Recruitment of Tied Agents in Aviva Life

Insurance
A
Project report
Is
Submitted in the partial fulfillment of the requirement for the
Master degree of Business Administration

Submitted To: Submitted By

AVIVA Neha

1
 ACKNOWLEDGEMENT

I hereby express my gratitude to Mr. ROHIT PARVANDA (S.R.U. Manager,

Business Development), Aviva Life Insurance Co. India Ltd., for providing me with
an opportunity to work in this organization. I also thank him for his valuable inputs in
my project and for also giving me an insight into the actual working of the company.

I express my indebtedness and gratitude to my company project guide Mr. Sudeep

Kumar (Sr. Sales Manager, Aviva Life Insurance Co. India Ltd.) for his constant
support and encouragement throughout the execution of the project, without him this
project would not have been possible.

I wish to thanks Mr. T.R. Ramchandran (C.E.O & Managing Director.) and my
project guide Mr. Sudeep Kumar (Sr. Sales Manager) for giving me support and
guidance throughout the project and without whose generosity this project would have
been difficult for me to complete.

(NEHA)

2
EXECUTIVE
SUMMARY
Executive Summary

The objective of this project was to assist Aviva Life Insurance in expanding their
channel by recruiting Tied Agents for the company. For the company to successfully
continue its operations, it needs to undergo change to get new business and to get new
ideas. Moreover insurance is such a growing sector that it has full potential to have
new customers. So it is very essential to have new people in the system, which can
add new customers to the company.

This was achieved through three-pronged efforts. The first objective of the study was
to look for different segments of the people. The second objective of the project was to
analyze the person to find whether he is fit for doing insurance. The third objective of
the project was to finally introduce some people in the system by recruiting them as
advisors of the company.

3
The research methodology consisted of secondary data, which was collected from
different colleges, Yellow Pages etc and personal interview with people in HISAR,
HANSI and near by areas. The data collected is attached at the end of the report.

I would like to thank my mentor who provided me the opportunity to become the
advisor for the company, which will give me lots of experience and help me in future.

CONTENTS
S.NO CONTENTS PAGE NO.
1. Introduction 6
1.1 -Purpose of study 6
1.2 -Objectives Of the Study 7
2. Research Methodology 8
2.1 -Data collection 10
2.2 -Analysis of data collected 11
3. Industry Profile 12
3.1 -Introduction 13
3.2 -Development of Insurance in India 15
3.3 -Privatization 16
3.4 -Classification 17
3.5 -IRDA 20
4. Company Profile 24
4.1 -Introduction 25
4.2 -Vision 27
4.3 -Distribution 28
4.4 -Structure 29
4.5 -Products 30
5. Recruitment Process 41
5.1 -Project Introduction 42
5.2 -Recruitment Process 43
5.3 -Types Of Training 49

4
6. Data Analysis 50
7. Comparison of all Insurance Co 57
7.1 -Market share 58
7.2 -Premium collected 60
7.3 -No. Of policies sold 62
8. Summary & main findings 64
9. Limitations 67
10. Recommendations 68
11. Annexure - Bibliography 70

5
 1. INTRODUCTION

Insurance is the method of spreading and transfer of risks. Losses of

unfortunate few are shared by and spread our to many exposed to the same
risk. Assets created by the owner in expectation of future needs or benefits
have a value. Loss of assets for any reason deprives the owner of the
expected benefit. Insurance in the context is a mechanism.

Insurance may be of two types – Insurance of assets and insurance of

human life. As far as insurance of human life is concerned it is an income
generating assets, which can be lost at an early death or disabilities caused
by accidents.

Earlier there was only one insurance company in the public sector i.e.
Life Insurance Corporation of India Ltd. But after liberalization the
insurance sector has also been opened for private players. Now there are
many private players in the Life Insurance Sector.

6
The success of every organization depends upon the employees working in
it. That’s why these days all the organizations are very cautious regarding
the recruitment of people in their company.

Recruitment means the appointment of quality people with competent skills

and knowledge suitable for the job. These recruited people add to the work
force of the organization.

There are some basic principals involved in getting the recruitment done
successfully and consistently. The philosophy of high standards and a
success syndrome is the central point of maintaining high standards and the
presence of a successful advisor always attracts more of the same.

Also there should be an atmosphere of success in the organization. As a

result of a good atmosphere there is a natural inclination to become a part
of the winning sales organization.

To attract the good people to join the organization the work should have an
attraction power it’s rightly said that Work at developing your attraction
power strive to be the kind of person you want others to be.

It is to be reminded that there is no large, ready supply of high potential

candidate who are disconnected with their Present jobs

7
happen in individual’s jobs, their lives family background, which can cause
them to become prospects for the new job.

1.1 PURPOSE OF STUDY

In the present scenario Insurance is the fastest growing sector with a lit of
potential as very less market of insurance have been captured till yet. This
sector has a very wide future prospect and aviva being highly reputed
attracted me the most.

In the insurance sector, it is the advisor that carries the flag of the company
in the market; they bear the brunt in the field. They represent the company
in the market to the customers, so nobody can deny the importance of
Advisors in the whole system.

They provide the company with the business and help their respective SM
to achieve their targets. So SM has to be really careful while recruiting their
advisors. The most important responsibility is to achieve the First P or
Production growth it’s what saying in the business requires of an aviva life
insurance Manager. Part of this growth is accomplished by improving the
productivity of the existing agency manager. However, bringing sufficient

8
numbers of high- quality new product in to your sales organization each
year is an absolute must.

1.2 Objectives of the study

Considering the importance of the tied agents in the field of advising ASM
and re4cruiters in aviva life insurance Ltd, the main objective of study are
delineated below:

I. An attempt has been made to study the recruitment procedure adopted

by aviva during the study period.
II. To examine the causes responsible for the joining or not joining as tied
agents in the company.
III. To study the standing of aviva in relation to other insurance companies
on the basis of: -
 Market share
 Premium collected
 Number of policies sold

9
2. Research Methodology

This is an endeavor to locate right kind of people possessing the right

kind of skills to become successful financial consultants. The study also
tries to find out the kind of people and skills that would further enhance
the insurance business.
Aviva life insurance business aims at recruiting those who have
entrepreneurial skills and necessary drive to survive and flourish in the
present competitive and ever increasing insurance industry.
The universe of study was limited to Hisar, Hansi and near by areas.
The universe was divided in different segments. The process of
segmentation was primarily aimed at simplifying the universe into
smaller parts so each segment can be handled according to its unique
features. These segments were as follows:

• Students
1. B.Com and MBA pass outs
2. Students pursuing CA,.

10
 • Enterprising Women
1. Hobby class operators
2. Beauty Saloon owners
3. Fashion boutiques
4. Kitty Party groups
5. Agents of direct Selling.

• Property Dealers, Commission Agents, retired members from

Banks.

• Financers and other loan giving institutions

• CA’s, Advocates and other Tax Consultants.

2.1 DATA COLLECTION

For the purpose of recruitment of advisors and comparison of aviva with

other companies, both published and unpublished data have been used.
For this purpose various journals, magazines, books, broachers and
annual reports of aviva n other related companies have also been used.
Sources of collected for the various segments given as under: -

11
STUDENTS
Research methodology: Mail + Call activity
Data Source: colleges and respective institutions.

ENTERPRISING WOMEN
Research Methodology: Telecalling
Data source: Personal contacts + classified section of HT City.

PROPERTY DEALERS
Research Methodology: Telemarketing
Data source: Yellow pages + Local newspaper.

FINANCERS AND OTHER LOAN GIVING INSTITUTIONS

Research Methodology: Personal Contact
Data Source: People’s References and through Local Newspapers

CA’s, INCOME TAX CONSULTANTS AND ADVOCATES

Research Methodology: Personal Contact
Data Source: Yellow Pages.

12
 2.2 ANALYSIS OF DATA COLLECTED

.For the analysis of data the following given techniques have been used:-

I. Financial analysis techniques

Checking increase or decrease in amounts, percentage changes and
ratio analysis.

II. Statistical analysis technique

Simple analysis is done on the basis of the collected sample and
according to that graphs, tables and pie charts are made which are
showing the comparison and various reasons behind the deviation
and the quality of advisor.

III. Sampling techniques:

I used random sampling technique, in which I take the sample of
the advisors from the total population of the advisors in Hisar
branch.

13
 Insurance
Industry profile

3.1 Insurance: An Introduction

Insurance

• Insurance is a method of spreading & transfer of risk.

• Losses of unfortunate few are shared by and spread over to many exposed to
same risk.

• Assets created by the owner in expectation of future needs or benefits have

value.

14
• Loss of assets for any reasons deprives the owner of the expected benefits.

• Insurance in this context is a mechanism that helps to reduce the adverse

consequences due to loss of assets.

Purpose and need of insurance

• Assets are likely to be destroyed or made non-functional due to perils like

fire, floods, breakdowns and earthquake.

• Damage to assets caused by any perils is the risk that assets are exposed to.

• Insurance become relevant only if there are uncertainties of events leading to

loss.

• We can say that human life is an income generating assets which can be lost
on early death or disabilities caused by accidents.

• Insurance doesn’t protect the asset but only compensates the economic or
financial loss.

Role of insurance in economic development

15
 • Investments are necessary for Economic development.

• Life Insurance plays a major role in mobilization of public savings.

• Savings out of life insurance funds are utilized in investments for growth.

• Looking for general insurance business industry trade would be seriously

handicap in the absence of insurance cover relating to fire and
engineering risk.

3.2 Development of Insurance in India

A thriving insurance sector is of vital importance to every modern economy. First

because it encourages the savings habit, second because it provides a safety net to
rural and urban enterprises and productive individuals. And perhaps most importantly
it generates long-term investible funds for infrastructure building. The nature of the
insurance business is such that the cash inflow of insurance companies is constant
while the payout is deferred and contingency related.

This characteristic of their business makes insurance companies the biggest investors
in long-gestation infrastructure development projects in all developed and aspiring
nations. This is the most compelling reason why private sector (and foreign)

16
companies, which will spread the insurance habit in the societal and consumer
interest, are urgently required in this vital sector of the economy.

Per capita insurance premium in India is a mere US$ 6, one of the lowest in the
world. In South Korea, the corresponding figure is US$1,338, in USA it is $ 2250 and
in UK it is $1589.

Insurance premium in India accounts for a mere 2 per cent of GDP compared to
the world average of 7.8 per cent and G-7 average of 9.2 per cent.

Insurance premium as a percentage of savings is barely 5.95 per cent in India

compared to 52.5 per cent in the UK.

3.3 Need for Global Integration

Recent economic liberalization started few years ago have started bringing in new
investments from global giants and the government was hard pressed to facilitate
global integration by lowering trade barriers for the free flow of technology,
intellectual and financial capital. Additionally, reforms are essential if the Indian
economy is to achieve and sustain a growth rate of 7 to 8 per cent per annum.
Reaching a faster growth path also implies attracting foreign direct investment inflows
of $ 10 Billion every year, up from the current level of $ 3 to $ 3.5 Billion. Thus
liberalization of insurance creates an environment for the generation of long term
contractual funds for infrastructural investments.

17
 3.4 Privatization: Start Up Strategy
Potential private entrants therefore expect to score in the areas of customer service,
speed and flexibility. They point out that their entry will mean better products and
choice for the consumer. Critics counter that the benefit will be slim, because new
players will concentrate on affluent, urban customers as foreign banks did until
recently.

This might seem a logical strategy from the point of view of new players. Start-up
costs-such as those of setting up a conventional distribution network-are large and
high-end niches offer better returns. However, in the long run 'middle-market' offers
the greatest potential as in terms of it is the second largest market in the world. This
may still be an urban market but goes beyond the affluent segment.

Insurance, even more than banking, is a volume game. A very exclusive approach is
unlikely to provide meaningful numbers. Therefore, private insurers would be best
served by a middle-market approach, targeting customer segments that are currently
untapped.

3.5 Classification of insurance

Life is full of uncertainty. Trials and tribulations abound in each and every aspect of
life .No one can truly predict or even estimate what the future has in store for him.
Life offers no guarantee by itself; expect the incidences of death and taxation.

18
The lack of security present throughout life can be overcome partially through
insurance. Insurance can never replace or repair a loss. But the monetary value offered
by insurance helps in adjusting to new circumstances.

Despite offering the innumerable options and immense scope insurance can be
classified into four major categories.

• Insurance of a person
• Insurance of property
• Insurance of interest.
• Insurance of liability.

Insurance of person

Under the preview of this class of insurance the risk associated with human life in
general can be covered up to the limit specified. The person can insure his or her life
and his health against any unplanned contingencies.

The event of his death his dependents will be reimbursed with the full amount that he
was insured for. Or if the insured person meets with the accident or suffers from any
illness that cripples him forever he will be compensated with complete sum assured.
Any way he may not be able to lead a normal life again.

Insurance of property

19
Everyone posses material value in the form of tangible assets. Assets can be in the
form of the landed estate or a vehicle, share holdings or plane old paper money.
Since tangible property has a physical shape or consistency it is subject to many risk
ranging from fire allied perils to theft and property. An individual’s lifetime of hard
work can be wiped out in a blink of an eye.

But if a person judiciously invest in insurance for his property prior to any unexpected
contingency the he will be suitably compensated for his loss as soon as the extend of
damage is ascertained.

Insurance of interest

Every individual has to discharge certain specific duties. Everyone is expected to

maintain a standard of conduct but then it is an intrinsic part of human nature to err.
None is infallible and no one will ever be.
Owing to an occasional error or omission committed by us, our clients or customers
might suffer a loss. In turn we might have to pay those damages for compensation out
of our own personal resources.

However, if our chosen professional qualifies for insurance of interest . Then our
insurance policy will be more than sufficient in arranging the funds and court
formalities that might ensue aftermath of legal libel.

Insurance of liability

20
Every person has to regulate his actions and behavior so as not to cause injury or
damage to other people and their property. Every one is personally liable for his or her
action.

If due to lack of control over his actions or prejudice behavior, a person incurs any
liability then has to provide compensation out of his personnel resources. Liabilities,
Legal, Civil or Criminal can have severe repercussions on social standing and prestige
besides the financial status.

3.5 Insurance Regulatory and Development

Authority (IRDA) ACT, 1999

• This is a corporate body established for the purpose and objects as set
out in explanation to the title.
• The authority replaces “Controller” under insurance act 1938.
• It states that if authority is superseded by central govt. the insurance
may be appointed till such time as “Authority” is reconstituted.

Constitution of IRDA

21
 • The insurance regulatory and development authority consist of the
following members.

1. Chairperson
2. Less than five whole time members
3. Less than four part time members.

• Member should be person of ability, integrity & standing.

• They Should have experience in the field of

1. Life Insurance
2. General Insurance
3. Actuarial science.
4. Finance
5. Economics
6. Law
7. Accountancy
8. Administration

• Chairperson, members, officers and other

employees of authority shall be public servants.

22
Functions of IRDA

• To issue certificate of registration, renew,

withdraw, suspend or cancel such registration.

• To protect the interest of policyholders/insured in

the matter of insurance contract with the insurance
company.
• To specify requisite qualification, code of conduct
and training for insuranc intermediaries and
agents.
• To specify code of conduct for surveyors /loss
assessors.

• To promote efficiency in the conduct of insurance

business

• To promote and regulate professional

organizations connected with the insurance and
reinsurance business.

23
 • To undertake inspection, conduct enquiries and
investigations including audit of insurers and
insurance intermediaries.

• To control and regulate the rates terms and

conditions to be offered by the insurer regarding
general insurance business not so controlled by
tariff advisory committee under section 604 of
Insurance act,1938.

• To regulate investment of funds by the insurance

companies.

• To adjudicate dispute between insurers and

intermediaries of insurance

Life Insurance Corporation of India Act, 1956

• Life insurance business was nationalized in India with effect from 19th
January 1956.

24
• The life insurance business of 154 Indian Life offices constituted by 16
non-Indian insurers operation in India and 75 provident societies was
taken over by the Government of India.

COMPANY
PROFILE

4.1 AVIVA LIFE INSURANCE COMPANY –

An introduction

25
AVIVA Life Insurance Company is a joint venture between Dabur and
Aviva. Aviva life insurance was amongst the first private sector insurance
companies to begin operations in 6 December 2002 after receiving approval
from Insurance Regulatory Development Authority (IRDA).

Aviva life insurance’ equity base stands at Rs. 9.25 billion with Dabur
Aviva life insurance co. ltd. and Prudential plc holding 74% and 26% stake
respectively. In the financial year ended March 31, 2007, the company
garnered Rs 1584 crore of new business premium for a total sum assured of
Rs 13,780 crore and wrote nearly 615,000 policies. The company has a
network of about 56,000 advisors; as well as 7 bancassurance and 150
corporate agent tie-ups. For the past four years, Aviva life insurance has
retained its position as the No. 1 private life insurer in the country, with a
wide range of flexible products that meet the needs of the Indian customer
at every step.

Aviva Life Insurance's new business has grown 77% in '06-07 to cross Rs
1,000 crore, with annualized new business premium of Rs 1,256 crore. The
company's total received premium, which includes renewal premium, has
crossed Rs 2,363 crore for '06-07.

26
In the year 2006-07, 80% of the premium has been generated from unit-
linked plans, with nearly 40% of the premium collections going into equity.
Indian policyholders have been increasingly opting for unit-linked plans
that offer higher exposure to equities, ever since lower interest rates have
forced insurers to cut bonuses on traditional policies.

In contrast, the private life insurance agent force has grown by leaps and
bounds. The need for higher geographical penetration has seen insurance
companies recruiting aggressively. At last count, they added up to a
massive 1,50,000. Aviva Life topped the list among the private players,
which had close to 50,000 agents, while Bajaj Allianz had 30,000 agents.
At least six of the 11 private life insurance players had an agent force of
10,000 and plus.

This included Tata AIG, Max New York, HDFC Standard and Birla Sun
Life. All these insurance companies have allocated large amounts of fresh
capital to build the agent network across major cities in the past few years.

4.2 VISION OF AVIVA LIFE INSURANCE

To make Aviva life insurance the dominant Life and Pensions player built on trust by
world-class people and service.

This we hope to achieve by:

27
 • Understanding the needs of customers and offering them superior products and
service
• Leveraging technology to service customers quickly, efficiently and
conveniently
• Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
• Providing an enabling environment to foster growth and learning for our
employees
• And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the
values describe what the company stands for, the qualities of our people and the way
we work. .

We do believe that we are on the threshold of an exciting new opportunity, where we

can play a significant role in redefining and reshaping the sector. Given the quality of
our parentage and the commitment of our team, there are no limits to our growth.

4.3 Distribution

Aviva has one of the largest distribution networks amongst private life insurers in
India, having commenced operations in 74 cities and towns in India. These are: Agra,
Ahmedabad, Ajmer, Allahabad, Amritsar, Anand, Aurangabad, Bangalore, Bareilly,
Bharuch, Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai,

28
Coimbatore, Dehradun, Durgapur, Faridabad, Goa, Guntur, Guwhati, Gurgaon,
Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur,
Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam, Kozhikode,
Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mehsana, Mumbai, Mysore,
Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela,
Saharanpur, Salem, Shimla, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum,
Udaipur, Vadodara, Vapi, Vashi, Vijayawada and Vizag.

The company has seven banc assurance tie-ups, having agreements with aviva life
insurance co.ltd., Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank
and some co-operative banks, as well as over 150 corporate agents and brokers. It has
also tied up with NGOs, MFIs and corporates for the distribution of rural policies and
organizations like Dhan for distribution of Salaam Zindagi, a policy for the socially
and economically underprivileged sections of society.

Aviva has recruited and trained about 56,000 insurance advisors to interface with and
advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide
superior quality of service to customers.

29
 4.4 Organization
Structure

Zonal Manager

Deputy Branch Branch Manager Deputy Branch

Manager Manager

Senior
Sales Manager
Sales Manager (Sales)

A.S.M A.S.M
A.S.M Manager
Manager
Manager

Advisor Advisor Advisor

F.P.A F.P.A F.P.A

30
 4.5 PRODUCTS

Insurance Solutions for Individual

Aviva Life Insurance offers a range of innovative, customer-centric

products that meet the needs of customers at every life stage. Its 27
products can be enhanced with up to 6 riders, to create a customized
solution for each policyholder.

31
Savings Solutions

• Life Line is a transparent and feature-packed savings plan that offers

3 levels of protection.
• Sachin Century is a transparent, feature-packed savings plan that
offers 3 levels of protection as well as liquidity options.
• Dhanvariddi is a traditional endowment savings plan that offers life
protection along with adequate returns.
• Young Scholar is an anticipated endowment policy ideal for meeting
milestone expenses like a child?s marriage, expenses for a child?s
higher education or purchase of an asset.
• Sachin Century ulip offer customers the flexibility and control to
customize the policy to meet the changing needs at different life
stages. Each offer 4 fund options? Preserver, Protector, Balancer and
Maximiser.
• Life Bond is a single premium Market Linked Insurance Plan which
combines life insurance cover with the opportunity to stay invested in
the stock market
• Life Shield Plus is a limited premium-paying plan that offers
customers life insurance cover till the age of 75.

32
 Protection Solutions

• Life Shield Plus is a protection plan, which offers life cover at very
low cost. It is available in 3 options? Level term assurance, level term
assurance with return of premium and single premium.

Child Plans

• Little Master education plans provide guaranteed educational

benefits to a child along with life insurance cover for the parent who
purchases the policy. The policy is designed to provide money at
important milestones in the child?s life. SmartKid plans are also
available in unit-linked form? Both single premium and regular
premium.

Retirement Solutions

• Pension Elite is a retirement product targeted at individuals in their

thirties.
• Pension Elite Plus is a flexible pension plan that allows one to select
between 3 levels of cover.

33
 Market-linked retirement products

• Pension Elite is a regular premium market-linked pension plan .

• Pension Elite Plus is a regular premium pension plan with a capital
guarantee on the investible premium and declared bonuses.

Aviva also launched? Live Life Khul Ke? A social sector group insurance
policy targeted at the economically underprivileged sections of the society.

Flexible Rider Options

Aviva Life offers flexible riders, which can be added to the basic
policy at a marginal cost, depending on the specific needs of the
customer.

• Accident & disability benefit: If death occurs as the result of an

accident during the term of the policy, the beneficiary receives an
additional amount equal to the sum assured under the policy. If the
death occurs while traveling in an authorized mass transport vehicle,
the beneficiary will be entitled to twice the sum assured as additional
benefit.
• Accident Benefit: This rider option pays the sum assured under the
rider on death due to accident.

34
• Critical Illness Benefit: protects the insured against financial loss in
the event of 9 specified critical illnesses. Benefits are payable to the
insured for medical expenses prior to death.
• Major Surgical Assistance Benefit: provides financial supports in the
event of medical emergencies, ensuring benefits are payable to the
life assured for medical expenses incurred for surgical procedures.
Cover is offered against 43 surgical procedures.
• Income Benefit: This rider pays the 10% of the sum assured to the
nominee every year, till maturity, in the event of the death of the life
assured. It is available on SmarKid, SecurePlus and CashPlus.

Waiver of Premium: In case of total and permanent disability due to

an accident, the premiums are waived till maturity. This rider is
available with SecurePlus and CashPlus

ABOUT THE PROMOTERS

AVIVA Life insurace co. ltd. is India’s second-largest Co.with total assets of
about Rs.112,024 crore and a network of about 450 branches. It offers a wide
range of corporate and retail customers through a variety of delivery channels
and through its specialized subsidiaries and affiliates in the areas of investment
life and non-life insurance, Aviva life insurace co. ltd. posted a net profit of
Rs.1,637 crore for the year ended March 31, 2009.

35
Established in London in 1848, 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. As of June
30, 2006, the company had over US$300 billion in funds under management.
Aviva has brought to market an integrated range of financial services products
that now includes life Insurance, pensions, investment management and term
insurance. In Asia, Aviva is the leading European life insurance company with a
vast network of 24 life operations in twelve countries - China, Hong Kong,
India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,
Thailand and Vietnam.

Impact of Liberalization

The introduction of private players in the industry has added to the

colors in the dull industry. The initiatives taken by the private players
are very competitive and have given immense competition to the time
monopoly of the market LIC. Since the advent of the private players
in the market the industry has seen new and innovative strengths
taken by the players in this sector. The new players has improved the
service quality of the insurance as the result LIC down the years have
seen the declining phase in the carrier. The market share was
distributed among the private players. Though LIC still holds the 75%
of the insurance sector but the upcoming natures of these private
players are enough to give more competition to LIC in the near

36
 future. LIC’s market share has decreased from 81 %( 2007-2008) to
73 %( 2008-09). The following companies have the rest of the market
share of the insurance industry.

Distribution Channels

Till date insurance agents still remain the main source through which the
insurance products are sold. The concept is very well established in the
country like India. But still the increasing use of other sources is
imperative. It therefore makes sense that the well balanced alternative
channel of distribution.

At present the distribution channels that are available in the market

are:

• Direct selling
• Corporate agents
• Group Selling
• Brokers and corporative Societies
• Bancassurance

37
RECRUITMENT
PROCESS
5.1 Project introduction

The project was to recruit the insurance advisors. The targets were provided
By the company and we had to meet them .In the first two weeks we were given
introduction of the company and the various products rendered by it.
We were trained about the various pitching techniques depending upon different
segments of people. After learning the pitching techniques, we started collecting
data from various colleges, employment exchanges.

Characteristics of a good Insurance advisor

38
 These were some of the qualities that we searched in a person who could be an
asset to the company and could give business .It is not necessary to have good
academic background but a good salesman should have the following qualities:
• He should be speedy, needy and greedy.
• He should be presentable.
• He should have good communication skills.
• He should be ready to serve with a good smiling face.

5.2 Recruitment Process

The distribution channel of Aviva is consisting of two types of agents:

• Corporate Agents

• Individual Agents

The former is known as corporate insurance agency while the later is called as Retail
Agency. In the corporate Agency the insurance work is given to a company and these
company further employees Agents. It is a sort of an indirect agency system. On the
other hand the company directly employee’s individual agents and no intermediary is
there.

The project we undertook our study concentrates on the selection of individual

agents and the research therefore is done for that purpose only.

39
The first segment to be taken under study was that of students with some commerce
background.

The segment is further sub-grouped as follows:

1. Pass out B.Com students and graduates

2. Students pursuing C.A
3. Pass out students of MBA.

Our main selling point for this segment was that these students have some finance
knowledge. We gave them a career opportunity as they could be promoted as a unit
manager as soon as they meet the required target.

The required information of such students was collected from there respective
institutions. Those students whose response was positive were called in the premises
of Aviva for an informal interview where they were told about the job and the
opportunities involves.

The second segment was that of enterprising women.

The segment was further divided into sub groups, which were as follows.
1. Hobby classes operators.
2. Beauty Saloon owners.
3. Fashion boutiques.
4. Kitty party groups.

40
5. Agents of direct selling products like Tupperware, Avon.

Our main Point in approaching them was that these women already had a well-
established network in their respective fields and hence in a position to exploite them
further. If they are aware of the opportunities and are ready to take risk then they just
needed to tap the market that is already there for them.

To locate this segment of prospective financial consultant we used our personnel

contacts and the Classified section of HT City.. For example we went into our
relationships and found out references from them.
The women who were positive were then told about the company’s project of locating
financial consultant.

The third segment of property dealers, commission agents, retired members from
banking industry.

The method of research was telemarketing.

Under Telemarketing, a telephone call was made to the targeted person wherein the
intention was to make the person aware of the objectives under study. For this purpose
we tried to allure the target customers to become an agent.
However the call must be made keeping this in mind a few things such as:

1. The intended person must have time to listen to us .

41
2. We must not offend them in any way.

3. We should be considerate enough to respect the value of their time and must not
waste his time in unnecessary Jargons.

4. Care must be taken while introducing main subject, so that we are able to arouse
interest.

5. The person should feel important rather than irate customer.

The fourth segment was of financiers and loan giving institutions.

The data sources of this segment were through people’s references and through
local newspapers. We adopted the method of direct interview with the person. This
involved a brief interaction between the targeted person and us.

The last segment was of CA’s, Income Tax Consultants and Advocates.

The data source of this segment was through Yellow Pages. We adopted the
method of direct interview after taking appointments on phone.

Firstly we called up people and explained them about the work profile .If we
found them interested, another round of screening was done by Unit Manager
with his respective ASM (Business development) and they short listed the most

42
 capable candidates. Capability doesn’t mean that the person should have some
specific qualifications. Capability meant that the chosen candidates must have at
least interpersonal skills and should be keen enough to learn during training
process. He must also realize the importance of marketing in the field. We
preferred people with finance background as it becomes easier for them to
understand the insurance industry.

The second round of selection was consisted of an informal interview with the
candidate. There were main three purpose of this:

1. To reinforce the purpose of study i.e. selecting the right kind of people.

2. To make the candidates aware of growing opportunities in this line of work

and make them aware about the developments in the insurance industry.

3. To make the candidates understand about nominal investment on their part,

as they already infrastructure and resources and increasing returns.

The selected candidate has to fill an application form along with the fees of
Rs.1200, which includes Rs.450 as license fees, which is issued by IRDA and
Government of India, rest includes the examination fees.

43
Types of training

The selected candidates were given a option to select the type of training
depending upon their comfort and convenience. There were two types of
training available.

Online Training

In this type of training the person has to complete his IRDA training for 100
hours on the Internet. After that he is required to attend the six days product
training manually. So the person who is busy with his job this training is quite
suitable for them.

Manual training

In this type training he has to complete both the product training and the IRDA
training manually. So he has to attend the continuous training for fifteen days.
This training is suitable for the person who is ready to take out his fifteen days.

44
During the manual training, the company provides free lunch.

DATA
ANALYSIS
6. ANALYSIS AND FINDINGS

The main purpose was to locate the right kind of people possessing
the right mix of interpersonal and marketing skills. The research
process helped in locating such people.
After obtaining the positive response from the various selected
segment another round of screening was done. The research helped in
locating the interested people. Now the company has to select the
most capable one. Capability does not need that the people should
have some specific Qualifications. The capability meant that the
chosen candidates must at least possess interpersonal skills and

45
should be keen enough to learn during the training process. He must
also realize the importance of marketing industry.

The research results were as follows:

Students
Sample size: 75
Positive responses: 19
Candidates Selected: 3
In the complete segment, we had a good response. We contacted
passed out students who were unemployed. The screening process
was intentionally designed, very hard, as they have to move into the
hierarchy of the company after meeting the targets. This was the
reason why only three students were selected.

Sample Size
Positive responses
selected

46
Pie chart showing the response of students

Enterprising Women

Sample size: 25
Positive Responses: 10
Candidates selected:3
In the complete segment there was good response in the sense that
there were many positive candidates, there was none selected. The
main reason was that in spite of their interest, they lacked initiative in
the decision-making. It was found that their husband took all their
decisions. The company wanted their consultants to be decision
maker not decision takers. Hence there was no financial consultant
taken from this segment.

PIE CHART SHOWING RESPONSE OF

ENTERPRISE WOMEN

sample size

positive response

Candidate
Selected

47
Property Dealers
Sample Size: 35
Positive response: 9
Candidates selected: 2

In spite of contacting so many property dealers only two were

converted. The reason was this was that property dealers require a lot
of chasing, chasing in the sense that those who were interested were
hard to have a personal contact with. Hence it was a time consuming
process and many were dropped because they could not give time to
company’s representative. Moreover, the nature of work in property
dealing is unpredictable. Some time there are no deals while there
may be times that a big party made a deal. Therefore only those
dealers who understand the risk were selected.

48
 2
9
Negative responses
Positive responses
Candidates selected
26

Pie chart showing the response of Property dealers

Commission Agents
Sample Size: 7
Positive Response: Nil

This segment was dropped because there were no positive responses.

The reason for this was that all the commission agents were engaged
in the selling of the products of other insurance companies.

Retired Members of Banking industry

Sample Size: 35
Positive Responses: 15
Candidate Selected: 4

49
The response from this segment was moderate but only one candidate
was converted. The reason was that such people were neither
energetic nor enthusiastic to work despite of having the knowledge of
the industry.

Negative responses
Positive responses
Candidate selected

18

Pie chart showing the response of Retired member of industry

Financiers, CA’s, Tax Consultants, Advocates

Sample Size: 5
Positive Response: 2
Candidates Selected: 2

The response from this segment was the best of all. There were a
couple of reasons for that. First of all; all these candidates were
contacted on the basis of references. Secondly, these people are risk

50
takers. They are willing to enter into new ventures and also have the
kind of resources that are useful for the insurance.

2
Negative
3 Responses
Positive
Responses
Candidates
selected

Pie chart showing the response of CA’s, Tax Financiers,

Consultants, Advocates

Comparison of all the

51
Life Insurance Companies
On the Basis Of:

• Market Share
• Premium Collected
• No. Of Policies sold.

52
7.1 On the bases of market share:
Following given is the percent share of market of various insurance
companies:
Percent share of market

NAME OF THE PLAYER MARKET SHARE (%)

LIC 82.3

AVIVA 7.63

BIRLA SUNLIFE 2.56

BAJAJ ALLIANZ 2.03

SBI LIFE 1.80

HDFC STANDARDLIFE 1.36

TATA AIG 1.29

MAX NEW YORK 0.90

ICICI PRUDENTIAL 5.63

OM KOTAK MAHINDRA 0.51

ING VYASA 0.37

AMP SANMAR 0.26

METLIFE 0.21

53
Graph showing percent of market share

LIC
90

80 AVIVA

70
BIRLA
60 SUNLIFE

BAJAJ
50
ALLIANZ

40 SBI LIFE

30
HDFC
20 STANDARDLIF
E
10 TATA AIG

0
MARKET SHARE(%) MAX NEW
YORK

AVIVA
54
 7.2 On the Basis of Premium Collected:

The life Insurance industry underwrote a premium of Rs.8,13,014.01 lakh

during the month of March 2005, taking the cumulative premium underwritten
during the current year 2004-05 to Rs.25,34,287.67 lakh. The #1 private Life
Insurance Company contributed Rs.1, 58,408 (6.25 %) followed by Bajaj
Allianz which contributed Rs.86, 001.80 lakh(3.39%).

Amount of premium collected by diff. companies

Name of the company Premium collected (2008-

09)
AVIVA 86001.80
ING Vysya 28162.46
AMP Sanmar 9118.44
SBI Life 48293.56
Tata AIG 30022.07
HDFC Standard Life 48615.08
ICICI Prudential 158408.46
Birla Sun life 62128.31
Bajaj Allianz 19229.27
Kotak Mahindra 37475.21
Max New York 22469.01
Met Life 5603.71
Sahara Life 167.09

55
 Bajaj Allianz

160000 ING Vysya

140000 AMP Sanmar

SBI Life
120000

Tata AIG
100000
HDFC
80000 Standard Life
ICICI
Prudential
60000
Birla Sun life

40000 AVIVA

20000 Kotak
Mahindra
0 Max New York
Premium collected (2004-
05) Met Life

Sahara Life

Graph showing the premium collected by diff. companies

56
 7.3 On the basis of No. Of Policies Sold:

Aviva firmly holds the number one position by selling 614673 policies in the
year 2004-05 followed by Tata AIG (228894 policies).

No of policies sold by diff. companies

Name of the company Policies Sold in 2008-09

Bajaj Allianz 28819
ING Vysya 111141
AMP Sanmar 35268
SBI Life 129974
Tata AIG 228894
HDFC Standard Life 206320
ICICI Prudential 83209
Birla SunLife 198370
AVIVA 614673
Kotak Mahindra 63468
Max New York 216671
Met Life 46682
Sahara Life 10214

57
 SUMMARY
&
MAIN FINDINGS
OF THE STUDY

8. SUMMARY

Aviva is the top most private insurance company, so people are more attracted
towards it. The only thing required by the company is to give career and the
benefits provided by the company. The people are taking this career as LIC
agent only. But Aviva through its pinnacle program and other facilities is
providing a very bright career to the youth. There is a lack of information about
this career therefore the company needs to capitalize on this opportunity by
providing information to the people.

The results of the study can be concluded as follows:

58
• The segment of students gave a good response but due to hard screening only
three were converted.
• The segment of enterprising women was not that responsive and hence was
unsuitable for the job of financial consultant.
• The segment of commission agents was again not responsive and not consultant
was obtained.
• The segment of retired members of the banking industry did not possess that
energy that was required. So, the conversions were less.

• The segment of CA’s and advocates was the most responsive probably due to
the fact that the candidates were very few and located primarily from
recommendations.

From the results we can conclude that the selection model of Aviva Life Insurance
Company for the purpose of selecting the right profile of the distribution channel is
very comprehensive and fulfills the objective optimally.

Such selection process would help in:

• Reducing Attrition
• No or Minimum advertising
• Training of consultants

59
The training module of the company involves:
• The better understanding of the product provided by the company.
• Regular interaction between Unit Managers and the consultants.
• Discussions on the changes occurring in the industry
• Training the consultants on how to access the needs and requirements of the
customers.
• Giving Incentives in the form of competition among consultants and
memberships.

9. LIMITATIONS OF THE STUDY

1. Area covered was confined to some regions only.

2. People were reluctant to join this job, as it doesn’t provide any fixed
salary.

3. People perceived this profession as a low status profession.

60
4. Availability of data to contact people was a problem.

5. Due to the presence of large number of LIC agents, people refused to

become advisors of any company as according to them there exits a
huge competition.

6. Insurance business itself doesn’t enjoy a good reputation in the

society.

7. The candidates like CA’s, Advocates and Tax consultants could not
arrange a meeting with ASM in spite of their interest.

61
RECOMMENDATIONS

10. Recommendations

Agents are the lifeblood of the insurance industry’s distribution channel.

They are the main forces that bring business to the company. Unless and
until the agents are qualified and have the caliber to understand the current
market scenario, they cannot remain long in the business. Hence, an
optimally selected sales force is the need for the hour, for the industry like
insurance.

The following are the recommendations to the company:

1. There should be weekend batches of training for the people who

cannot take their full six days of the week from their busy schedule.
2. Anything can click in this line of work and hence the company should
evaluate the candidates subjectively.
3. Advertisements should be given in newspapers so that number people
should come for the interview.

62
4. Various MBA institutes should be targeted to get people with good
marketing as well as interpersonal skills.
5. There should be some fixed salary with some fixed targets.

11. BIBLOGRAPHY

1. www.financialexpress.com
2. www.insuranceguide.com
3. www.irdaindia.com
4. www.google.com
5. www. Insuremagic.com
6. www.indiacore.com
7. Flippo; Recruitment and hiring; Personal Management; M-graw-
Hill international editions; 1984; P: 141-165
8. Debi.S. Saini, Saini A.khan; Human resource management and
Corporate strategy; Human resource management – perspective for
New era; Response book; 2000; P: 135-156
9. P.C.Tripathi; Procurement of personnel; Personnel management &
Industrial relations; Sultan Chand; 1978; P: 126-168
10 . K. Aswathappa ; Recruitment ; Human resource & Personnel
Management; Tata Mc.Graw hill; 1997; P: 122-148

63
11. Mishra M.N; Insurance Principal & Practice; S. Chand & Co.;
Lmt. ; Ram Nagar ; New Delhi.
12. Khan M.Y.; Financial Services; Tata Mc Graw hill Publishing
Co. Ltd.; New Delhi.

64