Winter project finance

PAGE 53

A

WINTER TRAINING REPORT

ON

FINDIND MARKET POTENTIAL OF

LIFE INSURANCE AGENTS

Done At

BIRLA SUN LIFE INSURANCE CO. LTD.

In partial fulfillment of the requirement of the degree

Of Master of Business Administration

(VEER NARMAD SOUTH GUJARAT UNIVERSITY)

SURAT

SUBMITTED BY: GUIDED BY:

PRAKASH B. MODI

PROF. KAVITA TRIVEDI

(MARKETING)

4th Sem, Roll No: 26GRIMS VAPI

AFFILIATED TO VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT.

PROGRAMME YEAR

2005-2007

DECLARATION

I, the undersigned, Mr. Prakash B. Modi here by declare that this project work entitled Finding Market Potential of Life Insurance Agents is carried out by me toward the partial fulfillment of the degree under the preview of M.B.A. I declare that this project work is an original piece of work and secondary data is acknowledged by me.

Place: - Ahmedabad

Date: -

Mr. Prakash B. Modi

MBA-2nd year

CERTIFICATE

This is to certify that the Project Report of Finding Market Potential of Life Insurance Agents has been prepared by Mr. Prakash B. Modi student of MBA (2nd year) studying in GIDC Rajju Shroff Rofel Institute of Management Studies; Vapi has completed his winter training at Birla Sun Life Insurance Company Limited. His work is found satisfactory and be sent for further evaluation.Signature of guide

Signature of Director Ms. Kavita Trivedi Dr. R.S.ShahACKNOWLEDGEMENT

I feel necessary to thank all of those who helped me directly and indirectly in the preparation of my project.

First of all I am very grateful to our Dir. Dr. R.S.Shah for providing me the opportunity to understand the sector. I would also thankful to my project guide Ms. Kavita Trivedi for providing the full guidance during my project work and motivated me through out the fulfillment of my project.

I would also like to express my thanks towards our entire faculty members for guiding me during my project and motivated me through out the fulfillment of the task.

I am greatly thankful to BIRLA SUN LIFE INSURANCE COMPANY LTD, for giving me the opportunity to undergo training in their esteemed Organization.

I would like to thank to Mr. Rakesh Patel the sales manager of Birla Sun Life Insurance Company Ltd-Ahmedabad.

And at last but not the least I also express my sincere thanks to all my respondents, without their cooperation and help; I could not be able to complete my study.

EXECUTIVE SUMMARY

The project topic assigned to me was Finding Market Potential of Life Insurance Agents at Birla Sun Life Insurance Company Ltd., Ahmedabad.

The sample size was 100. Contacting personally and interviewing them were collecting the data. The communication approach was questionnaire. Its analysis includes interest of people towards insurance business and also it shows the interest of people about work with Birla Sun Life Insurance Company Ltd. as an agent advisor.

This report has been prepared as per guidance given by professors. My over all experience during this training session was satisfactory and learnt many things and ensure that these things will help in future.

The study will help the organization to identify its potential as an insurance agent in the market & also company as well. This study is useful to company for future growth and surviving in the dynamic environment.

Table of contents

No.ContentsPage No.

1Industry Profile7

2Company Profile16

3Research Methodology20

Research objective

Research design

Sources of data

Research approach

Research instrument

Sampling plan

Benefits of the study

Limitations

4Data Analysis24

5Conclusion46

6Annexure48

7Bibliography51

About Life Insurance

Life insurance is a contract for payment of a sum of money to the person assured or to the person entitled to receive the same, on the happening of a certain event.

Usually the insurance contract provides the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death if it occurs earlier. Obviously, there is a price to be paid for this benefit. Among other things, the contract also provides for the payment of premiums by the assured

Life insurance is universally recognized as a tool to eliminate risk. Uncertainty of death is natural in human life and this uncertainty makes it necessary to have some protection against the financial loss arising from unfortunate death. Life insurance offers this protection. In other words, it is the worlds partial solution to the problems caused by death. Life insurance helps in two ways: premature death, which leaves department families to fend for itself and old age without visible, means of support.

Why do we need Life Insurance?

We need Life Insurance because typically the need for income continues for those who are financially dependent on us, but there is no guarantee to earn consistently and for the rest of our life. Life insurance can help us to maintain the financial needs of our family.

This need has become even more important due to steady disintegration of the prevalent joint family system and emergence of nuclear families. The need to protect our family's ever growing needs is why we need Life Insurance.

We need to support our child with educational background & help our child to get his/her dreams. Life insurance can help us to fulfill all these needs whether you are there or not. Life insurance can help us to live a secure and tension free retired life by ensuring that we get guaranteed pension.OpportunitiesRecent experience has shown that wherever an insurance industry has been thrown, it creates competition. The size of the market has grown and the existing players have retained nearly 80% of the market share. The size of the population in India is indeed vast and the existing player has managed to cover about one-fourth of it. The opportunities before the players are there in large quantities in terms of target audience. The falling interest rates, the collapse of many small financial institutions, the scope for entering related areas like banking and pensions and the promise of e-commerce are some of the other opportunities knocking the doors of an insurance industry.

It will be vital for new entrants to choose their product and service offering carefully. In doing all this, they must consider two possible pitfalls. First, when estimating the potential of the Indian insurance market it is tempting to look at the ratio of premium to GDP, which is comparatively low in India. For example, Indias life insurance premium as a percentage of GDP is 1.5 per cent against 5.2 per cent in the US, 6.5 per cent in the UK and 8 per cent in South Korea.

Second, the tendency to target the business of existing companies rather than expanding the market. New players find it easier to try to capture existing customers by offering better service or other advantages. Yet, the benefits of this strategy are likely to be limited. For example, 50 per cent of the current demand for general insurance comes from the corporate segment.

We expect that after the market opens up, companies will move between insurers as they shop around for the best products and service. On the other hand we think that the corporate segment, as a whole will not be a big growth area for new entrants. This is because penetration is already good. Companies receive good service because of their size and rates are tariff-governed. In India potential buyers for most of this insurance lie in the middle class. New insurers must segment the market carefully to arrive at appropriate products and pricing. Existing players can also profitably make use of these areas. Recognizing the potential, in the past three years, the nationalized insurers have already begun to target niches like pensions, women or children.

Challenges

The biggest challenge faced by the Government today is that to control of 30 or 40 private players. Each represented by thousands of agents, brokers and intermediaries. To evolve a free and fair method of assessing the companies to ensure fair play between the competitors and to look after the interests of the largely uninformed customers are the main tasks ahead.The other and equally serious aspect is to ensure that the vast amounts collected by the insurance and pension funds are utilized for the welfare of the people. A certain degree of autonomy in the functioning of insurance companies has to be allowed so that they get necessary freedom and space to perform. The IRDA along with the advisory committee constituted recently is qualified to undertake these tasks. Such an institution will provide guiding principles, lay down a code of insurance ethics and generally act as a facilitator for both the life and non-life industry.

The challenge is one of sustaining the huge growth has shown in the recent times. It has to face competition for the first time in its history, particularly in the urban centers. It has to manage its huge operations more efficiently than at any other time in the past. It has to make ready its personnel (staff and agents) to face competitors.

As far as the entrants are concerned the greatest challenge is to establish their presence in the minds of the public. About life insurance, it is said that insurance is never bought but sold. To convince a large population which is comparatively not well informed about the intangible benefits of life insurance is indeed difficult task. On top of that, to establish the brand equity of a new name in a new field is quite challenging.

Another most important challenge facing a new entrant is that of setting up infrastructure and to reach out to as many areas as possible, since life insurance is based on probability and the wider the spread, the greater are the chances of success in maintaining the expense ratios at a reasonable level.What is an Insurance Agent?

An insurance agent, also called an insurance broker in some instances, is the local representative of any number of insurance companies. A state board must license a valid insurance agency before he or she can legally sell insurance policies to customers. Generally, an insurance agent works as the local face of a single insurance company, but occasionally an independent agent may work with different companies depending on their areas of expertise and coverage.

Most consumers interested in purchasing insurance coverage will only deal with a local insurance agent directly. He or she is authorized to present all of the coverage options available through the larger insurance company. Since part of an insurance agent's salary is based on commissioned sales, he or she will often offer 'one stop shopping' for all of the customer's insurance needs. An insurance agent may sell individual policies for car, home, life and medical insurance, or offer a package plan, which incorporates a combination of these needs.

Insurance customers are required to make regular payments called premiums to the insurance company, so part of an insurance agent's job is to ensure compliance. He or she may send out reminders of an impending premium payment, or notify customers of any proposed rate changes. A good insurance agent may also keep track of any new developments in a client's life-a new teen-aged driver or a new home, for example. Clients may need to change their coverage from time to time, so an insurance agent will negotiate the new terms with the parent company.

Perhaps the most visible part of an insurance agent's job occurs during an actual insurance claim. Following a car wreck or natural disaster, for example, customers are urged to contact their local insurance agent as soon as possible. Claims for insurance benefits must be processed through an authorized agent who can verify the circumstances of the accident or disaster. A specialist called claims adjustor may be sent out by the insurance agent to personally inspect the damage and calculate the value of the claim. An insurance agent often acts as an informal arbitrator between the client and the parent insurance company. He or she may know the best ways to present a claim in order to elicit the most favorable settlement from the insurers.

Development of Insurance Sector in India

Insurance Sector in India

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalised market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.

Life insurance in India

Life insurance in its existing form came to India from the United Kingdom with the establishment of a British firm oriental life Insurance Company in Calcutta in 1818 followed by Bombay Life Assurance Company in 1823.

A brief history of the Insurance Sector

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 Corer from the Government of India.

Insurance Sector ReformsHaving looked at the insurance sector, let us look at the efforts made by the government to make the industry more dynamic and customer friendly. In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. In 1994, the committee submitted the report and some of the key recommendations included:

Structure Government stake in the insurance Companies to be brought down to 50% Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations All the insurance companies should be given greater freedom to operate

Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry No Company should deal in both Life and General Insurance through a single entity Foreign companies may be allowed to enter the industry in collaboration with the domestic companies Postal Life Insurance should be allowed to operate in the rural market Only one State Level Life Insurance Company should be allowed to operate in each state

Regulatory Body

The Insurance Act should be changed An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from the Finance Ministry) should be made independent

Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company

Customer Service

LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans Computerization of operations and updating of technology to be carried out in the insurance industry

Overall, the committee strongly felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 Corers. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

IRDA (Insurance Regulatory and Development Authority)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDAs online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 14 life insurance and 6 general insurance companies have been registered.

Life Insurance Market Growth

Life Insurance Corporation (LIC) having a record-breaking performance in 2004-05 with 78.07 % market shares. But LICs market share has fallen to 71.04 % in 2005-06.

The Bajaj Allianz Life Insurance with a market share of 26.5 % in the private sector has emerged as the no 1 private life insurance company with Rs.2715 corer premium in 2005 -06.

The former no 1 private life insurance company ICICI Prudential Life Insurance has a 25.7% market share with Rs.2637 corer premium in 2005-2006.

HDFC Standard Life Insurance Company Limited has grown its premium Rs.1570 corer in 2005-06 as compared to Rs.687 corer in the previous year.

Birla Sunlife Insurance has grown its premium by Rs.678 corer in 2005-06.

Aviva Life Insurance has increased its premium by Rs.407 corer in 2005-06.

SBI Life Insurance has increased its premium by Rs.828 corer in 2005-06.

Tata Aig has increased its premium by Rs.463 corer in 2005-06.

The private sector life insurance industry has recorded a growth of 84 % in 2005-06.

ABOUT THE ORGANISATION

Birla Sun Life Insurance Company Limited.

Birla Sun Life Insurance Company LimitedBirla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life Financial of Canada to enter the Indian insurance sector. The Aditya Birla Group, a multinational conglomerate has over 75 business units in India and overseas with operations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and Egypt to name a few.

Foreign Partner:Sun Life Assurance, Sun Life Financial's primary insurance business, has excellent ratings with the world's top rating agencies. With assets under management as on September 30, 2000 totaling more than CDN billion, it ranks amongst the largest international financial services organizations in the world.

Today, the Sun Life Financial Group of companies and partners are represented globally in Canada, the United States, the Philippines, Japan, Indonesia, India and Bermuda.

Birla Sun Life Insurance Company LimitedBirla Sun Life Insurance pioneered the unique Unit Linked Life Insurance Solutions in India.

Within 4 years of its launch, BSLI has cemented its position as a leading player in the Private Life Insurance Industry

There has been focus on Investment Linked Insurance Products, supported with protection products to maintain leadership in product innovation.

Multi Distribution Channels- Direct Sales Force, Alternate Channels and Group offering convenient channels of purchase to customers

Web-enabled IT systems for superior customer services

First to have issued policies over the Internet.

Corporate governance and a high degree of transparency in all business practices and procedures.

First to have an operational Business Continuity Plan.

Strong fundamentals based on the Aditya Birla group's local insight and Sun Life Financials's global expertise.Vision

To be a premium global conglomerate with a clear focus on each business.Mission

To be the first preference of our customers by providing innovative, need based life insurance and retirement solutions to individuals as well as corporate. Well-trained professionals through a multi channel distribution network and superior technology will make these solutions available.

Our endeavors will be to provide constant value addition to customers throughout their relationship with us, within the regulatory framework. We will provide career development opportunities to our employees and the highest possible returns to our shareholders.

Values

Together, Sun Life Ltd and Birla Sun Life Insurance Company aim to become India's no. one insurance brand. This vision will be realized through our unique set of values, which are as follows:

Integrity

Commitment

Passion

Seamless nessSpeed

Research Methodology

Research is understood, interpreted and sometimes wrongly conceived as just gathering of facts and description of observations. Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on specific investigation.

Research Objective

To identify various segments from where people want to become life insurance agents

To study the market potential for life insurance agent

To know various influencing factor this can be important for life insurance agent to perform his/her role

To know the perception of people about work of life insurance agent

Research Design

The research design means a pattern of an outline of a researchs working. It is a statement of only the essentials elements of studies those that provide basic guidelines for the details of the projects. Selecting a design may be complicated by the availability of a large variety of methods, techniques, procures, and sampling plans.

Sources of Data

There are basically two types of data used for the project study.

Primary Data:

Primary data are those, which are collected afresh and for the first time, and thus they are original data. I have collected my primary data through questionnaire method, filled by respondents.

Secondary Data:

Secondary data means that data which are readily available from magazines, internet, newspapers etc. For the purpose of conducting this research I as a researcher have used various secondary data viz. websites, catalogues of the Company etc.

Research Approach

For gathering primary data, I have used survey approach, which is widely used method for data collection and best suited for descriptive type of research survey.

Research Instrument

For my research I have used questionnaire, which is the most, common instrument used to collect the primary data. A questionnaire consists of the set of questions presented to the respondents for their answers. In marketing research carefully chosen questions and their forms, working and sequence is important. Sampling Plan

After deciding on the research approach and instruments the marketing researcher must design a sampling plan.

Target population:

Target population for my research study is from various segments, which are businessman, housewife, service/job holder & government employee.

Sample size:

For research study I have taken 100 respondents of Surat city as a sample size.

Benefits of the Study Study helps to identify various segments from where people want to become a life insurance agent

Study helps to know the interest of people towards insurance business

Study helps to understand the perception of people towards work of life insurance agent

Study helps to identify various factor & skills which are important for life insurance agent to perform his/her role

Study helps to know the reason behind lack of awareness about the job role of life insurance agent

Study helps to understand the attitude of people about the Birla Sun Life Insurance Company

Limitations

The limitation of study is that research is only up to North Gujarat.

Limited numbers of respondents are selected for survey to find out market potential of life insurance agent

Limited period of study

1. Would you like to start business?

AnswerRespondentPercentage (%)

Yes3737

No6363

Total100100

Interpretation:

Form the graph we can say that 37 % people are interested to start business while 63 % people said that they are not interested in business.

2. Would you like to have insurance business?

AnswerRespondentPercentage (%)

Yes1616

No8484

Total100100

Interpretation:

From the above graph we can say that 16 % people are interested to have an insurance business while 84 % people said that they are not interested in insurance business.

People who are interested in insurance business they all want to do this business because of extra earning. People who are not interested in insurance business from those 27 % people said that they do not have time; 23 % people said that they have not proper knowledge about this insurance business and remaining 50 % people said that they are not personally interested in insurance business.

3. Do you aware about Birla Sun Life Insurance Company Ltd.?

AnswerRespondentPercentage (%)

Yes6666

No3434

Total100100

Interpretation:

Above graph shows that 66 % people are aware about Birla Sun Life Insurance Company while 34 % people are not aware about Birla Sun Life Insurance Company.

4. If above questions answer is yes then from which sources?

SourcesRespondentPercentage (%)

Advertisement5177

Relatives & friends1218

Through agent0305

Total66100

Interpretation:

From the above graph we can say that 77 % people are aware about Birla Sun Life Insurance Company through advertisement, 18 % people are aware about Birla Sun Life Insurance Company through relatives & friends 5 % people are aware about Birla Sun Life Insurance Company through agent

5. What is your perception about work of insurance agent?

Opinion about work of insurance agentRespondentPercentage (%)

Full time business2626

Part time business6161

As a job1313

Other00

Total100100

Interpretation:

The above graph shows the opinion of respondents towards the work of insurance agent. From this we can say that 26 % people believe that insurance agents work is full time business, 61 % people believe that insurance agents work is part time business and 13 % people believe that insurance agents work is one kind of job

6. Are you interested to work with Birla Sun Life Insurance Company Ltd.?

AnswerRespondentPercentage (%)

Yes1010

No9090

Total100100

Interpretation:

From the above graph we can say that 10 % people are interested to work with Birla Sun Life Insurance Company while 90 % people said that they are not interested to work with Birla Sun Life Insurance Company.

7. Rank the following factor, which can be important for insurance agent to perform his/her role. (1 to 4) (1 for High and 4 for Less)

Effective training program

RankNo. Of PersonsPercentage (%)

12020

22525

33838

41717

Total100100

Interpretation:

Above graph shows that 20 % respondents give 1st rank to effective transiting program, 25 % people give 2nd rank to effective transiting program, 38 % people give 3rd rank to effective transiting program while 17 % people give 4th rank to effective transiting program.

Commission/Incentive structure

RankNo. Of PersonsPercentage (%)

14545

23535

31815

40202

Total100100

Interpretation:

Graph shows that 45 % people give 1st rank to commission/incentive stricture, 35 % people give 2nd rank to commission/incentive stricture, 18 % people give 3rd rank to commission/incentive stricture while 02 % people give 4th rank to commission/incentive stricture. So we can say that commission/incentive structure is important for insurance agent to perform his/her role.

Awards & Recognition

RankNo. Of PersonsPercentage (%)

10101

20808

32121

47007

Total100100

Interpretation:

Above graph shows that 01 % people give 1st rank to awards & recognition, 08 % people give 2nd rank to awards & recognition, 21 % people give 3rd rank to awards while recognition70 % people give 4th rank to awards & recognition. So we can say that awards & recognition is less important for insurance agent to perform his/her role.

Company Image

RankNo. Of PersonsPercentage (%)

13434

23232

32323

41111

Total100100

Interpretation:

Above graph shows that 34 % people give 1st rank to Company image, 32 % people give 2nd rank to Company image, 23 % people give 3rd rank to Company image while 11 % people give 4th rank to Company image. So we can say that company image is equally important to effective training program for insurance agent to perform his/her role after commission/incentive structure.

Hypothesis:

Null Hypothesis: Commission and Incentive structure factor more affected to Agents

Alternative Hypothesis: other factors more influence to agents.

Xi = 22.5, 40, 4.5, 33

Here we take our observations respectively effective training program, Commission and incentive, awards and recognition, company image. In our questionnaire we give them ranks from 1 to 4. here we take average of first and second rank. Our X = 40.

X = 40

= 25

= 16.039

z = 0.93

When we are taking 99% degree of freedom, we get that our hypothesis is accept.

Thus, here our null hypothesis is accepted.

8. What should be the reason behind lack of awareness about the job role of insurance agent?

ReasonRespondentsPercentage (%)

Lack of personal interest4646

Lack of knowledge5454

Total100100

Interpretation:

From the above graph we can say that 46 % people believe reason behind lack of awareness about the job role of insurance agent is lack of personal interest and 54 % people said that not having proper knowledge is the major reason behind lack of awareness about the job role of insurance agent.

9. Rank the following skills which are required for insurance agent. (1 to 5). (1 for High and 5 for Less)Convincing skill

RankNo. Of PersonsPercentage

12727

23030

32424

40909

51010

Total100100

Interpretation:

Above graph shows that 27 % people give 1st rank to Convincing skill, 30 % people give 2nd rank to Convincing skill, 24 % people give 3rd rank to Convincing skill, 09 % people give 4th rank to Convincing skill and 10 % people give 5th rank to Convincing skill. So we can say that convincing skill is important for insurance agent.

Communication skill

RankNo. Of PersonsPercentage (%)

13030

22828

32222

41313

50707

Total100100

Interpretation:

Above graph shows that 30 % people give 1st rank to communication skill, 28 % people give 2nd rank to communication skill, 22 % people give 3rd rank to communication skill, 13 % people give 4th rank to communication skill while 07 % people give 5th rank to communication skill. So we can say that communication skill is as important as convincing skill for insurance agent.

Relationship skill

RankNo. Of PersonsPercentage (%)

10606

20909

32222

43737

52626

Total100100

Interpretation:

Above graph shows that 06 % people give 1st rank to relationship skill, 09 % people give 2nd rank to relationship skill, 22 % people give 3rd rank to relationship skill, 37 % people give 4th rank to relationship skill while 26 % people give 5th rank to relationship skill. So we can say that relationship skill is less important for insurance agent compare to communication skill & convincing skill.

Prospecting

RankNo. Of PersonsPercentage (%)

10505

20808

31111

43030

54646

Total100100

Interpretation:

Above graph shows that 05 % people give 1st rank to prospecting, 08 % people give 2nd rank to prospecting, 11 % people give 3rd rank to prospecting, 30 % people give 4th rank to prospecting while 46 % people give 5th rank to prospecting.

Adequate knowledge

RankNo. Of PersonsPercentage (%)

13131

22828

32020

41010

51111

Total100100

Interpretation:

Above graph shows that 31 % people give 1st rank to adequate knowledge, 28 % people give 2nd rank to adequate knowledge, 20 % people give 3rd rank to adequate knowledge, 10 % people give 4th rank to adequate knowledge and 11 % people give 5th rank to adequate knowledge. So we can say that having adequate knowledge is as important as convincing skill & communication skill is important for insurance agent.

10. Rank the following factor of sales, which can be important for insurance agent. (1 to 3). (1 for High and 3 for Less)

Believe in Company

RankNo. Of PersonsPercentage (%)

15050

23131

31919

Total100100

Interpretation:

From the above graph we can see that 50 % people give 1st rank to believe in Company, 31 % people give 2nd rank to believe in Company and 19 % people give 3rd rank to believe in Company. So believe in company is important sales factor for insurance agent.

Believe in Products

RankNo. Of PersonsPercentage (%)

13232

24141

32727

Total100100

Interpretation:

From the above graph we can see that 32 % people give 1st rank to believe in products, 41 % people give 2nd rank to believe in products while 27 % people give 3rd rank to believe in products. So believe in products is also important sales factor for insurance agent.

Believe in him/herself

RankNo. Of PersonsPercentage (%)

11818

22828

35454

Total100100

Interpretation:

Above graph shows that 18 % people give 1st rank to believe in him/her self, 28 % people give 2nd rank to believe in him/hers elf and 54 % people give 3rd rank to believe in him/her self. So we can say that believe in him/her self is less important sales factor for insurance agent than other two factors.

FINDINGS

From the survey 16 % people are interested in insurance business & all these people wanted to earn more money

66 % people are aware about Birla Sun Life Insurance Company Ltd. & most of the people are aware through advertisement

61 % people believe that work of insurance agent is part time business, very few people believe that it is a one kind of job

10 % people are interested to work with Birla Sun Life Insurance Company as an Agent Advisor

Lack of knowledge & lack of personal interest both are the major reasons behind the lack of awareness about the job role of insurance agent

Commission/incentive structure of the Company and Company image are important for insurance agent to perform his/her role

Communication skill, Convincing skill and adequate knowledge are important for insurance agent. Believe in company & Believe in its products are the most important sales factor for an insurance agent

Suggestions

Birla Sun Life Insurance Company should make people aware about the company & its various policies by conducting workshops & seminars

Company should make people aware about the benefits & advantages in working with the company as an agent advisor by comparing other existing insurance company

Birla Sun Life Insurance Company should spread its marketing shelf in the North Gujarat region through hoardings or door to door survey

Conclusion

After my survey and analysis on market potential of a life insurance agent, I am able to conclude that most of the people who are interested in insurance business, want to earn more money by side business. Most of the people are aware about Birla Sun Life Insurance Company Ltd. through advertisement. Perception of people about work of an insurance agent is part time business & people show their interest in working with Birla Sun Life Insurance Company as an agent advisor. Lack of time, lack of personal interest & lack of knowledge about insurance business are the major facts that people are not interested in insurance business.

questionnaire

Name: ____________________________

Phone no.: _________________________

Gender:

( ) Male ( ) Female

Education: ___________________

Occupation: __________________

1. Would you like to start a business?

( ) Yes

( ) No

2. Would you like to have an insurance business?

( ) Yes

( ) No

Why_________________________________

3. Do you aware about Birla Sun Life Insurance Company Ltd.?

( ) Yes

( ) No

4. If above questions answer is yes then from which sources?

( ) Advertisement

( ) Relatives & friends

( ) Through agent

5. What is your perception about work of insurance agent?

( ) Full time business

( ) Part time business

( ) As a job

( ) Other

6. Are you interested to work with Life Insurance Company Ltd.?

( ) Yes

( ) No

7. Rank the following factor, which can be important for insurance agent to perform his/her role. (1 to 4) (1 for High and 4 for Less)

( ) Effective training program

( ) Commission/incentive structure

( ) Awards/recognition

( ) Company image

8. What should be the reason behind lack of awareness about the job role of insurance agent?

( ) Lack of personal interest

( ) Lack of knowledge

9. Rank the following skills, which are required for insurance agent. (1 to 5). (1 for High and 5 for Less)

( ) Convincing skill

( ) Communication skill

( ) Relationship skill

( ) Prospecting

( ) Adequate knowledge

10. Rank the following factor of sales, which can be important for insurance agent. (1 to 3). (1 for High and 3 for Less)

( ) Believe in company

( ) Believe in products

( ) Believe in him/herself

BIBLIOGRAPHY

Books:

Business Research Methodology

By - Donald Cooper & Pamela Schindler (eighth edition)

Marketing Management

By - Philip Kotler & Kevin Lane Keller (12th edition)

Websites:

www.birlasunlife.com

www. irdaindia.com