OB2_Final Report Version2.0

8/3/2019 OB2_Final Report Version2.0

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B yG r o u p I I

S e c t i o n B

2 0 1 1 - 1 3

Organizational Culture

The Life Insurance Sector of India



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Contents

Introduction to Life Insurance Industry of India ............................... ........................... ........................... .. 5

History & Transformation ........................ ........................... ........................... ........................... ........... 5

Risk, Perception and Evaluation ....................... ............................ ........................... ........................... .. 5

Marketing ............................................................................................................................................ 6

Selling of the Products ........................ ........................... ........................... ........................... ................ 6

About the Companies .............................................................................................................................. 7

Objective Factors of Organizational Culture....................... ........................... ........................... ................ 8

Aggressiveness .................................................................................................................................... 8

Attention to Detail ............................................................................................................................... 8

Outcome Orientation ........................... ........................... ........................... ........................... ................ 9

People Orientation .......................... ........................... ........................... ........................... .................... 9

The Socialization Process ....................... ........................... ........................... ........................... .............. 10

Pre-arrival Stage: ....................... ............................ .......................... ........................... ....................... 10

MetLife India¶s Training &Induction Programs: .............................. ........................... ........................... 12

MetLifeManagement Induction School ................. ........................... ........................... ....................... 12

CST: Compliance and Sales Training ......................... ........................... ........................... .................. 12

Employee Growth & Motivation ............................ .......................... ........................... ....................... 13

The R&R includes Monetary and Non Monetary benefits such as:........................... ........................... 13

Max New York Life¶s Training and Induction Program: .................. ........................... ........................... 14

New Employee Orientation [NEO] Program........................ ........................... ........................... ......... 14



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Introduction to Life Insurance Industry of India

The requirements of an Industry shape the work culture of the organization present in the

industry.The Indian life insurance industry is a highly competitive and hostile one in nature. This

leads to a dynamic environment around any organization in the sector. Currently almost allcompanies have all plans and / or products at hand, thanks to the rigid guidelines by theIRDA.Thus the onus for performance lies on the individual marketing and selling inputs of the

various products and services on offer. All of whichends up making it a highly target orientedsector.

History & Transf ormation

The Life Insurance Corporation of India (LIC) was established way backin 1956 and has beenthe sole corporation to be present in the life insurance business in India.

The Indian insurance industry saw a new sunrisein August 2000, when theIRDA allowed the private sector to invest in the sector.

Thanks to liberalization, the industry has been presented with avery promising future.

Thischange in regulation has resulted increation of new opportunities for certified financial planners and various other professionals.

The Indian Insurance industry has the following characteristics:

y Low market penetration;

y Rapidly growing middle class.

y Growth of consumerism; (highly professionalized service)

y Inadequate and / or poor IT application.

The companies need to keep a keen eye on these characteristics of the Indian market and

formulate strategies so as to entail maximum overall profitability.

R isk, Perception and Evaluation

The fundamental function of an insurer is to provide cover against the unforeseen, to theinsured.These unforeseen events are specific happenings,which have been previously discussed

and agreed upon. Thus, prior to providing such a cover through an insurance policy, the insurer has to assess carefully assess the risk element prevalent in the concerned industry and / or a

particular unit. After the identification and categorization of the perceived risks, the probabilityof the mishap, severity of the loss bothneed to be assessed.



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Marketing

The core function of the marketing teamin an insurance company is to generate awareness andsufficient interest,to ensure a saleof the companies¶ insurance related products and / or services

in the given target market. In the Indian scenario however, where the insurance penetration in

general is way too low as compared to the developed nations. The marketing team needs to perform a verypro-active role in developing aculture, which actually insists on buying insurance.It is through the long-term efficiency of the sales team of an insurance company that the

desirability and the success of the company as a whole is sustained.

In Indian insurance market, this function is, performed primarily by the agents or advisors.Individuals interested to work as an insurance agent have to obtain a license from the IRDA to

act as one. The agents approach prospective buyers and apprise them about the various productsand / or services on offer. In order to carry out their duties effectively, the agents need to possess

knowledge about the insurance industry, products, services and the modalities attached.Further, the marketing personnel should be provided adequate backing by her or his respective

reporting branch.

Selling of the Products

The term ³selling´ in the context of the insurance industry connotes the issuance of a policy to

the applicant known as the proposer.

In the Indian life insurance industry, thisis done by the by the insurer. In addition, the insurancecompanies have a dedicated operations department to look after the post sales support for the

sales team so as to ensure timely issuance of the insurance contract.

They receive the proposal documents, verify them, under-write1them for financial, medical and /

or lifestyle inconsistencies and then after fully satisfying the given norms and issuance criteria

give the go ahead for the contract by way of a placement conformation mail.

1Sign and accept liability under (an insurance policy), thus guaranteeing payment in case loss or damage occurs.



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About the Companies

COMPANY MISSION VISION

MetLifeIndia

Build financial freedom for all, through leadership in

providing financial advice and building long-term

relationships through innovative protection,accumulation&retirement products, robust underwriting processes and

creating a world-class customer service experience for our customers

We want to provide

customers in India with

world-class solutions for financial security, and in the

process add significant value

to our shareholders, associatesand society.

Max NewYork Life

Insurance

y Amongst the top 5 private life insurance

companies

y National Player

y Brand of choice

y Employer of Choice

y Principal of Choice for Distribution & Suppliers

To become the most admired

Life Insurance Company inIndia for all stakeholders

ICICI Group

We will leverage our people, technology, speed and

financial capital to:

y Be the banker of first choice for our customers

by delivering high quality, world-class productsand services.

y Expand the frontiers of our business globally.

y Play a proactive role in the full realization of India¶s potential.

y Maintain a healthy financial profile and

diversify our earnings across businesses and

geographies.y Maintain high standards of governance and

ethics.y Contribute positively to the various countries

and markets in which we operate.

y Create value for our stakeholders.

To be the leading provider of

financial services in India anda major global bank.



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Objective Factors of Organizational Culture

There are many objective factors, which form the various elements of perception of

organizational culture. Such as Innovation and Risk Taking, People Orientation, Attention to

Detail, Outcome Orientation, Aggressiveness, etc.

We have tried to analyze the life insurance companies on the basis of some of the above-

mentioned objective factors.

Aggressiveness

In MetLife, the degree of aggressiveness is at a lower level. The employees are encouraged, their

efforts supported. As an organization, employees in general tend to be calm and relaxed due to

the qualitative focus of the top management. Quality is given greater weightage over quantity,which allows employees to focus on fulfilling the needs of each individual client to the best of their abilities.

For Max New York Life India, the degree of aggressiveness is at a comparatively moderatelevel. The employees are encouraged, but performance is important. The organization follows a

more balanced approach; quality and quantity both are given an almost equal weightage. Incertain tricky situations, however if one needs to choose between quality and quantity, then

quality is certainly given preference.

At ICICI Prudential Life Insurance, the degree of aggressiveness is very high. The employees are

pushed to perform. Quantity is given the maximum amount of focus under almost allcircumstances. Collections at the end of the month in terms of NOP¶s

2and the collected

premium3

both matter.

Attention to Detail

At MetLife India, attention to detailis given a lot of importance. This can be gauged from one of

the company¶s branding and advertising related activities. An employee told us, that an entire

batch of billboards was rejected, because a wrong shade of blue was being used in the

background.

For Max New York Life, attention to detail is also at the upper end of the spectrum. Minutedetails are taken care of. Being on time, attending all stipulated training sessions, using the given

support tools and packages as prescribed are all given a lot of importance. For employees as an

organization, the tendency is to take as much care of as many things as possible.

2 NOP, Number of policy3 Collected Premium, It·s the actual collected premium. E.g. In a half yearly policy, the premium amount actually received.



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At ICICI Prudential Life, attention to detail is low. As long as an employee is getting business,

nothing much concerns the management apart from that. Minute and little nothings don¶t really

count that much at ICICI.

Outcome Orientation

In MetLife the outcome orientation is high, but that clearly doesn¶t mean that the techniques

methodologies and approach used to achieve that outcome aren¶t important. Being honest,

fairand ethicalare all very important while one tries to achieve the given targets.

For Max New York Life, the ends and means both are important. But the means used need to be

similar to what is being done in the organization i.e. If a particular protocol is being followed

then it must be followed to the T. Deviations are generally not accepted, ways and methods of

doing things are highly standardized and everyone needs to follow suit.

At ICICI Prudential life insurance results matter, the end goal is the most important. At ICICI,

little consideration is given to the means used. As discussed above NOP and collected premium

are of paramount importance.

People Orientation

The people orientation at MetLife& Max New York Life both seemed to be high. With mostemployees being interviewed telling us that the management was pro-people and that the

decisions that were taken by the senior management were more or less in the approval zone of

the employees in general.

At ICICI on the other hand, the interviewed employees felt that this was not the case and the

primal focus of the organization isachieving targets and sustaining growth. Popular opinion on

the management¶s decisions is that people orientation is the second or third most important

priority.



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The Socialization Process

Pre-arrival Stage:

In general, the selection process followed by almost all life insurance companies is highlysimilar; this is so due to the very nature of the industry in which these companies operate. Mostof the managers and associates are selected for the various positions on the basis of their

marketing and selling expertise. Other areas of concern are:

y People Skills

y Relationship Management

y Enterprisingness4

y Tactfulness

y Ability to handle new and difficult situations

The Training & Induction Program:

In the Insurance sector, the attrition rate is on a higher side, as the job is demanding and placed

in a very higher-pressure environment. Also one is providing the sales and service,not for a

product but a promise.

It takes a lot of effort from an employee¶s perspective to balance her or his ethical commitment

towards a client and her or his professional commitment towards her or his employer.This alone

is the single biggest contributing factor towards the high attrition rate.

Now, On the basis of the aforesaid, it comes as no surprise that induction programs in the life

insurance business are short in duration and crisp in nature. They are conducted in stages based

on the time spent by an employee in the organization and the route she or he has taken to reach a

particular position.

4embark on bold new ventures (Source:http://ardictionary.com/enterprisingness/8803)



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For employees who have been promoted from within the organization, there is a different format

followed, as compared to those employees who directly join at a slightly higher position.



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MetLife India¶sTraining &Induction Programs

The company takes ample measures to train and retain its employees in the organization so as to

enable the company to grow holistically. MetLife India uses the following induction and sales

training programs respectively.

MetLife Management Induction School

MetLife introduced the MetLife Management Induction School, so as to train all new employees.

The program uses a different nomenclature for different positions, apart from MetLife

Management Induction School; the name of the program for the next hierarchical level is Agency

Manager Development School.

The company also has another program, which is mandatory for all sales employees:

CST: Compliance and Sales Training

It¶s a short training program. The aim of the Program is focused on development of the selling and

marketing capabilities of the new employees and associates of the company.

MetLife always initiates training requirements and supports the employees. The main aim of MetLife is to

equip its employees to be all - round sales professionals by the use of appropriate training, coaching and

guidance. The induction training consists of the following modules:

y Product and Process training

y Sales Personality development

y Skills training

y Professional courses



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Employee Growth & Motivation

In order to incentivize each one of the employees, a whole new Recruitment Rewards and

Recognition Program (R &R) was launched.

The R &R includes Monetary and Non Monetary benefits such as:

y Free training camps

y Free coupons for the Month end

y Free service (free life and or health insurance)

y Awards and certificates

y Medal of honor for the best performing employee of the year

The goal sheets have been simplified in order to provide the employees with an opportunity to

aspire for better and higher achievements. The agency structure has also been simplified to

enable faster decision-making and career progression.

MetLife India conducts monthly meetings with all its employees and managers for discussing the

current issues faced by them in the organization. This is done so as to establish transparency in

the working of the organization

Job rotation is done on an employee and / or organizational need basis. It works for the mutual

benefit of the employees¶ as well as the management.

The hierarchical structure is becoming quite narrow and a manager hardly needs to handle about

4-5 employees in a row, this speeds up the decision-making process and makes the employees

happy, as they don¶t need to report to many managers at one point in time.

The incentive-based structure is highly flexible. When the number of clients handled by a

manager increases, the monetary benefits also jack up to the next level.



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y Operations Training:

Operations Training takes care of the operational needs, provisions, etc.



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ICICI Prudential¶s Induction Program

UDAAN - Life Insurance Fundamentals f or Executive Trainees

The agency model of business has several challenging roles with true entrepreneurial flavor wherein one needs to set up one¶s own distribution channel by identifying and recruiting a

passionate team of insurance advisors.

The ET would be leading the team (including joint sales calls) to achieve sales and businessobjectives with ongoing organizational support in terms of regular training, assistance in

recruitment and brand increasing the brand pull of ICICI Prudential.

The ET is also expected to focus on Sales Efficiency parameters viz. Advisor Activation,Average Premium and on market development for new products and / or services, which ICICI

Prudential may choose to offer in the future, post feasibility studies off course.

This profile presents a unique opportunity to lead people, develop business and inculcateentrepreneurial skills.

Upon joining ICICI Prudential, the ET will go through a comprehensive induction programcalled:

³LIFE´ - Life Insurance Fundamentals f or Executive Trainees

Then they take charge as a Unit Manager. The LIFE program is followed by:

The Stepping Stones program

This program guides career progression. It is an objective program driven by meritocracy andtransparency. Moreover, Stepping Stones offers great flexibility to make one¶s career

progression rewarding and commensurate with one¶s aspirations.

ET Alternate Channels

As an Executive Trainee in Alternate Channels, the individual would take charge as an AssociateFinancial Services Manager (AFSM) post the induction program. Here, the individual may be

absorbed in any of the Alternate Channels, based on organizational requirement and thecapability / capacity of the given individual.



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Employee Growth and Motivation:

People are considered to be the most valued asset at ICICI Prudential. Therefore, the

organization has an environment wherein the Employees tend to gain a level of freedom, which

provides satisfaction, and most importantly, a sense of professional fulfillment.

They have created a performance driven work culture with a focus on creating leaders. It follows

meritocracy and elevate solely based on an individual¶s performance and ability to take on higher

roles and responsibilities.

Since over 90% of all recruitments are done at the entry levels, elevations are made from within

the organization. Which in turn acts as a great motivating factor for all employees, they providethe employees with opportunities to move into different functions and get cross-functional

exposure thereby improving skill set and knowledge base of its employees.

There is a lot of autonomy at ICICI Prudential¶s work environment; it provides a platform to

enhance an employee¶s individuality. The average age of employees is 27 years making the work

atmosphere vibrant and full of enthusiasm.

Tools f or Career Growth (ICICI)

Perf ormance Appraisals

Performance appraisals are carried out twice a year. They serve as an opportunity for two-way

discussion between managers and employees. Thusproviding a chance to review

accomplishments and set new and higher business objectives and goals.



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Training & Development

Apart from the prescribed Training programs, various other training sessions are conducted

along with the job, by the use of e-learning modules and instructor-based classes. The aim of

these training sessions is to enhance the skills and enable employees to carry out their roles and

duties in the most effective and efficient manner possible.

Internal CareerOpportunities

It is a non-hierarchical organization that believes in flexibility and having the right person for the

right job. An employee can apply for other positions within the company internally thereby

having internal opportunities to grow in any field she or he is best suited for and / or desires for.



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Factors of Spirituality

The factors of Spirituality include the value system of the organization, These values are thosewhich an organization tries to inculcate in their employees and thus they end up forming the

dominant culture of the given organization.

MetLife India¶s Value System

Personal responsibility

They expect employees to perform in an efficient and effective manner, they want successful

leader¶s, who can take decisions independently so as to get the desired results.

Team Work

The organizational focus is on functioning in an effective, efficient and productive manner in

teams so as to achieve the common purpose.

Financial Strength

The company operates efficiently,trying to minimize costsand still strive for strong business

results.

Integrity and Honesty

The management is committed to conducting all business transactions in an ethical, truthful,

sincere and fair manner.

Innovation

Continuously creating and introducing new and original ideas, ways of doing things, etc. Theyfocus on collective power of diversified work-groups, which in turn is a very important factor for

innovation.

Max New York Life Values and Beliefs

Excellence Max New York Life focuses on achieving the highest possible standards of quality in every

aspect of their business, it starts from in-house training to productand service delivery to the endclient.

Honesty

Transparency, Dependability and Integrity form the cornerstones of the Max New York LifeInsurance, as claimed by the organization.



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K nowledge

Focus is always onspecialization, which requires knowledge and domain expertise. Theybelieve

bin the combining global expertise, technical know how and local experience, knowledge.

Caring

Caring for the client, Max New York Life is attempting to refocus the life insurance sector on theneeds of the client, in a highly specialized and specific manner. They want theirprocess¶s to beresponsive, personalized, humane and empathetic in nature.

ICICI Prudential Life Insurance Value System

Transparency

Total transparency in all channels of communication (internally and externally) and complete

accountability in customer deliverables. This value helps push their employees to build trust on

their customers, which in turn helps in brand building for ICICI Prudential.

Empowerment

ICICI Prudential providesa platform of opportunity, from an employee to a partner in progressive

growth.

Passion

The passion to excel with customer focus in mind is what motivates ICICI Prudential to attaineven greater milestones.This inherent principle drives employees to set even higher benchmarks

of excellence and performance.

Integrity

Integrity is about honesty, sincerity, sound moral principles, keeping promises and fulfillingexpectations. ICICI Prudential Life Insurance Company focus on integrity so as to exceed

beyond the organization's capacity to not onlyfulfill the needs of the stakeholders but alsoconsider and cater to the vision and values of everyone involved.

Humility ³True leadership in the service industry requires humility to keep one's ego sublime and to serve

others.´ICICI Prudential looks for Humility in their employees; those who can keep the interestsof the customer and the organization before they¶re own and work efficiently and effectively as a

team.



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R eferences:

www.maxnewyorklife.com

www.metlife.co.in

www.iciciprulife.com

www.ebscohost.com



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