Project Report Final- on Max New York Life By Vinay Kumar Pandey
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Transcript of Project Report Final- on Max New York Life By Vinay Kumar Pandey
PROJECT REPORT
ON
CUSTOMER BUYING BEHAVIOR OF
MAX NEW YORK LIFE INSURANCE
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF FULL- TIME PROGRAMME IN NATIONAL ECONOMIC PLANNING & ENTREPRENEURSHIP
(2009-11)
GUIDED BY :- SUBMITTED BY:-
Mr. SAURABH SRIVASTAV VINAY KUMAR PANDEY
(SALES MANAGER) ( ID No.- LC0911SS10014IIPM-G)
Mr. MOHD. ABDULLAH KHAN INDIAN INSTITUTE OF
(SALES MANAGER) PLANNING & MANAGEMENT
INDIA BULLS, LUCKNOW LUCKNOW
INDIAN INSTITUTE OF PLANNING & MANAGEMENT
1
ACKNOWLEDGEMEnt
ACKNOWLEDGEMENT
2
Words have never seemed so inadequate as now, when I am endeavoring to
express my sincere thanks to all the people without their help it would have
been an unaccomplished task.
I wish to express my profound gratitude and sincere thanks to Mr. Saurabh
Srivastava (sales manager) India Bulls & Mohd. Abdullah Khan (sales
manager) India Bulls , Lucknow for encouraging & supporting my efforts
all through my job training .
I also put on record my sincere thanks to my institutional guide Ms. Deepti
Verma (Faculty of Academics) IIPM, Lucknow , who gave me moral support
and indepth knowledge about this project .
Last but not the least I would like to thanks my customers , batch mates and
my family for their constant help and support during my summer training .
Vinay Kumar Pandey
(PGP/SS/2009-11)
IIPM
Lucknow
TABLE OF CONTENTS
Page no.
3
1. PREFACE (04)
2. EXECUTIVE SUMMARY (06)
3. INTRODUCTION (08)
Insurance Industry (09) Company Profile (26) Mission, vision & value (38)
4. PROJECT OBJECTIVE (42)
5. BODY OF THE REPORT (46)
SWOT Analysis (47) Target & Tasks (49) Nomenclature (53) Customer Expectation (55) Customer Satisfaction (57) Products (58) Brand Philosophy (68)
6. ILLUSTRATION & ANNEXURES (72)
7. QUESTIONNAIRE (74)
8. CONCLUSION (83)
9. BIBLIOGRAPHY (84)
PREFACE
4
The liberalization of the Indian insurance sector has been the subject of much
heated debate for some years. The policy makers where in the catch 22 situation,
wherein for one they wanted competition, development and growth of this
insurance sector which is extremely essential for channeling the investments in to
the infrastructure sector. At the other end the policy makers had the fears that the
insurance premia, which are substantial, would seep out of the country; and wanted
to have a cautious approach of opening for foreign participation in the sector.
As one of the rare occurrences the entire debate was put on the back burner and the
IRDA saw the day of the light thanks to the maturing polity emerging consensus
among factions of different political parties. Though some changes and some
restrictive clauses as regards to the foreign participation were included the IRDA
has opened the doors for the private entry into insurance.
Whether the insurer is old or new, private or public, expanding the market will
present multitude of challenges and opportunities. But the key issues, possible
trends, opportunities and challenges that insurance sector will have still remains
under the realms of the possibilities and speculation. What is the likely impact of
opening up India’s insurance sector?
The large scale of operations, public sector bureaucracies and cumbersome
procedures hampers nationalized insurers. Therefore, potential private entrants
expect to score in the areas of customer service, speed and flexibility. They point
out that their entry will mean better products and choice for the consumer. The
5
critics counter that the benefit will be slim, because new players will concentrate
on affluent, urban customers as foreign banks did until recently. This seems to be a
logical strategy. Start-up costs, such as those of setting up a conventional
distribution network-are large and high-end niches offer better returns. However,
the middle-market segment too has great potential. Since insurance is a volumes
game. Therefore, private insurers would be best served by a middle-market
approach, targeting customer segments that are currently untapped.
.
6
EXECUTIVE-SUMMARY
EXECUTIVE SUMMARY
7
In today’s corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sectors. Insurance has the
maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of
growth rate. This growth potential attracts me to enter in this sector and MAX NEW
YORK Life Insurance Company Ltd has given me the opportunity to work and get
experience in highly competitive and enhancing sector.
The success story of good market share of different market organizations
depends upon the availability of the product and services near to the
customer, which can be distributed through a distribution channel. In
Insurance sector, distribution channel includes only agents or agency holders
of the company. If a company like RELIANCE LIFE INSURANCE, TATA
AIG, HDFC etc. have adequate agents in the market they can capture big
market as compared to the other companies.
Agents are the only way for a company of Insurance sector through which
policies and benefits of the company can be explained to the customer.
INTRODUCTION
8
The training has been divided into two parts one is sales & other is
recruitment of relationship managers. The training focused totally on
sales maximization where I helped company to maximize not only its
sales but to rectify other problems like services and competition of
other companies .
This training helps to impart on job experience, under this training
we resorted to cold calling, interview, handling quarrels of the customers
and getting appointments and then going to the requested places to help
them identify the need of particular services and pursue them to fulfill
that need. This helps to handle the objections of customers and also
taking the interview for the recruitment of relationship managers for
building the team of sales.
9
INTRODUCTION TO THE INDUSTRY
THE HISTORY OF INDIAN INSURANCE INDUSTRY
10
Life Insurance
In 1818 the British established the first insurance company in India in Calcutta, the
Oriental Life Insurance Company. First attempts at regulation of the industry were
made with the introduction of the Indian Life Assurance Companies Act in 1912.
A number of amendments to this Act were made until the Insurance Act was drawn
up in 1938. Noteworthy features in the Act were the power given to the
Government to collect statistical information about the insured and the high level
of protection the Act gave to the public through regulation and control. When the
Act was changed in 1950, this meant far reaching changes in the industry. The
extra requirements included a statutory requirement of a certain level of equity
capital, a ceiling on share holdings in such companies to prevent dominant control
(to protect the public from any adversarial policies from one single party), stricter
control on investments and, generally, much tighter control. In 1956, the market
contained 154 Indian and 16 foreign life insurance companies. Business was
heavily concentrated in urban areas and targeted the higher echelons of society.
“Unethical practices adopted by some of the players against the interests of the
consumers” then led the Indian government to nationalize the industry. In
September 1956, nationalization was completed, merging all these companies into
the so-called Life Insurance Corporation (LIC). It was felt that “nationalization has
lent the industry fairness, solidity, growth and reach.”
11
Some of the important milestones in the life insurance business in India
are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance companies.
General Insurance
The General Insurance industry in India dates back to the Industrial Revolution and
the subsequent increase in trade across the oceans in the 17th century. As for Life
Insurance, the British brought General Insurance to India, and a similar path was
followed in the development of this industry. A number of private companies were
in existence for years and years until, in 1971, the Indian Government decided that
the public interest would be served by nationalizing the industry, merging all the
107 companies into four companies, depending on the sort of business transacted
(Marine, Fire, Miscellaneous). These were the National Insurance Company Ltd.,
the Oriental Insurance Company Ltd., the New India Assurance Company Ltd.,
12
and the United India Insurance Company Ltd. located in Calcutta, New Delhi,
Bombay and Madras respectively. The General Insurance Corporation (GIC) was
set up in 1972 as a ‘holding’ company, having these four companies as its
subsidiaries.
Some of the important milestones in the general insurance business
in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the
general insurance business in India with effect from 1st January 1973. 107 insurers
amalgamated and grouped into four companies viz. the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIAMAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA
13
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) was established on 1 September 1956 to
spread the message of life insurance in the country and mobilise people’s savings
for nation-building activities. LIC with its central office in Mumbai and seven
zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and
Bhopal, operates through 100 divisional offices in important cities and 2,048
branch offices. LIC has 5.59 lakh active agents spread over the country.
The Corporation also transacts business abroad and has offices in Fiji, Mauritius
and United Kingdom. LIC is associated with joint ventures abroad in the field of
insurance, namely, Ken-India Assurance Company Limited, Nairobi; United
Oriental Assurance Company Limited, Kuala Lumpur; and Life Insurance
Corporation (International), E.C. Bahrain. It has also entered into an agreement
with the Sun Life (UK) for marketing unit linked life insurance and pension
policies in U.K.
In 1995-96, LIC had a total income from premium and investments of $ 5 Billion
while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's
income grew at a healthy average of 10 per cent as against the industry's 6.7 per
cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).
14
LIC has even provided insurance cover to five million people living below the
poverty line, with 50 per cent subsidy in the premium rates. LIC's claims
settlement ratio at 95 per cent and GIC's at 74 per cent are higher than that of
global average of 40 per cent. Compounded annual growth rate for Life insurance
business has been 19.22 per cent per annum.
General Insurance Corporation of India (GIC)
The general insurance industry in India was nationalized and a government
company known as General Insurance Corporation of India (GIC) was formed by
the Central Government in November 1972. With effect from 1 January 1973 the
erstwhile 107 Indian and foreign insurers which were operating in the country prior
to nationalization, were grouped into four operating companies, namely, (i)
National Insurance Company Limited; (ii) New India Assurance Company
Limited; (iii) Oriental Insurance Company Limited; and (iv) United India
Insurance Company Limited. (However, with effect from Dec'2000, these
subsidiaries have been de-linked from the parent company and made as
independent insurance companies). All the above four subsidiaries of GIC operate
all over the country competing with one another and underwriting various classes
of general insurance business except for aviation insurance of national airlines and
crop insurance which is handled by the GIC.
15
Besides the domestic market, the industry is presently operating in 17 countries
directly through branches or agencies and in 14 countries through subsidiary and
associate companies.
IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN
PERMITTED TO ENTER INTO INSURANCE BUSINESS: -
The introduction of private players in the industry has added to the colors in the
dull industry. The initiatives taken by the private players are very competitive and
have given immense competition to the on time monopoly of the market LIC.
Since the advent of the private players in the market the industry has seen new and
innovative steps taken by the players in this sector. The new players have
improved the service quality of the insurance. As a result LIC down the years have
seen the declining phase in its career. The market share was distributed among the
private players. Though LIC still holds the 75% of the insurance sector but the
upcoming natures of these private players are enough to give more competition to
LIC in the near future. LIC market share has decreased from 95% (2002-03) to 82
%( 2004-05).
1. HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
16
Limited (HDFC Ltd.), India’s leading housing finance institution and The Standard
Life Assurance Company, a leading provider of financial services from the United
Kingdom. Their cumulative premium income, including the first year premiums
and renewal premiums is Rs. 672.3 for the financial year, Apr-Nov 2005. They
have managed to cover over 11,00,000 individuals out of which over 3,40,000
lives have been covered through our group business tie-ups.
2. Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Limited is a joint venture that brings
together two large forces - Max India Limited, a multi-business corporate, together
with New York Life International, a global expert in life insurance. With their
various Products and Riders, there are more than 400 product combinations to
choose from. They have a national presence with a network of 57 offices in 37
cities across India.
3. ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin operations in
December 2000 after receiving approval from Insurance Regulatory Development
17
Authority (IRDA). The company has a network of about 56,000 advisors; as well
as 7 bank assurance and 150 corporate agent tie-ups.
4. Om Kotak Mahindra Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
5.Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group
and Sun Life financial Services of Canada.
Tata AIG Life Insurance Company Ltd.
SBI Life Insurance Company Limited
ING Vysya Life Insurance Company Private Limited
Allianz Bajaj Life Insurance Company Ltd.
Metlife India Insurance Company Pvt. Ltd.
AMP SANMAR Assurance Company Ltd.
Dabur CGU Life Insurance Company Pvt. Ltd.
1. Royal Sundaram Alliance Insurance Company Limited
The joint venture bringing together Royal & Sun Alliance Insurance and
Sundaram Finance Limited started its operations from March 2001. The
company is Head Quartered at Chennai, and has two Regional Offices, one
at Mumbai and another one at New Delhi.
18
2. Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint venture
between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a
reputation of expertise, stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) on May 2nd,
2001 to conduct General Insurance business (including Health Insurance
business) in India. The Company has an authorized and paid up capital of Rs
110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz,
AG, Germany.
3. ICICI Lombard General Insurance Company Limited
ICICI Lombard General Insurance Company Limited is a joint venture
between ICICI Bank Limited and the US-based $ 26 billion Fairfax
Financial Holdings Limited. ICICI Bank is India's second largest bank,
while Fairfax Financial Holdings is a diversified financial corporate engaged
in general insurance, reinsurance, insurance claims management and
investment management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings
Limited, is one of Canada's oldest property and casualty insurers. ICICI
19
Lombard General Insurance Company received regulatory approvals to
commence general insurance business in August 2001.
4. Cholamandalam General Insurance Company Ltd.
Cholamandalam MS General Insurance Company Limited (Chola-MS) is a
joint venture of the Murugappa Group & Mitsui Sumitomo.
Chola-MS commenced operations in October 2002 and has issued more than
1.4 lakh policies in its first calendar year of operations. The company has a
pan-Indian presence with offices in Chennai, Hyderabad, Bangalore, Kochi,
Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh,
Kolkata and Vizag.
5. TATA AIG General Insurance Company Ltd.
Tata AIG General Insurance Company Ltd. is a joint venture company,
formed from the Tata Group and American International Group, Inc. (AIG).
Tata AIG combines the strength and integrity of the Tata Group with AIG's
international expertise and financial strength. The Tata Group holds 74 per
cent stake in the two insurance ventures while AIG holds the balance 26 per
cent stake.
Tata AIG General Insurance Company, which started its operations in India
on January 22, 2001, offers the complete range of insurance for automobile,
20
home, personal accident, travel, energy, marine, property and casualty, as
well as several specialized financial lines.
6. Reliance General Insurance Company Limited.
7. IFFCO Tokio General Insurance Co. Ltd.
8. Export Credit Guarantee Corporation Ltd.
9. HDFC-Chubb General Insurance Co. Ltd.
Marketing of Insurance In India
Insurance is in a manner of speaking the last frontier in the financial sector to open.
It is also a sector, which leads to benefits across the full spectrum, from the
individual who now have wider choices, to the economy, which see increased
savings, to the infrastructure sector, which can look forward to long term funding
being available. In an under-insured economy, newer channels of distribution have
to be utilized to intensify the reach of insurance both in urban and rural markets.
This will create huge employment opportunities not only within insurance
companies but also as agents and consultants of insurance companies.
21
Marketing Mix Policies
Different companies can choose to position themselves differently and hence the
Marketing Mix is different. However, there are certain common characteristics that
one can cull out from the possible strategies that companies adopt.
Product:
The development of flexible products to suit individual requirements is what will
differentiate the winners from the also-rans. The key to success is in providing
insurance solutions, not standardized insurance products. The concept of
riders/optional benefits has already been a huge innovation brought about by the
new players, which has led to customization of products for individual needs.
However, companies may differentiate themselves on the basis of product
segments that they choose to focus on and excel in.
Place:
Different companies may however choose different channels and different
geographies to focus on. The channel options are - tied agency force, corporate
agents and brokers and this is an area where different companies will make
different choices. Many companies like Max New York Life are focusing on all
channels whereas companies like HDFC STANDARD Life are focusing on the
tied agency force only. Customer interface will be a key challenge for life
22
insurance companies and includes every that interaction that the customer has with
the company, such as sales, new business underwriting, policy servicing, premium
payments, claim processing and so on. Technology can play a crucial role in
delivering the highest standards of service set by the company and it will be
imperative for any serious player to excel in all of these.
Price:
Price is a relevant differentiator only in two segments - pure term insurance and in
pure annuities. Here too, service delivery and financial strength will need to be
present at a minimum acceptable level for price to be a relevant differentiator. In
case of savings oriented products, long-term returns generated are more relevant
than just the price of the product. A focus on generating good investment
performance and keeping a tight control on costs help in generating good long-
term maturity value for customers. Norms have been laid down on all of these by
IRDA and adhering to these while delivering good returns will be a challenge.
Promotion and Advertising:
The level of demand is latent and will have to be activated considerably. The
market needs to be developed. Greater awareness of insurance and the need to have
23
it as a protection tool rather than as a tax planning measure needs to be appreciated
by the Indian people. Various communication tools including advertising, direct
marketing and road shows contribute to all this and different companies take
different approaches on these.
Process:
Cashless settlement: One of the most defining and customer-friendly changes
that we’ve seen in recent years relates to the way claims settlements are made. The
advent of the third-party administrator (TPA) regime has facilitated the transition
to the hugely convenient era of cashless settlement of health and auto insurance
claims. TPAs are entities who process claims on behalf of insurers: the IRDA
licenses them after it is satisfied that they have the financial strength, the trained
manpower, the infrastructure and the skills to undertake this activity.
Likewise, with auto insurance, the TPA ties up with garages and authorized service
centers for cashless settlement of auto insurance claims.
Lower premiums: The spirit of competition and the broadening of the risk
experience of insurance companies have contributed to a fall in premiums over the
years. That’s because, other things being equal, an insurer who covers the lives just
of 10 people bears a higher risk than an insurer who covers the lives of, say, 100
people. Further, a broader base will provide greater efficiencies on costs such as
24
distribution, management and claims. A broad basing of the mortality experience,
therefore, gives insurers the elbowroom to compete by lowering premiums, and
that trend is expected to continue.
Premium payment flexibility: Insurers have imparted certain flexibility
to premium payment options in order to address this concern. For instance, one
now have the option to pay your premiums upfront, which is then carried forward
for the tenure of the policy. The yearly premiums are drawn from the initial corpus.
Insurers have also introduced the concept of ‘automatic cover maintenance’ to
protect your policy from lapsing owing to your omission to pay your premium on
time. Under this, in the event of your not paying the premium, the insurer dips into
your investment account to the extent of the premium. Of course, this comes with
an in-built drawback: your investment portion diminishes year on year to the extent
of the amount paid to cover your risk.
Physical Evidence:
This can play a significant role for marketing in the Indian scenario. Since Internet
users are comparatively lesser than countries such as US, the offline mode will be
preferred in India. Although the distribution model is largely agent-based,
25
wherever the customer is in contact with the company, this factor can play a
significant role in luring the customer.
People:
The most important factor that materializes sales and maintains customer
relationships on a long-term basis is this factor. No matter what distribution
strategy a company adopts, customer relationship has to be taken care of in order to
maintain the customer base on a long-term basis.
CHANNEL PARTNER OF
26
INTRODUCTION TO THE
COMPANY
INTRODUCTION TO THE COMPANY
Indiabulls is channel partner of Max New York life
in insurance vertical
27
Indiabulls-
Indiabulls Financial Services Limited was incorporated on January 10, 2000 as
M/s Orbis Infotech Private Limited at New Delhi under the Companies Act, 1956
with Registration No. 55 - 103183. The name of Company was changed to M/s.
Indiabulls Financial Services Private Limited on March 16, 2001 due to change in
the main objects of the Company from Infotech business to Investment &
Financial Services business. It became a Public Limited Company on February 27,
2004 and the name of Company was changed to M/s. Indiabulls Financial Services
Limited. And Now this company has achieved milestone by voted as
The Youngest Company of the year in ET500
Indiabulls Financial Services Ltd is a public company and listed on the National
Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and
London Stock Exchange. The market capitalization of Indiabulls is approx US $
800 million, and the consolidated net worth of the company is approx US $ 400
million. Indiabulls and its group companies have attracted US $ 300 million of
equity capital in Foreign Direct Investment (FDI) since March 2000.
Indiabulls ranks at 82nd position in the list of most valuable companies in India.
Indiabulls is promoted by three engineers from the Indian Institute of Technology
(IIT) Delhi. Foreign Institutional Investors (FIIs) and foreign funds hold over 60
percent shareholding of Indiabulls. Some of the large shareholders of Indiabulls
are the largest financial institutions of the world such as Fidelity Funds, Capital
International, Goldman Sachs, Merrill Lynch, Lloyd George and Farallon
Capital. There are approximately over 40,000 shareholders of the company.
Indiabulls Financial Services is a retail financial services company providing a
28
diverse array of financial products and services, through its nationwide network of
over 300 Indiabulls offices, and services over 2,50,000 clients spread across 110
cities in India. Indiabulls, along with its subsidiary companies, offer consumer
loans, brokerage and depository services, personal loans, home loans and other
financial products and services to the retail markets.
Indiabulls, which has a workforce of over 20,000 full time employees, reported
US $ 60 million in Profit Before Tax and US $ 45 million in Net Profit for the first
nine months of the current financial year.
Philosophy: -
Indiabulls has created a unique organization that is designed for you – the Smart
Investor –. it passionately believe in the Smart Investor who wants to make his
own educated investment choices and demands world class access to a full range of
services and products ranging from Equities to Insurance, combined with the
highest level of integrity, service and professionalism.
Indiabulls is a full service investment firm offering clients access to a tremendous
range of financial services from 135 locations across 95 cities. We have a strong
team of over 1000 Client Relationship Managers focussed on serving customers
unique needs. Our world class infrastructure, built with tens of crores of
investment, provides our clients with real-time service, multi-channel & 24/7
access to all information and products. As we've expanded and developed to serve
the needs of all kinds of investors, we've been guided by one underlying
philosophy: You come first.
29
We are proud to introduce to you Indiabulls Professional NetworkTM that offers
real-time prices, equity analysis, detailed data and news, intelligent analytics, and
electronic trading capabilities, right at your finger-tips. This powerful technology
is complemented by our knowledgeable and customer focussed Relationship
Managers who are available to help with your financial planning and investment
needs.
About Founders: -
The fast paced growth, diversification and consolidation of the
Group has been possible due to the vision and leadership of the co-founders of
Indiabulls.
Sameer Gehlaut is the Chairman, CEO and Whole Time Director of Indiabulls.
Sameer is an engineer from IIT, Delhi (1995) and has worked internationally with
Halliburton in its international services business in 1995. He has utilized his
experience with the international best practices and professional work culture at
Halliburton to lead Indiabulls successfully.
Rajiv Rattan is the President, CFO and Whole Time Director of Indiabulls. Rajiv
is an engineer from IIT, Delhi (1994) and has rich experience in the oil industry,
having worked extensively across the globe in highly responsible assignments with
Schlumberger. Rajiv has managed remote exploration projects providing
evaluation services for different clients in India as well as abroad.
Saurabh Mittal is a Director at Indiabulls. Declared the best graduating student
in IIT, Delhi in (1995), Saurabh was also one of the engineers selected by
Schlumberger to work for its international services business in 1995 and gained
30
experience of working in various global locations. He graduated as a Baker Scholar
with an MBA from the Harvard Business School. He has also developed indepth
understanding of international financial markets.
FLAGSHIP IN OTHER SERVICES
31
Insurance: -
“When you hear the word Insurance, the words boring and mundane
probably enter your mind.”
When it comes to business, you are right up there. Taking all those split second
decisions, avoiding pitfalls and making sure your money works hard for you.
But don't you think the business of life requires just as much attention and
probably even more. That's we are proud to bring to you an offer exclusively for
you. As a part of our endeavor to provide you with world-class products and
services, Indiabulls gives you the opportunity to avail of the whole range of Birla
32
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e
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o
a
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e
a
l
E
s
t
a
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Indiabulls
Sunlife Insurance Products through the Indiabulls network of 1000 Relationship
Managers over 135 locations nationwide. Which means you can take care of life.
Loans: -
Personal Loan: -
“ No questions. Only Loans.”
No matter where you work, or how much you earn, we offer you the shortest route
to a loan with minimum paperwork and procedures. With Indiabulls Fast Loans,
you can avail of easy loans for a minimum of Rs.10,000 to a maximum amount of
Rs.1,00,0000.
Flexible loan tenor of up to 4 years.
Loans available from a minimum of Rs.10,000 up to a maximum of
Rs.1,00,0000.
Easy monthly repayment through equated monthly installments (EMI).
Easy documentation and quick disbursal.
Home Loan : -
Indiabulls has commenced lending of Mortgage Loans to
prospective customers under the flagship of Indiabulls Housing Finance
Ltd. Here we enable home-seekers to access finance to buy, build, rent or
improve their homes. We also provide plot loans, Loan against Residential,
Commercial and Rental Property, thereby enabling the borrower to leverage
33
the property owned to fund any legitimate needs be it Business Expansion,
Child's Education, Childs’ marriage or for holiday abroad.
Real Estate: -
Through its group companies, Indiabulls is also engaged in real estate
development. The group companies recently made winning bids for the
Jupiter and Elphinstone Mills in Mumbai in an auction carried out by the
National Textiles Corporation (NTC), a Government of India undertaking.
The company will now develop modern commercial complexes in the heart
of Mumbai - the financial capital of India. Indiabulls' foreign partner,
Farallon Capital made the first real estate related FDI investment in
Indiabulls Properties Pvt. Ltd to buy Jupiter Mills immediately after the
new FDI guidelines were introduced by the Government of India for real
estate development.
Board Of Directors: -
S NO. NAME DESIGNATION
1. Mr. Sameer Gahlaut Chairman and whole time Director
2. Mr. Shamsher Singh Director
3. Mr. Aishwariya Katoch Director
4. Mr. Kartar Singh Gulia Director
5. Mr. Gagan Banga Director
6. Mr. Saurabh K Mittal Director
7. Mr. Karan Singh Director
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8. Mr. Rajeev Rattan Whole Time Director
MAX NEW YORK LIFE INSURANCE
Max New York Life Insurance Company Ltd. is a joint venture between Max India
Limited, one of India's leading multi-business corporations and New York Life
International, the international arm of New York Life, a Fortune 100 company. The
company has positioned itself on the quality platform. In line with its vision to be
the most admired life insurance company in India, it has developed a strong
corporate governance model based on the core values of excellence, honesty,
knowledge, caring, integrity and teamwork.
Incorporated in 2000, Max New York Life (MNYL) started
commercial operation in 2001. In line with its values of financial responsibility,
Max New York Life has adopted prudent financial practices to ensure safety of
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policyholder's funds. The Company's paid up capital as on 30th April, 2009 is Rs
1782 crore. MYNL shares a market share of 5.9% in the life insurance sector.
MNYL has multi-channel distribution spread across the country. Agency
distribution is the primary channel complemented by partnership distribution, banc
assurance, alliance marketing and dedicated distribution for emerging markets. The
Company places a lot of emphasis on its selection process for agent advisors,
which comprises four stages - screening, psychometric test, career seminar and
final interview. The agent advisors are trained in-house to ensure optimal control
on quality of training. The company currently has around 92,760 agent advisors at
710 offices across 385 cities. The company also has 36 referral tie-ups with banks,
24 partnership distribution and alliance marketing relationships each. Max New
York Life has put in place a unique hub and spoke model of distribution to deepen
our rural penetration. The company has 133 offices dedicated to rural areas.
MNYL offers a suite of flexible products. It now has 43 life insurance products and
8 riders that can be customized to over 800 combinations enabling customers to
choose the policy that best fits their need. The company currently has more than
13,923 employees.
36
HOW NEW YORK LIFE ENTERED THE INDIAN MARKET:-
37
New York Life International, INC., a Fortune 100 company, decided to select
JOINT VENTURE as a medium to enter into the market of India. It has chosen
MAX INDIA LTD., one of the India’s leading multi-business corporations.
Through its wide network of highly competent wide network of highly competent
agent advisors and flexible product solutions, MYNL is creating a partnership for
life with its customers in INDIA to meet their life stage needs..
VISION
To become one of the most admired life insurance company of India.
Strong Corporate Governance Model.
MISSION
Become one of the top quartile 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.
VALUES
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Knowledge:
Knowledge leads to expertise, and our expertise is in helping people protect
themselves. Perfectly combining global expertise with local knowledge, we are
India's life insurance specialist. MNYL believes that for knowledge to be of value
it must be focused, current, tested and shared.
Caring:
MNYL is redefining the life insurance paradigm by focusing on customers first.
The service process is responsive, personalized, humane and empathetic. Every
individual who represents the company is for us our brand champion.
Honesty:
Honesty is the heart of the life insurance business. It is all about trust.
Transparency, integrity and dependability form the cornerstones of the MNYL
experience. The company ensures that everyone who represents the brand carries a
promise: we care — in word as well as deed.
Excellence:
Excellence at MNYL implies the ability to perform at a consistently high level.
Focused on the value of continuous improvement in people, processes and the
39
organization, the company strives for the highest standards of quality in every
aspect of its business.
AWARDS & ACHEIVEMENTS
MNYL Insurance felicitated with the ‘Golden Peacock Innovation Award’
for the year 2008 for Excellence in innovation in conceptualizing and
marketing Max Vijay.
MNYL is the first life insurance company in India to be awarded the IS0
9001:2000 certification.
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MNYL was among the top 25 companies to work with in India, according to
2003 Business World magazine, "Great Workplaces In India", MNYL was
ranked at the 20th position. This survey is the local version of the "Great
Places To Work" survey carried out every year in 22 countries.
Been among top five most respected private life insurance companies in
India according to a 2004 and 2006 Business World survey.
MNYL Insurance has emerged as one of the best employer in the recently
announced Business Today-Mercer-TNS Survey of 'The Best Companies to
Work For in India'. The company was ranked 7th in the survey and the
best life insurance company to work for in India.
Awarded the Gallup Great Work Place Award 2009.
CII – Exim Bank Commendation Certificate for Business Excellence – 2008 & 2009
Received ‘Best Six Sigma Project’ award at 6th CII National Six Sigma
conventions – 2009.
Outlook Money survey ranked MNYL No.1 in Slow, Medium and Quick fund categories.
Among the top five most respected insurance companies in India as per Businessworld 2004 & 2006 survey.
Won Indo-American Corporate Excellence Award for Best Indo-US company in Financial Services Category in 2006.
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Received ‘Best Six Sigma Project’ award at Sakal Six Sigma Excellence Awards – 2006.
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 New York Life bags the Asia Insurance Industry ‘Innovation of the Year’ Award 2009.
SOME OF THE INDUSTRY FIRST
First company to provide Freelook 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.
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First life insurance company in India to receive ISO 9001:2000 certification.
First life insurance company to be awarded CII-EXIM Bank commendation certificate for “Strong Commitment to Excel”.
PROJECT OBJECTIVE43
PROJECT- OBJECTIVEManagement as a profession can’t be taught merely in the four walls
of classrooms. Only theoretical knowledge is not sufficient to build
competitive managers. Practical knowledge of the business
environment is equally important. In today business world, insurance
sector is running towards its booming stage. This industry still has
many things to come up to, so many changes and opportunities will
be given by insurance industry. So I choose insurance industry for
my internship training. The main objective of the internship training
was-:
To gain insurance knowledge of this insurance industry.
To generate an awareness among the customers for Max New York Life
insurance Connections.
To contact 10 people daily, generate lead through them and convince them
to purchase the company product and make the adviser of company.
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Calling the customers and taking appointment from them to enhance our
communication skills.
To enhance our selling skills and to get real practical exposure of the outside
world.
To acquire social skills by being in constant interaction with the
professionals of the organization, other corporate and customers.
This report is shows insurance sector & how insurance is most important
part of life. And understand insurance definitions, different providers of
life insurance and comparisons. It also shows Max New York Life
Insurance’s Products.
As a Trainee Max New York Life Insurance give me very practical
knowledge about life insurance and how to working in organization,
How manage work, how to maintain relations with top level
management as well as collegaus and bottom level management. So,
this experience will helpful in future. I am pleased by taken training at
India’s one of the best insurance company.
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BODY OF THE
REPORT
46
Indiabulls is one of fastest growing company in India. They are the channel partner of Max New York Life in Insurance vertical.
TERMINOLOGY
• INSURED The policyholder - the person(s) protected in case of a loss or claim.
• INSURER The insurance company.
• PREMIUM The amount of money an insurance company charges for insurance coverage
• AGENT A licensed person or organization authorized to sell insurance by or on
behalf of an insurance company.
• Fund Value –
• Total value of units that you hold in the fund.
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• Switch of Funds
Switch is a facility available only in Unit Linked policies allowing the
Policyholder to change the investment pattern by moving from one Investment
Fund/s to another among the Investment Funds offered under the underlying
product of the Company.
• Assignment
This term refers to the process of legal transference, by which the policyholder
can pass on his interest to another person. An assignment can be made by an endorsement on the policy document or as a separate deed. Assignment can be of two types
( 1). Conditional assignment, (2). Absolute Assignment
SWOT Analysis
STRENTHS
Strong new business growth exceeding 40% you
Market increase in agency force private players .
Successful ban assurance contribution 25% of private market .
Strong growth of unit linked market at the mass affluent end .
Healthy regulatory environment .
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WEAKNESSES Life insurance penetration at 3% still largely
uninsured or underinsured population .
Private players have limited focus on mass market and lower income section , and an tier 3, semi urban and rural market.
Market growth largely investment driven, protection market still under developed.
High cost operating models unable to yield profitability in low ticker high volume business.
OPPORTUNITIES ( RETAILING )
Expand beyond proprietary brance outlets through alarge number of partner
points of presence.
Estabtish extensive distribution spreading to tier 3, semi urban and rural
location with access to the large mass and low income population.
Develop the pure market through large volume lower ticket products.
Sustainable business supported through low cost operations and service
model,
THREATS
Insurance sector is the fastest growing sector where there is lots of scope for the companies but competitors is increasing in this market.
Competitors like Birla sun life, Reliance life insurance, Aviva etc.
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TARGET/TASKS
The target is to sell 1 policy in a two week and recruit 1 advisor in a week, or 2 policy and 4 advisors in a Month, or 10 policy and 10 advisors in two Months. For this I have to meet 10 to 15 customers in a day in my own level or effort and convince them to Purchases the insurance Policy and find out the prospective clients for the company.
The Monthly target assigned by the company is as follows:
a. To sell the policy.
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b. Recruit the Relationship Manager.
MONTH POLICIES to be
soldRMs’ to recruit
Dec. 2009 5Policies 5 RMs’
Jan. 2010 5 Policies 5 RMs’
Total 10 Policies 10 RMs’
STRATEGY
Strategy is about choice, which affects outcomes. Strategies play an important
role in completion of goals. They are used to make the problem easier to
understand and solve. They guide us through the path which is both planned
and simplified. These guidelines help us to work out our goals in a prefect
manner and help us not to deviate from them. To achieve above mentioned
target successfully, it is very necessary to develop a roadmap of the
destination. Hence, my plan to achieve the target set by my company guide is
as follows:-
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Product Training:
Any person, no matter how successful he is, cannot perform well if
he/she is not aware about the products the company is offering. A well
presented deal can be cancelled at the last moment if the customer is
not satisfied by the product features or if the person cannot handle any
kind of objections raised by the customers. To overcome this problem
we were provided with a 1 week training session at the company. our
company guide provided with every information about the products the
company was offering. This helped us to have insight knowledge about
the products and it features which in turn helped us to convince the
customers to buy the product.
Field Work :
On –Field Training:-
After completing the training sessions, we were asked to apply this
knowledge on the practical field to convince the customers. This was the
most difficult part. As of now we were in our secured world and were free to
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alter things as per our wishes. But now we were placed in the true world were
we have to struggle hard to make things work according to our needs.
Field Activity-
Meeting people at offices and colleges. Meeting people at their doorsteps. Making a database of prospective investors.
LEARNING IN THE EXECUTIVE TRAINING
knowledge of Insurance sector:- I come to know about the products and working
of the insurance sector.
Understanding of the corporate culture:- Executive Training in Bharti axa life
inusrance provides me an insight about the corporate world and how to behave
with superiors and peers.
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Customer Handling and Public Relation:- -It helps me to understand about
market and kind of strategies needed to be adopted to convince a customer.
Learn selling techniques:- A good selling technique is a base of any successful
deal, in this training I have learnt how to change my approach according to the
customer’s need and wants.
Team Working Skills:- In this executive training I learnt to work efficiently in a
team. Every week I had to work under a new team leader to give maximum output
to the company.
Stress Management:- In this executive training I learnt how to handle the pressure
of chasing a target within given time frame and other work related stress.
NOMENCLATURE
Free look period: A free look period gives the client an option to review
the terms and conditions of the policy within 15 days from the date of receipt of
the policy document. Where he disagrees with the terms and conditions stated in
the policy, he has the option to return the policy, stating the reasons for objection.
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IRDA: The acronym for the Insurance Regulatory and Development Authority of
India, it is the apex body overseeing the insurance business in India. It protects the
interests of the policyholders, regulates, promotes and ensures orderly growth of
the insurance industry and for matters connected therewith.
Loyalty additions: Additional benefits (other than guaranteed additions/bonus)
paid to policyholders on maturity of certain investment-based insurance plans for
staying on through its term.
Lock-in period: The period of time for which investments made in an investment
option cannot be withdrawn.
Net asset value (NAV): The simplest measure of how a scheme is performing, it
tells how much each unit of it is worth at any point in time. A scheme’s NAV is its
net assets (the market value of the financial securities it owns minus whatever it
owes) divided by the number of units it has issued.
Policy: The legal document issued by an insurance company to a policyholder that
states the terms and conditions of an insurance contract.
Premium: The amount paid by the insured to the insurer to buy cover.
Riders: Additional covers that can be added to a life policy, for a cost.
Sum assured: The amount of cover taken under a life insurance policy, it is the
minimum amount that will be paid on death of the policyholder during the policy
term.
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Surrender value: The amount payable by the insurer to the owner of an
investment-based plan in case he opts to terminate the policy after three years (the
mandatory lock-in period) but before its maturity date. The surrender value will be
the premium paid till date minus surrender charges and any outstanding loans due.
CUSTOMER EXPECTATIONS:-
In the today era, Customer expectations are rising. Customers, faced with a
dizzying array of insurance products expect customized offerings, value, ease of
access, and personalization from insurers. Today, customers are expecting
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individual attention, responsiveness, customization and access. At the same time,
they don’t want to pay a premium for these services. High customer expectations
and lower exit barriers could lead to increased customer attrition.
To meet the customer expectations is a daunting task for today’s insurance
companies. If the customer’s expectations are met, then only he will be satisfied
and continue your services.
The company tries to utilize every moment of truth and tries to satisfy him at
maximum possible touch points.
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CUSTOMER PERCEIVED VALUE
Total Customer Benefit
Total Customer Cost
Product Benefit Monetary Cost
Time CostServices Benefit
Energy CostPersonnel Benefit
Psychological Cost
Image Benefit
CUSTOMER SATISFACTION:
Customer satisfaction refers to the extent to which customers are
happy with the products and services provided by a business. Gaining high
levels of customer satisfaction is very important to a business because satisfied
customers are most likely to be loyal and to make repeated orders and to use a
wide range of services offered by a business. Since sales are the most important
goal of any commercial enterprise, it becomes necessary to satisfy customers.
For customer satisfaction it is necessary to establish and maintain certain
important characteristics like:
a. Quality
b. Fair prices
c. Good customer handling skills
d. Efficient delivery
e. Serious consideration of consumer complaints.
Satisfaction is the feeling of pleasure or disappointment attained
from comparing a products perceived performance (outcome) in relation to his
or her expectations. If the performance falls short of expectations, the customer
is dissatisfied. If the performance matches the expectations, the customer is
satisfied. If the performance exceeds expectations, the customer is highly
satisfied or delighted.
MNYL is an ISO 9001-2001 Certified Company. Some of the benefits it
provides to its customers are as follows:
MNYL issues Policies to its customers in quick time and with maximum
accuracy.
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Fast settlement of Claims and demonstrate reliability and trust amongst
our customers
Effective touch points for the customers who are regularly working towards
resolving customers’ queries and needs.
MNYL is constantly designing products keeping in mind long term customer
benefits and responsibly fulfill the regulatory requirements.
PRODUCTS OF THE MAX NEW YORK LIFE INSURANCE
Products before new IRDA guidelines:-
SMART STEPS PLUS
LIFE PARTNER PLUS
UNIT BUILDER
CAPITAL BUILDER
Products after new IRDA guidelines (w.e.f. 1 Jan. 2010):-
SHIKSHA PLUS
FORTUNE BUILDER PLUS
UNIT BUILDER PLUS
SECURE DREAMS
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CUSTOMER DEVELOPMENT PROCESS
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Potentials
Prospects
First time customers
Repeat customers
Clients
Members
Advocates
Partners
Disqualified Prospects
Inactive or Ex-
CUSTOMER RELATIONSHIP MANAGEMENT:
CUSTOMER RELATIONSHIP MANAGEMENT is the process of carefully
managing detailed information about individual customers and all customers touch
points to maximize customer loyalty. A customer touch point is any occasion on
which a customer encounters the brand and product-from actual experience to
personal or mass communications to casual observation.
Max New York Life Insurance Company has also undertaken various steps to
strengthen its customer relationship management.
Max New York Life Insurance has announced the introduction of INTERACTIVE
VOICE RESPONSE (IVR) service in 10 different languages. The leap is in a bid to
enhance and improve max New York Life’s customer and distributor experience
by availing the customer service in their own language.
Sanjeev Mago, executive vice president, Customer Operations and Service
Delivery, Max New York Life Insurance, said, "This initiative is yet another step
towards improving customer satisfaction by enhancing their ease of resolving
pre and post policy issues. At Max New York Life, we lay emphasis in
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interacting with our customers and distributors in their choice of language."
In order to improve its customer relationship management, MNYL has
maintained internal records and marketing intelligence systems to maintain a
database of profile and contact information of the customers.
Databases, Data Warehousing and Data Mining
MNYL Insurance has organized their information:-
Customer databases Product databases Salesperson databases The most important of the above three is the customer database in
which the profile and the contact information of the customer is saved. The
customer database may even include the demographics and psychographics
(activities, interests and opinions) according to which a customized policy is
formulated for his/her needs.
“Carpet Bombing” is also being done to target the random customers
in order to spread awareness and market the policies at a large scale.
MYNL conducted a study in association with AC Nielsen, which
revealed that the customers want return and protection in an insurance policy.
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Based on this study, the company launched ‘Smart Express’ for a smooth ride
through the volatile markets.
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TRADITIONAL ORGANIZATION CHART
This is the system when managers believe the customer as the company’s
only true “Profit Centre”. It was the traditional approach and off late it was
changed to the modern approach wherein customers are given prime
importance.
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Top Management
Middle management
Frontline people
CUSTOMERS
MAX NEW YORK LIFE FOLLOWED MODERN
CUSTOMER-ORIENTED ORGANIZATION CHART
The Max New York Life culture is about:
• The customer comes first
• Do it right the first time
• Bias for result oriented action
• Financial strength and discipline
• Clarity of purpose
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CUTOMERS
Frontline people
Middle management
Top management
• International quality standards
• Inclusive meritocracy
• Learning opportunities
• Fun at work
• Commitment to published value system
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DIFFERENTIATION STRATEGIES:
Product Differentiation:
MNYL decided to straddle more on life benefits than death benefits. On the
basis of a study conducted on the category & competition they realized that the
competitors were focusing on pure protection & family protection as a benefit. So
MNYL decided to focus on the aspirational proposition – thereby differentiating
from their competitors.
Services Differentiation:
With the launch of ‘Health Family Floater Plan’ MNYL became the first and the
only company to offer benefits for congenital disorder. It also introduces some
other significant firsts and bests to the industry:
Relevant and segmented benefit for parents
Yearly increases on surgical benefits, even after claims
Guaranteed renewability till the age of 75 years
Highest number of Hospitalization Days and Daily Cash limits
Highest number of critical illness covered
Health insurance coverage for the longest duration - 10 years
No upper limit on the family size.
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Personnel differentiation:
The companies differentiate themselves by having better-trained
employees. MNYL provides 150 hours of training to their employees against the
industry average of 100 hours. The result is they have some of the best Agent
Advisors in the business. Backed by the best training and infrastructure, their
expert Agent Advisor will spend time evaluating the customers’ needs rather than
just selling. They are professionals who will thoroughly understand the customers’
needs before recommending the policy tailored to meet them. They offer the best
products with Flexibility as their cornerstone.
Re-training:
Following the stock market meltdown in 2009, a large number of MNYL
financial advisors had stopped visiting their customers, since they did not know
how to deal with their queries about the fall in the value of investment. At this
juncture, MNYL felt that the financial advisors needed a fresh perspective &
communication skills to address the needs of their customers. Thus they re-trained
& certified around 85,000 odd financial advisors.
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Today, India sits as the cusp of greatness both in its potential and in its achievements. Some
argue that it has already crossed that threshold and is destined for greatness no matter what.
MNYL believes that there are examples of this greatness all around and is proud to chronicle it
for our collective inspiration.
MNYL’s philosophy of ‘Karo Zyaada ka Iraada’ is a salute to all those who happily challenge
status quo and push the boundaries in the search and in the creation of a bigger, brighter
tomorrow.
The dream of a larger good is no longer confined to a limited few. MNYL intends to awaken
today’s India to re-look at itself, its realities and the possibilities and new ways to progress
through its new business philosophy. ‘Karo Zyaada ka Iraada’ appears at a time when people are
happier if we could articulate and then live our ambitions.
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POSITIONING:-
In order to achieve superior brand positioning, any marketer has to address three
basic questions, which are:
Who is the target group; what is the value proposition to them; is the
communication effective or not.
Positive answers to the above questions indicate that the company’s brand
positioning is successful and that the customers are receptive 2 the product.
The target groups for MNYL
1. People in the age group of 30 – 45 years
2. People in the age group 20 – 50 years
3. People in the age group 18 – 70 years
4. Health conscious people
5. Large families
6. Rural and semi urban masses
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Value propositions to the target groups (in the same order followed for target
groups)
On the basis of age demographics several children plans were there to target
the segment of people who lie within 30-45 years of age and for the
education of their children. This target groups also includes married couples
who are interested in securing the future of their children. Children's
Endowment to 18 (Par) Plan, which provides an option to buy a permanent
life insurance policy without medical underwriting. With the Stepping
Stones™ (Par) Plan, the customers are entitled to make withdrawals for any
unplanned expenses.
Various plans like 20 year endowment plan, whole life participating plan etc.
and various life plans have been designed exclusively for this target group.
For this target group, pension plans have been designed to facilitate the
customers to derive benefits post retirement.
Various plans like Life maker premium plan, Life line safety net etc. have
been designed to help customers derive benefits through health insurance
policies.
MNYL's Five Year Renewable and Convertible Term Insurance (Non-
Participating) is particularly useful as a short-term protection plan. An
important feature of this policy is that it allows the insured to convert the
policy to a regular policy during the tenure of the policy.
MNYL has adopted an all persuasive brand positioning. The new television
commercial (TVC) highlights the fact that today it is a general human tendency to
desire and aim for more as against the old mind set of being content with whatever
one has. The present trend is to dream bigger and a brand should partner that
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dream. MYNL believes that it is the age of consumerism and hence they its better
to partner with their customers in their ambitions. The creative strategy captures
that spirit. Through the TV commercial they have tried to highlight basic human
tendency of 'Desire for More'.
In addition to the TVC, MNYL have gone for the whole nine yards in terms of its
marketing activities. As a part of its online promotions, MNYL has designed a
game in the form of question and answer to not just engage better with the
customers but also add to its database. The company had also advertised on
websites.
The company had promoted itself through malls, the Delhi Metro, traffic police
stands, Mumbai railway stations and television programs such Big Boss, and Zee
TV’s Sa Re Ga Ma and also targeted the news channels.
Nearly, 60 per cent of the marketing budget was spent on mass media and the
rest 40 per cent on below-the-line (BTL) activities.
Media mix:
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MNYL had shifted its strategy from being a lot on 9 pm English
news channels to mainstream popular family programmes. They have
done a lot of digital advertising as well. They have concentrated on TV
by choice as part of their strategy.
ILLUSTRATIONS AND
ANNEXURES
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DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES
RESPONSE NO. OF RESPONDENTS SHARE (%)
Rigid plans 67 67%
Non user friendly 29 29%
Unsatisfactory services 26 26%
Non Aggressive 35 35%
Satisfactory 24 24%
Good 10 10%
Very good 0 0%
Rigid plans 35%
Non user friendly
15%
Unsatis-factory
services 14%
Non Aggressive 18%
Satisfactory 13%
Good 5%
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QUESTIONNAIRE
1. ARE YOU EMPLOYED?YES NO
If YES, only then proceed
2. DO YOU HAVE ANY INSURANCE POLICY?YES NO
3. WHICH INSURANCE POLICY DO YOU HAVE?
LIFE NON-LIFE BOTH
4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM)
a) MAX NEW YORK LIFE
b) ICICIPRUDENTIAL
c) SBI LIFE INSURANCE
d) ING VYSYA LIFE
e) RELIANCE LIFE INSURANCE
g) ANY OTHER ________( Specify)
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5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick)
a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______
(Specify)
6. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER? (RANK THEM)
a) COVER FUTURE UNCERTAINITY
b) TAX DEDUCTIONS
c) FUTURE INVESTMENT
d) ANY OTHER _________ (Specify)
7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? (RANK THEM)
a) LOW PREMIUM
b) LARGER RISK COVERANCE
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c) MONEY BACK GUARNTEE
d) REPUTATION OF COMPANY
e) EASY ACCESS TO AGENTS
f) ANY OTHER _________ (Specify)
8. YOUR MONTHLY INCOME?
a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)
9. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S SCENARIO IS NOT ESSENTIAL?
_____________________________________________________
10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?
(RANK THEM)
a) A SAVING TOOL
b) A TAX SAVING DEVICE
c) TOOL TO PROTECT FUTURE E
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11. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?
a) CUSTOMER APPROCHED INSURANCE COs
b) INSURANCE COs APPROCHED CUSTOMER
12. ARE YOU SATISFIED WITH THE POLICY?
a) SATISFIED SAVING TOOL
b) NOT SATISFIED
c) NOT RESPONDING
13. ARE YOU SATISFIED WITH THE SERVICE AGENT?
a) SATISFIED SAVING TOOL
b) NOT SATISFIED
c) NOT RESPONDING
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14 DO YOU PAY TAXES?
YES NO
15. WHERE HAVE YOU INVESTED FOR TAX SAVING?
(RANK THEM)
a) LIC
b) NSC
c) BONDS
d) PPF
e) PF
f) EPF
16.WHICH IS THE BEST FORM OF INVESTMENTS?
(RANK THEM)
a) FIXED ASSETS
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b) BANK DEPOSITS
c) JEWELLERY
d) SECURITIES, i.e. Bonds, MFs
e) SHARES
f) INSURANCE
17. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?
a) SAVING & RETURNS
b) SECURITY
c) TAX BENIFITS
18. WHAT’S THE RIGHT AGE TO BUY INSURANCE?
a) AFTER 25 Yrs
b) AFTER 35 Yrs
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c) AFTER 45 Yrs
d) ANYTIME
19.HOW WOULD YOU RATE INDIAN INSURANCE COs?
a) RIGID PLANS
b) NON-USER FRIENDLY
c) UNSATISFATORY SREVICES
d) NON-AGGRESSIVE
e) SATISFACTORY
f) GOOD
g) VERY GOOD
20. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs?
(RANK THEM)
a) A TRUSTED NAME
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b) FRIENDLY SERVICE & RESPONSIVENESS
c) GOOD PLANS
d) ACCESSIBILITY
21. ARE YOU PLANNING FOR NEW INVESTMENTS?
PLANNING NOT PLANING
22. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS?
a) YES
b) NO
c) UNCERTAIN
THANK YOU!
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NAME:_________________________
ADDRESS:______________________
______________________________
OCCUPATION:___________________
CONTACT NO.____________________
CONCLUSION
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Our exhaustive research in the field of Life Insurance threw up some intresting
trends which can be seen in the above analysis. A general impression that we
gathered during the market was the immense awareness and knowledge among
people about various companies and their insurance products. People are beginning
to look beyond LIC for their insurance needs and are willing to trust private
players with their hard earned money.
People in general have been impressioned by the marketing and advertising
campaigns of insurance companies. A high penetration of print , radio and
Television ad campaigns over the years is beginning to have it’s impact now.
Another heartning trend was in terms of people viewing insurance as a tax saving
and investment instrument as much as a protective one. A very high number of
respondents have opted for insurance for such purposes and it shows how
insurance companies have been successful to attract public money in recent times.
The general satisfaction levels among public with regards to policy and agents still
requires improvement. But therein lies the opportunity for a relative new comer
like Max New York Life Insurance Company Ltd . LIC has never been known for
prompt service or customer oriented methods and Max New York Life can build
on these factors.
BIBLIOGRAPHY
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Books & Magazines -
Marketing Management by Philip Kotler
Money Outlook
Insurance Watch
Brochures of Max New York Life
Website Reffered-
www.maxnewyorklife.com
www.indiabulls.com
www.google.com
www.bimaonline.com
www.irda.com
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THANK YOU!
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