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SUMMER TRAINING PROJECT REPORT
ON
DISTRIBUTION CHANNEL
UNDERTAKEN AT HDFC SLIC
Submitted in partial fulfillment of the requirement of degreeof BBA
Month and year of submission JULY 2011
Under the Guidance of Submitted by: -
Mrs. Supriya RekhaSDM, Bhiwani Roll no: - 908
BBA 5th SEM
KEDARNATH AGGARWAL INSTISUTE OF
MANAGEMENT, CHARKHI DADRI
(Affiliated to MDU, ROHTAK)
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PREFACE
We cannot achieve anything worthwhile in any field of knowledge solely on thebasis of theoretical knowledge from books. To develop healthy managerial andadministrative skills in potential managers, it is necessary that the theoretical knowledgebe supplemented with the real business environment. Actually, it is the implementationof theory in practice, which is the life force of management.
My training at HDFC Standard Life Insurance had been a wonderful experience. Ihad the opportunity of getting practically insight into the business world, which enablesme to supplement the principles of management with critical working of this leadingorganization.
I have tried to put in our best efforts to make this project really useful to thecompany. Now it is their satisfaction that decided my success. I am hoping for the best.
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ACKNOWLEDGEMENT
A project report is never the sole product of the person whose name appears on the
cover. There are always some people who guidance proves to be an immense help in
giving its final shape so, it becomes my first duty to express my gratitude towards all ofthem.
I am thankful to MR VIKAS GAJWANI, for giving me his kind permission to carry out
SUMMER TRAINING in his organization. I feel especially privileged to work under the
kind supervision of Mr. VIKAS GAJWANI (ASM) HDFC SLIC, who guided me at every
step to make the project a real success. I also pay my deep regards to Mrs. Supriya,
who extended me time-to-time help in this project.
I am extremely thankful to god who is the ultimate guide providing me with valuable,insight, courage and determination at every doorstep with deep regard always
(REKHA)
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CONTENTS1) Significance of study
2) Review of existing Literature3) Conceptualization
y Introduction to the topic
y Introduction of the company.
y Industry profile
4) Focus on Problem
5) Objectives of study
6) The Research methodology includes:-
y Universe and Survey Population
y Research design.
y Sampley Collection of data
y Analytical tool.
7) Data analysis and interpretations.
8) Suggestion
9) Limitations of the study
11) Organization of the study
12) Conclusion
13) Annexure14) Reference
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SIGNIFICANCE OF THE STUDY
Distribution means relinquishing some control over how and to whom the products aresold. But producers can often gain in effectiveness and efficiency by using
intermediaries. Through their contacts, experience, specialization and scale of
operation, intermediaries make good widely available and accessible to target market,
usually offering the firm more than it can achieve on its own.
The channels chosen affect all the marketing decisions. The companys pricing decision
depends on whether it uses mass merchandisers. The firms sales force and advertising
decisions depend on how much training and motivation dealers need. In addition
channel decisions include relatively long term commitments with other firms as well asa set of policies and procedures. Channel choice themselves depend on the companys
marketing strategy with respect to segmentation, targeting, and positioning. Holistic
marketing ensure that marketing decisions in all these different areas are made to
collectively minimize value.
Marketing activities directed towards the channel as part of a push strategy are more
effective when accompanied by a well designed and well executed pull strategy that
activates consumer demand. On the other hand, without at least some consumer
interest, it can be very difficult to gain much channel acceptance and support.
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REVIEW OF EXISTING LETRATURE
1. Levy (2007) in a study on the media touch has found that
The insurance industry including brokers and agent in particular plays the important role
of protecting the populace from the vagaries of life. There is therefore an incumbent
need to challenge the publicity in the media that is unfair or incorrect about the
insurance industry.
2. Venugopal (2010) in a study on Bankssurance in India has found that
Bankssurance has emerged as the most popular additional distribution channel after the
age old agency channel in view of the wide that banks have. There are 70,000 bankbranches in India having more than 20 cores of savings accounts. The article deals with
issues, opportunities, challenges and problem in particular reference to life insurance
selling through banks.
3. Tuohy (2008) in a study on a competitive insurance market has found that
The distribution gears of commercial insurance in efficiency and market distribution,
according to European Union regulators. On average, though, across the 25 members
of European Union brokers were the dominant distribution channel in 2005.
4. Varadharjan and Susarla (2009), in a study on Championing and institutionalizing
insurers TCF charter has found that
Treating customers fairly as a corporate strategy should be formulated by the top
management and should percolate to the lowest levels of workforce. The article
suggests a road map for implementation of TCF.
5. Asthana (2009), in a study on The next frontier has found that
The vast growth in the telecom industry across the length and breadth of the country,
telecom distribution will be one distribution model to look for in the year to come. With
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over 400 million subscribers being added every month, it would be fair to say that this
client base would be as diverse as the Indian population itself.
6. Venugopal (2009), in a study on Life insurance agency has found that
Life insurance is never bought- it is always sold so goes a saying. This underlies the
face that people never go to purchase a life insurance policy as they do for other needs
like food, clothing and shelter. Although life insurance can be called the fourth need
after fulfilling the three basic needs. It needs an intermediary, an agent or advisor who
would sit with the proposer, discuss his need, his capacity to pay a certain amount as a
subject. It goes without saying that an agent should be knowledgeable, sincere and
service oriented.
7. Kumar Aggarwal (2009) in a study on The role of distribution channels in life insurance
business has found that
India is moving fast to emerge as one of the strongest economies in the world by 2020.
One of the fastest growing industries in the service sector is, insurance. With the entry
of private players and foreign collaborators, the life insurance business in India has
grown tremendously. The major contributing factor for this growth are the introduction of
the new products and channels of distribution as well as the penetration of private
insurance companies in uncovered markets. This study aims at exploring the role of
different distribution channels in the growth of the life insurance industry.
8. Sathya narayanan (2010), in a study on Banc assurance has found that
Banc assurance revolutionized the industry when they are successfully segmented the
market resulting in tailor-made insurance plans for each customer segment. This article
focuses on the issues related to banc assurance and how IRDA is attempting to
address the same.
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CONCEP
TULIZATION
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INTRODUCTION OF DISTRIBUTION CHANNELS
Distribution channels
An important market factor is "buyer behavior"; how do buyers want topurchase the product? Do they prefer to buy from retailers, locally, via mailorder or perhaps over the Internet? Another important factor is buyerneeds for product information, installation and servicing. Which channelsare best served to provide the customer with the information they needbefore buying? Does the product need specific technical assistance eitherto install or service a product? Intermediaries are often best placed toprovide servicing rather than the original producer - for example in the caseof motor cars.
A path through which goods and services flow in one direction (from vendor to
the consumer), and the payments generated by them that flow in the opposite direction
(from consumer to the vendor).
A marketing channel can be as short as being direct from the vendor to the consumer or
may include several interconnected intermediaries such as wholesalers,
distributors, agents, retailers. Each intermediary receives the item at one pricing point
and moves it to the next higher pricing point until it reaches the final buyer. Also
called channel of distribution or marketing channel.
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ATMsmarketing
Netmarketing
Bankassurance
Corporateagents
BrokersDirect
marketing
Telemarketing
Worksitemarketing
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1. CORPORATES AGENTS:-
Corporate agents are entities that are empowered to function as agents for varioustypes of businesses or for a government agency. In most cases, the corporate agentis trust company that has received specifically assigned rights and privileges fromthe corporation or government entity. Among the several functions that may beassigned to a corporate agent is the ability to handle banking and financial matters onbehalf of the client.
The use of a corporate agent is often a matter of convenience. By making use of trustcompanies to handle a number of routine functions such as general banking tasks, thecorporation or government entity does not have to make use of internal resources toefficiently manage those tasks. This means that available resources in terms ofpersonnel and time can be effectively diverted to other matters, making it possible tocomplete other projects in a shorter period of time.
Cost may also be a factor in determining to make use of a corporate agent.By outsourcing various functions such as banking services to the agent, it is possible forthe corporate to keep staffing at both executive and administrative levels focused onother areas of operation. Depending on the nature of the business of the company, thisoutsourcing can lead to a significant amount of savings to the bottom line.
2. BANKASSURANCE:-
Now, more than ever, people take care of their lives by preparing for the future and foruncertainties. Most everyone wants to live their lives devoid of worries, dreaming of
living a life that is carefree; most everyone want to sleep tight at night..
Bank assurance is the assurance provided by the banking system through the selling of
insurance and other banking products. Banks of today do not only concentrate on
financial support and services to business loans and development; they also offer
financial independence by merging with independent insurance companies. Other
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RelationshipsStrengthening of existing client relationships and development of new clients
Convenient Services
Access to services, such as core benefit enrollment, benefit statements, and wellnessprograms for clients
Complete SystemizationTrue expertise and customization of a voluntary benefits program for clients with littleadditional work for the broker or consultant
True PartnershipA strong partnership to ensure that we are always working in the best interests of yourfirm and its clients
Top Quality ServiceProfessional enrollment services through a variety of methods with per diem enrollmentspecialists and best-in-class administrative services post-enrollment
Superior Underwriting OffersStrong carrier relationships due to our CEOs continued involvement and support ofthese organizations, resulting in the best available underwriting offers
4. Direct marketing:-
Direct mail marketing is one type of marketing strategy which if lucratively conceded out
acquires vast booty for the business. Direct mail marketing is said to be the most
excellent approach to get in touch with new customers Direct marketing definition states
that this type of advertising which is of interactive type, corresponding with customers.
Direct marketing is a subsection of endorsements which spotlights on planning the
proceedings, analyses and keep tracks of every customer reply and business done to
maintain reciprocally advantageous customer associations. Direct marketing agency is
office of agents who are ever ready to help in sales of products by endorsements. Anybusiness will always be on lookout for more number of customers, which is directly
proportional to increment in the business.
Advantages:
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- Direct marketing involves direct business. So it is cost beneficial for consumers, as
there is no price hike due to wholesalers or retailers.
- Marketing executives can state certainly of the exact response to their products.
- The profit or loss can be more accurately judged.
Disadvantages:
- Sometimes, direct mailing offends the customers and many do not endorse it as they
say it inhibits their private lives.
But most marketing managers are in support of this kind of business. The various forms
in which direct business is made are:
- Direct mailing: Here, paper mails are sent to the selected groups of people, who likely
to give positive response e.g. the paper mails of latest food processor is sent to all
homes where house wives are resident so that immediate response is seen. Also CDs
can be used as demonstrating media.
5. Worksite Marketing
As a first step, it is important to define what worksite marketing is and what it is not.
Worksite marketing is not simply the sale of group voluntary benefits or ancillarybenefits to a specific captive group. Worksite marketing reflects the fact that theproducts are being sold to individuals at their place of employment, rather than in thehome. While we choose to use the term Worksite Marketing, the process is alsocommonly referred to as Workplace Marketing.
Worksite marketing is a complex process. It begins with educating the market about thevarious product and benefits, and then listening to the market, brokers, employers andemployees, to understand the unique needs of the organization.Carriers and brokers must work closely to develop and package benefits into a worksitemarketing plan based on the requirements of the specific organization. Carriers and
brokers also work closely to market the plan benefits, a process that begins witheducating the individual employees on the products and services being offered, andthen selling and administering those benefits.
6. Telemarketing
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Telemarketing is the most interactive marketing medium available. Telemarketing allows you to
answer your prospects questions, address their concerns, and overcome their objections.
Telemarketing is the only marketing medium that allows you to adjust your strategymidstream and make any changes at any time necessary to increase results. Withtelemarketing, you can change both your offer and audience with just one phone call.
Telemarketing scripts can be edited with a moments notice. And telemarketing callinghours can be adjusted.
Telemarketing provides you with immediate feedback & valuable information that
can be quickly analyzed.
Telemarketing consistently outperforms all other forms of marketing and is the most powerful,
cost-effective marketing vehicle available today. Telemarketing is a powerful, multi-billion dollar
marketing vehicle. It should be part of your marketing plan.
Telemarketing is the only form of
advertising that requires an immediate response.
Newspaper and magazine ads, radio promotions, billboards or direct mail demand little or no
immediate attention. They can all be ignored. Not telemarketing. When the phone rings, the
natural response is to answer it. Rarely do you just ignore it.
Telemarketing provides you with a captive
audience the minute the phone is answered.
With telemarketing, you can instantly establish a conversation. It is much easier to get your
message across when you engage in a dialogue and questions can be answered. Two-waycommunication using telemarketing is very powerful, and very productive.
Telemarketing provides you with endless
opportunities to increase and better your business.
Telemarketing is the ultimate marketing tool. Some popular outbound telemarketing applications
include appointment setting, lead generation, surveys, market research, list cleaning, database
update, seminar registration, fund raising, phone sales, and client reactivation... just to name a
few.
Inbound telemarketing allows you torespond and sell to your clients and prospects
24 hours a day, 7 days a week, 365 days a year.
Telemarketing also has powerful inbound applications. Inbound telemarketing is perfect for
order taking, customer service, any type of answering service, after hours/overflow calls, taking
credit card orders, voice mail service, dealer locator service, seminar registration, reservation
desk, inquiry service, and direct immediate response to print ads and virtually any form of
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advertisement.
7. NET MARKETING
As one of Wales Premier Internet Companies, Net Marketing provide Web Hosting and Design
and a range of Internet solutions to the business community. Our flexible and dynamic approach
which ensures the services we provide are professional, reliable and different. Designed and
constructed just for you, our engineers ensure you get exactly what you want, when you want it.
We are committed to effective, efficient solutions in order for you to achieve a successful
internet presence. Our staff work closely with clients to design and develop fully interactiveintelligent web sites that can be both informative and revenue enhancing.
8. ATMS MARKETING: -
Absa Group Limited is one of South Africa's largest financial services organizations, serving
personal, commercial and corporate customers in South Africa.
The Group interacts with its customers through a combination of physical and electronic
channels, offering a comprehensive range of banking services, (from basic products and
services for the low-income personal market to customized solutions for the commercial and
corporate markets), bancassurance and wealth management products and services.
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INTRODUCTION TO COMPANY
THE HDFC GROUP
HDFC commenced operations as a mortgage bank; it raised large wholesale
resources (domestic and international) and lent primarily to individual
households. In mid 1991, HDFC entered the retail deposit market by offering
savings and investment opportunities to households.
y Incorporated in 1977 as a public limited company with a share capital of Rs.10 crores
y
To specialize in provision of housing finance to individuals, co-operative societies & thecorporate sector
y First private sector retail housing finance company
y HDFC is listed on both BSE and NSE
y The corporation has had a series of share issues raising its capital to Rs120crores. The
net worth of the corporation is Rs.28, 000crores.
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ACHIEVEMENTS
Indias best managed company by Asia money magazine-1995 and 1996
Most competitive Indian company by Euromoney-1997
One of the 5 best Indian Boards by Business Today-1997
Rated as one of the best companies in India for strategy & management and investorrelations by Asiamoney-1998
Shield for the best presented accounts for banks and financial institutions over 11times (8 years in a row)
1999 IMC Rama Krishna Bajaj National Quality Award in the service category
Asia money declared HDFC as the second best managed company in India-2001
Euro money identified HDFC as one of Asias top 10 best managed companies in thefinance sector-2001
Rated as the Best Non-Banking Financial company in Asia by Institutional InvestorResearch Group-2002
Indian No.1 private life insurance-Most Respected company award-Business World-2004
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SUBSIDIARY COMPANIES
HDFC Standard Life Insurance:-
HDFC Standard Life Insurance Company is a joint venture between Indias largest
housing finance provider, HDFC, and the Europes largest mutual life assurance
Company, the Standard Life Assurance Company (U.K).
HDFC Developers Limited
HDFC promoted a wholly owned subsidiary company; HDFC Developers Limited, toundertake housing projects on a selected basis in various regions of the country. HDFC
Developers Limited has also undertaken a number of projects for the office premises of
the corporation. It is also being engages as a consultant to a number of residential and
commercial projects.
HDFC Investments Limited
HDFC promoted a wholly owned subsidiary company; HDFC Investments Limited (HIL),to undertake investments in stocks, shares, debentures, and other securities. The
Reserve Bank of India under the category of investment Company has registered HIL
as a Non- Banking Insurance Company (NBFC). HIL was set-up with an intention of
being the investment arm of HDFC.
y HDFC Realty Limited
y
HDFC Holding Limitedy HDFC Asset Management Company Limited
y HDFC Trustee Company Limited
y HDFC Finance Limited.
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The STANDARD LIFE Insurance ASSURANCE
COMPANY
Founded in 1825, Standard life has been at the forefront of the UK insurance industry
for 176 years by combining sound financial judgment with integrity and reliability. The
largest Mutual life Company in Europe since 1925, it has operations in the United
Kingdom, Ireland, Spain, Germany, Austria and Canada with representative offices in
Hong Kong and China.
One of its most recent successes was the launch of Standard Life Bank on 1 st January
1998. The introduction of its innovative mortgage product in January 1999 has an
immediate impact on the UK market, accounting for 1% of all new lending within the first
operational year. The current loans understanding amount to Rs.43, 000crore.
Standard Life has total assets of Rs.5, 95,000crore and new premium income last year
of Rs.58, 000crore. Its UK investment portfolio accounts for approx. 2% of all shares
listed in the London Stock Exchange. It is one of the few insurance companies in the
world to receive AAA rating from two of the leading international credit rating agencies.
Moodys and Standard & Poors. The later described Standard Lifes ability to meet its
claims obligations as overwhelming under a variety of economic conditions.
Standard life is rated as one of the strongest companies of the world, in financial terms.
The companys reputation in the UK market remains unrivalled. Besides, being voted
company of the Year for overall service, for the third consecutive year, Standard Life
was recently voted Company of the Decade by independent brokers.
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Experience In The Indian Market
y First market entry 1847
y
Innovative products & processes
y Last claim settled in 1997
Unrivaled Reputation for Quality
Year Award
y 2002 Company of the Year
y 2001 Best Personal Pension Provider
y 2000 Company of the Year
y 1999 Company of the Decade
y 1996-99 Company of the Year
y 1995 4 Star service award
y 1992-94 Overall best company
y 1991 3 Star service award
y 1990 Best mortgage services
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Head Office-Edinburgh, Scotland (UK)
Presence
United Kingdom: 31 branches
Canada 11 branches
Ireland 7 branches
Germany 1 branches
Austria 1 sale office
Spain 31 branches
Hong Kong 1 representative office
China 2 representative office
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Incorporation of HDFC Standard life Insurance Company Limited
The company was incorporated on 14th August 2000 under the name of the HDFC
Standard Life Insurance Company Limited.
Our ambition from as far back as October 1995 was to be the first private company to
re-enter the Life Insurance market in India. On the 23rd of October 2000, HDFC
Standard Life was the only Life Company to be granted a certificate of registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard
Life owns 18.6%. Given Standard Lifes existing investment in the HDFC Group, this is
the maximum investment allowed under current regulations.
HDFC and Standard Life have a long and close relationship built upon shared values
and trust. The ambition of HDFC Standard Life is to mirror the success of the parent
companies and be the yardstick by which all other Insurance companys in India are
measured.
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Our mission
We aim to be the top new life insurance company in the market.
This does not just mean being the largest or the most productive company in the
market, rather it is a combination of several things like: -
y Customer service of the highest order
y Value for money for customers
y Professionalism in carrying out business
y Innovative products to cater to different needs of different customers
y Use of technology to improve service standards
y Increasing market share
Objective of the company
The most successful and admired Life Insurance Company, which means that we are
the most trusted company, the easiest to deal with, offers the best value for money, and
set the standards in the industry.
In short, The most obvious choice for all.
7th February 2006HDFC Standard Life records impressive growth
Premium income grows by 150%
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Branches: -
HDFC Standard Lifes geographical Presence has also increased and it has now 169offices across the country (having added 66 new offices from Apr-Dec 2005)
Others: -
12 corporate agents
87 Brokers
Financial Strength: -
Asset base more than Rs. 20,000 corers
Rated for 6 consecutive years (only company)
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PRODUCTS
HDFC Standard Life realize that not everyone has the same kind of needs. Keeping thisin mind, we have a varied range of products that you can choose from to suit all yourneeds. These will help secure your future as well as the future of your family.
Protection Plans
You can protect your family against the lose of your income or the burden of aloan in the event of your unfortunate demise, disability or sickness. These plans offervaluable peace of mind at a small price.
Our protection range includes our TermAssurancePlan and Loan Cover TermAssurance Plan.
Investment Plans
Our Single Premium Whole Of Life Plan is well suited to meet your long-terminvestment needs. HDFC provide you with attractive long-term returns through regularbonuses.
Pension Plans
Our Pension Plans help you secure your financial independence even afterretirement.
Our Pension range includes our Personal Pension Plan, Unit Linked Pension,Unit Linked Pension Plus.
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Saving Plans
Our Saving Plans offer you flexible options to build savings for your futureneeds such as buying a dream home or fulfilling your childrens immediate and futureneeds.
Our Savings range includes Endowment Assurance Plan, Unit LinkedEndowment, Unit Linked Endowment Plus, Money Back Plan, Childrens Plan, UnitLinked Young star, Unit Linked Young star Plus.
FUTURE PLANS
TOTAL BUSINESS VOLUME: -
In 2007, Retail Channel-57%
Alternate-43%
By 2010,Retail Channel-59%
Alternate-32%
By 2010, Direct Sale Association (DSA)-10%
MARKET SHARE: -
In July, 2007- 3.8%
By 2009- 5.3%
COST RATIO: -
In July, 2007- 125%
By 2009- 100%
PREMIUM: -
Premium target achieve up to 2008 is Rs.11935crore
BRANCH: -
100 further locations (outreach program)
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The Retails Sales Hierarchy of HDFC Standard Life Insurance
F.C.
SDM
BDM
ASM
SM
SSM
ACH
CH
RM
ZM
Business/Agency head
AS
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Insurance is a subject listed in the concurrent list (where both centre and states can
legislate) in India. The insurance sector has gone through a number of phases and
changes. Since 1999, when the government opened up the insurance sector by
allowing private companies to solicit insurance and also allowing foreign direct
investment of up to 26%, the insurance sector has been a booming market. However,
the largest life-insurance company in India is still owned by the government.
FIGURES IN THE SECTOR:
India has an enormous middle class that can afford to buy life, health, and disability
and pension plan products. The low level of penetration of life insurance in India
compared to other developed nations can be judged by a comparison of per capita life
premium.
Table No. 1 Source: Various Newspapers
CountryLife premium per Capita US $ in 1994
Japan 3,817
UK 1,280
USA 964
India 4
Clearly, there is considerable scope to raise per capita life premium if the market is
effectively tapped.
India has traditionally been a high savings oriented country- often described as being on
par with the thrifty Japan. Insurance sector in the US of A is as big in size as the
banking industry there. This gives us an ideal of how important the sector is. Insurance
sector canalizes the savings of the people to long-term investments. This has made the
sector the hottest one in India after IT. With social security and security to the public at
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large being the agenda for opening the sector, the role of the regulator becomes all the
more serious and one that would be carefully watched at every step.
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INSURANCE REGULATORY DEVELOPMENT
AUTHORITY (IRDA)
The opening up of the sector has been long standing and with the passing of
the Insurance Regulatory and Development Authority IRDA bill a significant
step has been taken.
IRDA is formed as an authority to protest the interests of holders of insurance
policies, to regulate promote, and ensure orderly growth of insurance industry
and for matters connected therewith or incidental thereto.
With the Insurance Regulatory and Development Act, the focus shifted to thefollowing:
y The insurance Regulatory and Development Authority (IRDA) should give
priority to health insurance while issuing certificates of registration:
y Policyholders funds will be invested in the social sector and infrastructure.
The percentage may be specified by the IRDA and such regulations will apply
to all insurers in the country.
y Insurers will be expected to undertake a certain percentage of business in the
rural or social sector and provide policies to persons residing in rural areas,
workers in the unorganized and informal economically basic:
y In case of the insurers fail to meet the social sector obligation a fine of Rs 2.5
million would be imposed the first time. Subsequent failures would result in
cancellation of licenses.
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PLAYERS WHICH ARE GOVERNED BY IRDA
The table below is the list of the likely players in the Indian insurance sector,
Apart from Reliance, who has applied for both Life and Non life insurance
license; all have gone in with a foreign partner. The idea is that the foreign
partner will bring in expertise of global nature with products that are India
specific. And the Indian partner will bring in the distribution network and more
significantly the required 74% of the equity.
Life insurance Non-life insurance
Reliance life insurance Reliance General Insurance
Kotak Mahindra ICICI Lombard Insurance
Max India New York Life Wadia Commercial Union
Prudential ICICI Cholamandalam Axa
HDFC Standard Life M A Chidambaram Matlife
Aditya Birla Sun Life
Insurance
Sanmar Group GIO
C K Birla Zurich Insurance Tata AIG
Hindustan Times Com.
Union
20th
Century Finance Guardian
Group
Centurion Bank Canada Life Punjab National Bank, Vijaya Bank,
Allahabad Bank and Bank of India
Yasuda Fire and Marine.
Vysya Bank ING IFFCO Tokyo Fire & Marine
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Apollo Hospitals Aetna Sundaram Finance Royal & Sun
Alliance.
Bajaj-Allianz
Tata-AIG
Dabur-Aviva
Meter life
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OBJECTIVE OF STUDY
A. To know about the distribution channel of HDFC standard life insurance.
B. To know about the problems face by HDFC standard life insurance in these channels.
C. To know the best channel for HDFC SLIC.
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Research Methodology
Research Methodology is a way to systematically solve the problem. One can define
research as a scientific and systematic search for pertinent information on a specific
topic. In it the various steps that are generally adopted by a researcher in studying his
research problem along with the logic behind him are studied.
(A) Type of Universe:- Sample design is to clearly define the set of objects,
technically called the universe. The universe can be finite or infinite. In finite universe the no. Of
items is certain, but in case of infinite universe the no. Of item is infinite i.e. we cannot have any
idea about the total no. Of items.
(B) Research Design:- Decision regarding what, where, when, how much, by what
means concerning an inquiry or a research study constitute a research design. A research
design is the arrangement of conditions for collection and analysis of data in a manner that aims
to combine relevance to the research purpose with economy in procedure. Infact, research
design is the conceptual structure within which the research is conducted.
The research design used for the present study is exploratory in nature. The major purpose of
exploratory study is to set up the priorities for research.
It determines the best alternative. Exploratory research is often used to generate new
idea.
(C) Sample selection, size and Technique:-
Sample selection is Bhiwani and Charkhi Dadri
Sample size :- Number of person were covered 20.
The Sample Technique used for the study is Convenience sampling.
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(D) Source of Data:-
There are two types of data.
1. Primary data: which are collected afresh and for the first time.
2. Secondary data: which someone else has already collected.The data collected for the study is primary and secondary in nature.
(E) Data collection Technique:- The study will largely use primary data, gathered
through Questionnaire prepared for the survey population and some of the data I get from my
trainer, which is considered as a secondary data.
(F) Analytical Tools:- The data thus collected was tabulated, interpreted & analyzed
with a view to make the study meaningful.
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DATA ANLYSIS AND INTERPRETATIONS
By this study we see that HDFC SLIC deals in four distribution channels in which more
business is done in retail but it earn more profits from banks and it faces more problem
in direct sale trading.
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ORGANISATION OF THE STUDY
Chapter 1 includes- Significance of the study.
Chapter 2 includes- Review of existing literature.
Chapter 3 includes- Conceptualization.
Chapter 4 includes- Focus on the problem.
Chapter 5 includes- Objective of the study.
Chapter 6 includes- Research methodology.
Chapter 7 includes- Data analyses and interpretations.
Chapter 8 includes- Suggestions.
Chapter 9 includes- Limitations of the study.Chapter 10 includes- Organization of the study.
Chapter 11 includes- Conclusion.
Chapter 12 includes- Annexure.
Chapter 13 includes- Reference.
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DATA ANALYSIS AND INTERPRETATION
Ques-1. How many Channel your company have Launched?
Answer-
One
Two
Three
Four
Ques-2. May I know the channel in which your company
doing business?
Answer-
Interpretations: - This table show that in distribution channel retail is more preferred, then
branch and direct and only 10% is alternate channel isused.
50%
10%
20% 20%
0%
10%
20%
30%
40%
50%
60%
Retail Alternate Branch Direct
HDFC
Business
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Ques-3. Which is your traditional channel?
Answer-
Retail/Agency
Alternate
Branch
Direct
Ques-4. Measurably which channel generates more business?
Answer-
Bank 70% approx.
Ques-5. In which channel you are facing more problem?
Answer-
Direct
Ques-6. Which is your highly distributed channel?
Answer-
Retail
Ques-7. In which channel you consume less time?
Answer-
Banks
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SUGGESTIONS
1. Retail distribution channel is best channel according to this study.
2. In direct sale trading company face more problems because here it have not readycustomers.
3. Acc. to this study Banks are also best channels because here it can get readycustomers.
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LIMITATIONS OF THE STUDY
y Questionnaire filling is a time consuming process.
y We have small survey area, so we cant analyze the universe on this base.
y Not fair response.
y Customers have less knowledge of Insurance industry, so we face the problem of
describe the whole things.
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CONCLUSION
So on the basis of this study we can say that HDFC SLIC deals in four distributionchannels but by banks it generates more profits and it want to set up 100 furtherlocations in future. It has 8 subsidiary companies and HDFC Standard Lifesgeographical Presence has also increased. And it achieves Indian No.1 private lifeinsurance-Most Respected company award-Business World-2004. In direct sale tradingit faces more problems.
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ANNEXURE
Ques-1. How many Channel your company have Launched?
Answer-
y One
y Two
y Three
y Four
Ques-2. May I know the channel in which your company
doing business?
Answer-
Ques-3. Which is your traditional channel?
Answer-
y Retail/Agency
y Alternate
y Branch
y Direct
Ques-4. Measurably which channel generates more business?
Answer-
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Ques-5. In which channel you are facing more problem?
Answer-
Ques-6. Which is your highly distributed channel?
Answer-
Ques-7. In which channel you consume less time?
Answer-
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REFRENCES
1. Levy (2007), the media touch a short assessment of media coverage of the insurance
industry, Insurance Chronicle, February, P.N. 65-67.
2. Venugopal (2010), bancassurance in India- A perspective, Insurance chronicle,
January, P.N. 36-40.
3. Tuohy (2008), A competitive Insurance: market sort of, Insurance chronicle, February,
P.N. 52-54.
4. Varadharajan and Susarla (2009), Championing and institutionalizing: insurers TCF
charter, Insurance Chronicle, August, P.N. 53-57.
5. Asthana (2009), the next frontier- Teleassurance, Insurance chronicle, September, P.N.
39-42.
6. Venugopal (2009), Life insurance agency- is it a numbers game? , Insurance Chronicle,
September, P.N. 55-58.
7. Kumar Aggarwal and kr. Upadhyay (2009), the role if distribution channels in life
insurance business-An Indian perspective, Insurance Chronicle, September, P.N. 59-
66.
8. Sathya narayanan (2010), Bancassurance-time to change tack, Insurance Chronicle,
February, P.N. 23-26.
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