Recruitment and Selection Process of Financial Consultant
TABLE OF CONTENTS
TOPIC PAGE NO.
EXECUTIVE SUMMARY 1
INTORDUCTION TO INSURANCE SECTOR 5
COMPANY PROFILE 25
INTORDUCTION TO STUDY 48
RESEARCH METHODOLOGY 55
ANALYSIS 57
FINDINGS AND SUGGESTION 80
CONCLUSION 84
BIBLOGRAPHY 85
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Recruitment and Selection Process of Financial Consultant
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
The Insurance sector, after the opening up, provides greater opportunities. Several global
players have emerged and the market has changed significantly. In the changed scenario,
the expectation is that the low insurance premium as a percentage of GDP prevailing in
India will improve offer better opportunities to the insurance players.
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Over the past three years, more than thirty companies have expressed interest in doing
business in India. The IRDA (Insurance Regulatory Development Authority) is the
regulatory authority, which looks all related aspects of the insurance industry. The
provisions of the IRDA bill acknowledge many issues related insurance premium. The
IRDA provides for three levels of players- insurance company, insurance brokers and
insurance agent.
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private Life
Insurance Companies. It is a joint venture between Housing Development Finance
Corporation Limited (HDFC Ltd.), India’s leading housing finance institution and The
Standard Life Assurance Company, a leading provider of financial services from the
United Kingdom. HDFC operates through 75 locations throughout the country with its
Corporate Headquarters in Mumbai, India.
Scope of the study: To study the Recruitment process and Selection criteria followed by
the company for the selection of Financial Consultant at HDFC Standard Life Insurance
Belgaum
Objectives of Study
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To understand the effectiveness of recruitment process for the profile of financial
consultant.
To know selection procedure followed by the company.
To know different methods used to recruit financial consultant.
To know satisfaction level of financial consultant towards company s service.
Methodology:
Data is collected through: Personal interview
Observations
Questionnaire
Data Source:
Primary: Through survey method by using questionnaire
Secondary: Secondary data consists of readily available information on various web-
sites, Magazines & company database
Sample size: 100
Selection of the sampling method: Convenience sampling used.
Limitation
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Since private life insurance is new theory in the Indian Market and in depth study was not possible.
Some of the advisor did not give proper answer for some questions.
It was not possible to have personal interaction with some of the advisor since they were busy with work.
Time constraints of 8 weeks
Important Findings:
The students are more interested to become financial consultant as they want to
make their career and earn good money as by doing it as part time job.
It is been found that most of them are been recruited by personal contacts and
advertisement.
Most of the financial consultants are satisfied with the selection criteria followed
by the company.
60%of financial consultant feels that they were selected because of their social
network and around 55% of them feel that they have good convincing skills so
they were selected
.
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INTRODUCTION
INTRODUCTION TO INSURANCE
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The business of insurance is related to the protection of the economic values of the assets.
Every asset has a value the asset would have been created through the efforts of the
owner. The asset is valuable to the owner because he expects to get some benefit from it.
Insurance is a mechanism that helps to reduce the effect of such adverse situation.
INSURANCE INDUSTRY
Origin of Insurance
The origin of insurance dates back to the 12th century, the origin of insurance appeared
first in marine and land fields. The ideas of insurance were made in Babylonia and India
at quite an early period; the courts of Hammurabi and Mano recognized the provision for
sharing the future losses. However there is no evidence that insurance to the present day,
one can easily gauge the performance of industry both collectively as an industry as well
as individually by the companies.
In earlier times, travellers by sea and land were very much exposed to the risk of losing
their vessels and merchandise because piracy on the open sea and highway robbery of
caravan were common. References to similar practise are also found in ‘Manab Dharma
Shastra’ which contained rules for seas from contracts which was observed by traders.
Insurance conceived as method of sharing of the losses embodying the principal of co-
operation existed in the early civilization.
Many may not be aware that life insurance industry of India is as old as it is in any other
part of the world. The first Indian life insurance company was oriental life insurance
company,
This was started in India in 1818 at Kolkata. a number of players (over 259 in life and
about 100 in non – life) mainly with regional focus flourished all across the country.
However, the government of India, concerned by the unethical standard adopted by the
some players against the consumers, nationalise the industry in two phases in 1956 (life)
and in 1972(non-life).the insurance business of the country was then brought under two
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Public sectors India (GIC) .reforms were initiated with passage of insurance regulatory
and development authority (IRDA) bill in 1999. IRDA was set up as an independent
regulatory authority, which has put in place regulation in line with global norms. So far in
the private sector, 12 life insurance companies and 9 general insurance have been
registered.
INSURANCE REGULATORY AND DEVELOPMENT ATHORITY ACT
1999(IRDA)
The object of this act is to provide for the establishment of an authority to protect
the interest of holders of insurance policies, to promote and ensure orderly growth
of insurance industries. Insurance regulatory and development authority (IRDA)
has sought the comments of industry participants to finalize the guidelines for
online agents training institutes.
These proposed guidelines are in addition to its standard instructions and
guidelines applicable for approval/renewal of agents training institutes. The
guidelines would be applicable to all the online training institutes including in –
house training institutes of the insurers.
As per the draft guidelines, the applicant should undergo at least 120 hours
practical training in life or general insurance business. The composite training
should be at least 180 hours, where the applicant is seeking licence for the first
time to act as an insurance agent.
The duration should be minimum for 24 days for 120 hours training and 36 days
for 180 hours training with maximum 5 hours per day. Stating that no product
training/market survey be included into this 120/180 hours training, the regulator
revision examination could form part of the training.
Duties , powers and functions of authority:
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The powers and functions of the authority include registration, intermediaries and
agents regulations of terms and conditions of contract of insurance, promoting and
regulating professional organization connected with the insurance, monitoring
investment of funds and solvency margin of insurance companies.
The authority is to be advised by committee to be known as the insurance
advisory committee, which shall consist of not more than 25 members including
exofficio members in the insurance sector. The insurance advisory committee is
expected to advice the authority on matters relating to making of the regulations.
An Indian insurance company has been defined as a company incorporated under
the companies act – 1956 and the paid up capital of General insurance business
will have to be not less than Rs 100 /crores and in case of companies wanting to
transact reinsurance business the paid up capital will have not less than
Rs200/crores.
It has also been notified that every insurance company will have to appoint an
actuary to be approved by I.R.D.A the duty of the actuary is to insure that
The assets are valued in appropriate manner
The liabilities are evaluated as required
The prescribed margin for maintaining solvency is complied with.
The I.R.D.A. also issued regulation with regards to advertisement so as to include almost
any public communication for sale of insurance policy.
The Business of Insurance
The business of insurance is to:
Bring together persons with common insurance interests (sharing the same risks),
Collect the share or contribution (called premium) from all of them, and
Pay out compensations (called claims) to those who suffer.
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In India, insurance business is classified primarily as life and non-life or general. Life
insurance includes all risks related to the lives of human beings and general insurance
covers the rest. General insurance has three classifications is; Fire, Marine and
Miscellaneous. Personal accident and sickness insurance, which are related to human
beings, is classified as ‘non-life’ in India, but is classified as ‘life’, in many other
countries.
The business of insurance is nothing but one of sharing. It spreads losses of an individual over the
group of individuals who are exposed to similar risks. People who suffer loss get relief because
their loss is made good. People who do not suffer loss are relieved because they were spared the
loss
Insurance business is divided into four classes:
1) Life Insurance Business.
2) Fire Insurance Business.
3) Marine Insurance Business.
4) Miscellaneous Insurance Business
Meaning of Life Insurance Business:
Life insurance, originally conceived to protect a man's family when his death left them
without income, has developed into a variety of policy plans.
Meaning of Fire Insurance Business:
Fire insurance usually includes damage from lightning; other insurance against the elements
includes hail, tornado, flood, and drought.
Meaning of Marine Insurance Business:
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Marine insurance protects shipping companies against the loss of a ship or its cargo, as well as
many other items, and so-called inland marine insurance covers a vast miscellany of items,
including tourist baggage, express and parcel-post packages, truck cargoes, goods in transit, and
even bridges and tunnels
Meaning of Miscellaneous Insurance Business:
Special casualty forms are issued to cover the hazards of sudden explosions from
equipment such as steam boilers, compressors, electric motors, flywheels, air tanks,
furnaces, and engines. Boiler and machinery insurance has several distinctive features.
A substantial portion of the premium collected is used for inspection services rather than
loss protection.
The business of insurance started with marine business. Traders, who used to gather in
the Lloyd’s Coffee house in London, agreed to share the losses to their goods while being
carried by ships. The losses used to occur because of pirates who robbed on the high seas
or because of bad weather spoiling the goods or sinking the ship. The first insurance
policy was issued in 1583 in England. In India, insurance began in 1870.
The business of insurance is the protection of economic values of assets. Every asset is
expected to last for a certain period of time during which it will perform. Insurance is a
mechanism that helps to reduce the effect of such adverse situation. Insurance is relevant
only if there are uncertainties.
Life Insurers transact life insurance business; the rest is transacted by General Insurers.
No composites are permitted as per law.
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The business of Insurance essentially means defraying risks attached to any activity over
time (including life) and sharing the risks between various entities, both persons and
organizations.
Insurance companies (ICs) are important players in financial markets as they collect and
invest large amounts of premium. Insurance products are multi purpose and offer the
following benefits:
1. Protection to the investors
2. Accumulate savings
3. Channelize savings into sectors needing huge long-term investments.
ICs receive, without much default, a steady cash stream of premium or contributions to
pension plans. Various actuary studies and models enable them to predict, relatively
accurately, their expected cash outflows. Liabilities of ICs being long-term or contingent
in nature, liquidity is excellent and their investments are also long-term in nature. Since
they offer more than the return on savings in the shape of life-cover to the investors, the
rate of return guaranteed in their insurance policies is relatively low. Consequently, the
need to seek high rates of returns on their investments is also low. The risk-return trade
off is heavily tilted in favor of risk. As a combined result of all this, investments of
insurance companies have been largely in bonds floated by GOI, PSUs.,state
governments, local bodies, corporate bodies and mortgages of long term nature. The last
place where Insurance companies are expected to be over-active is bourses.
Lately ICs have ventured into pension schemes and mutual funds also. However, life
insurance constitutes the major share of insurance business. Life Insurance depends upon
the laws of mortality and there lies the difference between life and general insurance
businesses. Life has to extinguish sooner or later and the claim in respect of life is certain.
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In case of general insurance, however, there may never be a claim and the amount can
never be ascertained in advance. Hence, Life Insurance includes, besides covering the
risk of early happening of an event, an element of savings also for the beneficiaries.
Pension business also derives from life insurance in as much as the pension outgo again
depends upon the laws of mortality. The forays made by insurance companies in this area
are, therefore, natural corollary of their business.
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 liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360-degree turn witnessed over a
period of almost two centuries.
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:
1) 1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
2) 1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
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3) 1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
4) 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 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in the
year 1850 in Calcutta by the British.
1) 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
2) 1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
3) 1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
4) 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973.
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5) 107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
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Insurance Sector Reforms:
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.
The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector. The reforms were aimed at "creating a more efficient and
competitive financial system suitable for the requirements of the economy keeping in mind
the structural changes currently underway and recognizing that insurance is an important part
of the overall financial system where it was necessary to address the need for similar
reforms".
In 1994, the committee submitted the report and some of the key recommendations included:
1) Structure:
o Government stake in the insurance Companies to be brought down to 50%.
o Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
o All the insurance companies should be given greater freedom to operate.
2) Competition:
o 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.
o Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
o Postal Life Insurance should be allowed to operate in the rural market.
o Only One State Level Life Insurance Company should be allowed to operate in each
state.
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3) Regulatory Body:
o The Insurance Act should be changed.
o An Insurance Regulatory body should be set up.
o Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.
4) Investments:
o Mandatory Investments of LIC Life Fund in government securities to be reduced from
75% to 50%.
o GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time).
5) Customer Service:
o LIC should pay interest on delays in payments beyond 30 days.
o Computerization of operations and updating of technology to be carried out in the
insurance industry The committee emphasized that in order to improve the customer
services and increase the coverage of the insurance industry should be opened up to
competition.
o 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 crores.
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.
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WHY LIFE INSURANCE
Life insurance cover is essential for it provides the following benefits:
a. A lump sum payments to the nominees at the time of the death of policy holder.
b. A regular payments to the nominees in the event of the death of the policyholder
c. Tax benefits , as premium paid to reduce the liability of tax;
d. Relieves economic hardships in the family on the uneventful death of the sole income holder;
e. Inculcates the habit of saving.
Purpose and Need of Insurance:
Assets are insured; because they are likely to be destroyed through accidental occurrences
such possible occurrences are called perils. Fire floods breakdowns, lightning, earthquakes..
etc, are perils. If such perils can cause damage to the asset, the asset is exposed to that risk.
The risk only means that there is a possibility of loss or damage. The damage may or
may not happen. Insurance is done against the contingency that it may happen. There
has to be an uncertainty about the risk. Insurance is relevant only if there are
uncertainties. In the case of a human being, death is certain, but the time of death is
uncertain. In the case of a person who is terminally ill, the time of death is not
uncertain, though not exactly known.
Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril can
sometimes be avoided, through better safety and damage control management. Insurance only
tries to reduce the impact of the risk on the owner of the asset and those who depend on that
asset.
It only compensates the losses- and that too, not fully. Only economic consequences can be
insured. If the loss is not financial, insurance may not be possible.
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Need for Insurance
The need for insurance comes from the need to safeguard out family. If you care for your
family’s needs you will definitely consider insurance.
Today’s insurance has become even more important due to the disintegration of the prevalent
joint family system , a system in which a number generation co existed in harmony , a system
in which a sense of financial security was always there were more earnings members.
Times have changed and nuclear family has emerged. Apart from the other pitfalls nuclear
family, a high sense of insecurity is observed in it today besides, the family has shrunk. Needs
are increasing with time fulfilment of these need is a big question mark.
How will you be able to satisfy all those needs? Better life style good education and your long
desired house. But again you just cannot fritter away all your earnings. You need to save a
apart for the future too a wise decision. This is where insurance helps you.
Factors such as fewer numbers of earnings members, stress and pollution increased,
competition, higher ambitions etc are some of the reasons why insurance has gained
importance and where insurance and where insurance plays a successful role.
TYPES OF INSURANCE POLICIES
There are 3 types of insurance policies:
Term Insurance Plans
Whole life Insurance
Endowment Insurance Plans
Term Insurance Plans
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Pure life cover where you pay for risk cover and do not expect to receive anything else in return is
now available in india. Opting for such policy will improve the efficiency of policy premium and
enables you for a bigger risk cover for the same cost .These are term insurance plans with maturity
benefits;some term plans give your premium amounts back with interest . this is marketing policy to
suit the general psychology and should normally involve higher premium cost.
Whole life Insurance plans:
Whole life insurance policies require you to pay through out your life and cover risk for whole life.
The policies without profit are cheaper .
Endowment Insurance Plans (with or without money back)
Endowment policies are costliest and among this group, money back policies involve paying highest
premium . they give you maturity benefits (normally sum assured) and additional profit by way of
bonus , guaranteed additions; loyalty bonus etc. money policies also provide partial payments back to
you at pre-set time periods.
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LIFE INSURANCE COMPANIES IN INDIA:
1. Life Insurance Corporation of India (LIC)
The Life Insurance Corporation (LIC) was established about 44 years ago with a view to
provide an insurance cover against various risks in life. A monolith then, the corporation,
enjoyed a monopoly status and became synonymous with life insurance. Its main asset is its
staff strength of 1.24 lakh employees and 2,048 branches and over six lakh agency force. LIC
has hundred divisional offices and has established extensive training facilities at all levels. At
the apex, is the Management Development Institute, seven Zonal Training Centres and 35
Sales Training Centres. At the industry level, along with the Government and the GIC, it has
helped establish the National Insurance Academy. It presently transacts individual life
insurance businesses, group insurance businesses, social security schemes and pensions,
grants housing loans through its subsidiary; and markets savings and investment products
through its mutual fund. It pays off about Rs 6,000crore annually to 5.6 million
policyholders.
2. ICICI Prudential Life Insurance
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse, and prudential plc, a leading international financial services group
headquartered in the United Kingdom. Prudential plc established in London in 1848,
Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail
financial services products and services to more than 16 million customers, policyholder and
unit holders worldwide. ICICI Prudential enjoys the second highest market share after Life
insurance corporation.ICICI Prudential equity base stands at Rs. 925 crore with ICICI Bank
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and Prudential plc holding 74% and 26% stake respectively. In the period April-December
2004, the company garnered Rs 860 crore of new business premium for a total sum assured
of over Rs 7,360 crore and wrote nearly 345,000
3.Birla Sun Life Insurance Company Limited
Birla 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 totalling more than CDN billion, it ranks amongst the largest international financial
services organisations 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.
4. OM Kotak Mahindra Life Insurance
Established in 1985 as Kotak Capital Management Finance promoted by Uday Kotak the
company has come a long way since its entry into corporate finance. It has dabbled in leasing,
auto finance, hire purchase, investment banking, consumer finance, broking etc. The
company got its name Kotak Mahindra as industrialists Harish Mahindra and Anand
Mahindra picked a stake in the company. Kotak Mahindra is today one of India's leading
Financial Institutions.
Old Mutual
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Old Mutual plc is an international financial services group based in London with expanding
operations in life assurance, asset management, banking and general insurance. Old Mutual is
listed on the London Stock Exchange (where it is included on the FTSE 100 Index) and also
on the South African, Namibian, Malawi and Zimbabwe stock exchanges. It has 156 years of
experience in the life insurance business.
OM Kotak Mahindra
OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd., and Old
Mutual plc to enter the Indian insurance arena to offer a wide range of innovative life
insurance products.
5. Max New York Life:
Max India:
Max India Limited is a multi-business corporation that has business interests in telecom
services, bulk pharmaceuticals, electronic components and specialty products. It is also the
service-oriented businesses of healthcare, life insurance and information technology.
New York Life:
New York Life has grown to be a Fortune 100 company and an expert in life insurance. It
was the first insurance company to offer cash dividends to policy owners. In 1894, New York
Life pioneered the then unheard-of concept of insuring women at the same rate as men.
Thereafter, it continued to introduce a series of firsts - a disability benefit clause in 1920,
unemployment insurance in 1992, and complete customer care on the Web in 1998. Today
New York Life has over US billion in assets under management and over 30,000 agents and
employees worldwide. The October 2000 Fortune Survey named New York Life amongst the
top three most admired life and health insurance companies worldwide. With over 3 million
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policyholders, New York Life is a leading provider of insurance in a host of countries
worldwide.
Aviva Life Insurance India:
Aviva Life Insurance India is joint venture between Dabur, one of India's oldest and largest
groups of companies and Aviva. Aviva plc. is UK’s largest insurer. In accordance with
government regulations, Aviva holds a 26 percent stake in the new venture and Dabur holds a
74 percent share.
Aviva:
Aviva is the world's seventh-largest insurance group(Based on gross worldwide premiums)
and the biggest in the UK. It is one of the leading providers of life and pensions products to
Europe and has substantial businesses elsewhere around the world. Its main activities are
long-term savings, fund management and general insurance.
6. ING Vysya Life Insurance:
ING Group:
ING Vysya Life Insurance is a joint venture between three pioneers, ING Insurance, ING
Vysya Bank and GMR Group. Over the last 150 years, ING Group has grown to become one
of the largest life insurance organizations in the world. Today it touches the lives of over 50
million people across 65 countries. It offers a range of financial services including insurance,
pensions, banking and asset management. In the year 2000, total assets of the group stood at
over INR 28, 42,000 crores. ING Group has wide and deep experience in setting up
companies in new markets, which require substantial investments underlining ING's long-
term commitment. In the last 20 years, ING Group has established successful life insurance
companies in 15 countries contributing to the development of insurance services in these
countries.
ING Vysya Bank Limited:
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It is one of India's premier private sector banks with a heritage of over 70 years. With 1.5
million customers, 480 outlets and 6000 employees it is known for its innovative banking
services and for pioneering several products and services. ING Vysya Bank has a long-
standing relationship with its customers and deep understanding of the Indian market.
7. GMR Group: It has a solid track record of over two decades of growth and has wide-
ranging interests in fields such as power generation, infrastructure, manufacturing, software
and banking. GMR group has an excellent reputation of being able to successfully develop
ventures from scratch.
8. MetLife India Insurance Pvt. company:
MetLife India was incorporated as a joint venture between MetLife International Holdings,
Inc., Jammu & Kashmir Bank, M Pallonji & Co. and other private investors. MetLife India is
headquartered in Bangalore with offices and presence in major Indian cities, and additional
1000 outreach points through its channel partners.
MetLife:Ranked 38 on the Fortune 500 list (April 2003), MetLife, Inc. (MetLife) is one of
the world’s largest, strongest and most respected financial organizations. MetLife, through its
affiliates, is the number 1 life insurer in the U.S. with approximately $2.4 trillion of life
insurance in force (as of December 2002) and has been delivering reliable, high quality
service to customers since 1868. The MetLife companies serve approximately 12million
individuals in the U.S. as well as the employees of 88 of the Fortune 100 companies.
Headquartered in New York, MetLife operates through its affiliates and subsidiaries in 12
countries across the Americas, Europe and Asia.
9. Allianz Bajaj Life Insurance Co.
Allianz Bajaj Life Insurance Co. Ltd. is a joint venture between two leading conglomerates-
Allianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the
biggest 2 and 3 wheeler manufacturers in the world.
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Allianz Group is one of the world's leading insurers and financial service providers.
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000
employees. At the top of the international group is the holding company, Allianz AG, with its
head office in Munich. Allianz Group provides its more than 60 million customers worldwide
with a comprehensive range of services in the areas of
• Property and Casualty Insurance,
• Life and Health Insurance,
• Asset Management and Banking.
10. SBI Life Insurance Company Ltd:
SBI Life Insurance Company Ltd. is a joint venture between India's largest bank, State bank
of India (SBI) & Cardiff S.A., a leading Life Insurance company in France. State Bank of
India (SBI) is a household name, and it stands as the last word for financial strength and
security in the country. SBI's illustrious background dates back to the year 1806 when it
started business, as a presidency bank, known as Bank of Bengal. Over the long journey, it
has learnt to combine the best of banking practices handed down from the imperial
management with the more dynamic ways of doing banking in the modern India. It has grown
as a responsible giant in the banking field over the years.
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COMPANY PROFILE
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COMPANY PROFILE
ABOUT HDFC STANDARD LIFE INSURANCE
HISTORY OF HDFC STANDARD LIFE INSURANCE
VISION AND MISSION OF HDFC STANDARD LIFE INSURANCE
MANAGEMENT OF HDFE STANDARD LIFE INSURANCE
ORGANIZATION STRUCTURE
PRODUCTS
AWARDS FOR HDFC STANDARD LIFE INSURANCE
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Housing Development Financial Corporation Ltd
Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the
largest residential mortgage finance institution in the country. The corporation has had a
series of share issues raising its capital to Rs. 119 crores. The net worth of the Corporation as
on March 31, 2000 stood at Rs. 2,096 crores. HDFC operates through 75 locations throughout
the country with its Corporate Headquarters in Mumbai, India. HDFC also has an
international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar.
HDFC Standard Life Insurance Company Ltd:
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life insurance
companies, which offers a range of individual and group insurance solutions. It is a joint venture
between Housing Development Finance Corporation Limited (HDFC Ltd.), India’s leading housing
finance institution and The Standard Life Assurance Company, a leading provider of financial
services from the United Kingdom. Incorporated on 14th August 2000, it was the first life company to
be granted a certificate of registration by the IRDA on the 23rd of October 2000. HDFC Standard Life
is one of the first companies to be granted license by the IRDA to operate in life insurance sector. It is
a joint venture of HDFC Ltd and Standard Life Europe's largest mutual life assurance company.
HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a stake
of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.
HDFC Standard Life Insurance is a new Indian life insurance company that operates out of 52
locations. It offers clients a range of insurance plans to meet their savings, investment and protection
needs. In the financial year 2002-03, the company registered a year-on-year growth of over 260%. It
is also the first new life insurance company to declare its third successive bonus for participating
policy holders.
In order to survive in the insurance segment, HDFC had to introduce new products. They
were looking for a robust and integrated solution to support the new product. HDFC was also
facing numerous problems with their current systems in terms of performance, reliability and
scalability.
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HDFC Standard Life Insurance sells a range of individual savings, pension and group life
assurance products and has branch offices in 39 locations throughout India. It was recently
rated as the "Best New Insurer - 2003" by Outlook Money magazine. Both the promoters are
well known for their ethical dealings and financial strength and are thus committed to being a
long-term player in the life insurance industry.
HDFC Standard Life Insurance is one of the leading private life insurance companies. The
company generated premium from new business of Rs. 486 Cr in 2004-05, registering a year-
on-year growth of over 132%. The total premium income (including renewal premium) grew
by 130% to touch a figure of Rs. 687 Crores. The company also achieved a major milestone
during the financial year by crossing a Sum Assured figure of Rs. 30,000 Cr. The company
also declared its fifth bonus for participating policyholders. HDFC operates through 75
locations throughout the country with its Corporate Headquarters in Mumbai, India. HDFC
also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman
and Qatar.
Standard Life Group, UK
Standard Life is Europe's largest mutual life assurance company. Standard Life, which has
been in the life insurance business for the past 175 years, is a modern company surviving
quite a few changes since selling its first policy in 1825. The company expanded in the 19th
century from its original Edinburgh premises, opening offices in other towns and acquiring
other similar businesses.
Standard Life currently has assets exceeding over £70 billion under its management and has
the distinction of being accorded "AAA" rating consequently for the past six years by
Standard & Poor.
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The Joint Venture
HDFC Standard Life Insurance Company Limited was one of the first companies to be
granted license by the IRDA to operate in life insurance sector. Each of the JV player is
highly rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL
and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poor’s.
These reflect the efficiency with which HDFC and Standard Life manage their asset base of
Rs. 15,000 Cr and Rs. 600,000 Cr respectively.
VISION & MISSION STATEMENT
The most successful and admired life insurance company, which mean that we are the
most trusted company, the easiest to deal with, offer the best value for money, and set
the standards in the industry. In short, “The most obvious choice for all”.
Key Values:
Innovation: To exceed customer expectation and maximize customer retention, achieve
competitive advantage, growth and upgrade standards in the industry, foster creativity
amongst employees and partners, & open a world of new possibilities
Security: Providing long term financial security to our policy holders will be our constant
Endeavour. We will be do this by offering life insurance and pension products.
Trust: We appreciate the trust placed by our policy holders in us. Hence, we will aim to
manage their investments very carefully and live up to this trust.
Integrity: Integrity is the bedrock on which the company and the expectations of the
customers and employees are built. Integrity establishes the credibility of the person defines
the character and empowers one to do justice to the job. Enables building confidence and
trust, achieving transparency and laying a strong foundation for a binding relationship.
Guiding principle for all walks of life.
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Customer centric: Reinforce brand loyalty by complete transparency. Customer is the source
of revenue for the company. Customer is the reason for our existence. Ensure that customer
chooses our company to do business with. Customers’ goodwill alone can bring more
business and more customers. Will contribute to customer retention
People Care: People are the most valuable assets of the company. Motivate individual to
give his / her best. Establish a valuable relationship with them to create a joyful working
environment .
Team work: Together Everyone Achieves More, It adds joy at work place, Team work
generates synergy and provides a focused approach. An idea or activity performed in a group
has greater acceptability “One for all and all for one.
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Board Members
Mr. Deepak S Parekh Chairman of HDFC Limited.
Mr. Keki M Mistry Managing Director of HDFC Limited.
Mr. Alexander M Crombie Group Chief Executive of the Standard Life
Ms. Marcia D Campbell Group Operations Director
Mr. Keith N Skeoch Chief Executive in Standard Life
Mr. Ranjan Pant Global Management Consultant
Ms. Renu S. Karnad Executive director of HDFC Limited
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Key strengths:
Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life has the financial
expertise required to manage your long-term investments safely and efficiently.
Range of Solutions
We have a range of individual and group solutions, which can be easily customized to
specific needs. Our group solutions have been designed to offer you complete flexibility
combined with a low charging structure.
Track Record so far
Our cumulative premium income, including the first year premiums and renewal premiums is
Rs. 672.3 Crores for the current financial year, Apr-Nov 2005.
We have covered over 11, 00,000 individuals out of which over 3, 40,000 lives have been
covered through our group business tie-ups.
Highlights of Financial Year 2006-07
New Business Premium Income up by 132% to Rs. 486 Crores. Total Premium
Income of Rs.687 Crores as against Rs. 298 Crores in FY 05-06.
Alternate Channels including bank assurance have recorded an impressive growth of
over 400% to contribute 37% to the Effective Premium Income (EPI).
Group business increased to Rs. 32 Crores on EPI basis.
The average premium doubled to Rs 17,000
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Company products and services available in 444 locations across the country.
Over 220% increase in MDRT numbers over the previous year.
Performance:
HDFC Standard Life Insurance is the First Private Sector Life Insurance Company to be
granted a license. It has increased its market share from 0.76% to 1.12% by collecting a
premium income of 209bn. in the year ending March 2003-04.It has registered an premium
growth rate of 61.88% over previous year.
Insurance sector has grown not only in size but in maturity as well, in the sense that from
very simple products, which were available earlier on to the present. What has been done is
that Insurance Industry placed the customer in centre & developed products and services
around the customer.
In the past what we had was a bundled product so you get 3 or 4 benefits out of which it may
be possible that you may need just 1 or 2 benefits but in the process you end up paying for all
the four. In fact we were among the first to divide the offering into two -a core product and
the benefits or the riders. And then it is up to the customer to choose and customize his own
scheme according to needs and desires and pay for such scheme. I think that is the single
largest revolution that has come about. The other revolution in the Insurance sector is in
terms of distribution channels. Earlier we were having only agents but now we have agents,
Bancassurance, corporate brokers and direct sales people. Retail agents and bancassurance
are the 2 biggest insurance distribution channels.
The insurance penetration levels have considerably increased from 1.6 % to about 2.75%.
Now whether that growth is enough in three year period, we can always counter that. In the
last 3 years private insurance companies have grown at 200-300 % levels. But if you look at a
longer time horizon say at 10 years the insurance companies would grow at 13-14% rate
which would make it one of the fastest growing sectors.
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If we want an acronym of our products, we call it PIPS, which stands for Protection,
Investment, Pension, & Safety. These are the basic requirements of any individual & thus our
products satisfy each of these needs.
We have got conventional products, which are in the conventional structure i.e. available with
profits like Endowment, Money back then you have Unit Linked plans which are for those
investors who understand the capital markets, debt markets & equity markets.
In terms of popularity, little fewer than 50% products are savings products whether it is
endowment, unit-linked or money back which are basically savings oriented. About 20% are
investments oriented for e.g. single premium income policies where you pay in a shot and
enjoy the protection & investments returns in future. About 20 % are in pensions. Pure
protection is just about 5%. All these are in terms of premium income.
USP is something that the customer will have to find because life insurance is a long-term
process and it is about stability, being conservative. We don't hear about aggressive life
insurance companies who survive for a longer period.
To be in business when we are talking of an insurance policy for say 30 years, your
perspective is different in comparison to when you are taking a short term loan say a car loan
for 3 years. Therefore different companies have chosen different models. Some of them have
chosen to be in for the long run while some have chosen to be in for the short run. For in the
short run, you need to have a high valuation of company, for high valuation you need to have
high & rapid sales. Higher the sales higher are the valuation & higher the valuation higher is
the price that you can charge.
Insurance sector, you can’t differentiate on the basis of innovative products. The reason
being, if yours is an excellent product it will not take too much time to be copied by other
players. The thing which they can’t copy is your services and, I think, that would be the
differentiating factor in the insurance arena for eg if you look at the HDFC model. There are
banks that are lending at lower rates but even then HDFC is able to grow at 30% thus if
HDFC grows at 30%, it is on that balance sheet, while others might grow 100% but that
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would be on that small size. Thus it is important that people trust you. It matters to do the
right things even if they are not beneficial in the shorter run. Thus we know the purpose of
our existence in this sector.
The main support, which we get from our foreign partner, is in terms of actuary support.
Actuaries are the people who arrive at the premium rates. It is a monopoly market & there are
not too many players who get into this. There is a shortage of actuaries in India but yes now
the people are pursuing it as a career.
We get a lot of actuarial support from our foreign partner in terms of product development,
valuation processes & it is necessary at each step to know what the implications are.
PRODUCTS:
HDFC Standard Life offers a bouquet of insurance solutions to meet every need. We cater to
both, individuals as well as to companies looking to provide benefits to their employees. This
section gives you details of all our products. We have incorporated various downloadable
forms and product details so that you can make an informed choice about buying a policy.
INDIVIDUAL PRODUCTS:
For individuals, they have a range of protection, investment, pension and savings plans that
assists and nurture dreams apart from providing protection. You can choose from a range of
products to suit your life-stage and needs.
GROUP PRODUCTS:
For organizations they have a host of customized solutions that range from Group Term
Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans
apart from providing long term value to the employees help in enhancing goodwill of the
company.
RURAL PRODUCTS:
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Individual Products:
HDFC Standard Life realizes that not everyone has the same kind of needs. Keeping this in
mind, we have a varied range of Products that you can choose from to suit all your needs.
These will help secure your future as well as the future of your family.
Protection Plans
One can protect their family against the loss of your income or the burden of a loan in the
event of your unfortunate demise, disability or sickness. These plans offer valuable peace of
mind at a small price. Protection range includes our Term Assurance Plan & Loan Cover
Term Assurance Plan.
Investment Plans
Single Premium Whole of Life plan is well suited to meet your long term investment needs.
We provide you with attractive long term returns through regular bonuses.
Pension Plans
Pension Plans helps one secure their financial independence even after retirement. Pension
range includes Personal Pension Plan and Unit Linked Pension Plan.
Savings Plans
Savings Plans offers flexible options to build savings for ones future needs such as buying a
dream home or fulfilling your children’s immediate and future needs. Savings range includes
Endowment Assurance Plan, Unit Linked Endowment Assurance Plan, Money Back Plan,
Children’s Plan, Unit Linked Youngstar Plan.
INDIVIDUAL PRODUCTS:
Term Assurance Plan: If you have a family that you care for, you should consider what would
happen in case of your unfortunate death. The emotional void cannot be filled, but financial
insecurity can be avoided. By taking this affordable life insurance plan, you can provide for
the well-being of your family in case of your unfortunate death. This plan comes to you at a
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assured is payable in case of death of the life assured during the term of the contract. One can
choose the lump sum that would replace the income lost to one's family in the unfortunate
event of one's death. Since this non-participating (without profits) plan is a pure risk cover
plan, no benefits are payable on survival to the end of the term of the policy.
Term Assurance Plan:
A protection plan to secure higher protection needed for your family at economical rates.
Optional riders for enhanced protection Unique joint life option to cover your spouse under
the same plan Single / regular premium payment option
PERSONAL PENSION PLAN
Today, one is busy climbing the ladder of success and realizing their dreams. Today, time is
with you. Just take a moment and think. Will you be able to continue at the same pace? Will
your income be the same forever? Will you be able to live life on your own terms even after
you retire?
HDFC PERSONAL PENSION PLAN:
HDFC understands ones need to build a secure future for themself. Hence, the HDFC
Personal Pension Plan is an insurance policy that is designed to provide a post – retirement
income for life with the freedom to choose your retirement date. You can choose your
premium, the Sum Assured and your retirement date. At the end of the policy term, you will
receive the Sum Assured plus any attaching bonus, which will provide your post - retirement
income. The HDFC Personal Pension Plan is an insurance policy, which can benefit one in
the following ways: Provides a post retirement income in your golden years Gives you the
flexibility to plan your retirement date Gives you tax benefits on your premiums The plan
receives simple Reversionary Bonuses, which are usually added annually. At the end of the
term an additional Terminal Bonus may be paid depending on the performance of the
underlying investment.
Easy steps to get insured are:
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Choose your retirement age
Estimate the post – retirement income you require.
Work out the premium payable with your Financial Consultant.
UNIT LINKED PENSION PLAN:
Lead a life of respect and dignity. Even after retirement Today, one is busy climbing the
ladder of success and realizing their dreams. Today, time is with you. Just take a moment and
think. Will you be able to continue at the same pace? Will your income be the same forever?
Will you be able to live life on your own terms even after you retire?
HDFC UNIT LINKED PENSION PLAN
HDFC understands ones need to build a secure future for themselves. The HDFC Unit Linked
Pension Plan is an insurance policy that is designed to provide a retirement income for life
with the freedom to maximize your investment returns by providing a choice of thoroughly
researched and selected investments. Stride into your golden years of retirement with dignity
and pride. You can choose your premium and the investment fund or funds. We will then
invest your premium, net of charges in your chosen funds in the proportion you specify. At
the end of the policy term, you will receive the accumulated value of your funds, which will
be used to provide your pension income. In the event of your unfortunate demise during the
policy term, your spouse will receive a cash lump sum to help him or her manage their
retirement years.
The HDFC Unit Linked Pension Plan is an insurance policy, which benefits you in the
following ways: Provides a post retirement income for life ,Gives you the flexibility to plan
your retirement date, Gives you the freedom to invest premiums as per your preference,
Offers you potentially higher market linked returns, Give you tax benefits on your premiums
and on receiving the lump sum
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Easy steps to get insured are:
Choose your retirement age
Choose the premium you wish to invest, based on your retirement needs.
Choose the investment fund or funds you desire.
Endowment Assurance Plan:
You have given your family the very best. And there is no reason why they should not get the
very best in the future too. As a judicious family man, your priority is to secure the well-
being of those who depend on you. Not just for today, but also in the longterm.More
importantly, you have to guard your loved ones against any eventuality. How will they
sustain their way of life, so lovingly built by you, in your absence? With our HDFC
Endowment Assurance Plan, you can ensure that your family remains financially
independent, even if you are not around. You can ensure that they live a life of respect and
dignity. Always
The HDFCSL Endowment Assurance Plan gives:
An ideal way to secure your long-term financial goals, Valuable protection to your family by way
of lump sum payment in case of your unfortunate death within policy term, Provides lump
sum payment (basic Sum Assured plus any bonus additions) on survival up to maturity date,
Very flexible benefit options and payment options.
In case of your unfortunate demise during the policy term, this participating (‘With Profits’)
insurance plan will pay your family the Sum Assured (together with the attached bonuses)
you had chosen.
The plan receives simple Reversionary Bonuses, which are usually added annually. At the
end of the term an additional Terminal Bonus may be paid depending on the performance of
the underlying investment
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Easy steps to get insured are:
Choose the amount of targeted savings and policy term using our Financial Planning
Tool.
Choose from any one of the 4 additional benefit options as per your requirement.
Work out the premium payable and Sum Assured with our Financial Consultant.
CHILDREN'S PLAN:
As a parent, your priority is your child’s future and being able to meet your child’s dreams
and aspirations. Today, providing a good education, establishing a professional career or even
a modest wedding is expensive. Costs are increasing fast. Just imagine how much you’ll need
when your child takes these important steps in life! Plan today to ensure a bright future for
your child. Start building savings today with our
HDFC Children’s Plan. So that your child is able to lead a life of respect and dignity with a
secured financial future.
HDFC Children's Plan
The HDFC Children's Plan gives:
Invaluable financial support to your child
Helps you customize an ideal plan for your child
Provides you multiple options for multiple benefits
The HDFC Children’s Plan is designed to secure your child’s future by giving your child (the
beneficiary) a guaranteed lump sum, on maturity or in case of your unfortunate demise, early
in the policy term. The premiums, paid by you, are invested by the company to give you good
long-term returns.
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The plan receives simple Reversionary Bonuses, which are usually added annually. At the
end of the term an additional Terminal Bonus may be paid depending on the performance of
the underlying investment (See ‘Bonuses’ for more details).
Easy steps to follow:
Choose the amount of targeted savings and policy term using our Financial Planning
Tool.
Choose any one of the 3 plan options as per your child's requirement.
Work out the premium payable and Sum Assured with our Financial Consultant.
UNIT LINKED YOUNG STAR PLAN:
As a parent, your priority is your children’s future and being able to meet their dreams and
aspirations. Today, providing a good education, establishing a professional career or even a
modest wedding is expensive. Costs are increasing fast. Just imagine how much you will
need when your children take these important steps in life. Plan today to ensure a bright
future for your children. Start building savings today with the HDFC Unit Linked Young Star
Plan. So that your child is able to lead a life of respect and dignity with a secured financial
future.
The HDFC Unit Linked Young Star Plan gives you:
An outstanding investment opportunity by providing a choice of thoroughly researched
and selected investments
Valuable protection in case of the insured parent’s unfortunate demise
Very flexible benefit combinations and payment options
Flexible additional benefit options such as critical illness cover.
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Easy steps to follow:
Choose the premium you wish to invest.
Choose the amount of Protection (Sum Assured) you desire.
Choose the additional benefit options you desire.
Choose the investment fund or funds you desire.
Money Back Plan:
You have always believed in living life on your own terms. So why let the changing realities
of everyday life overwhelm you and make your aspirations take a back seat? You can plan
now to ensure that you have the necessary funds to meet your future financial needs.
The HDFC Money Back Plan is a ‘With Profit’ Plan that gives you:
A proportion of the basic Sum Assured as cash lump sums at regular 5-year intervals within
the policy term (see the table given below) – an ideal way to secure your long-term as well as
short-term financial goals A lump sum payment on survival up to maturity date Valuable
protection to your family by way of lump sum payment in case of your unfortunate death
within the policy term. This is over and above any earlier payouts Making the right kind of
investment will enable you to achieve your objectives – be it your immediate expenses or else
securing your future financial needs. Our Money Back Plan gives you a wide range of terms
and cash benefit schedule to choose from. A summary of Key Benefits including the cash
lump sum payments, expressed as a percentage of Sum Assured is shown below.
Maturity Value
On maturity you receive survival benefit due at that point of time along with attaching
bonuses for the full Sum Assured calculated for the full term. You can ensure your financial
independence. And be able to live life on your own terms.
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Easy Steps to be followed:
Choose the amount of targeted savings and policy term using our Financial Planning Tool
Choose from any one of the 4 additional optional benefits as per your requirement.
Work out the premium payable and Sum Assured with our Financial Consultant.
Group Products:
One-stop shop for employee-benefit solutions
HDFC Standard Life has the most comprehensive list of products for progressive employers
who wish to provide the best and most innovative employee benefit solutions to their
employees. We offer different products for different needs of employers ranging from term
insurance plans for pure protection to voluntary plans such as superannuation and leave
encashment
HDFC offer the following group products to their esteemed corporate clients:
Group Term Insurance with Riders
Group Term Insurance with Profit-Share
Group Unit-Linked Plan
For Gratuity
For Defined Benefit Superannuation
For Defined Contribution Superannuation
GROUP TERM INSURANCE
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Whatever the business - it’s the people who make it a success. Everybody requires some type
of life insurance, especially when others depend on them financially. The Group Term
Insurance plan meets precisely this need and serves as an ideal way for companies to
reinforce their bond with their employees. The sort of needs you, as an employer might have
can be: An employee benefit
A cover for housing loan or vehicle loan given by you to your employees.
A cover for future service gratuity liability to be taken along with the HDFC SL Group Unit Linked Plan
The Group Term Insurance (GTI) is a cost-effective plan that addresses these needs. In
addition you have the choice to opt for a GTI with an experience discount feature, wherein a
discount is given on future premiums in case of favourable claim experience The Group Term
Insurance plan will have the following structure One year renewable term insurance plan One
master policy issued covering all members of the group Sum assured is payable on death
(either due to natural causes or accidents)
Key features of the plan
Our product has been designed to offer innovative features and a high degree of
customization. These are:
Convenient medical procedures
The members do not need to undergo any medical examination up to the “Free Cover
Limit”. This limit is dependent upon the sum assured and the size of the group.
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Awards and Accolades:
March, 2008 Unit Linked Savings Plan Tops Mint Best TV Ads Survey
The Unit Linked Savings Plan advertisement of HDFC Standard Life, one of the leading
private insurance companies in India, has topped Mint’s Top Television Advertisement
survey conducted, for February 2008. HDFC Standard Life’s Unit Linked Savings Plan
advertisement was ranked 4th in terms of a combined score of ad awareness and brand recall
and 3rd in terms of ad diagnostic scores (likeability, enjoyment, believability, and claim). The
respondents were between 18 and 40 years. Mint’s exclusive report, ‘New voices in a
makeover’ outlines the survey in detail.
February, 2008
Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007
Mr Deepak M Satwalekar, Managing Director and CEO, HDFC Standard Life, received the
QIMPRO Gold Standard Award 2007 in the business category at the 18th annual Qimpro
Awards function. The award celebrates excellence in individual performance and highlights
the quality achievements of extraordinary individuals in an era of global competition and
expectations.
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January, 2008Sar Utha Ke Jiyo Among India’s 60 Glorious Advertising Moments
HDFC Standard Life’s advertising slogan honoured as one of ‘60 Glorious Advertising &
Marketing Moments' over the last 60 years in India,’ by 4Ps Business and Marketing magazine.
The magazine said that HDFC Standard Life is one of the first private insurers to break the
ice using the idea of self respect (Sar Utha Ke Jiyo) instead of 'death' to convey its brand
proposition. This was then, followed by others including ICCI Prudential, thus giving HDFC
Standard Life the credit of bringing up one such glorious advertising and marketing moment
in the last 60 years.
December, 2007 Pension Plan Tops Mint’s Survey of Best TV Ads
HDFC Standard Life’s pension plans topped the ad diagnostics and ranked eighth on ad
reach in a survey of new television advertisements in November, 2007, conducted by Mint,
the leading business newspaper of the Hindustan Times Group. Our pension advertising was
ranked first in terms of ad diagnostic scores (likeability, credibility, enjoyment). The
respondents were between 18 and 40 years. We were ranked 8th in terms of a combined score
of ad awareness and brand recall.
September, 2007
Ranked Sixth Most Effective Advertisement:
HDFC Standard Life was ranked 6 th amongst ‘The 10 most effective ads’ in September 2007,
according to the JuxtConsult’s Ad Box Office Monthly Monitor. We have moved up from 56
th position in August 2007. JuxtConsult’s Ad Box Office is India’s biggest monthly monitor
of most effective television ads amongst urban consumers. The ranking was based on the
total effectiveness of the ad in connecting the Sar Utha Ke Jiyo ranked 10 th in the Top 10
Top-of-mind ad slogans in September, 2007, according to the JuxtConsult’s Ad Box Office
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Monthly Monitor. The ranking was based on how much our ad slogan recalled ‘top of mind’
in the daily ad clutter.
June, 2007Received PCQuest Best IT Implementation Award 2007
HDFC Standard Life received the PCQuest Best IT Implementation Award 2007 for
Wonders, its path-breaking implementation of an enterprise-wide workflow system. PCQuest,
the leading IT publication from the CyberMedia Group identified six most innovative IT
implementation projects deployed successfully across India for the award.
The winners of the 4th PCQuest Best IT Implementation Awards were chosen from 250
nominations across 22 industries and 23 projects ranging from government, banking finance
and insurance, manufacturing, petroleum, and IT/ITES to poultry, travel and tourism, real
estate, construction, power and utilities
INTRODUCTION TO STUDY
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Recruitment and Selection Process of Financial Consultant
RECRUITMENT AND SELECTION
Before an organization can fill a job vacancy, it must find people who not only are qualified
for the position but also want the job. Recruitment process is one of the ways that an
organization can deal with shortages in its human resources needs.
Recruitment refers to organizational activities that influence the number and type of
applicants who apply for a job and whether the applicants accepts jobs that are offered i.e. a
process of searching for prospective employees and stimulating and encouraging them to
apply for jobs in an organization.
Although recruitment can be quite expensive, organization have not always treated it as
systematically as other HR functions, such as selection. During the coming years, however,
the importance of recruitment will probably increase for many organizations.
Recruitment process is affected by various factors in the environment. The recruitment
process with an attempt to find employees with the abilities and attitudes desired by the
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Recruitment and Selection Process of Financial Consultant
organization and to match them with the tasks to be performed. Where there potential
employees will respond to the tasks to be performed. Where there potential employees will
respond to the recruiting effort depends on the attitudes they have developed towards those
tasks and the organization on the basis of their past social and working experience. Their
experience of the task will also be affected by the work climate in the organization.
Source of recruitment : 1) Internal recruiting
2) External recruiting
Internal Recruiting
Organization can make effective use of skills inventories for identifying internal applicants
for job vacancies. It is difficult, however, for HR managers to be aware of all current
employees who might be interested in the vacancy. To help with this problem., they use an
approach called job posting and bidding.
In the past, job posting was little more than the use of bulletin and company publications for
advertising job openings. Today, however , job posting has become one of the more
innovative recruiting techniques being used by organizations. Many companies now see job
posting as an integrated component of an effective career management system.
A model job posting program was implemented at national semiconductor. Posting are
computerized and easily accessible to employees. Computer software allows the employees
to match an available job with their skills and experience. It then highlights where gaps exist
so the employees know what is necessary if they wish to be competitive for given job.
Internal sources within the organization
Merits
* It improves morale of employees.
* It is easier to evaluate the existing employees through a sense of job security and
opportunities and advancement
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Recruitment and Selection Process of Financial Consultant
* It promotes loyalty among the employees require less training since they already know the
company’s policies and procedure
* It is less costly
Demerits
* It may lead to in breeding within the organization
* The possibility of the right candidate being chosen may depend upon the recruiter’s
perception about employees
* It may not be suitable for jobs requiring some innovative techniques.
Methods Of Internal Recruitment
Promotion
Transfer
Demotion
EXTERNAL RECRUITING
When an organization has exhausted its internal supply of applicants, it must turn to external
sources to supplement its workforce. Research indicates that walk in interviews provide an
important external source of applicants. As labour shortages increase, however, organizations
are becoming more proactive in their recruitment efforts . a number of methods are available
for external recruiting ; media, advertising, e-recruiting , employment agencies , executive
search firms, special events recruiting , and summer internship etc.
Media Advertisements: Organization advertise to acquire recruits. Various media are used ,
the most common being help-wanted ads in daily newspaper. Organizations also advertise for
people in trade and professional publications. Other media used are billboards, subway and
bus cards, radio, telephone, and television.
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Recruitment and Selection Process of Financial Consultant
E Recruiting: perhaps a method has ever had as revolutionary an effect on organizational
recruitment practices as the internet. There are many reasons for the popularity of the internet
as a method of recruitment. From the organizations perspective, the internet allows for
searches over broader array of geographical and company posting than was ever before
possible.
Organization is also beginning to see that having their own human resource. Web pages on
the internet can be effective addition to their overall recruitment strategy. A typical
organizational home page will provide background information about the company , its
product and services, and employment opportunities and applicant procedures.
Special –Events Recruiting: when the supply of employees available is not large or when
the organization is new or not well known , some organizations have successfully used
special events to attract potential employees. One of the most interesting approaches is to
provide job fairs.
Summer Internships: another approach to recruiting and getting specialized work done that
has been tried by organization is to hire students as internship is, in fact dramatically
increasing. Organizations are using more internship to improve the diversity of their
recruitment efforts.
College Recruiting: There is growing gap between the skills that organizations will need
over the several years and those currently possessed by potential employees. College
recruiting can be extremely difficult, time consuming, and expensive for the organization.
Recruiters believe that college recruiting is one of the most effective ways of identifying
talented employees. All this suggest that college recruiting will continue to play an important
role in organizations over all recruitment strategies, but that organization will be careful
about controlling expense.
External: outside the organization
Merits
*It provides larger pool candidate from which recruitment can be done.
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Recruitment and Selection Process of Financial Consultant
*If the appropriate candidate is chosen, he may require less training
Demerits
*It needs proper preparation and hence consumes a lot of time of the recruiter
*It is costly affair.
An overview of Recruitment and Selection at HDFC Standard Life Insurance
Consultant as a Profession
The field of life insurance is a challenging one though, by far one of the most rewarding
careers one can get into. When a financial consultant approaches a prospect with proposal for
life insurance, the chances are that the prospect will not know much about the benefits under
various plans. He may be vaguely familiar with the alternative available, but it is unlikely to
sure of the details of all of them. He would need expert advice. In other words a life insurance
consultant while dealing with the prospect be thinking of his situation.
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As a consultant of the prospect, he is expected to look after the interests of the prospect. Even
the people who are generally experts in financial matters may not be aware of the implication
of insurance, in relation to terms and condition, warranties, exclusion, tax, provisions, rights
of parties. Advisors have the dual responsibilities of being true to the interest of both the
parties in the interest. He obliged to reveal to the prospect all the important terms and
conditions of the insurer all the true facts about the prospects and the subjects of insurance.
Recruitment Process
As an HDFC SL associate, suspects are your most important assets. Its just like any
manufacturing company, where the raw materials is the most important assets, and whatever
product is manufactured will be made from raw material. Now what we know who suspect
for us and who is not.
1) Initially starts with suspecting, suspecting is done before recruiting therefore suspecting
stops when recruitment starts.
2) Collection of database from all the segments such as students, business, housewives, self-
employed, with all having minimum qualification 10+2 basic requirement.
3) The next stage is that either approaches them through telecalling and fixes appointment at
their convenient time, which is feasible to the candidate and the manager.
4) Presentation, procedure and documentation are given to the client.
Selection of Financial Consultant
A suspect is a person who can become Financial Consultant or introduce you to a person who
can become Financial Consultant. A whole lot of people can be your suspect . However a
qualified suspect is called as a prospect
Financial Consultant should possess at least 4-5 criteria
Age – 25 – 60 years
Qualification – Graduate or above
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Marital status – Married.
Nativity – Minimum 2 years in the city
Sales experience – 1 year or more
Time 6 hours or more per week
Among these criteria mentioned above minimum 3 have to be fulfilled for recruitment. Once
these criteria are fulfilled the candidate has to submit the necessary documents and then he is
been selected as Financial Consultant.
If a person does not fulfil these criteria, the person will either not be able to become Financial
Consultant or will not be eligible for one
Research Methodology
Methodology:
Title of the Study: Effectiveness of Recruitment And Selection of Financial Consultant At
HDFC Standard Life Insurance.
Objectives of study
To understand the effectiveness of recruitment process for the profile of financial consultant
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To know selection procedure followed by the company
To know different methods used to recruit financial consultant
To know satisfaction level of financial consultant towards company s service
SAMPLE DESIGN
Sample Technique: Convenience sampling
Sample Area: Belgaum
Sample Size: 100
Tools Used For Analysis:
1. Graphical Representation of Analysis: Pie charts
Data collection
Primary data has been used to carry out the research successfully. The secondary data
has been collected from various journals and publications. For the purpose of gathering
primary data a structure and non-disguised questionnaire was designed to collect data from
the Retailers. The questionnaire contains both open-ended and close-ended questions.
Method of Communication:
In order to minimize the bias in data collection, the method of personal interview was
adopted.
Data Source:
The sources of data collected are:
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Primary:
a) survey method by using questionnaire.
b) Observation and interview technique
Secondary:
a) Information is collected through internet
b) From various text books
c) Journals and magazines
Analyze the collected information:
It involves of data using statistically measures on them for developing frequency distribution
and calculating the means.
Report research findings:
The report with the research findings is formal written document. The research and personal
experience will be used to propose recommendations.
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ANALYSIS
Analysis of Recruitment and Selection
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Interpretation:
From the above graph we understand that the company recruits youngster who can work on field and also who have good social network.
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Age
71 71.0 71.0 71.026 26.0 26.0 97.03 3.0 3.0 100.0
100 100.0 100.0
18-2828-4848-68Total
ValidFrequency Percent Valid Percent
CumulativePercent
Age
3.0%
26.0%
71.0%
48-68
28-48
18-28
Recruitment and Selection Process of Financial Consultant
Marital status
69.0%
31.0%
Unmarried
Married
Interpretation:
From the above analysis we come to know that 69% respondents are unmarried who want s make their career in this field and earn good commission.31%respondents are married who are interested in part time job .
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Marital Status
31 31.0 31.0 31.069 69.0 69.0 100.0
100 100.0 100.0
MarriedUnmarriedTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
Education Qualification
5.0%
30.0%
47.0%
18.0%
Other
Post Graduate
Graduate
Under Graduate
Interpretation:
From the above graph we can analysis that graduates and post graduates are been more recruited by the company which shows that company needs more youngster as FC.
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Education Qualification
18 18.0 18.0 18.047 47.0 47.0 65.030 30.0 30.0 95.05 5.0 5.0 100.0
100 100.0 100.0
Under GraduateGraduatePost GraduateOtherTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
occupation
10.0%
12.0%
41.0%
10.0%
19.0%
8.0%
Other
Financial consultant
Student
Buisness
Employee
Housewife
Interpretation:
Here we understand that 41% of the students are interested in pursuing this job as part time job which will help them for their future career.
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Occupation
8 8.0 8.0 8.019 19.0 19.0 27.010 10.0 10.0 37.041 41.0 41.0 78.012 12.0 12.0 90.010 10.0 10.0 100.0
100 100.0 100.0
HousewifeEmployeeBusinessStudentFinancial consultantOtherTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
What made you join HDFC as Financial Advisor?
27 27.0 27.0 27.043 43.0 43.0 70.018 18.0 18.0 88.09 9.0 9.0 97.03 3.0 3.0 100.0
100 100.0 100.0
MoneyCareersBrand ImageRewards/RecognitionOthersTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Finacial Advisor
3.0%
9.0%
18.0%
43.0%
27.0%
Others
Rewards/Recognition
Brand Image
Careers
Money
Interpretation:
Here we understand that 43 % respondents of them have chosen this job as to make their career, and 27% respondents to earn good money through commission and 18% respondents have taken up this job because of company’s brand image.
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Recruitment and Selection Process of Financial Consultant
Are you satisfied with Registration fee for financial consultant set by HDFC?
3 3.0 3.0 3.033 33.0 33.0 36.039 39.0 39.0 75.020 20.0 20.0 95.05 5.0 5.0 100.0
100 100.0 100.0
Highly satisfiedSatisfiedAverageDissatisfiedHighly dissatisfiedTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Interpretation:
From the above graph 39% respondents said they are averagely satisfied with registration fee and 33 % respondents are satisfied with the fee for registration to register the consultants licence.
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Recruitment and Selection Process of Financial Consultant
Recruitment Method
4.0%
67.0%
18.0%
11.0%
Others
Personal cont/Ref
Advertisement
Cold calling
Interpretation:
From the above analysis we understand that 67% respondents are recruited through personal contacts and reference and only 18% respondents through advertisement.
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By which method you were been Recruited?
11 11.0 11.0 11.018 18.0 18.0 29.0
67 67.0 67.0 96.0
4 4.0 4.0 100.0100 100.0 100.0
Cold callingAdvertisementPersonal contAct/ReferenceOthersTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
Interpretation:
This shows the satisfaction level of the consultant with respect to the selection process followed by the company, i.e. 49% respondents are satisfied and 24% respondents are highly satisfied.
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Are you satisfied with selection criteria followed by the company?
24 24.0 24.0 24.049 49.0 49.0 73.024 24.0 24.0 97.02 2.0 2.0 99.01 1.0 1.0 100.0
100 100.0 100.0
Highly satisfiedSatisfiedAverageDissatisfiedHighly dissatisfiedTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Selection Criteria
1.0%
2.0%
24.0%
49.0%
24.0%
Highly dissatisfied
Dissatisfied
Average
Satisfied
Highly satisfied
Recruitment and Selection Process of Financial Consultant
Analysis of Induction Program
Interpretation:
From the survey we understand the kind of training undertaken by consultants that is 88% have undergone Manual training (class room training: off job training) and only 12% online training.
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What kind of training did you under go?
88 88.0 88.0 88.012 12.0 12.0 100.0
100 100.0 100.0
ManualOnlineTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Training
12.0%
88.0%
Online
Manual
Recruitment and Selection Process of Financial Consultant
How did you like the Advisor Induction Program(AIP)?
24 24.0 24.5 24.544 44.0 44.9 69.427 27.0 27.6 96.91 1.0 1.0 98.02 2.0 2.0 100.0
98 98.0 100.02 2.0
100 100.0
VeryGoodGoodAverageBadVery BadTotal
Valid
SystemMissingTotal
Frequency Percent Valid PercentCumulative
Percent
Interpretation
Here 44% respondents said that training session was good and around 24% respondents said it was very good and 27%respondents said it was average and it added to their knowledge.
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Advisor Induction Program
2.0%
2.0%
1.0%
27.0%
44.0%
24.0%
Missing
Very Bad
Bad
Average
Good
Very Good
Recruitment and Selection Process of Financial Consultant
Interpretation:
From the survey we can understand that 67% respondents said training is more required where as 33% respondents says training is not required.
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Do you think more training is required?
67 67.0 67.0 67.033 33.0 33.0 100.0
100 100.0 100.0
YesNoTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
Different Kinds of Training
32.0%
1.0%
17.0%13.0%
16.0%
8.0%
13.0%
Missing
Others
Stock marketSales
Product
Underwriting
Tax benefit
Interpretation:
From the above graph we understand that most of the consultants feel that training is required on product, stock market and tax benefit etc.
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If yes kindly specify what kind?
13 13.0 19.1 19.18 8.0 11.8 30.9
16 16.0 23.5 54.413 13.0 19.1 73.517 17.0 25.0 98.51 1.0 1.5 100.0
68 68.0 100.032 32.0
100 100.0
Tax benefitUnderwritingProductSalesStock marketOthersTotal
Valid
SystemMissingTotal
Frequency Percent Valid PercentCumulative
Percent
Recruitment and Selection Process of Financial Consultant
Impact of Recruitment and Selection
Monetary Benefits
1.0%
6.0%
42.0%
36.0%
15.0%
Highly dissatisfied
Dissatisfied
Average
Satisfide
Highlysatified
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Are you satisfied with the Monetary Benefits provided by the company?
15 15.0 15.0 15.036 36.0 36.0 51.042 42.0 42.0 93.06 6.0 6.0 99.01 1.0 1.0 100.0
100 100.0 100.0
Highly satisfiedSatisfiedAverageDissatisfied
Highly dissatisfied
Total
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
Interpretation:
This shows the satisfaction level among the consultant with respect to the Monetary Benefits provided by the company, 36% of the respondents are satisfied, 42% are averagely satisfied.
Interaction between FCs &SDMs
2.0%
11.0%
26.0%
43.0%
18.0%
No interaction
Very Rarely
Rarely
Frequently
Very frequently
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How frequently does the Sales Development Manager interact with you?
18 18.0 18.0 18.043 43.0 43.0 61.026 26.0 26.0 87.011 11.0 11.0 98.02 2.0 2.0 100.0
100 100.0 100.0
Very frequentlyFrequentlyRarelyVery RarelyNo interactionTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
Interpretation:
This shows the how frequently SDM s interact with FC ; here 43% respondents feel that SDMs interact with them frequently, 26% of the respondents feel that SDMs interact rarely.
Fix Salary or Commission
29.0%
52.0%
10.0%
9.0%
All of the above
Salary & Commission
Commission
Salary
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Do you want fix salary to be provided by the company or satisfied with commission??
9 9.0 9.0 9.010 10.0 10.0 19.052 52.0 52.0 71.029 29.0 29.0 100.0
100 100.0 100.0
SalaryCommissionSalary and commissionAll of the aboveTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
Interpretation:
From the above analysis we can interpret ate that 52% respondents wish for fix salary and commission from the company.
Target for Financial Consultant
22.0%
78.0%
No
Yes
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Is there any target for Financial Consultant set by the company?
78 78.0 78.0 78.022 22.0 22.0 100.0
100 100.0 100.0
YesNoTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
Interpretation:
Here we understand that the company has target for the financial consultant, i.e. 78 % respondents says that they are aware of the target given to them .
Acheivement of Target
6.0%
23.0%
71.0%
Missing
No
Yes
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Do you achieve your target every time?
71 71.0 75.5 75.523 23.0 24.5 100.094 94.0 100.06 6.0
100 100.0
YesNoTotal
Valid
SystemMissingTotal
Frequency Percent Valid PercentCumulative
Percent
Recruitment and Selection Process of Financial Consultant
Interpretation:
This shows the target achieved by the financial consultant, 71% respondents says that they achieve their target given by the company, 23%respondents says that they don’t achieve because no contacts or busy schedule.
Satisfaction with Target
2.0%
2.0%
6.0%
44.0%
39.0%
7.0%
Missing
Higly dissatisfied
Dissatisfied
Average
Satisfied
Highly Satisfied
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Are you satisfied with the target given to you?
7 7.0 7.1 7.139 39.0 39.8 46.944 44.0 44.9 91.86 6.0 6.1 98.02 2.0 2.0 100.0
98 98.0 100.02 2.0
100 100.0
Highly SatisfiedSatisfiedAverageDissatisfiedHighly dissatisfiedTotal
Valid
SystemMissingTotal
Frequency Percent Valid PercentCumulative
Percent
Recruitment and Selection Process of Financial Consultant
Interpretation:
This shows the satisfaction level of the target designed for the financial consultant by the company; here 44% of the respondents are averagely satisfied with the target.
Pressurized by the Company
3.0%
43.0%
54.0%
Missing
No
Yes
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Are you been pressurized by the company?
54 54.0 55.7 55.743 43.0 44.3 100.097 97.0 100.03 3.0
100 100.0
YesNoTotal
Valid
SystemMissingTotal
Frequency Percent Valid PercentCumulative
Percent
Recruitment and Selection Process of Financial Consultant
Interpretation:
This shows that the FC are been pressurized by the company to achieve the targets, and 54% says yes they are being pressurized by the company to achieve the targets because if FC don’t achieve their target the FC’s licence might lapse.
Why do you think the company has selected you as financial consultant?
a) I have good convincing skills ( )
b) I have good social network ( )
c) I have been doing this job for different investment company ( )
d) I am very much knowledgeable on insurance ( )
(Rate them as 1 being highest and 4 being lowest)
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I have good convincing Skills
55 55.0 55.0 55.031 31.0 31.0 86.010 10.0 10.0 96.04 4.0 4.0 100.0
100 100.0 100.0
HighestGoodAverageLowestTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
I have good convincing Skills
4.0%
10.0%
31.0%55.0%
Lowest
Average
GoodHighest
Interpretation:
From the above graph we understand that 55% respondents agrees that they have good convincing skill and the company selected them as FC on their skills as this skill require in convincing the customer and selling the more no. of products.
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I have good social Network
60 60.0 60.0 60.027 27.0 27.0 87.09 9.0 9.0 96.04 4.0 4.0 100.0
100 100.0 100.0
HighestGoodAverageLowestTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
I have good social Network
4.0%
9.0%
27.0%
60.0%
Lowest
Average
Good
Highest
Interpretation:
From the analysis we understand that 60% of the respondents think that they were selected because they have good social network, this is the cause where in the personal contacts are used to recruit more no. of FC through the respondents network.
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I have been doing this job for different investment company
9 9.0 9.0 9.025 25.0 25.0 34.031 31.0 31.0 65.035 35.0 35.0 100.0
100 100.0 100.0
HighestGoodAverageLowestTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
Interpretation:
The graph shows that 35 % of the respondents were not in to different Investment Company which means that most of the FC don’t have experience in this job and are very new to insurance sector such as Graduates, Project trainee House wife etc.
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I have been doing this job for different Investment Company
35.0%
31.0%
25.0%
9.0%
Lowest
Average
Good
Highest
I am very much knowledgeable on Insurance
11 11.0 11.0 11.024 24.0 24.0 35.034 34.0 34.0 69.031 31.0 31.0 100.0
100 100.0 100.0
HighestGoodAverageLowestTotal
ValidFrequency Percent Valid Percent
CumulativePercent
Recruitment and Selection Process of Financial Consultant
Interpretation:
Here we can see 24 % respondents says that they have good knowledge on insurance so they were selected as financial consultant and 34 % of the respondents says that they have average knowledge on insurance but have interest in doing this job.
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Recruitment and Selection Process of Financial Consultant
FINDINGS AND SUGGESTIONS
FINDINGS
The findings of the project are:
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The students are more interested to become financial consultant as they want to make
their career and earn good money by taking up this job as part time. House wives also
want put their network in use so that even they can earn and make their career.
It is been understood that most of them are satisfied with the registration fee for the
financial consultant taken by the company, some of them feel that it is very high to
become FC of the company.
Most of them are been recruited by personal contacts as SDMs have good social
network and due to their target they use their social network and recruit their friends
or relatives as financial consultant.
Selection procedure is satisfactorily satisfied by the financial consultant.
Training mode is manual which is off the job and class room training and FCs are
satisfied with the training method.
Most of the financial consultant demand is for fixed salary and commission and good
monetary benefits.
It is found that there are targets for financial consultant set by the company, and most
of them are satisfied by the company’s target.
Financial consultant feels that they were selected because of their social network and
good convincing skills so that.
SUGGESTION
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The company should reduce the registration fee for the financial consultant as it is quite more
compare to other company which would change the way of thinking of the consultant.
The company should provide more training on product, tax benefit, sales and stock market
which would gain more knowledge on insurance and would help FCs to sell the policy more
easily.
Most of the financial consultants demand is for fix salary and commission so the company
should make sure and provide good commission, a monetary benefit which motivates the
consultants to do more business.
As the competition is increasing the company should use the new emerging channels(like
Internet , Advertisement , Media etc) to get the competitive advantage on others.
HDFC Standard Life Insurance Company has to appoint well qualified Advisors as maximum
business comes from company Advisor & Agent groups who are having good communication
skill.
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CONCLUSION
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CONCLUSIONS
As HDFC standard Life Insurance is private life Insurance sector, the recruitment and
selection process for FCs in the company is well outlined and systematically followed. My
study at HDFC Standard Life Insurance indicates most of the recruitment is done through
personal contact / References by the Sales Development Manager.
As far as the consultant feeling is concerned they feel that more training is needed. More of
product training, stock market and sales training is required. The consultants demand is for
fix salary and commission which would motivate them to do more business. The company
satisfies the consultants with the monetary benefits.
To conclude, I would like to say that working with HDFC Standard Life Insurance for 2
months was a great experience and I have gained a lot of practical knowledge and has added
to my confidence level.
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BIBLIOGRAPHY
1. JOURNALS: Company journals and Magazines Human capital Magazine.
2. WEB SITE: hdfcstandardlifeinsurance.com, google.com
3. BOOKS:
Personal Management: Mamoria
Human Resource Management: Subba Rao
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