“CHANNEL DEVELOPMENT PROCESS OF MAX NEWYORK LIFE INSURANCE LIMITED” BY BRAJA KISHORE PRADHAN

8/8/2019 CHANNEL DEVELOPMENT PROCESS OF MAX NEWYORK LIFE INSURANCE LIMITED BY BRAJA KISHORE PRADHAN

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CHANNEL DEVELOPMENT PROCESS OF MAX NEWYORK LIFE

INSURANCE LIMITED..,

VANI VIHAR, BHUBANSEWAR

SUBMITTED By:-BRAJA KISHORE PRADHAN

Reg-No-S0812

Submitted for partial fulfillment of the requirement of PGDM 2008-10

Under the joint guidance of

Mr. SUBHASISH SABAT Prof. JEEVAN J ARAKAL

Sales Manager &

MNYL, Vani Bihar, Mrs. Swapna kulluru

Bhubaneswar CSREM, Paralakhemundi

Date -06.06.2009 Date- 06.06.20009


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CERTIFICATE FROM THE ORGANISATION

This is to certify that, Mr. Braja Kishore Pradhan, (Reg-S0812) a

student of Centurion School of Rural and Enterprise Management,

Paralakhemundi, Orissa, India did his summer training under me at

Max New York life Insurance Co. Ltd., Metro house near vani vihar

square, Bhubaneswar Spanish form the months of April 6 - June 6,

2009.

SUBHASISH SABAT Date:-

Sales Manager Place:-

MAX NEW YORK LIFE INSURANCE CO. LTD.

Metro house (Near Vani Vihar Square)

2nd floor, a-410, Sahid Nagar, Bhubaneswar-751007

E-MAIL: [email protected]

Mob: 09937096453

BRAJA KISHORE PRADHAN, PGDM, CSREM Page 2

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mailto:[email protected]:[email protected]


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CERTIFICATE FROM THE GUIDE

This is to certify that work entitled Project title Channel Development Process

of Max New York Life Insurance is a piece of work done by Mr. Braja

Kishore Pradhan under my guidance and supervision for the partial fulfillment

of degree of PGDM, Centurion School Of Rural and Enterprise Management,

Paralakhemundi.

To the best of my knowledge and belief the thesis:

a. Embodies the work of the candidate himself.

b. Has duly been completed.

c. Fulfills the requirements of the rules and regulations relating to the

summer internship of the institute.

d. Is up-to the standard both in respect to contents and language for being

referred to the examiner.

Signature of the Faculty Guide

Date: - Name of faculty guide

Prof. JEEVAN J ARAKAL

Place:- & Mrs. Swapna Kulluru

Designation



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I Braja Kishore Pradhan a student of CENTURION SCHOOL OF RURAL

AND ENTERPRISE MANAGEMENT do here by declare that the project report

Channel Development Process of Max New York Life Insurance Co. Ltd.

Bhubaneswar, is the product of my own knowledge and effort. No part of this

report has been submitted to anyone at time before. It has been submitted fully

or partly to the CENTURION SCHOOL OF RURAL AND ENTERPRISE

MANAGEMENT for awarding project marks of any other.

Date: Braja Kishore Pradhan

Place: Roll- S081


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DECLARATIO


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It gives me immense pleasure to acknowledge all those who have given me things, time and

energy to supply all valuable facts and opinions that has helped me in bringing out this

project to fruition.

This project undertaking is result of the contributions received from a number of people.

Never can this repot be claimed as my individual effort. No amount of words will be sufficient

and adequate to acknowledge all the people who have provided me with the inspiration,

guidance and help during the preparation of the project. There for I extend my deep sense of

gratitude towards them.

I wish to express my sincere regards to my guide Mr. Subhasish Sabat (Sales Manager) whose

keen interests, valuable guidance constant supervision were a source of inspiration to give this

work a real shape.

My hearty thanks to staff of Max New York Life Insurance and all of them who helped me in

completion of my project.

Above all I thank the God Almighty for his immense grace and blessings at each and every

stage of the project.

I would like to express my respectful thanks to my faculty guide Prof. Jeevan J Arakal and

Mrs. Swapna Kulluru, Centurion School Of Rural and Enterprise Management (CSREM),

Paralakhemundi for her constant support and guidance.

I also thank all my respondents and friends who were instrumental in the successful

completion of my project.

Once again I thank all those who have contributed for completion of this project. Last but not

the least I would like to thank the company management for their kind help and co-operation.

Braja Kishore Pradhan

Roll S0812


ACKNOWLEDGEMENT


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CENTURION SCHOOL OF RURAL AND ENTERPRISE MANAGEMENT,

PARALAKHEMUNDI

- ON THE JOB TRAINING : 08

- EXECUTIVE SUMMARY : 10

- INTRODUCTION: 11 Companys background, 14

Achievement, 17

Organization Structure 20`

A brief introduction about insurance industry 12

Objectives of this study 22

Limitations of this study 22

Channel development process of MNYL 24

The art of making money 37

- METHODOLOGY: 43 Sample,

Types of data

Data collection method

- RESULTS : 46 Analysis of data,

Tabulation, 47

Computation, 50

Graphical presentation 52

- 3 CS MODEL 69- 70/30/10 MODEL 72

- DISCUSSION AND CONCLUSION : 74

- RECOMMENDATION : 76- BIBLIOGRAPHY : 81- ANNEXURE : 82


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ContentsPage No.


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List of tables & diagramsTable & diagram no Particulars Page no.

T 1.1 Core values of MNYL 15

T 1.2 Organization structure of MNYL 20T 1.3 MNYL fact sheet 05-06 22T 1.4 Reward & recognition platform for agents 27

T 2.1 Recruitment process map 31

T 2.2 Recruitment funnel for the month 33T 2.3 Unparallel Earnings of MNYL 39

D 3.1a

D3.1b Million dollar round table 41

T 3.1` Methods of business development 43T 3.2 Tabulation 48

T 3.3 Computation of A.M. 51

T 4.1 Correlation 50T 4.2 Calculation of correlation coefficient 51

T 5.1 Q.1 53

T 5.2 Q.2 54T 5.3 Q.4 55

T 6.1 Q.5 56

T 6.2 Q.6 58T 6.3 Q.7 & Q.8 59

T 7.1 Q.10 60

T 7.2 Q.11 62

T 7.3 Q.12 63

T 7.4 Q.13 64T 7.5 Q.14 65

T 7.6 Q.15 66T 7.7 Q.15 a 67

T 7.8 Q.16 68

D 5.1a Interested in investing 54D 5.2a Money investing pattern of customers 55

D 5.3a Causes of favoring the investment pattern 56

D 6.1a Saving as a percentage of annual income 57

D 6.2a No. of persons having knowledge in insurance 58D 6.3a Company awareness 59

D 7.1a No. of persons having different policies in different co. 60D 7.2a Investors choice 62D 7.3a Sources of getting information about that products 63

D 7.4a Necessary of insurance in todays life 64

D 7.5a Factors that motivate to take insurance 65D 7.6a MNYLs awareness 66

D 7.7a Sources of getting information about MNYL 66

D 7.8a Factors what an insurance agent want from a company 68



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T TABLE, D - DIAGRAM

1. On The Job Training (OJT) gives a practical exposure and helps in acquiring the on road

skills.

2. First and foremost objective is to recruit financial advisors and to sell the various products of

MNYL.

3. To gain the complete knowledge about the products of MAX NEW YORK LIFE

INSURANCE COMPANY.

4. To generate the leads through the survey.

5. To sort out the prospective leads from the data collected through the survey.

6. To build the relationship with the new customers and to follow up them, make sure that they

are satisfied with the product.

7. To maintain good relationship with the corporate employees.

8. To get more references from the customers and generate new leads by following a chain

process.

9. To introduce MNYL to those people who dont have any knowledge about MNYL and itsproducts or services.

10. To find out the customer awareness on present financial market and to find out the

investment patterns of the people.

11. To make the customer aware of the benefits of the products from different competitors.

12. I also came to know about the various products of MNYL and its detail benefit that the

customer will get.

13. How to convince a customer through the telephone to sell products by following the

customer database.

14. If any new product is launched by MNYL then how it will be communicated to existing

customers and targeting new potential customers.

15. After all how the claims of the customers will be settled quickly.

16. I came to know the smart recruiting process.


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ON THE JOBTRAINING


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1. Achieving the target within a limited time

2. I have to know more than my client

3. Patience

4. To understand the clients thinking process (how to motivate and convince them)

5. Maintaining a healthy relation with company and employee.

6. Punctuality

7. Discipline


Things Which I Learnt From

OJT


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In todays corporate and competitive world, I find that insurance sector has the maximum growth

and potential as compared to other sectors. Insurance has the maximum growth rate of 70-80%

while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me

to enter in this sector and MAX NEW YORK LIFE INSURANCE has given me the given methe opportunity to work and get experience in highly competitive and enhancing sector. This

project studies the existing management practices in the channel development process and

various benefits derived by them in MAX NEW YORK LIFE INSURANCE LTD.

The project gives a detail description of channel development process and various benefits

derived from them. It covers the application of human resource policies in the company in order

to manage, shape and motivate the internal customers. Certain policies followed by the company

are jotted as well as certain suggestions have been given. Today the biggest asset of an

organization is the pool of human resource. The better is the human resource the more

productive the company becomes. So it is highly essential for an organization to identify, train

and recruits talented people.

Only by identifying and recruiting people the job of advisors does not ends. Another big

hindrance for the organization is how to retain the advisors. The organization has to provide a

good working environment, compensation package etc but above all it is not just these

parameters which retain an employee but other factors like giving value to their morale,

providing them the good working environment, the sense of feeling that they are being needed

by the organization. So the employee retention measures and performance appraisal system has

been discussed. Apart from these, relation building is a matter of immense concern now days.

Relation building is referred to as a fixed asset for an organization. In this fast moving


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EXECUTIVESUMMARY


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competitive era and growing population of service providers the major task rather than to create

a customer is to retain him. Previously Indian market was weak in financial instrument dealings

but now a day there is a growing need for financial products and the Indians are taking much

interest in dealing with it. The rising trend of stock exchange shows the increasing demand and

good work that is being done by the financial institutions.

CHAPTER-1

Brief introduction of insurance- What is insurance?- Different types of insurance- Role of insurance in economic development- Benefits of insurance

Company background- About the company

- Achievements- Board of Directors- Its organization structure

Objectives and limitation of the study



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Insurance industry

Insurance industry is a booming sector. The business of insurance is related to the protection of

the economic value of asset. Every asset has a value. The asset would have been created through

the efforts of the owner, in the expectation that, either through the income generated there from

or some other output, some of his needs would be met. There is a normally expected life time for

the asset during which time it is expected to perform. Insurance is a mechanism that helps to

reduce such as adverse consequences.

WHAT IS INSURANCE?

Basic aim of the insurance plan satisfies the following objectives:-

Protection of economic value of assets.

Mechanism to reduce impact of adverse events on value generating assets.

Types of insurance

Insurance is generally classified into three main categories:

1. Life Insurance.

2. Health Insurance.

3. General Insurance.

To get insurance an individual or an organization can approach to Insurance Company directly,

through Insurance agent of the concerned company or through intermediaries.

ROLE IN ECONOMIC DEVELOPMENT

Insurance directly or indirectly plays a vital role in the economic development of the country

through the following means:-


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Life insurance is a major instrument in mobilizing the savings of the people. These

savings are channeled into investments for economic groups.

The strength of life insurance is in the fact that huge amounts are collected and pooled

together for the benefit of the policy holders.

The insurance company is in the role of fiduciary- that all decision be made for the

benefit of the community.

INSURANCE- THE BUSINESS

It fulfills the criteria like:-

Brings together people with common interests.

Collects contribution- premium

Pay compensation- claims

BENEFITS OF INSURANCE

Insurance is the instrumental of Security, saving and peace of mind. It provides several benefits

by paying a small amount of premium to Insurance Company as:

Safeguards oneself and ones family for future requirements.

Peace of mind in case of financial loss.

Encourage saving.

Protection from the claim made by the creditors.

Security against a personal loan, housing loan or any other types of loan.

Provide a protection cover to industries, agriculture, women and child.



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Vision:

To become the most admired life insurance company in India.

Mission:

Become one of the top life insurance companies in India

Be a national player

Be the brand of first choice

Be the employer of choice

Become principal of choice for agents

Table: 1.1 CHECK IT

Values:

The vision to become India's most admired life insurance company will be realized through ourunique set of values, which are as follows:

Caring:

Max New York Life is redefining the life insurance paradigm by focusing on its customers first.

The service process is responsive, personalized, humane and empathetic. Building brand

champions and every individual who represents the company is considered as a brand champion.

Honesty:

Honesty is the core of all life insurance business. Transparency, integrity and dependability form

the cornerstones of Max New York Life experience. The company ensures that everyone

who represents the brand carries a promise: we care in word as well as in actions.

Excellence:

Excellence at Max New York Life implies the ability to perform consistently at the highest level


CORE VALUES

OF MNYLCARING

HONESTY

EXCELLENCE

KNOWLEDGE

INTEGREITYTeam work


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Focused on the value of continuous improvement in people, processes and the organization, the

company strives for maximum standards of quality in every aspect of its business.

Knowledge:

Knowledge leads to expertise; and our expertise is in helping people protect themselves.

Perfectly combining global expertise with local knowledge, MNYL are India's life insurancespecialist. Max New York Life believes that for knowledge to be of significance it must be

focused, up to date, tested and shared.

Some of the industry firsts

First company to provide free look period of 15 days to the customer. This was later

made mandatory by the regulator

First company to start toll free line for agent services

First and the only life insurance company in India to implement Lean methodology of

service excellence in service industry

First life insurance company in India to provide various services to the agents and

customers over phone First Indian life insurance company to start service center at the regional level

First life insurance company in India to be awarded ISO 9001:2000 certification

Awards

Among the top 25 companies to work for in India, according to Business world 2003

great workplaces india.

Among the top five most respected insurance companies in India as per Business world

2004 & 2006 survey

Won Indo-American Corporate Excellence Award for Best Indo-US company in

Financial Services Category in 2006

Received Best Six Sigma Project award at Sakal Six Sigma Excellence Awards 2006


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Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by Asia

Insurance Review

Received the Amity Corporate Excellence Award 2007

Received the Outlook Money Award for being among the best new insurers in the country.

Max India Ltd.

Founded in 1985, Max India Limited is a Public Limited company listed on the NSE and BSE of

India with over 26,000 shareholders. Today, Max India Limited is a multi-business corporate,

driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses

of:

Healthcare (Max Healthcare) Life Insurance (Max New York Life Insurance) Clinical Research (Neeman Medical

International)

Max also maintains interests in:

Specialty Plastic Products for the packaging industry (Max Specialty Products)

Healthcare Staffing (Max Health Staff)

Prominent shareholders are Mr Analjit Singh and a leading private equity firm, Warburg Pincus

which accounts for 28.7% of the total shareholding. The balance shareholding is held by the

public and Institutional Investors.

Till 1999, the companys main interests and partnerships were the following:

Business

Bulk Active Pharmaceuticals, Electronic Component Distribution, Mobile Telephony, V-SAT

Communications, Plating Chemicals Information Technology.

Partners

http://www.maxindia.com/http://www.maxindia.com/


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DSM Gist Brocades, Motorola, USA , Avnet Inc., USA , Hutchison Telecom Ltd. Hong Kong ,

Comsat Investment Inc., USA & Lockheed Martin, USA , Atotech, Germany , Mind Crossing,

USA.

In 2000, the Company reinvented and restructured itself to focus on the businesses of Life

under the themsse, LifeOur Focus.

Max New York Life Insurance, founded as a Joint Venture between Max India Limited and New

York Life, a Fortune 100 company, is one of the leading private life insurers in India.

Max Healthcare, a subsidiary of Max India Limited is Indias first provider of comprehensive,

standardized, seamless, and integrated world-class healthcare services.

Neeman Medical International (NMI) is an International Clinical Research provider operatingacross three locations spanning North America, Asia and Latin America. Each location is backed

by comprehensive infrastructure and highly skilled and experienced personnel.

New York Life LLC

New York Life Insurance Company,(www.newyorklife.com) a Fortune 100 company founded in

1845, is the largest mutual life insurance company in the United States and one of the largest life

insurers in the world. Headquartered in New York City, New York Lifes family of companies

offer life insurance, annuities and long-term care insurance. New York Life Investment

Management LLC provides institutional asset management and retirement plan services. Other

New York Life affiliates provide an array of securities products and services, as well as

institutional and retail mutual funds.

The mission of New York Life is to maintain its superior 'financial strength', adhere to the

highest standards of 'integrity' and demonstrate 'humanity' by treating its customers, agents and

employees with compassion, consideration and respect.


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NYL INSURANCEBUILDING
http://www.newyorklife.com/http://en.wikipedia.org/wiki/Image:New_York_Life_Building_2.jpghttp://www.newyorklife.com/


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New York Life is one of the largest and strongest life insurance companies in the world with

more than USD$215 billion assets under management and has received among the highest

ratings for financial strength from the life insurance industry's principal rating agencies: A.M.

Best (AA+), Standard & Poor's (AA+), Moody's (Aa1), Fitch (AAA). According to Moody's,

"New York Life's rating reflects the company's good quality investment portfolio, ample

liquidity, and sound capitalization, as well as the good growth potential of its international

business.

As a leader in the insurance industry, New York Life continues to bring to its operations new

management concepts, advanced technologies, new distribution and training systems and

innovative insurance products.

WHO IS WHO IN MNYLBoard of Directors

Analjit Singh

Chairman,

Max India Limited

Gary R. Bennett

Managing Director and CEO,

Max New York Life Insurance

Anuroop 'Tony' Singh

Vice Chairman,

Max New York Life Insurance

Ted Mathas

President & Chief Operating Officer,

New York Life Insurance

Management Team

Gary BennettManaging Director and CEO,Max New York LifeSunil Sharma

Chief Operating Officer and Executive DirectorRajit MehtaExecutive Director ,Human Resources, Training and Internal Communications



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Rajesh SudExecutive Director, DistributionAnil Mehta

Director, Group BusinessSunil KakarDirector and Chief Financial Officer

Ajay SethDirector, Legal & ComplianceDebashis Sarkar

Director - Marketing, Product Management and Corporate AffairsJohn PooleChief Actuary

Table: 1.2

Organizational structure of MNYL


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Zonal vice

president

Regional

manager

Partner in charge

/Regional director

Partner

Associate partner

Managing partner

Managing partner

multilocation


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Competitors

After the privatization in India in 1999, under the Insurance Regulatory Development Authority

(IRDA) many insurance companies came to India to set up their business. Till now 23 insurance

companies have formed their grip here in the country and running profitably and selling life

insurance plans.

Max New York Life was set up in India in 2000 and in December 2004 started its business in

Bhubaneswar after getting the license in November. Till date it has achieved a prestigious place

among the citizens of India and well competes with its competitors.

The major competitors of MNYL are as follows:-

Aviva Life Insurance India

BAJAJ Allianz

Birla Sun Life Insurance

HDFC Life Insurance

ICICI Prudential

Reliance Life Insurance

SBI Life Insurance

Customers

An insurance company usually insures each and every people of every age starting from small

children to the people of old age. Max New York Life also insures its customers but the age of


Sales manager

Associate sales

manager

FINANCIAL

ADVISER


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the insure person depends on the type of the product. But the minimum entry age of a person to

be insured is 91 days while the exit age is 85 years. This pattern is mainly followed in Max New

York Life.

Table: 1.3

Mnyl fact sheet 2005-06

Policies sold > 13 LakhsSum assured > Rs. 37,000 Cr

Agent advisors > 20,982Million dollar round tables (MDRTs) 340

Employees 4150Offices 111

Cities 83Base products 26Options/riders 8

Brand awareness 62%

OBJECTIVE

To study the channel development process of Max New York Life Company Ltd. in

the Bhubaneswar branch.

To understand the recruitment process of at Max New York Life Company Ltd

To study the retention strategy at Max New York Life Company Ltd

To gain knowledge on the different strategies being applied by the organization to

attract existing customer.

Limitations of the study


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Getting accurate response from the customers due to their inherent problems. They

may be partial or may refuse to cooperate.

Many of the people dont find time to listen to the product features.

PRODUCTS OF MNYL

http://www.maxnewyorklife.com/Products/Group%20Insurance.aspxhttp://www.maxnewyorklife.com/Products/Individual.aspx


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RECRUITMENT PROCESS OF FINANCIAL ADVISORS



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When we think of recruiting financial advisors for Max New York Life Insurance Company

there is a definite question that strikes our mind that who can be an advisor for the company?

The answer to this question is very simple as, anyone i.e. From housewives to entrepreneurs,

teachers to part time workers, having qualities like enterprising, well networked, flexible, and

outgoing can become an agent advisor for Max New York Life Insurance Company.CRITERIAS FOR BEING AN AGENT IN MNYL

Minimum age for being an agent is 18 years.

Minimum qualification should be matriculation.

Along with all these qualification and eligibility criteria MNYL is always in search of advisors

with the following prioritized competencies.

ENTERPENUERSHIP:

Proactive attitude

Self starter and self motivated/self reliance

Be your own boss

Drive to make money for self and max.

SELLING AND INFLUENCING:

Asks intelligent, meaningful questions.

Listens actively, responds and summarizes for understanding.

Active prospecting to attract and acquire customers. Closes the deal.

PERSEVERANCE:

Handling rejections.

Bouncing back after rejections.

Consistently working towards the goal.

Positive attitude.

RELATIONSHIP BUILDING/CUSTOMER SERVICE:

Interest in meeting people and keeping in touch


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Puts the relationship with the customer before the sale in order to build goodwill and

credibility

Warm and outgoing personality

Sense of integrity(honoring commitments, openness and honesty)PLANNING AND ORGANIZING:

Planning the activities of the day, keeping in mind the priorities

Following discipline of adhering to the laid down processes

Performing well under pressure multiple tasks, deadlines etc

COMMUNICATION:

Create understanding and rapport through body language, warmth and empathy

Listening and observing carefully Inspiring trust and confidence

Engaging the client in a meaningful conversation

Earnings of an agentThe earning of an agent of MNYL is discussed below:

Commission

Renewal Commission

Bonus

Performance Linked Bonus

Pre Licensing Stipend

Agent Referral Programme

REWARD AND RECOGNITION PLATFORM FOR AGENTS



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Above is the pyramid showing the qualifying criteria and successive reward and recognition for

the agents. MNYL is best in rewarding and recognizing its employees for there dedication and

work.

EMPLYOYEE RETENTION:

MNYL possesses a very good system of employee retention. The attrition rate at MNYL is

very low i.e. less than 10%. Where as in insurance industry the attrition rate is 23%.

Promotion factor for an agent

The Agent & Advisor of MNYL has a chance to be promoted to the post ofASM/SM/ATM

(Associate Sales Manager/Sales Manager/Associate Training Manager) called the Avenues or

can be a part of the Agency Associates.

The promotion factors are as follows:-

Number of policies- The minimum number of policies an agent should do to be

promoted is 50. This acts as one of the promotional factor for an agent.

Tenure- Tenure is nothing but the time factor an agent is given to achieve his/her target.

The different time factors an agent given by MNYL are 12, 15, 18 and 24 months. But

the effective tenure for the promotion is considered as 12 months. An extension of 3

months is given under considerable circumstances.

Adjusted AFYP- AFYP is otherwise known as Annual First Year Premium. It is

calculated on the single premium and fixed deposits at the rate of 10%. The targeted

adjusted AFYP for the promotion is 20 lakhs.

Graduate- Another important factor for the promotion is that the agents minimum

qualification should be graduation.

All the above discussed factors help an agent to get promoted in MNYL.

MNYL offers exciting career opportunities for its advisors which would help in your overall

career growth. MNYL strongly believes in enhancing a person's career by giving them more

responsibilities. MNYL provides the employees with the required platform which will enable theemployees to take full leverage of the opportunities thrown up by the insurance sector.

Its unique value proposition for all its employees is being built around the following themes:

Clarity of purpose

Inclusive meritocracy



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Commitment to a published values

Learning opportunities

Career growth

Fun at work

Financial rewards

USP OF MNYL

After a person is aware of all the requirements to be an advisor in MNYL he needs to know why

should he join MNYL. There are six differentiators which differentiates MNYL differently for

joining as an advisor in it. These differentiators are as follows:

1. Its selection process:Its selection process: The selection process of MNYL is designed to help both thecandidate and the organization to make a decision that is in the best interest. This process

involves an initial interview followed by a numerical ability test. At this point, if there is

a continued mutual interest, the candidate will be invited to attend a career seminar. In

addition, MNYL will review the compensation and training programs in a detailed

manner. If everything goes on well as expected, MNYL will assess the candidate's

natural market and meet one final time to make the final arrangements. At each step the

candidate would learn more about his career in MNYL, and MNYL will learn more about

him / her.

2. Its training programme:Its training programme: Max New York Life has the reputation for having the finest

training program for agents in the industry. The training program is designed to provide

training and development for agents throughout their career. The training program

consists of a full two year formal class room based program. MNYL has two full-time

professional trainers in each office whose sole job is to train and guide the new agents.

3. Management loyalties:Management loyalties: One of the many unique advantages of working with Max New

York Life is that the managers are not allowed to sell insurance products to their own

customers. Compensation in management is derived entirely from the success of agents

and the growth of the organization overall. The Managers at all levels are totally

committed to the success of the agents and they do not have any conflicting goals.


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4. Products:Products:Nobody can ever have the number one product in the insurance industry for a

long period of time. It is too easy to change the numbers. However, MNYL takes great

pride in the fact that its products have always been rated amongst the very best in the

industry and that agents will never have any regrets for having sold someone one of the

policies.

5. Agents contractAgents contract: The Agent's Contract is designed to attract efficient professionals and

then retain them for a long time by paying them well. MNYL provides maximum support so

that the agents can earn a good income today plus build a secure retirement.

6. Great work enviorment:Great work enviorment: MNYL is very committed to working in a high-tech

environment. In fact, New York Life in the USA is noted for its leadership in using high-

tech equipment to provide the very best in customer service and employee support. These

same systems have been improved and transferred to India. This has helped MNYL in

illustrating its products in a very simple way for even the most complex circumstances.

MNYL also provides state-of-the-art equipment to its agents to help sell products in the most

complex market situations.



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Table: 2.1 RECRUITMENT PROCESS MAP

Additionalinterview

Career interview

Evaluate P200 & Administer &

Evaluate market surveys

Career Seminar/ Administer P200

Test results & Reference checks

Initial screening, magic questions

Screening Interview Administer Numerical Ability TestConduct detailed screeningInterview to assess prospective agent

Competencies

Name gathering


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12th

Day

11th

Day

10th

Day

6th

Day

3rd

Day

1st

Day


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The recruitment of the agents in Max New York Life follows a systematic process which

can be represented by a diagram called as recruitment process map.

The recruitment process takes a term of 12 days.

It basically checks the competencies of the advisors through the list of names collected

by sales manager or from other sources.

On the very 1st day, the screening process is conducted that checks the competencies of

the prospects. The screening consists of the steps like magic questions, numerical ability

test and finally the interview to assess prospective agent competencies.

On the 3rd day, the results are check out and reference checks are also carried out. This

continues up to the 5th day.

On the 6th day, the career seminar on the job is done and the prospects are given the

Project-200 to complete. A time frame of 3 days is given and on the 9th day the P-200 is

submitted by the prospect.

On the 10th day, the evaluation of the market survey and the P-200 form is done. The

prospects touching the capabilities are then made to face the further process.

On the 11th day, the career interviews for the prospects are done.

On the 12th day, any additional interview is carried on.

The total process helps to recruit the competent agents who can work for the company.



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RECRUITMENT FUNNEL FOR THE MONTH

Table:-2.2

MAGIC QUESTIONS PERSONAL OBSERVATIONS NOMINATORS

DIRECT MAILERS CENTRES OF INFLUENCE

The Recruitment funnel for the month is followed in the company for the selection of the

competitive agents. This process gives a proper selection of the financial advisors for the

company. The process is described below:-


34


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1. NAMES:-

For the recruitment of the advisors, 60 prospects are selected from the existing network. The

names are collected from the following sources:

Magic questions: These are asked to a prospect in order to attract him or her for

the respective job either directly or through the use of internet.

Personal observations: This includes names of the persons of personal contacts

only.

Nominators: The names are obtained from persons contacted fewer than three

times.

Centre of Influences: The names are obtained from persons known or from those

contacted three or more times.

Direct mailers: These are the names of the prospects that are contacted through

their e-mail id and are recruited for the job.

2. SCREENING INTERVIEWS:-

Screening interviews are used to qualify a candidate before he or she meets with a hiring

authority for possible selection. Screening interviews are the normal process for companies

to weed out candidates for a single job opportunity. These interviews are usually quick,efficient and low cost strategies that result in a short list of qualified candidates. These

interviews save time and money by eliminating unqualified candidates.

Out of the 60 interested prospects, 20 prospects face the screening interview where they are

asked about their interests for the prospective job and somehow about their views related to

the insurance industry based on their competencies.

3. NUM/ARIF:-

ARIF is otherwise known as Agent Recruitment Interview File. ARIF is a confidential

document which collects all the personal information about the prospect. The information

that covers the ARIF form is as below-

Personal details



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Nomination particulars

General information

Educational background

Work experience/Occupation details

Prior experience in Insurance Business

Legal/Financial Liabilities

Three references from the persons those are not related to the prospect

This file keeps a record of all the information of the prospect so that he/she can be

contacted in the future when needed. The ARIF helps to calculate for the score which

helps for the further selection. Out of 20 prospects screened, 16 prospects undergo this

ARIF selection.

The ARIF also contains all the necessary information about the selection processes for

the prospect.

The prospect is selected based on two scores:

The Five Point System- As per the Five Point System, points are assigned to the

agent depending on age, marital status, education qualification, gender and

number of years lived in the city.

Maximum score possible for an agent is 12 points.

Minimum score possible for an agent is 6 points.

Numerical Ability Test

4. CAREER SEMINAR:-

After the completion of ARIF, a total of 8 prospects those score the maximum marks are

selected for the career seminar. In the career seminar, they are given an introduction about

their work and the profits that they would gain from their work and company. This motivates

the prospect to work for the company by being an agent & advisor of the MNYL.


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5. PROJECT 200/MARKET SURVEYS:-

Project 200 or P-200 is a sheet where the information about different persons is collected. It

is a type of market survey that the prospect faces in order to know the market and public

well. A total of 6 prospects are given the task of doing the market survey.

Sometimes after the P-200 survey, a P-40 is also given to do, which is a refined form, which

accepts the persons those are really interested to invest in MNYL.

6. CAREER INTERVIEWS:-

After the P-200, the career interview of the 4 prospects are done those are selected from the

P-40 task. Here they are told about their job and are given all the valuable information.

7. AGENT CONTRACTS PER MONTH:-

Finally from the career interview, the two most competitive and interested prospects are

selected. On the contract basis they work for MNYL as the financial agent & advisor.



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Chapter-3

Max New York life- partnership of leaders

Major milestones achieved by Max new York life

The golden opportunity

Best in-class training

Unparallel Earnings

Million Dollar Round Table

Avenues

Max New York life business planning process

Methods of business development


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MAX NEW YORK LIFE-

PARTNERSHIP OF LEADERS

Max New York life is a joint venture between max India and New York life international, LLC,

together, this opportunity brings in.

Financial strength

Integrity

responsibilityMajor milestones achieved by Max New York Life

Secured financial future of over

1.64 policy holders

Sold life insurance cover of over

Rs. 49,800 crore

First Indian life insurer to be

given ISO 9001: 2000 certification

Operating in 120 cities with 172

offices

A strong foot print of over

27,700 agent advisors

The golden opportunity

Max New York life presents to you a business opportunity that would open doors to success,

money and fame. By being agent advisors you can securelives and make a positive impact in

the community.



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With Max New York life sky is the no limit-

Low start up investment

Unlimited earnings potential

Flexible working hours

Be your own boss

Be a part of a world-class team

Best- in -class training

At Max New York life, you are assured of our dedication to your success.

Superior training resources & infrastructure

Fully in-house & IRDA

approved training centers

Full time professional trainers in

each office

Special starting support

Pre-licensing stipend

Training programmed reimbursements

Unparallel earnings

Revenue streams at MNYL

First year commissions

Renewal commissions

Agent referral commissions

Other support

Performance linked bonus

Training programmed reimbursements

Table: - 2.3

For the right person, MONEY will


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Never be a problem at Max New York life

Earnings if business grows by just 10% p.a.

Year1

Year2

Year3

Year4

Average premium(Rs) 25,000No. of cases per year 72Commission 20.00% 5.00% 5.00% 3.00%

Diagram:-3.1a


Unparlled earnings

4,17,0009,77,166

18,56,676

32,42,214

56,10,346

92,04,074

year 1 year 5 year 10 year 15 year 20 year 25


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Table:3.2b

Million Dollar Round Table

A worldwide organization of the top producers of life insurance sales with 74 participating

nations and territories

New York Life has been no.1 in MDRT for 50 consecutive years

360 Agent Advisors from max new York life qualified for MDRT in 2008

Max New York Life is ranked 37th in MDRT rankings worldwide


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AVENUES

Career development program

Choose your own career path

Agency associate

Associate sales manager

Sales manager

Training manager

Max new York life business planning process

Life insurance selling is both an art and a science. The science is the product knowledge, and

anyone can learn the science. People who succeed in our business are the ones who have

mastered the art: prospecting, interview techniques and building relationships.

Identifying the initial markets

What is prospect?

Qualified prospects display certain characteristics that make them potential customers. Prospects

for life insurance are peopling who:

Need protection from loss of life

Can afford to pay the premiums for the protection

Can be approached by you

Are insurable

As you get to know the people you choose to prospect, you will begin to qualify them in these

four areas. This is how you move them from your prospect list to your prospect list

Methods of business development

In determining the appropriate prospecting methods for the development of your business, you

should consider:

All costs and time commitment involved

Efforts required on your part and availability of outside vendors



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Your skills and talents

Past experience as well as the extent of your natural market

You should concentrate your efforts on the methods with higher return rates.

Table: - 3:1Methods Ratio

professionals

Referrals & recommendations

Centers of influence

Civic marketing

3:1

4:1

4:1

Labor intensive

Target mail/telephone

Mass mail/telephone

Cold call canvassing

Seminars (Targeted audience)

8:1

10:1

20:1

5:1

Capital intensive

Target mail

Mass mal

advertising

50:1

100:1

Varies(Estimates

Chapter-4


44

See it workAn effective way to ask for

referrals is to explain: 80% of

my business is prospecting;

help me service you by making

my prospecting easier by giving

me referrals. Explain him/herthat you are paid for your work

in two ways:1: from the sale of any

insurance.

2. Through the introduction toother people who will be

interested in service you

provide.


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o Meaning of methodology

o Sample

o Types of data

o Data collection method

METHODOLOGY

Methodology is defined as

1. "the analysis of the principles of methods, rules, and postulates employed by a discipline"

or

2. "the development of methods, to be applied within a discipline"

3. "a particular procedure or set of procedures



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Methodology refers to more than a simple set of methods; rather it refers to the rationale and

the philosophical assumptions that underlie a particular study.

This study is conducted in the territory of BBSR city by using random sampling of one hundred

(110) consumers

.

Data collection

1. Measurement instrument: structured questionnaire

2. Method: survey

Sources of data

A. Primary data- primary data was collected through a well structured questionnairedesigned separately for consumers. A pilot survey was conducted to test the utility of the

questionnaire and necessary changes being made.

B. Secondary data- secondary data are collected from various WEB SITES

(www.yahooanswers.com, www.maxnewyork.com, www.icier.com ) magazines

(Insurance world) etc.

Sampling

Sample size: total sample size is 100 individual customers, out of which only 90 are valid

and 10 are invalid because the data provided by customer is not sufficient for Research.

Sample procedure: Random sampling

Sample area: Bhubaneswar

In BBSR the area covered is SAHEED NAGAR, VANI VIHAR, UTKAL

UNIVERSITY CAMPUS, RENTAL COLONY and CRP SQUARE because in

this particular area there are so many public and private institutions are available..

Analysis

Data collected from the survey through systematically framed questionnaires and those are being

analyzed and shown in graphical representation


46
http://www.yahooanswers.com/http://www.maxnewyork.com/http://www.icier.com/http://www.icier.com/http://www.yahooanswers.com/http://www.maxnewyork.com/http://www.icier.com/


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Chapter-5



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Analysis of data

Tabulation

Computation

Graphical presentation

TabulationTable: - 3.2

NAME OF THE

PERSONS 1 2 4 5 6 9 11 12 13 14

15

(I)

15

(ii)

1

6

N. PATRA i i, iii i,iii Iv iv ii iii iv ii iv I i

S. MOHAPATRA i iii I Ii iii v iii ii i i I i ii, iii

A. MISHRA i ii,iv, v iv Ii ii iii ii i i i I

i, ii,

iii i, ii

P. NANDA i i, ii, iii ii Ii iv v ii

ii,

iii i iii I i Iv


48


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B. MOHARANA i ii, iii, iv ii Ii iv iv ii ii i i, iv I i I

S. SAHOO iii i, iv i,iii Iii ii v i ii i i I v Ii

A. MISHRA i iv ii I iii iv ii ii ii ii,iii I i, iii i, iv

M. NAYAK iii iv iii * ii iii ii * i i I iii i, iii

C.CHAND iii i,ivi, ii,iii Ii iii ii i ii i i,ii I i ii, iv

L. SAHOO iii ii, iv,v ii, iii * iii v iii iii i iv Ii i, ii

S.BEHERA i iii ii Ii iv iii ii ii ii ii I iv Iii

R. MISHRA i ii ii I iii iii i iv i ii I iii i, ii

P.SAHOO i ii,iii,iv i,ii I i v i,ii ii,iv i i,iii I i ii,iv

B. ROY i iii i Iii iii iii i ii i ii I iii I

P. PRADHAN i iv Iii Ii iii v i ii i i I i Iv

P. DAS i iv ii,iii Ii iii ii i ii i ii I i I

R. NANDA i iv,iii,v i,ii Ii iii v ii ii ii iv I i I

S. NANDA i v Ii Ii iii iii i i ii i i,iii i,iv Ii

B. PRADHAN i iii Iii Iii iv v i iii i ii I ii iii,iv

B. MOHANTY iii ii,iv iii I iv iii i i i i I i I

M. HUSEN i iii i Iii iii iv i i i i I ii I

A. MISHRA i iii,iv i Ii iii iii ii iv i ii,iv I i i, iv

V. KUMAR i iii iii I iii iii i iii i ii Ii * Iv

M. MOHANTY i iv ii Ii iii iii ii ii i ii I iii,iv I

R. SINGH i ii ii,iii Iii iv v ii ii i i I ii I

S.A.PANDEY i iii,iv,v i,ii,iii Ii iii v ii ii i iii I ii Iv

S. PATNAIK i iii i Iv ii ii iii i i i Ii * Iii

N. K. MOHAPATRA i iii,iv ii I i iv i iv i ii,iv I I, iv Iv

A. BEHERA i I,iii,iv i, iv Ii iii ii iii ii i i I i,iv ii,iv

A. MISHRA i iii,iv,v Ii I ii v iii ii i i,iii Ii * I

U. SAHOO i ii,iii,iv i,iii Ii ii iv i ii i i,iii I v I

K.C. PATRA i iii,iv,v i Iii i v iii ii i iii,iv Ii * Iii

A. SAHOO i iii,iv iv Ii i v iii ii i iii Ii * I

B. PRADHAN i ii ii I iii iv i i i i I iv I

M.SATAPATHY i i,ii,iii,iv i,iii Iv iii v i i,ii i i,ii i, i,iv i,ii

B.B.DASH i i iii Ii iv iii i i i ii I v I

R.SAHOO ii * iv Ii ii v iii ii i iii I i I

H.SUBUDHIRAY ii * * I ii v iii * i iv Ii * i,iv



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B.C.SAHOO i i,iii,iv i,iii Iii iii iv iii ii i i,ii I v ii,iii

B.K.JENA i iii,iv i Ii iv iii i ii i i I i I

J.K.PATRA i iii ii Ii iii iii i ii i i I iv Ii

M.TRIPATHY i iv i I ii iv ii ii i iii I ii Ii

M.SATPATHY i iii i Ii iii iii i ii i i I ii I

P.MISHRA i iv ii,iii I iii iii i ii i i I i i,ii

K.PANDA i i,ii,iii,iv i,iii Iii iii v iii

ii,

iv i

i, ii,

iii I i i, iii

S.MISHRA i i,ii,iv i,ii I iii iii iii ii i i I i i,ii

NANDITA i iii iii I iii iii i iii i ii Ii * Iv

S.PANDA i iv ii Ii iii iv i iii i ii I iii I

A.MISHRA i ii,v i,iv Ii ii v iii iii i iii I i Iv

P.PRIYANKA i iv ii Ii iii iii ii ii i ii I iv I

S.MISHRA i i, iii i,iii Iv iv ii iii iv ii iv I i i, iiS.B.ROY

i iii i Ii iii v iii ii i i I i ii, iii

S.K.BASUi ii,iv, v iv Ii ii iii ii i i i I

i, ii,

iii i ii

U.AGRAWALi i ii, iii ii Ii iv v ii

ii,

iii i iii I i Iv

E.MITRA i ii, iii, iv ii Ii iv iv ii ii i i, iv I i I

D.K.MUKHARJIiii i, iv i,iii Iii ii v i ii i i I v Ii

U.DEYi iv ii I iii iv ii ii ii ii,iii I i, iii i, iv

J.OJHA iii iv iii * ii iii ii * i i I iii i, iiiS.DAM

iii i,iv i ii, iii Ii iii ii i ii i i,ii I i ii, iv

S.PRASADiii ii, iv,v ii, iii * iii v iii iii i iv Ii i,ii

P.G.DUTTAi iii ii Ii iv iii ii ii ii ii I iv Iii

D.AGRAWALi ii ii I iii iii i iv i ii I iii i,ii

D.GHOSHi i,iii,iv i,ii I i v i, ii ii,iv i i,iii I i i,iv

S.B.ROYi iii i Iii iii iii i ii i ii I iii I

B,C.DEY i iv iii Ii iii v i ii i i I i Iv

J.SHRAMA i iv ii, iii Ii iii ii i ii i ii I i IA.BASU

i i,iii,v i,ii Ii iii v ii ii ii iv I i I

A.K.PRADHANi V ii Ii iii iii i i ii i i,iii i,iv Ii

J.KARi iii iii Iii iv v i iii i ii I ii iii,iv

DR.U.PANDAiii ii,iv iii I iv iii i i i i I i i

K.JAISWAL i iii i Iii iii iv i i i i I ii i


50


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N.MITRAi ii,iv i Ii iii iii ii iv i ii,iv I i i iv

M.KHANDELIAi iii iii I iii iii i iii i ii Ii * iv

S.CHOUDHURYi iv ii Ii iii iii ii ii i ii i iii iv i

A.K.BISWASi ii ii,iii Iii iv v ii ii i i i ii i

D.SAHA i ii,iv,v i,ii,iii Ii iii v ii ii i iii i ii iv

A.DEY i iii i Iv ii ii iii i i i ii * iiiM.DEY

i iii,iv ii I i iv i iv i ii,iv i i, iv iv

B.MUKHARJIi i,iii,iv i, iv Ii iii ii iii ii i i i i,iv ii,iv

S.DASGUPTAi iii,iv,v ii I ii v iii ii i i,iii ii * i

M.KARi ii,iii,iv i,iii Ii ii iv i ii i i,iii i v i

A.GUPTAi ii,iv,v i Iii i v iii ii i iii,iv ii * iii

B.K.DAS i ii,iv Iv Ii i v iii ii i iii ii * i

S.R.CHOUDHURY i ii Ii I iii iv i i i i i iv IT.K.MISHRA

i i,ii,iii,iv i,iii Iv iii v i i,ii i i,ii i, i,iv i,ii

S.BASUi i Iii Ii iv iii i i i ii i iv I

R.M.SHARMAii * Iv Ii ii v iii ii i iii i i I

S.KUMARii * * I ii v iii * i iv ii * I,iv

A.KRISHNA i i,iii,iv I,iii Iii iii iv iii ii i I,ii i v Ii,iiiD.C.SAHA

i Iii,iv I Ii iv iii i ii i i i i i

S.K.AGRAWALi iii Ii Ii iii iii i ii i i i iv ii

A.GHOSH i iv Ii I ii iv ii ii i iii i ii iiA.K.GHOSH

i iii I Ii iii iii i ii i i i ii i

N.C.SAHAi iv Ii,iii I iii iii i ii i i i i I,ii

R.R.BASUi I,ii,iii,iv I,iii Iii iii v iii

ii,

iv i

I, ii,

iii i i I, iii

D.DASHi I, ii, iv I, ii I iii iii iii ii i i i i I,ii

M.DASi iii Iii I iii iii i iii i ii ii * iv

A.PALIT i iv Ii Ii iii iv i iii i ii i iii iB.MISHRA

i Ii, v i, iv Ii ii v iii iii i iii i i iv

RAJIB i iv Ii Ii iii iii ii ii i ii i iv I

* denotes Not applicable.

COMPUTATIONArithmetic mean of people age group and people interested in investing their money.Table:- 3.3



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CLASSINTERVAL X F FX

AGE GROUPMID

VALUE FREQUENCY18-25 21.5 28 512

26-40 33 42 1,38641-60 50.5 22 1,11161-80 70.5 8 564

F =100 FX= 3,573

ARITHMETIC MEAN= FX/F=3573/100=35.73, which is nearly equal to 36

From the above table it can is found that the average age of people interested in investing theirmoney is 36.

2. Correlation coefficient between income of customers and savings as % of annual incomeof the people

Table- 4.1

Y- X-0-15 15-30 30-45 F(Y)

15-20 16 4 4 24

20-40 18 24 8 50

40-50 4 8 4 16

50-60 2 4 4 10

F(X) 40 40 20 TOTAL= 27

Y Denotes saving as a percentage of annual incomeX denotes income of customers in Rs. thousandF = frequency

Calculation for coefficient of correlation

Table-4.2

X 0-15 15-30 30-45

M.V

(x)

7.5 22.5 37.5

Y M.V

(y)

F Fy fy*y Fxy

15-20 17.5 (2100)

16

(1575)

4

(2625)

4

24 420 7,350 6,300

20-40 30 (4,050)

18

(16,200)

24

(9,000)

8

50 1,500 45,000 29,250

40-50 45 (1,350) (8,100) (6,750) 16 720 32,400 16,200


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4 8 4

50-60 55 (825)

2

(4,950)

4

(8,250)

4

10 550 30,250 14,025

F 40 40 20 f= 100 fy=3,190

fy*y=1,15,000

fxy=65,775

Fx 300 900 750 fx=1,950

Fx*x

2,250 20,250 28,125 fx*x=50,625

fxy 8,325 30,825 26,625 fxy=65,775

Correlation of X and Y =Nfxy - fx * fy / [{N fx*x (fx) (fx)} {Nfy*y (fy) (fy)}]

= 100* 65,775 (1,950 * 3,190) / [{100* 56,625 (1,950* 1,950)} {100*1, 15,000 (3,190*

2,190)}]

= 35,700 / 15, 69,220

= 0.022

NOTES

1. X= income, Y= savings of the people2. M.V= mid value3. f= frequency

4. The numbers covered by brackets inside the cells in the table is known as f*x*y.So it can be concluded that there exist a positive correlation between income and savings of thepeople of BBSR which is 0.022



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GRAPHICAL REPRESATATION OF

DATA

Q1. Are you interested in investing your money?

Table: - 5.1

Yes No Not now84 6 10Diagram: 5.1a


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Interested in Investing

No

6%

Not now

10%

Yes

84%

Interpretation:

From the above chart we come to know that people of BBSR are ready to invest their money.

Only 6% people are not interested, so we have lots of opportunity with our hand in future if, we

can convert these prospects as our customer we can be at strong position in this industry.

Q 2.Where you want to invest your money?

Table: - 5.2

Different Modes of investment No of PeopleShares 20

Mutual Fund 26



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Insurance 52

Fixed Deposit 62Any other 14

No 4

Diagram: - 5.2a

The money investing pattern of customer

26

52

62

14

4

20

0

15

30

45

60

75

Shares Mutual

Fund

Insurance Fixed

Deposit

Any other No

Different Modes

Noof

peop

Q 4.Why you are saying that this particular area is best?

Table: - 5.3Causes of favoring the particular

option No of peopleHigh Return 40

Low risk 44Liquidity 40


56


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Any other 14

Diagram: - 5.3a

4044

40

14

05

1015

20

2530

3540

45

No of people

High Return Low risk Liquidity Any other

Causes

Causes of favouring different options

Interpretation:

Now it is an important thing to know that most of the peoples are ready to invest in banks. Out of

100 peoples 64 people are interested to invest in bank as fixed deposit. The reasons for that is

low risk and liquidity. Out 100 people, 40 peoples are saying that the bank is giving high return

which one is the totally wrong perception of the customers. So, people are not still aware about

the best return areas like stocks, mutual funds and insurance.

Q 5.What is your savings as a percentage of annual income?

Table :- 6.1Savings of annual income in % age No of people

15-20% 2720-40% 4640-50% 17



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50-60% 6

No savings 4

Diagram: 6.1a

27

46

17

64

0

5

10

15

20

25

30

35

40

45

50

No of people

15-20% 20-40% 40-50% 50-60% No

savings

%age in savings

Savings in percentage of annual income

Interpretation:

In the above chart it is clear that the savings as percentage of annual income is very -good 46

people out of 100 are saving almost 20 to 40 % from their annual income.

Q 6.Do you have any idea about insurance?Table:- 6.2

Knowledge in insurance No. of peopleNo 12

Very less 18General 52

Very much 18


58


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Diagram: 6.2a

Number of persons having knowldges in

insurances

General

52%

Very less

18%

No

12%Very much

18%

No

Very less

General

Very muc

Interpretation:

In the 21st century only 18% people have a very good knowledge about insurance means it is a

very panic situation for the peoples of BBSR.

Q7. Which insurance companies do you know?

Table: - 6.3COMPANY NO OF PEOPLE(Out of 100)



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LIC 98

BAJAJ ALLIANZ 68

ICICI PRUD. 29

MNYL 25

HDFC STANDARD LIFE 22

RELIANCE LIFE 15

SBI LIFE 15

TATA AIG 7

AVIVA LIFE 6

ING VASYA 4

BHARTI AXA 4

KOTAK MAHINDRA 3

BIRLA SUN LIFE 3

ORIENTAL 3

METLIFE 2

Diagram :- 6.3a


60


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COMPANY AWRENESS98

68

2925

22

15 15

7 64 4 3 3 3

0

10

20

30

40

50

60

70

80

90

100

LIC

BAJAJA

LLIAN

ICICIPRU

D.

MNY

L

HDFC

STANDA

R

RELIAN

CELI

SBIL

IF

TATA

AIG

AVIVALIF

INGVA

SYA

BHARTI

AXA

KOTA

KMAHINDR

BIRL

ASUNLIF

ORIENT

AL

MET

LIF

COMPANY

NOO

F

PEOP

Interpretation:

When we ask about which insurance company is coming to your mind first, 96 people say that it

is LIC. Then our next question is that why you have remembered this company. The answer is

that it is a public limited corporation with lots of experienced company and having healthy

market share and we all have a strong faith on LIC in comparison to private limited company.

Only 25 people have suggested MNYL because of its better customer care.



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Q 10.Which companys policies you have owned?

Table: - 7.1Policy from the company No. of policies

LIC 64

BAJAJ Allianz 20ICICI Prudential 18Max New York Life Insurance 14

HDFC Standard Life 14Aviva Life Insurance India 2

ING Vysya Life Insurance 2

Kotak Mahindra Old Mutual 4

Reliance Life Insurance 6

SBI Life Insurance 4TATA AIG Life Insurance 4

Bharati Axa Life Insurance 2

Diagram: 7.1a


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6 4

2 01 8

1 4 1 4

2 24

6

4 42

0

10

20

30

40

50

60

70

No of po lici

L ic B a li c I C I C I

pru

M NY L HDFC

Life

A v iva IN G

V asya

ko tak R elianc eSB I lif e T ata

A IG

B harati

Na m e o f t he In s u r a n ce c o m p

No. of pe rsons having pol icies in di fferent insurace c

Interpretation:

Its oblivious when the questions of policy will arises it is the LIC who will come first; it is

because of its existence for so many years. Accordingly BALIC and ICICI prudential also

maximizing their business whereas, MNYL is also competing with this 4 companies. So we can

say that MNYL may not be at a good position and also not at bad position.



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Q11 .Is it wise to invest in insurance (a) or keeping in bank (b)?

Table: - 7.2INSURANCE 48BANK 28

NO IDEA 24

Diagram: 7.2a

Interpretation:

As people are saying

that it is better to

invest in insurance rather than keeping the money in bank but they are still not investing in

insurance because of certain reasons. What are the reasons for not investing in insurance sector?

Q 12.How you come to know about this policy?

Table: - 7.3

Sources No. of personsAdvertisement 14

Advisors 64Friends & Relatives 14Others 6

No policies 8

Diagram 7.3a


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Sources of getting information

14

64

14

6 8

0

10

20

30

40

50

60

70

Advertisement Advisors Friends &

Relatives

Others No policies

Sources

No.ofpers

Interpretation:

It is the only financial advisors from which people are able to know about that product andpurchasing that product. So if we can make our advisor more competitive we can maximize ourmarket share. After that we will focus on other two sources like advertisement and friends &relatives.

Q 13.Do you think that insurance is necessary in todays life?

Table: - 7.4

Necessity of Insurances No of personsYes 94No 6

Don't Know 0



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Diagram: - 7.4a

Necessity of inurance in today's life

Yes

94%

No

6%

Don't Know

0%

Interpretation:

When the question arises about the necessary about the insurance in todays life 94% people are

saying yes it is necessary. So only the thing is that we have to motivate them and convince

them about the benefits that he/she will get from the insurance rather than bank and other

financial institution.

Q 14.Which factors you give more importance before taking insurance policy?

Table: - 7.5

Reasons No. of personsUncertainty in life 48

Benefit what a customer get 38

Minimum amount to be paid as premium 26Any others 18


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No idea 2

Diagram: - 7.5a

FACTORSTHATMOTIVATETOTAKEANINSURANCE

PRODUCTS

Noidea

2%

Anyothers

14%

Uncertaintyin

life

35%

Benefit what

a customer

get

29%

Minimum

amount tobe

paidas

premium

20%

Interpretation:

From the above pie chart we come to know that 35% of people are purchasing because of risk

and uncertain in the life and rest 29% saying that because of benefits we are investing in

insurance. 20% people are saying that we are investing because of low premium.

Q15 (a) Do you know Max New York Life Insurance Company? If yes, then from which

source?Table: - 7.6

YES 84NO 16

Diagram: - 7.6a



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MNYL's awareness

84

16

0

10

20

30

40

50

6070

80

90

YES NO

Interpretation:

MNYL is a very well known company in BBSR market. 84% of people are well aware about the

MNYL.

Q15. (b) If yes then from which source?

Table: - 7.7

Different source % of peopleMedia 50Friends 12

Relatives 12Agent & Advisors

(MNYL) 20


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Cant Remind 6

Diagram: - 7.7a

S o u r c e s o f g e t in g in fo r m a tio n a

M e d i

5 0 %

F r i e n

1 2 %

R e l a t i v1 2 %

A g e n t & A d v i

(M N Y L )

2 0 %

C a nt R e m

6 %

Interpretation:Maximum people are able to remember MNYL because of its huge advertisement in IPL.

Then the second position is with the hand of agent & advisors which is able to reach at peoples

place i.e. 20

Q 16.If you will be an insurance agent, which is the best things, you like most in your favorite

company?

Table: - 7.8

Best things for insurance agents No. of persons

Good Commission 64

Promotion 30



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Brand name 18

Customer Service 26

Diagram: - 7.8a

GoodCommission

Promotion

Brandname

CustomerService No. of persons

64

30

1826

0102030

40

5060

70

Concerned factors

The factors, what an insurance agent want from

a company

Interpretation:

So, before joining in insurance sector, most of the advisors are looking for its commission

structure then promotion accordingly customer service then the last one is the brand name which

is playing an important role.


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Chapter-6

The 3C's Model is a strategically look at the factors needed for success.

The 3Cs model points out that a strategist should focus on three key factors for success. In the

construction of a business strategy, three main players must be taken into account:



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A. The Corporation B. The Customer C. The Competitors

The corporation

The Corporation needs strategies aiming to maximize the corporations strengths relative to the

competition in the functional areas that are critical to achieve success in the industry.

(I) Selectivity and sequencing: - The corporation does not have to lead in every function to

win. If it can gain decisive edge in one key function, it will eventually be able to improve its

other functions which are now average.

So, in an insurance company the key function is the sales department which is playing

the key role for the success of the corporation. If the sales department is competent enough then

the business can expand quickly.

(II) Cost-effectiveness:- Improving the cost-effectiveness can be done in three ways

First by reducing basic costs e.g.- office overhead expenses, product development

expenses etc.

Second by exercising greater selectivity (by collecting customer data base, selecting from

them who will be the right person to purchase the product, functions performed)

P200 and P40 is the best tool for MNYL for collecting the prospects and converting these

prospects into regular customer.

Third by sharing certain key functions with a corporations other businesses or even other

companies.

The customer

Clients are the base of any strategy. In the long run, a company that is genuinely interested in its

customers will be interesting for its investors and take care of their interests automatically.

Segmentation is helping to understand the customer.


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Segmenting by objectives: -The differentiation is done in terms of the different ways that

various customer use/purchase a product. That means why a person purchased a particular

product because of life risk or because for pension etc.

Differentiation of MNYL

Life

Child

Retirement

Pension

Example:- I have purchased that product because I have a small child so I will spend this money

for his study.

Or

I have purchased that product because I want regular pension when I will retire.

Segmenting by customer coverage:-

This segmentation normally emerges from a trade-off study of marketing costs versus market

coverage. The corporations task is to optimize its range of market coverage, geographically and/

or channel wise.

Example: - suppose for east zone and west zone MNYL have spend 5, 00,000 as marketing cost

but the product sold in east zone is 10,000 but in west zone it is 5,000. That means the fixed cost

of the product is higher in west zone. Here our task is to optimize our market range in west zone

by selling more product so that we will be profitable.

Segmenting the market once more:-

In fierce competition, competitors are likely to be dissecting the market in similar ways. Over an

extended period of time, the effectiveness of a given initial strategic segmentation will tend to



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decline. In such situations it is useful to pick a small group of customers and reexamine what it is

that they are really looking for.

The competitor

How we can be differentiate ourselves from our competitors. The possible source of

differentiation is the product performance or better customer care.

Power of image: - It is not easy task to differentiate MNYLS product performance or mode of

distribution. But it is the image which we can make different from our competitor by providing

better customer care.

Capitalizing on profit- and cost structure differences

We can differentiate on profit part by introducing a new scheme from our competitors. That

means innovativeness in our product. Another thing is cost structure. If in a sluggish market we

can lower our fixed cost from our competitor then we will be benefited.

cry-sta-lono:- It means standing for people, money and things. Of the three critical resources,

funds should be allocated last. The corporation should firstly allocate management talent, basedon the available mono (things): plant, machinery, technology, process know-how and functional

strength. Once these hito (people) have developed creative and imaginative ideas to capture the

businesss upward potential, the kane (money) should be given to the specific ideas and

programs generated by the individual managers.

By following above strategy MNYL can be differentiated himself from its

competitors like HDFC STANARD LIFE, BAJAJ ALLIANZ, AVIVA LIFE, and from ICICI

PRUDENTIAL.


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The 70/20/10 Model is a business resource management model pioneered byGoogleCEOEric

E. Schmidt.

This model dictates that, to cultivate innovation, employees of a company should utilize their

time in the following ratio:

70% of time should be dedicated to core business tasks. In case of MNYL core task is the

sales function OR selling of the various products.

20% of time should be dedicated to projects related to the core business. But the core

business is to recruit the financial advisors and trained them properly.

10% of time should be dedicated to projects unrelated to the core business. Project

unrelated tasks means their development and how to convince customers etc.

CHAPTER-7

http://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Eric_E._Schmidthttp://en.wikipedia.org/wiki/Eric_E._Schmidthttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Eric_E._Schmidthttp://en.wikipedia.org/wiki/Eric_E._Schmidt


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CONCLUSOIN

As we know that 7.5% of the peoples are insured that means rest 92.5% of the people are still

living without insured. It means insurance industry is still in growth stage. But when we go to

recruit financial advisors of MNYL most of the people did not agree because their view was that

no body is ready to invest in insurance. It is totally wrong perception of the some of the peoples.

One important question arises in my mind is that if more than 90% of the Indian People are not


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insured so why people are not interested to be an advisors? The reason is that 70% of the peoples

of India are living in rural areas and the awareness of private insurance company in rural market

is very poor.

But there are some private insurance companies which are well

known about the peoples. Such companies are TATA AIG, RELIANCE LIFE, SBI LIFE, HDFC

STANADRD. These companies are known because of their core business e.g. RELIANCE LIFE

is known for Reliance industries or Reliance communication. Similarly SBI LIFE is known for

best PSU bank. But in east zone MNYL has no core business i.e. hospital or plastic etc. so, it is

not easy task to convince the people about the MNYL for being an advisors post.

Again another important thing we found out from the 8 weeks of our training in MNYL is that

the documentation process for the recruitment of advisors in the MNYL is the best in insurance

industry.In case of market penetration of MNYL, only the people of BBSR have owned 2/3 of the total

products sold in the BBSR branch. In rural market it has less than 1% share.

CHAPTER-8



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RECOMENDATION

In the 5 years of existence in the market it has created a sensation by introducing its most

profitable Unit-Linked Plans and products. The insurer needs to concentrate to make its products

and company much more aware among the public to change the mindset of the people and attract


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them towards insurance sector. This can make the recruitment of the potential advisors very well.

The awareness helps them a lot as they have to work for the right product for the customers only.

To create the awareness among the people, the following methods could be adopted:

It needs to conduct awareness programmes, campaigns and publish news about

the company, products and attributes to position it in the customers mind. The

company should timely communicate through media to make the relationship

stronger.

Another way of creating awareness about the presence of insurer is by placing

hoardings and posters in the traffic areas and market complexes to attract the

attention of the people.

The awareness through the Television is another medium. Though it advertises its

product but it should forecast itself on the channel which the maximum of people

use like Doordarshan or advertising through regio

“CHANNEL DEVELOPMENT PROCESS OF MAX NEWYORK LIFE INSURANCE LIMITED” BY BRAJA KISHORE PRADHAN

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