been developed after extensive research of the Indian

market and are designed to meet an individual’s needs at every life stage.

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3.1.16.5.5 THE AGENT’S CONTRACT

The Agent's Contract is designed to attract efficient professionals and retain them for a long time

by compensating them generously. As an agent you can count on the support of Max Life at all

times to help you earn a good income today and create a secure retirement for tomorrow.

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