Submitted To: Banarsidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi
DECLARATION
I hereby declare that this Minor Project Report titled Recruitment and Selection of FC of HDFC SLIC submitted by me to Banarsidas Chandiwala Institute of Professional Studies, Dwarka is a bonafide work undertaken during the period from June 5 to August 3 2010 by me and has not been submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before.
BONAFIDE CERTIFICATE
This is to certify that as per best of my belief the project entitled Recruitment and Selection of FC of HDFC Standard Life Insurance LTD is the bonafide research work carried out by NANCY BATRA student of BBA, BCIPS, Dwarka, New Delhi, in partial fulfillment of the requirements for the Minor Project Report of the Degree of Bachelor of Business Administration.
ACKNOWLEDGEMENT
At the very outset, I would like to take golden opportunity of thanking those persons without whose guidance, co-operation, inspiration and suggestion it would have been impossible for me to accomplish the project successfully. I also take this opportunity to extend my heartfelt gratitude to others who directly of indirectly helped me, by providing me necessary information required for successful completion of the project.
Nancy Batra
Table of Contents
S.No.
1)
Page No.
2)
Literature Of Review
Company Profile of HDFC SLIC Standard Life Group Visions And Values Strength And Weakness Joint Venture Life Stages
3) 4)
Suggestions
Conclusion
Introduction
HDFC Standard Life, one of Indias leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), Indias leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others. HDFC Standard Lifes product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 32 retail and 4 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers. HDFC Standard Life continues to have one of the widest reaches among new insurance companies with 568 branches servicing customer needs in over 700 cities and towns. The company has a strong presence in its existing markets with a base of 2, 00,000 Financial Consultants.
HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million. HDFC Standard Life Insurance Company Limited., being one of the key players in the insurance sector in India, offers a host of individual and group insurance solutions, suiting customer requirements. It happens to be a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), and a Group Company of the Standard Life Plc, UK. It was per the data on February 28, 2009 that HDFC Ltd. held 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. held 26.00% of equity in the JV. The remaining stake is held by others
Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.
Focus on the productivity of each consultant, corporate or individual, while stressing on the quality of proposals,Quick roll out of Products,Meet Social & Rural sector obligations .Efficiency of Operations
Organisational Goals
HDFC's main goals are to a) Develop close relationships with individual households, b) Maintain its position as the premier housing finance institution in the country, c) Transform ideas into viable and creative solutions, d) Provide consistently high returns to shareholders, and e) to grow through diversification by leveraging off the existing client base. 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.
THE PROMOTERS
Joint ventures and associated undertakings
Country of registration or Share class Name incorporation and proportion held Year end Nature of business Standard Life China Ordinary shares 50.0% 31 Dec Life assurance HDFC Standard Life Insurance Company Limited India Ordinary shares 18.6% 31 Mar Life assurance HDFC Asset Management Company Limited, India Ordinary shares 49.9% 31 Mar Investment management, Owned by a subsidiary undertaking of the Company.
The Company also has a 14.5% interest in Housing Development Finance Corporation Limited (HDFC Limited). HDFC Limited owns 81.4% and 50.1%of HDFC Standard Life Insurance Company Limited and HDFC Asset Management Company respectively. This gives the Group an effective interest in these companies of 30% and 57% respectively. The Company does not exercise dominant influence over either of these joint ventures. The current operations of these companies are not significant in relation to the accounts of the Group.
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retain professional recruiters or outsource some of the process to recruitment agencies. The recruitment industry has five main types of agencies: employment agencies, recruitment websites and job search engines, "headhunters" for executive and professional recruitment, niche agencies which specialize in a particular area of staffing and in-house recruitment. The stages in recruitment include sourcing candidates by advertising or other methods, and screening and selecting potential candidates using tests or interviews.
Process of recruitment
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Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows: Identifying the vacancy: The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain: Posts to be filled Number of persons Duties to be performed Qualifications required Preparing the job description and person specification. Locating and developing the sources of required number and type of employees (Advertising etc). Short-listing and identifying the prospective employee with required characteristics. Arranging the interviews with the selected candidates. Conducting the interview and decision making .
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Identify vacancy Prepare job description and person specification Advertising the vacancy Managing the response Short-listing Arrange interviews Conducting interview and decision making The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities.
Types of recruitment
Internal Recruitment is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three Transfers, promotions and Reemployment of ex-employees. Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed
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to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also. Internal recruitment may lead to increase in employees productivity as their motivation level increases.
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POSITION ANNOUNCEMENT
All open-competitive career opportunities at CDPHE are announced on the Colorado State Government Job Announcement website.
ACCEPTING APPLICATIONS
CDPHE is an Equal Opportunity Employer The CDPHE Human Resources Office only accepts applications for announced positions.
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Applications for announced positions will be accepted until the closing date advertised on the job announcement. You must be a resident of Colorado to apply.
APPLICATION SCREENING
Submitted applications are reviewed to identify applicants meeting the minimum requirements listed in the job announcement. All applicants who meet the minimum qualifications for a posted position are invited to participate in a fair and open competitive examination of job-relevant competencies. Applicants who do not meet the minimum requirements are notified by electronic mail of their status.
EXAMINATION PROCESS
When filling a vacant position, the State of Colorado requires the use of an examination process to identify the top three candidates. If three (3) or fewer candidates meet the minimum qualifications of the position vacancy, the minimum qualifications are the exam and all of the applicants are referred to the supervisor for interview. However, if more than three (3) applicants meet the minimum qualifications, an examination of job-related competencies must be used to determine the top three (3) candidates. The number and types of exams chosen for this process will depend on the job class of the position vacancy and the total number of qualified applicants competing for the position.
Types of Tests
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Applicants will be notified of their status following test results. Generally applicants continuing in the process will not receive a notification with a score, but rather a notification regarding the next step in the exam process.
JOB OFFER
After careful consideration of each candidate, the supervisor makes the final decision. Depending on type of work performed in the position, a job offer may be contingent on the results of a drug test, physical examination and/or criminal background check.
Recruitment Vs Selection
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Recruitment Vs Selection:Both recruitment and selection are the two phases of the employment process. The differences between the two are: 1. The recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. 2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organization, by attracting more and more employees to apply in the organization WHEREAS the basic purpose of selection process is to choose the right candidate to fill the various positions in the organization. 3. Recruitment is a positive process i.e. encouraging more and more employees to apply where as selection is a negative process as it involves rejection of the unsuitable candidates. 4. Recruitment is concerned with tapping the sources of human resources where as selection is concerned with selecting the most suitable candidate through various interviews and tests. 5. There is no contract of recruitment established in recruitment where as selection results in a contract of service between the employer and the selected employee
COMPANY PROFILE Of
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HDFC SLIC
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Value
Integrity Innovation Customer care People care Team work Joy and simplicity
Strength: A wide geographic reach, growing clients, and a diversified portfolio of products and services. Premium Payment This section gives you all the details that you may require to pay your premium and make it a hassle free experience. Along with various premium payment options currently available to you, we have also drawn up a Checklist of details that you will need in case you are paying through cheque or demand draft. Checklist while paying your renewal premium through cheque/ demand draft your policy number and name correctly on the reverse side of the cheque/ demand draft We do not accept Post Dated Cheques (PDCs) beyond the next banking day from date of receipt .In case of any overwriting on your cheque, please countersign the same As per RBI guidelines, Non MICR Cheques may not be acceptable at few locations. In this scenario, please contact your nearest branch for more details Unit Linked Polices you can pay using Local Cheques/ Demand Drafts other policies you can pay using either Local or Outstation cheques or Demand Drafts
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JOINT VENTURE
HDFC Standard Life Insurance Company Ltd HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venture between HousingDevelopment Finance Corporation Limited
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(HDFC Ltd.) India and UK based Standard Life Company. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.4:18.6 joint venture to form HDFC Standard Life Insurance Company Limited. Mr. Deepak Satwalekar is the MD and CEO of the venture.HDFC Standard Life brings to you a whole range of insurance Solutions be it group or individual or NAV services for Corporations, they can be easily customized as per specific needs. HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007. The gross incomes standing at a whopping Rs.2, 856 crores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer.
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Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005 Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, and Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalized banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India.
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Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & VicePresident at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and holds a Master's degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited.
Life Stages
Your insurance need will change as your life does, from starting to work to enjoying your golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for you. In this section, we have drawn up the basic life stages and help you analyse various insurance needs accordingly.
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about your golden years even before you have reached them. The key is to think ahead and plan well using your time and money. Your needs Provide for regular income post retirement Immediate Tax benefits Lead a secure, independent and comfortable life style in your retirement years
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pulling out all the stops to attract customers is not in doubt. Hence, this is as good a time as any to pay attention and see what is on display.
The strategy
Too many options simply confuse the users whereas too few will surely turn them away. HDFC Standard Life has thankfully introduced products with basic premiums serving specific needs of all. Most products have some additional optional value adding benefits at marginal additional premiums. The proponent is free to choose any of the basic products along with none or some of the options as per his needs. Before examining the base products, let us see the options. Accidental Death Benefit (ADB) : ADB provides an additional amount equal to the basic sum assured (SA) in case of the death of the policyholder due to an accident, within 90 days of the accident. Critical Illness (CI) Benefit: CI provides an additional amount equal to the SA on diagnosis of the any one of the 6 specified critical illnesses - cancer, coronary artery bypass graft surgery, heart attack, kidney/renal failure, major organ transplant (as recipient) and stroke. The sum assured is payable if the policy holder survives for 30 days after the date of the claim. Double Sum Assured (DSA) Benefit:DSA provides an additional amount equivalent to the basic SA in case of the death of the policyholder. Waiver of Premium (WOP) Benefit WOP basically waives the premium in case the policyholder becomes totally disabled. However, the waiver is applicable only during the period of the disability.
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Accelerated Sum Assured (ASA) Upon diagnosis of any of the specified six critical illnesses, ASA provides an amount equal to the amount payable on death. These options must be selected at the outset while choosing the product.
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MARKETING STRATEGIE
MARKET CONDITION OF PRODUCT IN DELHI & NCR REGION
When it comes to study the market condition of HDFC Standard Life Insurance, it is quite easy to see that there is good demand for products, but the sale of Ulip products is very good. The market share is about 65% with compare to their competitor.
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Competitors By Company
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posted high growth in business. In terms of premium collection, ICICI Prudential mopped up Rs 136 crore followed by Birla Sun life (Rs 60 crore), Allianz Bajaj (Rs 37 crore), Tata AIG (Rs 35 crore), HDFC Standard Life (Rs 33 crore), SBI Life (Rs 27 crore).
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orientation to establish high earnings potential and financial strength, Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001.
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Business description
Be our Certified Financial Consultant Join HDFC Standard Life Insurance as a Financial Consultant and help analyze your customers financial needs, provide customized financial solutions to each one and conduct reviews on a regular basis to keep your customers on track. Along with being a great career move you get associated with HDFC Standard Life Insurance, Indias Most Respected Private Life Insurance Company. We at HDFC Standard Life also offer you unmatched support with various training programmes to help you excel in your Endeavour. A great career move in every way Zero investment, there is no start-up capital. You can work full-time or part-time, depending on your convenience Sunrise industry Support every step of the way At HDFC Standard Life, training is an inherent element of our support system - at no extra cost - for our new Financial Consultants
EXCELLENT OPPORTUNITY
Join HDFC Standard Life Insurance as a Financial Flexible work timings You can work whenever you like. You
can work full-time or part-time, depending on your convenience. However, the time you invest will determine your success
Any one can join - Young graduates, Housewives, Retired Zero Investment - There is no start-up capital required. Be your own
boss with flexible working environment, unlimited earning potential and opportunities to be part of a world class sales team.
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Certificate by IRDA
You will get world class training free of cost and certification by Insurance Regulatory Development Authority. TRAINING
IRDA Training
Prepares you for your career as a Financial Consultant and enables you to pass the IRDA examination easily
Disha Training
Hones your selling skills, enables you to understand customer needs and provide need-based insurance solutions.
Advanced Training
Upgrades your capability and knowledge through sophisticated training programs customized for the changing world of financial products and markets
Desired Profile Age: 18 Yrs to 65 Yrs Education: Intermediate or more Experience: Not Mandatory
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Documents Required
8 photograph, Age proof (passport, Birth certificate, College Leaving Certificate, Driving License), Address proof, Education proof. Copy of PAN Card Duly Signed Cancelled Cheque of self A candidate needs to bring a DD of Rs. 925/- in case of offline training and Rs.825 in case of online training towards HDFC SLIC LTD payable at Mumbai.
IRDA Exam
Fail
Pass
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Exit
Product Training
Traditional Pr.
ULIP Product
Internal Assessment
Fail
Pass
Exit
Certification
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Identifying prospective clients. Meeting prospective clients. Understanding the need of the client. Presenting solutions to client. Closing sales. Post sales role Taking 1-2 references from the client Providing timely updates to the client for maintaining Lifelong relationship.
Benefits to FCs
Financial Benefits:
Commission on issuance of every policy. Commission directly credited to bank account of FCs within 15 days. These commission varies from 7.5-40% according to plan.
BASIC COMMISSION
First year Commission payable on regular premium conventional policies issued on or after 21st march 2007 Name of the plan Endowment Assurance plan Money Back plan Childrens plan Term Assurance plan Lone cover Term Assurance plan Personal Pension Plan 1st year commission 40% 40% 40% 25% 25% 7.5%
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RENEWAL COMMISSION
Renewal commission would be paid from the 2nd year onwards on regular premium policies. Renewal commission is not payable on single premium plans. Name of the plan Endowment Assurance plan Money Back Plan Childrens plan Lone cover Term Assurance Plan Term Assurance plan Personal Pension Plan Renewal commission 2nd year onwards 5% 5% 5% 5% 5% 2%
BONUS COMMISSION
Bonus commission would be payable on the first year premium received and adjusted on the regular premium policies under the following plans, 1. Endowment Assurance Plan 2. Money Back Plan 3. Childrens Plan 4. Term Assurance Plan 5. Lone Cover Term Assurance Plan
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Bonus commission is not payable on the single premium plans and on the policies issued under the Personal Pension Plan and all Unit Linked Plans. Bonus commission rate would depend on financial consultant crossing the minimum RNEP (Received Net Effective Premium) within one year.
Extra Payouts for STAR Performers Star Performers Club Status Benefits Bronze 1%max Rs.5999 Silver 2.5%,max Rs.37499 Gold 5%,no upper limit Centurion Graded4.5%to8.5%
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0.50%
1.00%
1.50%
MONTHLY & QUARTERLY CONTESTS There are various Sales linked monthly & quarterly contests occur in which FCs has opportunity to gain something. Like Gift Vouchers Home Appliances Two-Wheelers Gold/Diamonds Jewelry Foreign Trips Mobile Phones Laptops Cars etc.
OTHER BENEFITS
On field support- Joint fieldwork with respective SDM/BDM. Training support-Various training modules to enhance your sales skills, interpersonal skills etc. Marketing support Consumer Contact Programs. Availability of office infrastructure for telecalling, quotations, benefits illustration etc. Consultant corner to access illustration, sales done, and contest updates etc.
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Research Methodology
Research can be defined as systematized effort to gain knowledge. A research is carried out by different methodology, which has their own pros and cons. Research methodology is a way to solve research problem along with the logic behind them. Thus when we talk of the research methodology we not only take of research method but also context of our research study and explain why we are using a particular method or techniques and why we are not using other so that research result are capable of being evaluated either by the researchers himself or by others. Research methodology means the method carried out to study the problem. It shows the type of the sample design used, its size and the procedure used to dew sample. The extent of precision achieved and the method used for handling any special problem during the course of the study. Research methodology has following steps: Step: 1 To decide the objective of the study. Step: 2 To design research design . Step: 3 To determine the source of data. Step: 4 To design data collection form. Step: 5 To determine sample size and sample design. Step: 6 To organize and conduct fieldwork. Step: 7 To process and analyze the collected data.
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Step: 8 To prepare the research report. 5.1.1 Type of research design A research design serves as a bridge to reduce the gap between the research objective, which has been established and what has to been done to, as a part of the study in order to realize those objective. There are three types of research: Descriptive research design Experimental research design Quasi- experimental
DESCRIPTIVE RESEARCH Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. Descriptive Research Methods Case Studies Detailed analysis of a single (or limited number) of people or events. Case studies are usually interesting because of the unusualness of the case .The major problem with case studies is the problem of objectivity. The person who is presenting the case usually has some theoretical orientation. It is acceptable for a theoretical orientation to affect ones interpretation of events. In a case study the theoretical orientation can also lead to the selection of the facts to include in the case. It is not surprising that case studies often seem to provide very compelling evidence for a theory.
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Case studies can therefore assist psychology by illustrating how a theory could be applied to a person or events and by assisting with the development of hypotheses for more systematic testing. Observational Research Accounts of the natural behavior of individuals or groups in some setting. Unless the observation is unobtrusive, there may be some subject reactivity to being observed. This often decreases with time, a process called habituation. Observers cannot usually observe all behaviors all of the time. They may use a behavioral checklist and may also use time sampling or event sampling procedures. It is important to assess observer bias by the use of interobserver reliability. Observational research may also pose ethical problems. These can arise when the behaviors being observed are not public behaviors and when the observer joins a group in order to observe the members behavior participant observation. Survey Research Structured questions to assess peoples beliefs, attitudes, and self-reports of behavior. If the researcher wishes to generalize the responses to a population, it is important to have a representative sample. Surveys that rely on self-selection (respond if you are interested) produce non-generalizable results. Surveys also provide information for co relational research. One can correlate responses to some questions (often demographic questions) with responses to other questions (often attitudes or reports of behavior). Survey question must be clear and unambiguous. Even if the questions are unambiguous and non-leading, people may display a social desirability bias and give positive or socially acceptable and desirable answers. Survey methods include: (1) the interview or face-to-face method which is generally viewed as the best method for obtaining a high rate of responses but is also very costly; (2) Phone surveys, which are less expensive but have a higher non-response rate (which has probably increased with caller ID); and
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(3) written or mail surveys, which are least expensive but have a very high nonresponse rate. Follow-up messages can help increase the response rate. Archival Research Analysis of pre-existing data or records. Archival research often involves content analysis, a qualitative analysis of material. For example, one would use content analysis to determine whether there had been an increase in the frequency with which women and minorities were mentioned in US history books between 1920 and 2000. Some archival research is quasi- experimental. I selected the survey research method of descriptive research to conduct my market research because my objective of research is to measure current status of the phenomena i.e. awareness and willingness among people to become FC for the company. 5.1.3 Data type Data source are the data resources or collection of fresh and data to obtain results. There are two types of data sources: thus happen to be original in character. Primary Data: Primary data is that which is collected fresh and thus happen to be original in character. Secondary data: Secondary data is any data, which have been gathered earlier for some other purpose. Among the above mentioned types of data primary data was used for the study and analysis of the objective of this project, Also the secondary data proved to be helping hand in framing up the industry scenario and also the relevant topics in the entire project report. Reason for selecting primary data:
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In terms of primary data structure questionnaire was prepared to interview the professional, unemployed students, housewives, investment consultant, and other in Raipur and Bilaspur location. Analysis clearly reflected the views and preference regarding the perception of the people towards joining HDFC standard life. 5.1.4 Data Collection tools There are two types of mode to collect the data: Observation method. Survey method.
Conclusion
HDFCSLIC is the renounce industry in the insurance sector. It believes in quality not in quantity. HDFC have total 12 group companies. It is the first insurance company who has gotten the license of insurance in firstly. It has started its insurance industry with the joint venture of U.K. based standard life insurance company. In the insurance sector main work is done by the financial consultant who brings business to the industry. It gives more priority for the recruitment of financial consultant thats why it has setup 5-qscore. It gives priority that is professional like as MBA, CA, ENGINEERS, DOCTORS, LAYERS, AND OTHER PROFESSIONAL. During summer training I have given presentation in study centre of IGNOU and SIKKIM MANIPAL and phone call, and try to contact those person to whom I know and contact them for the purpose of financial consultant. In this process I have recruited 12 people who are either CA, MBA, SOFTWARE ENGINEER, STUDENT, OR EMPLOY OF THE ORGANISATION. It gives more facilities to their employ and provides better opportunity to their employ for promotion because it has minimum target for fulfillment. FC have to
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give 36 policy or 360 lack premium with in six months which less in comparison to the other insurance industry and for Delhi region where the transaction of money is too high. FC has chances to become sales development manager with in six month months when he fulfills the target. The post of SDM is based on payroll. He will get package of 2.75 lack per year. India is one of the most lucrative financial services market in the world. The insurance market in India is estimated to be around 400Bn growing at an astounding rate of 30% p.a. Still the experts believe that the potential is largely untapped. The insurance market is dominated by the public sector giant LIC with a The insurance market is dominated by the public sector giant LIC with a market share of around 71.4%. With the private players leading the growth story, this sector is witnessing more marketing actions than even the FMCG sector. Traditionally insurance are sold through direct selling The reason being purely the nature of product warrants direct communication with the consumer. Kilter categorizes Insurance as an "Unsought" product. Unsought products are those which are ranked lowest in terms of consumer interest. Consumers may not be even aware of either the need or existence of this product. Historically, Indian insurance products are sold for wrong reasons. People buy insurance to avail the tax benefit and not to ensure protection and LIC was happy to oblige. Hence most of the sales talks start with the question " How much do you pay tax?" . Little money was spent on brand building because there was no competition for LIC. Things have now changed. With the increasing financial literacy, volatile economy and uncertain future are prompting Indians to look seriously at insurance as a means for protection rather than tax saving instrument. With more private players entering the domain, the issues of differentiation and branding became important.
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HDFC Standard Life Insurance (HDFCSL) is one of the major players in the insurance market. One of the first private insurers to enter the market, HDFC SL entered the scene in 2000. It is a joint venture between the housing finance major HDFC and the UK insurance giant Standard Life. Now a days we are seeing a lot of media action from this company. Although a slow starter HDFC SL was having a small share of the pie. It was eclipsed by ICICI prudential with its media and sales blitz making it second largest player in the Insurance market. 2006 saw a shake up in this market with Bajaj Allianz edging out ICICI from the second spot . Bajaj have a market share of around 8% and HDFC SL and ICICI fighting at 3rd place with around 7.5% HDFC is currently focusing on The Pension Plan and the Child Plan aiming to cash in on the potential of these segments. The pension market in India is estimated to be around 1000 crore with a huge potential for growth in the future. The change in the demographics is going to drive the pension market in India. Traditionally in a Joint family, there was an inherent protection for elders. With the urbanization and the evolution of Nuclear Urban Family ( NUF) , elders are often forgotten. Out of the 314 men workers in India only 11% has some sort of old age security. People earlier depend on social security products like EPF and PPF to build a corpus for their golden years. It is this potential that has encouraged HDFC to promote its pension plans. Introduced in 2002, this product has been well received by the consumers. The ads are well executed and revolve around the positioning of "Respect Yourself" The target segment being the 30 year old family man. The basic theme of the campaign is to appeal to the self respect of these men who are in their prime of their career. "Even after retirement let your hands give rather than receive" is one of the best themes for a pension plan. Since I am in that category, these ads strike a chord in me and remind me of the need to plan for my retirement. The same theme is carried to the Child plan also.
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Although these campaigns will help to invoke an interest in TG, the market is in its nascent stage and lot of convincing has to be done to crack this huge market. One of the stumbling block being the expensive annuity plans. For example, it takes a 2 lakh corpus to generate Rs 1000 per month pension Also if you put 10000 per month in a pension plan if you are 30 yrs old,what you will get after 20 years is a monthly pension of 10000. (Correct me if I am wrong). So it looks unattractive in the first look compared to MFs. HDFC Standard Life has correctly identified the pulse of the target market and is all set to reap the benefits.
Suggestion
When we talk about suggestion I think I have small experience of this sector but whatever I have pointed out which are thus. In the recruitment of financial consultant I found that mostly person dont want to give rs.925 or rs.825. I have faced some difficulties when they dont agree to give this much amount. If the company will less this charge then it will get more FC. It should organize weakly meeting with FC for the business and give appraisal training to FC. It works as a performance appraisal of the FC. It should give monthly party to the FC for the attachment with the industry. It should give canopy facility to CDM or RC for the recruitment of FC and if it will give canopy facility to FC then they can give more facility. Generally we buy only that thing whatever we see. It means that it
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should spend more on advertisement. Other insurance industry like LIC and ICICI advertise mostly through banner on metro station, on road and advertise in the cinema hall. Add more and more movie hall for the advertisement. The role of recruitment is not easy so it should increase commission or give salary instead of commission so that RC will take more interest in the recruitment on financial consultant. Regular canopy should be established such areas like Metro Stations, college campus, and malls, supermarket, and hypermarket for the purpose of recruitment FC and getting business form FC.
EXECUTIVE SUMMARY
In todays corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70- 80% while as FMCG sector has maximum 1215% of growth rate. This growth potential attracts me to enter in this sector and HDFC Standard Life Insurance Company Ltd has given me the opportunity to work and get experience in highly competitive and enhancing sector.
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The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, and MAX etc has adequate agents in the market they can capture big market as compared to the other companies. Agents are the only way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer.
Executive Summary The service industry is one of the fastest growing sectors in India today. The upcoming sectors which are really showing the graph towards upwards are Telecom, Banking, and Insurance. These sectors really have a lot of responsibility towards the economy. Amongst the above-mentioned areas insurance is one sector, which took a lot of time in positioning itself. The insurance business of non-life companies was not much in problems but the major problem was with life insurance. Life Insurance Corporation of India had monopoly for more than 45 years, but the picture then
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was completely different. Previously people felt that Insurance is only for classes not for masses but now the picture is vice- versa. The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In insurance sector, distribution channel includes agents, agency holders of the company and now a days internet is also used to reach to the potential customer. My job profile in HDFC SDLIC is to recruit financial consultant for the company and create awareness among people about benefit of becoming financial consultant. Initially when I meet people I recognized that they dont know about the recruitment policy related to HDFC SLIC and they have some their own perception about the insurance sector so I decided to do my research to know perception of people towards insurance sector and to know the willingness of people to become FC for HDFC SLIC. To conduct the research I design a questionnaire and use descriptive research design to conduct my market research. On the basis of my research I find that most of the people think that insurance sector is hard and profitable, the reason people think that insurance sector is hard because since insurance is unsought need of the people therefore it is very hard to sell the polices of the company . In my research I also find that more than 80% of the people dont want to join HDFC SLIC as a financial consultant. The reason they said for not joining HDFC SLIC is that they are satisfied with current job. Since the preference of the company is people who are more than 30 years of age, professional who in general is satisfied with their job or they dont have time to sale policy. Some people also said that HDFC SLIC is a private sector company and due to strong market share and awareness among people about LIC, will make their job difficult to work as FC for company. Awareness related to becoming FC for the
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company is also very low i.e. only 12% of people know about it. This also is hindrance in recruiting people as FC for the company. My suggestion to company is to make people aware about benefit of becoming FC for company by giving advertisement in newspaper, print media, etc. they should promote this as career opportunity among the youth who is not very educated or unemployed, they should review the eligibility criteria they set for the FC. The insurance companies should try to nurture their brand name timely, which will help FC to sale their product.
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