Project on Kotak Life Insurance

Project Report on “Comparative Study of the Life Insurance Company to know their strategy to increase productivity and boost sales”

IN PARTIAL FULFILMENT OF THE REQUIREENT FOR THE AWARD FOR THE AWARD OF THE DEGREE

MASTER OF BUSINESS ADMINISTRATION 2007-2009

ACKNOWLEDGEMENT

INDEXEXECUTIVE SUMMARY...................................................................................................................4

About Insurance.....................................................................................................................................4

About General Insurance......................................................................................................................5

Life Insurance and India:-....................................................................................................................6

Indian Contract Act 1872.........................................................................................................................9

Working of Life Insurance..................................................................................................................14

About Kotak Mahindra Old Mutual Life Insurance:-.....................................................................15

Features of Kotak Mahindra and Old Mutual plc at a glance:-......................................................17

Structure of Kotak Life Insurance:-..................................................................................................20

MARKETING TEAM STRUCTURE...................................................................................................22

Summer training Learning:-...............................................................................................................23

TELE MARKETING.............................................................................................................................30

Learning from Calling.........................................................................................................................31

CHANNEL MARKETING.................................................................................................................32

Marketing strategy of all the companies is different besides the lot of similarity in the products............................................................................................................................................................36

OBSERVATION:-...............................................................................................................................39

RECOMMENDATIONS:-..................................................................................................................39Bibliography

EXECUTIVE SUMMARY

Monopoly of LIC has been broken to make Indian Insurance to change its face and pace to tap the market and to make the new challenges in it.

Insurance in India is not about India only; it is an open sector for the private players.

The name which you would see in Indian insurance market is something like: - BAJAJ (Indian company) + Allianz (foreign player), TATA (Indian company) + Aig (foreign player) and so many like them.

Companies now are tapping a lot of ways to capture the market and hence adopting different ways to hold the large portion of the market.

My project was to understand the different marketing strategies adopted by the companies to increase their market share and along with it meeting their own targets to achieve the position of no.1 in respective field or segment of the market.

My summer training learning helped me a lot to complete my project in order to learn a lot of things of the corporate. As a project trainee the first task given to me was to understand the basic behaviour of the consumer in order to manipulate the market according to the our target competition. For this we did developed a questionnaire and I did my survey in important location of Noida and Delhi metro.

From this database I was asked to do the called calling in order to make strengthen the agency channel and I learnt how to develop this channel and how to create the business opportunities besides grabbing them. This made me to know issues of competitive market in a better manner and it also gave me a lot of ideas to enhance my communication and convincing skills.

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About Insurance:-

Insurance may be defines as social device to protect the economic value of the Life and other assets. Under the plan of Insurance a group of people are brought together and their share of money is pooled to manage the loss suffered by any of them.

Insurance is a contract whereby in return of the payment of the premium by the insured the insurers pay the financial loss suffered by the insured as a result of the loss by the unforeseen events. The term “risk” is used to define the probability of loss.

Insurance is a pool where large number of people exposed to similar kind of risks makes contribution to the common fund out of which the losses suffered by the unfortunate few due to accidental events are made good.

The sharing of risk among large group of people is the basis of insurance.

Characteristics of Insurance:-

1. Sharing of Risk

2. Cooperative device

3. Evaluation of Risk

4. Payment on event of happening of any special event

5. The amount of payment depends on the size and type of loss.

6. The success of Insurance business depends on the law of large number of people insured against similar risk.

7. Insurance is a business which spreads the loss and the risk of few people in the large number of people.

8. The insurance is a plan in which insured transfer his risk to insurer.

9. Insurance is a legal contract

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Insurance is divided in two basic zones:-

1. General Insurance

2. Life Insurance

About General Insurance:-

Insurance of the non life assets are called general insurance, this includes loss of asset against water, fire, earthquake etc. With the detarrification in the Indian Market in General Insurance the monopoly of the general Insurance public sector’s companies has been broken. With the entrance of the new private player market innovative technique has been introduced to capture the market. In general Insurance around 17% of the market has been captured by the private players.

General Insurance is a sector which alone has many type of insurance coverage in it like Fire Insurance, Marine Insurance, motor Insurance, Liability Insurance, Engineering Insurance etc.

The Non Life Insurers

National Insurance Co. Ltd New Indian Assurance Co. Ltd Oriental Insurance Co. Ltd United India Insurance Co. Ltd Tata AIG General Insurance Co. Ltd Bajaj Allianz General Insurance Co. Ltd

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IFFCO Tokio General Insurance Co. Ltd ICICI Lombard General Insurance Co. Ltd Reliance General Insurance Co. Ltd Royal Sundaram Alliance Insurance Co. Ltd Bharti Axa General Insurance HDFC Chub

Life Insurance and India:-

Life Insurance in India existed from long time. The modern concept of Insurance was brought by Bruisers in India, and Oriental Insurance Company was the first Insurance Company who did Insurance for the Indian in 1818 and was established in Calcutta nowadays Kolkata. Then due to no interference of government in it, private market players ruled the market as they want to, that is why government intervened in between to protect the interest of the mass and to safeguard the money involved in it. Government took the initiative and banned the private players to involve in Insurance market. All private companies were took over by Government and Insurance market was turned to Public sector and Life Insurance Corporation of India was formed in 1956 to make the Insurance reachable at remote areas and that even by low premiums or better said as affordable premium so as to secure their life.

From the beginning of Insurance in India till now a lot of changes have been made but the most significant change was in 1999, when IRDA was formed. IRDA means Insurance Regulatory and Development Authority. This was formed to rethink upon opening the insurance sector for the Private players again but along with that to have a check upon those private players an IRDA has to act as a governing body to safeguard the interest of the public whose money is involved in it.

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From that time i.e. from the year 2001 insurance sector was opened for the private players too. Since then Insurance sector is on the boom and business is flourishing and a lot of private players are coming into business. Here the private players doesn’t indicate to Indian Private Companies but also foreign players are also involved in it, but to manage the money flow in and outside the country IRDA takes care of the contribution of the money by foreign partners of private insurance companies. To control that IRDA has set a limit of FDI i.e. 26%.

The evolution of Insurance in India can be summarized as:-

Year Changes

1818 Oriental Insurance Company. The first Insurance company in India

1870 Bombay Mutual Life Assurance Company. First Indian Insurance company.

1912 The Indian Life Assurance Company enacted the first law to regulate the life insurance business in India

1926 The Indian Assurance company act enacted to enable the government to collect the statistical information about the insurance.

1938The earlier legislation consolidated and amended the life insurance act with the objective of protecting the interest of insurance in the public.

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1956 245 Indian and foreign players and prudent societies are taken once by Central govt. And nationalized

The number of companies in Insurance particularly in Life Insurance has changed drastically now the number is in 17. List of them are mentioned as below:-

1. Bajaj Allianz Life Insurance

2. ICICI Prudential Life Insurance

3. TATA AIG Life Insurance

4. Max New York Life Insurance

5. AVIVA Life Insurance

6. Bharti AXA Life Insurance

7. Kotak Mahindra Life Insurance

8. Reliance Life Insurance

9. SBI Life Insurance

10. HDFC Standard Life Insurance

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11. Birla Sun Life Insurance

12. Sahara Life Insurance

13. ING Vysa Life Insurance

And so on....

Life Insurance contracts are the one which has to fulfil the requirements of the Law of Contract as per the Indian Contract Act 1872.

Indian Contract Act 1872 implies: A contract must have certain essential features in order to make it legally valid and enforceable.

Essential Features:-

1. Offer and Acceptance: - There should be the offer by the customer in form of proposal form and Acceptance by the Insurance Company.

2. Consideration- There should be the valid consideration against the insured property in terms of the premium to b paid by the consumer.

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3. Agreement between the parties: - There should be consensus on the both side of the parties.

4. Capacity to contract: - The Insured should have the capacity to perform the contract as that he a?) He should be of sound mind b) he should not be abided by law to go for any contract c) he should be major that he should have the age minimum to 18.

5. Legality: - there should be the legality of contract as it should be legal in nature and must be brought for the lawful consideration.

Above details have some technical words like Insured, Insurer, and Premium etc. Let’s make a brief note on that for a better understanding:-

Policyholder: - The one who pays the premium against policy

Insured: - The one who is insured against risk by insurance company.

Insurer: - The one gives the insurance i.e. Insurance Company.

Premium: - The amount against continuance of the insurance

P.S.:- Policyholder and Insured can be same person and can be two individuals even.

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Apart from the Legal Structure of the Insurance Contract there are some principles in Insurance Industry on which every company works on. These principles are:-

Utmost Good Faith: - It is also termed as Uberrima Fides. It is applicable on the proposer that all the contents which are filled and signed by him on the proposal form are true as per his knowledge.

Insurable Interest: - It means that the property or life which is to be insured the proposer has the legal rights upon that. Without insurable interest no insurance can be provided. In life insurance term legal rights on life means to prove the blood relation. A husband can take policy for his wife.

If asked we should know the benefits of the insurance and that can be known by knowing the function of the insurance.

PRIMARY FUNCTION:-

1. Provide protection: - As risks controlling is not in the hands of anyone completely that is why Insurance Company provides the risk protection.

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2. Collective bearing of loss: - Insurance Company would have to accept the loss and give respective claims as for the sake of contract that has been done between the company and the insured.

3. Assessment of Risk: - There should be the proper assessment of the risk so as to charge the correct and legible premium to insure the subject matter of insurance.

4. Provide the certainty: - As the losses appear from the uncertainty so Insurance Company would have to provide the certainty of absorbing the loss so as to protect the insured under the risk in which he has been insured.

SECONDARY FUNCTION:-

1. Prevent Loss: - Insurance cautious businessman and individuals to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions.

2. Small capital to large risk: - Small capital is demanded to cover the risk of the large capital.

OTHER FUNCTION:-

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It is a means of savings and investment apart from it its share in the GDP counts very important. In India it is in a growing stage in compare of the other countries lets’ have a look on it:-

United Kingdom 8.9%Japan 8.3%Korea 7.3%United States 4.1%Malaysia 3.6%India 3.0%China 1.8%Brazil 1.3%

If we talk in terms of India only then the result will be something like this:-

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Working of Life Insurance: - Risk has to be assessed in order to decide tithe premium or to decide that subject is insurable or not.

Pure Risk vs. Speculative Risk:-

Event representing there will be possibility of loss or no loss is called pure risk. These risks are insurable in nature.

Speculative risk is the one which truly resembles gamble. There is the possibility of loss or gain and wherever there is a chance of making profit there insurance cannot exist. Therefore these risks are not insurable in nature.

Approaches to Risk Management:-

Risk Management is the process of minimising the risk due to unforeseen events. Steps involved in selecting the Risk Management are:-

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To identify all the things that can be possibly wrong. To consider possibility that an event can occur.

Techniques toward the Risk Management;-

1. Avoiding the Risk: - Risk can be managed by avoiding it as when the perils will come then it will be managed.

2. Eliminate the Risk: - Risk can be managed by eliminating the cause of the loss.

3. Reducing the Risk: - Risk can be reduced by handling them in a systematic manner.

4. Transfer of Risk: - Risk can be minimized by transferring the risk of loss to any other person which is a true form of the INSURANCE.

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About Kotak Mahindra Old Mutual Life Insurance:-

Kotak Mahindra is in business since 1985, and insurance part of their business came into existence in the year 2001.

Evolution of Insurance business in Kotak Mahindra business is like this:-

Year Significant Changes Business Development

1985 Trade Finance

1986 Corporate Finance

1990 Car Finance

1991 Investment banking

1992 GOLD MAN SACHS Brokerage and Distribution

1995 FORD CREDIT Commercial Vehicle

1997 Consumer Finance

1998 Mutual Fund

2001 OLD MUTUAL PLC. Life Insurance

2003 Bank

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As stated above Kotak Mahindra Life Insurance has Joint venture with Old Mutual plc.

Old Mutual Plc is the 12th largest Insurance Company in the world. It has its base of over 4 million life assurance policyholders. It has one of the best “Payouts” among insurers in the world. It has one of the best “Solvency Ratios” among insurers in the world. A FTSE 100 financial services group and ranks as a Fortune Global 500 company.The Old Mutual group manages in excess of 239 billion pounds in funds (Dec’06). The company is 160 years old and has prominent presence in the United States and the United Kingdom.

Kotak Mahindra Group:-

Kotak Group and Mahindra Group had their partnership 1985 between Uday Kotak and Mr. Mahindra.

Now the question arises that why for the business in India of life insurance Kotak Mahindra chose Old Mutual plc and vice versa.

Features of Kotak Mahindra and Old Mutual plc at a glance:-

Kotak Mahindra Old Mutual Plc

Brand Equity Domain Knowledge

Branch Network Technology

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Entrepreneur Employees Product innovation

Knowledge of Indian market Training Expertise

Access to customer base Global perspectives

Distribution associates System and Process

Multi Channel working system

If we look at the status of Kotak Life Insurance’s market share in comparison of other private company in comparison of premium earned:-

No Insurer Market Share (%)

1 Bajaj Allianz 7.56

2 ICICI Prudential 7.35

3 HDFC Standard Life 2.87

4 SBI Life 2.31

5 Birla Sun Life 1.89

6 Tata AIG 1.29

7 Max New York 1.23

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8 Aviva 1.14

9 Kotak Mahindra OLD Mutual 1.11

10 ING Vysya 0.79

11 Reliance Life 0.54

12 MetLife 0.40

13 Sahara Life 0.06

14 Shriram Life 0.03

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If we talk the growth of Insurance industry’s private players in recent years, the data will reflect:-

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Structure of Kotak Life Insurance:-22

MANAGING DIRECTOR: - MR. GAURANG SHAH

CFO; - G. MURALIDHAR

VICE PRESIDENT TRAINING AND MANAGEMENT DEVELOPMENT: - MR. ARUN PATIL

VICE PRESIDENT HR: - MR. SUGATA DUTTA

VICE PRESIDENTS DISTRIBUTION DEVELOPMENT AND PLANNING: - MR. KAMLESH VORA

APPOINTED ACTUARY: - JOHN BRYCE

VICE PRESIDENT MARKETING:-

Its hierarchy in Kotak Life Insurance is like this:-

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MARKETING TEAM STRUCTURE:

-

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Summer training Learning:-

Developing the source for marketing and development of the business through the understanding of;-

1. CONSUMER BEHAVIOUR

2. TELE MARKETING

3. CHANNEL DEVELOPMENT

4. UNDERWRITING TRAINING

Consumer Behaviour:- The process and activities people engage in when searching for, selecting, purchasing, using, and disposing of products and services as to satisfy their needs and desires is consumer behaviour. To understand this so as to know the recognition of KOTAK Lie Insurance we conducted a survey in different areas such as:-

CSM Mall, Noida

Great India Place, Noida

Shipra Mall, Indirapuram

Delhi Hatt, Pitampura, Delhi

Delhi Metro

Sector -41, and sector -50 markets, Noida

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100 responses of people turned to following:-

No. Of people insured 83

Insured from LIC 79

Insured from Private companies 47

Insured from Kotak 12

Know about the product of Kotak 28

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Kotak’s Product for Individual Life Insurance:-

1. Kotak Capital Multiplier Plan2. Kotak Flexi plan3. Kotak Retirement Income Plan (unit-linked)4. Kotak Retirement Income Plan (non unit-linked)5. Kotak Eternal Life Premier Shield6. Kotak Head start assure wealth7. Kotak smart advantage plan8. Kotak safe investment plan9. Kotak Head start Future Protect10. Kotak Easy growth plan (1.25 times)11. Kotak Easy growth plan (5 times)12. Kotak sukhi Jeevan

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Traditional Plans:-

1. Endowment Plan

2. Kotak Term plan

Kotak’s Product for Group Life Insurance

1. Kotak Superannuation group plan

2.Kotak Gratuity Group Plan

Additional features;-

1. Riders

. Nominees

Life Guard

Kotak Capital Multiplier plan:-

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Kotak is the only plan of its kind that allows the return to be enjoyed beyond maturity. It is a kind of super endowment plan that offers the bonus every year, and also offers the facility to increase the investment and it also offers the facility to withdraw the money as when wants to over a 15 year period post maturity, apart from that additional life cover of 10%, which is over and above the life cover which has been opted.

Other Features like surrender to the policy can be opted out of any medical urgency, following riders can be opted:-

Preferred term Benefit Accidental Death Benefit Permanent disability Benefit Critical Illness Benefit Life Guardian Benefit Accidental Disability Guardian Benefit

Kotak Flexi Plan:-

Kotak Flexi gives a comprehensive long term solution for managing finances. It gives the insurance which is an important part of the portfolio. It helps in reducing the loss of investments as done in equity market because different options are given for the type of aggressiveness required for the investment and portfolio is managed by the company. As experts are there in the company to look after the investments made.

Different Fund options are available like Dynamic floor guaranteed floor etc.

Special Feature: - Flexi also has the feature of Guaranteed Maturity Value that is on the maturity of the policy one will be getting at least whatever has been invested, apart from whatever the condition is of the stock market.

Automatic Cover that is policy conversion to paid-up feature is there.

Riders are available

And feature of switching between the funds is also available.

Switching is tax free.

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Kotak Smart Advantage Plan:-

Above were brief descriptions of few products.

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Marketing:-

According to Kotler,” Marketing is a social and managerial process by which individuals and groups obtain what they need; want through creating, offering and exchanging of products of value through other.

This definition of marketing rests on the core concepts like: needs, wants, and demands, products (good, services and ideas); value, cost and satisfaction; exchanger and transactions; relationships and networks; markets; marketers and prospects.

NATURE OF GOOD MARKETING

THAT IS WHAT KOTAK LIFE BELIEVES IN, a good marketing

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Kotak adopts different methods for the marketing:-

Using Brand name KOTAK, and its effect can be seen as previously Kotak Life Insurance needed a name Old Mutual with its name but now people Kotak by the name of Kotak only not by the name of OM Kotak.

KOTAK has positioned itself in terms of BRAND POSITIONING as:-

FINANCIAL FREEDOM: “JEENE KI AZAADI”

Kotak always expressed itself as always close to Customers with the help of:-

Ads Merchandising Corporate Stationery

TELE MARKETING: - It is a kind of Direct selling, which makes the LEAD GENERATION for the BUSINESS, or it turned into the SALES that are again building BUSINESS for the company.

Tele Marketing is marketing the product through telephone. The most important aspect of Tele Marketing is COLD CALLING, HOT CALLING, and OBJECTION HANDLING.

Cold Calling means Calling to the unknown telephone number for the first time and that even without knowing the respondent.

Hot Calling means Calling to already approached person for the further response

Objection Handling means to handle the type of objection that may arise while calling.

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That is what we have done in our Tele Marketing in our summer training.

By different type of calling we used to generate the LEAD for the further business.

For that a set up was made and provided:-

Database for calling was given or random calling was done. Telephone was given Computer was given so as to mail the respondents who were willing to have

the details via mail. The one who were interested in knowing the details of the offer by meeting,

space was provided in the office to meet the senior respondents.

Result from Calling:-

Appointment: - Calling used to turn into the appointment to generate the lead for the business depending upon the motto to call, which was sometimes for the appointment of the Life Advisors and sometimes for selling the policies.

Mail Brochure: - Sometimes responses were that the respondent is not able to talk due to some reasons and they ask to mail the details via e mail.

Call Later: - Responses used to come as to call later because of their busy schedules, incorrect time to call as the persons busy in meeting or having lunch, or driving or is in roaming area.

Already a customer of Kotak: - little response came as the person is already a customer of the Kotak Life Insurance.

Not Interested: - Most of the responses turned to not interest the basic reason for that is, in India Insurance are much about telling then asking.

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Database Problem: - If we got the database then problem like wrong number was frequent to observe.

Learning from Calling:-

Patience: - Patience is required while calling because the probability of a positive response is 1:25.

Timing: - Correct time to call is the key factor to make a person listen to you with interest. That timing is 1 pm to 3 pm, and then 4 pm to 6 pm

Quick Witted: - One has to be quick witted with the answers in response of the respondent, if he says that he is a student so we should motivate him with the option of pocket money and if the person is earning then the way of attracting the person to Kotak will be the extra income.

This was the case when we are cold calling with the objective making the Life advisors.

Active and careful:- One has to be active and careful in lieu to contact again to that person who gave the time to call later or if appointment has been fixed then one should be active as to give the person a reminder for at least 2 hour before to confirm the meeting.

Correct pitching: - How to pitch about yourself and about the company is the important aspect in calling as it creates the base for the person that why he should listen to you.

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CHANNEL MARKETING

Distribution Network of Individual Life Insurance Business in India

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Direct selling part includes Tele marketing through advertisements etc.

Brokers are the one who can sell the insurance product of a lot of company and is appointed by the company but works for the individual and earn brokerage through company.

Life Advisors is the name given to the traditional “Agent” which we often hear. Life Advisor is the one who can sell the insurance product of only one company and commission is what he earns in reference to the business provided by him.

Other channel here means the Corporate Agents, banks, selling through Franchisee etc. are the parts of the channels which create business for the company.

Channel development’s most important aspect is Life advisor so we should know the process of recruiting the life advisor.

First of all PHF form has to be filled along with it necessary document has to be attached:-

PHF means Personal History Form in which NAME, ADDRESS, MOBILE NO., Type of Training Required etc has to be mentioned.

Simply all those information has to be there which are necessary to be known to the company so as to decide the potential of the Proposer to bring the business to the company.

Then basic requirements as per the rule of the Insurance Act, 1938 has to be fulfilled.

1. Person has to be major

2. Should be of sound mind

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3. Should work for only one company

4. Should be 10th if going for rural area, and should be 12th passed if going for the urban area. Urban area means the area having the population above 5000 persons.

5. Should have residential proof

6. Should have identity proof.

7. Copy of PAN Card has to be attached.

And then the most important aspect that person will have to go for the 50 hours training and will have to secure 50% marks to pass the examination conducted by III (Insurance Institute of India) in behalf of IRDA to get the licence to do the policy and earn the commission out of the work done.

Company provides the service of the training to its expected Life Advisors as per their will whether online or manual training.

When a person becomes licentiate and works as a Life advisor for the company then the rest part in reference to their motivation is done by the company by throwing different competition and offering different schemes with bonuses and targets to keep alive the notion of wok and to motivate the Life Advisors to work more.

This whole process in Kotak Life Insurance is called as Reward and Recognition Programme:-

Kotak Life Insurance has made this programme and designed various stages in it for different levels of Life Advisors:-

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The whole Reward and recognition programme of Kotak is known to Kotak Life Advisors is MY KOTAK LIFE.

This was the session in which we were told that how the target is fixed and how one gets rewarded for what he has done in Kotak Life for the success of him along with KOTAK too.

My Kotak life is the theme that is opted by the KOTAK for its employee

CPI = FOS*% active * Average case size * Average case rate

CPI: Cash Premium Income

FYP i.e. First Year Premium excluding the renewal premium is CPI of the company.

FOS: Feet on Street. Sales are source of it and source of sales is Life Advisors.

Percentage active: It is that how many policies the life Advisors have sold or in a better manner we can say that active is the one who sells at least one policy in a year.

Average Case Size: TOTAL PREMIUM / no. of policies

(Focus of Kotak Life much lies on this only)

Average Case Rate: Total policies/ No. of Active Life Advisor

AVERAGE CASE SIZE is the one on which whole reward and recognition program is actually designed, whether it is MDRT, TOT, COT or 51 club.

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In it different training modules is designed at different levels of life advisors.

Rewards and recognition has 5 levels in it:-

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In these levels are sub levels such as launch pad, orbit etc.

But the biggest Reward program is 51 clubs which has origin in Old Mutual Plc. which leads Life Advisor to get attached to MDRT club, TOT club and COT club.

The things that Kotak is doing whether it is tele marketing or brand positioning or channel development, these all are the part of the strategy in which company works to increase their productivity.

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Marketing strategy of all the companies is different besides the lot of similarity in the products.

If we see the data then we will find that Kotak Mahindra Life Insurance has very less number of branches according to the latest data in annual report of 2006-2007 by IRDA, Kotak Mahindra Life Insurance has 75 branches, but the premium that they offer to Insurance Industry is 971 cores, and the number of life advisors are not much if we compare it to other companies so from where does this Premium is amounting this much, it shows that Kotak focuses on big business houses, i.e. they are much desperate for their business with elephant then humming birds.

If we see the things in a different fashion then we will find that the Kotak is having the shield of Guaranteed Maturity Value which is the feature which a few company (Max New Year Life) has.

No doubt the company is having a long list of the product with them. Variety is there as in the range of the product varies from Child product to retirement solutions, but there focus is in CHILD PLAN as their CHILD PLAN; KOTAK HEADSTART WEALTH ASSURE PLAN was a huge success.

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Adding into it JEENE KI AZAADI is the tag that they maintained and they convey in the market in order to attract the class of 30-45 age who are strong believer of freedom in working life and 45 is the age group who thinks for the retirement then to show them the path to get relieved from the responsibilities they have for their family, which is the part of Advertising and Brand Promoting the core marketing strategy

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ICICI Prudential:-

ICICI Prudential Life Insurance, another competitor of Kotak Life Insurance.

ICICI Prudential is joint venture of ICICI Group with Prudential Plc. Prudential Plc is of UK.

Prudential Plc. is the largest UK life insurance firm. ICICI Prudential was among those few first companies who started their business in December 2000 in the Private Insurance market. 74:26 is the stake of the ICICI and Prudential Plc in their partnership.

ICICI is the no.1 private player in Insurance market in term of the premium share, 7913 crores (approx) was the total [premium by ICICI Prudential in the year 2006, which is 28% of the total premium contribution by all private players in the market.

2,34,460 is the number of the Life Advisors that ICICI PRUDENTIAL was having till 2006-2007, and the number of branches that they are having is 583 which ahs drastically changed from year 2005- 2006 to 2006-2007. This magic number 583 has turned from the number 175.

So, here we have the marketing strategy for the ICICI Prudential that it is playing on the numbers of Life Advisors and widening its network to increase its market share.

The Product on which ICICI Pru is focussing on is Pension Plans, and the biggest buzz on this area by ICICI Pru is having from their Product

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BAJAJ ALLIANZ LIFE INSURANCE:

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Like any oher company Bajaj Allianz has its much focus on opening a lot of offices, amking a large chain of Life Advisors and focussing a certain segment to attract the customer.

According to the data of annual report of 2006-2007 by IRDA Bajaj Allianz is the company which has maximum number of Life Advisors and maximum number of offices.

The segment that Bajaj Allianz is focussing much on the earningsection i.e. age group of 25 to 40 who are the main earning section of the society. 16% is the share of the product NUV which gives the maximum percentage share in selling of the total products. This product is having the unique feature of shield and a very nice portfolio to maintain with. This product of BAJAJ gives solution for the the investments. It is basically a capital multipler plan.

OBSERVATION:-

Kotak is spreading its channel of distribution

75 was the number of branches that kotak had it in 2006-2007 and their target is to open 135 branches till the end of the calendar year 2008.

Number of Life Advisor has increased over time. E.g. At the beginning of financial year 2006-2007, Kotak had 12,523 Life Advisors which turned to 24485 at the end of the end of the financial year 2007.

Kotak focuses on large business house inspite of capturing the smaller business.

Less action on tele-marketing and dependence on individual life advisors is much there.

Weak Infrastructure as there was hardly any place left open for the interaction with the customer.

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Too much work load on operations’ department

Lack of database on which work (calling) can be done.

High commitment of Sales Managers toward the work.

RECOMMENDATIONS:-

Some more motivation to the employees over there is needed.

Infrastructure has to be built properly because an office is the face of the company.

Tele marketing need to be focussed much.

Networking is needed to be made broad as the number of branches with KotakLife is only 75 and the 7 states has been touched by the company so there is a huge untapped market available for the Kotak.

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Marketing in terms of the media via advertisements on Televisions to small commercials on FM has to be made because there were respondents in our survey who even haven’t heard the name of KOTAK Life Insurance. FM is suggested here because the people who can drive the private life insurance is the youth, and FM is something on which youngsters look upon too.

Awareness Camp to the sub urban area should be focussed by kotak

Apart from the Brand Positioning in urban area, a strategy should be adopted by Kotak to make its brand also near to middle level, or high aspirant people because they are the main source of the business in India.

Some innovative technique or product is required in order to attract the consumer.

Bibliography:-

1.Money Outlook, January 2008 edition

2. Marketing Management, Kotler & Keller

3. Principles of Life Assurance, IC-23

4. Practice of Life Assurance, IC-02

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5. IC-33

6. IRDA Annual Report, 2006-2007

Webliography:-

1. www.irdaindia.org

2. www.sify.com

3. www.insuranceworld.com

4 . www.findarticles.com

5. www.kotaklife.com

Other sources:-

1. The Economic Times

2. Blogs by admin

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