Amit Ojt Report

8/2/2019 Amit Ojt Report

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ACKNOWLEDGEMENT

It gives me immense pleasure, having done a project on an interesting and

knowledgeable topic like Channel development at Aviva LIFE INSURANCE

This project has not only widened my horizon as far as academics are

concerned but also helped me to enlarge my knowledge bank. Marketing

Management and Human resources are not topics, which could be handled

with certain amount of casualty. It requires a deep study and hard work, which

is key to success. There are many people associated with this project without

which this project would not have been possible.

I thank my Institute who has given me an opportunity to show my skills. I also

thank all my nearer and dearer ones without whose support this project would

not been possible.

I am deeply grateful to Mr.Himanshu Sharma (Unit manager), for his ever willing

help and guidance to complete my project successfully.

I would like to thank to Mr. Somesh Gautam(Sales manager-channel

development), for his Nobel inspiration, keen interest, constant supervision and

ever willing help throughout the course of this study.

Above all I would like to thank all contacted persons of firm who took out

valuable time to answer my queries and gave me full information about

insurance industry.


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PREFACE

Indian insurance industry is emerging rapidly after year 2000. To survive in thishighly competitive scenario, managers are being pressured to improve quality,

recruit quality and skilled people and eliminate inefficiency. The collective

efforts of the employer, managers and other relative people assume relevance

in this context. And this is where human resources play important role.

Recruitment is very important in todays scenario. But still it is ignored and

considered as a secondary aspect. In case of insurance industry recruitment

only decide success or failure of company.I have made an attempt to study this aspect of Insurance industry in my project.

In this project, recruitment of insurance advisors for developing channel at Aviva

life insurance is considered. I have tried to find out how exactly recruitment is

very important for this firm as well as this industry, which are the different

strategies firm use to recruit quality people and so on. It is more qualitative rather

than a quantitative data.

To get knowledge of above question and to fulfill the requirements for myproject on Channel Development At Aviva Life insurance, I have worked in

Aviva life insurance and searched some internet sites.

Executive Summary


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I am Amit bhardwaj from the batch of 2009-2011, L.R. Institute of Management,

solan.

I did my on job training with Aviva life insurance from 2nd may 2008 to 30th

june 2008. I was assigned the task of channel development by advisor

recruitment.

Profile - a) Advisor recruitment by working as a Recruitment officer.

Reporting - I reported to Mr. Somesh Gautam, Sales Manager Channel

development who kept guiding me during the on job training as and when

required.

Team constitution - Though this was an individual project but during this

project I worked in close involvement with other interns from various b-schools

and several employees of the company.

Learning during on job Training :-


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a) Learning about the Life Insurance Industry and their importance in the

current scenario.

b) Opportunity to learn about the ups and downs in the market and its impacton the performance of various Schemes.

c) Learning about several business operations of the company.

d) Corporate Exposure during on job training made me more confident and

outgoing.

E.) On job training provided me an opportunity to interact with employees in the

company. This made me used to Corporate Environment and also helped me

hone my soft skills. Interaction with different type of people also boosted myconfidence and infused enthusiasm in me.

Achievements I have recruited 22 insurance advisors for my company.

Now these 22 advisors are asset for my company and this will definitely help my

company generate more business out of them. My work during the on job

training was appreciated a lot which was a constant source of inspiration for

me.


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1A.-About the Insurance Sector in India


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Insurance sector is an opportunity for India. This business is growing at the rate of 18-22 per cent annually. presently it covers market of RS.450 billion.

Together with banking sector it contributes about 7% to GDP. gross premium collection is about 2% of GDP. Still 80% of Indian population is without life insurance. This is an indicator that growth potential for the insurance sector is

immense.

Insurance sector contribute a lot in economic development. it provides long term fund for infrastructure development.

it is estimated that over the next ten years India would requireinvestments of the order of one trillion US dollar.

The Insurance sector, to some extent, can enable investments ininfrastructure development to sustain economic growth of the country.

There are two legislations that govern the sector-

The Insurance Act- 1938 The IRDA Act- 1999.

1B.-Historical Perspective


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in 1818 it was conceived as a means to provide forEnglish Widows. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and

non-Indian lives.

The Oriental Assurance Company was established in 1880. Till the end of nineteenth century insurance business was almost entirely

in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the LifeInsurance Companies Act of 1912 and the provident fund Act of 1912.

Several frauds during 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance

Act of 1938 that provided strict State Control over insurance business.

The insurance business grew at a faster pace after independence. The Government of India in 1956, brought together over240 private life

insurers and provident societies under one nationalized monopoly

corporation and Life Insurance Corporation (LIC) was born.

Nationalization was justified on the grounds that it would create muchneeded funds for rapid industrialization.


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1C. -Important milestones in the life insurance business in

India:

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:

245 Indian and foreign insurers and provident societies taken over by the central government

and nationalised. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution

of Rs. 5 crores from the Government of India.


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1D.-Insurance Sector Reforms

In 1993, Malhotra Committee- headed by former Finance Secretaryand RBI Governor R.N. Malhotra- was formed to evaluate the Indian

insurance industry and recommend its future direction. The Malhotra

committee was aimed at creating a more efficient and competitive

financial system suitable for the requirements of the economy keeping

in mind the structural changes currently underway and recognizing

that insurance is an important part of the overall financial system

where it was necessary to address the need for similar reforms. In 1994,

the committee submitted the report and some of the keyrecommendations included:

i) Structure: Government stake in the insurance Companies to be brought

down to 50%. Government should take over the holdings of GIC and its

subsidiaries so that these subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate.

ii) Competition: Private Companies with a minimum paid up capital of Rs.1bn

should be allowed to enter the sector. No Company should deal in both Life

and General Insurance through a single entity. Foreign companies may be

allowed to enter the industry in collaboration with the domestic companies.

Postal Life Insurance should be allowed to operate in the rural market. Only

one State Level Life Insurance Company should be allowed to operate in

each state.

iii) Regulatory Body: The Insurance Act should be changed. An Insurance

Regulatory body should be set up. Controller of Insurance- a part of the

Finance Ministry- should be made independent


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iv) Investments: Mandatory Investments of LIC Life Fund in government

securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to

hold more than 5% in any company (there current holdings to be brought

down to this level over a period of time)

v) Customer Service:LIC should pay interest on delays in payments beyond

30 days. Insurance companies must be encouraged to set up unit linked

pension plans. Computerization of operations and updating of technology to

be carried out in the insurance industry.

The committee felt the need to provide greater autonomy toinsurance companies in order to improve their performance and

enable them to act as independent companies with economic

motives. For this purpose, it had proposed setting up an independent

regulatory body- The Insurance Regulatory and Development

Authority.

Reforms in the Insurance sector were initiated with the passage of theIRDA Bill in Parliament in December 1999. The IRDA since its

incorporation as a statutory body in April 2000 has fastidiously stuck to

its schedule of framing regulations and registering the private sector

insurance companies. Since being set up as an independent statutory

body the IRDA has put in a framework of globally compatible

regulations. The other decision taken simultaneously to provide the

supporting systems to the insurance sector and in particular the life

insurance companies was the launch of the IRDA online service for

issue and renewal of licenses to agents. The approval of institutions for

imparting training to agents has also ensured that the insurance

companies would have a trained workforce of insurance agents in

place to sell their products.


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1E.-Present Scenario

The Government of India liberalized the insurance sector in March 2000with the passage of the Insurance Regulatory and Development

Authority (IRDA) Bill, lifting all entry restrictions for private players and

allowing foreign players to enter the market with some limits on direct

foreign ownership. Under the current guidelines, there is a 26 percent

equity cap for foreign partners in an insurance company. There is a

proposal to increase this limit to 49 percent.

The opening up of the sector is likely to lead to greater spread anddeepening of insurance in India and this may also include restructuring

and revitalizing of the public sector companies. Today there are 19

insurance players in India. Out of these 18 players are private and one

is public. Out of this 18 private insurance companies 15 are old and

three just got certificates of registration in May-June 2008 by IRDA.

A host of private Insurance companies operating in life segments have

started selling their insurance policies since 2001.


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Table shows some of the current market players in the life Insurance

Industry (Source IRDA).

Sr.no. name of the Company

1 Bajaj Allianz life insurance co. Ltd.

2 Birla sun life insurance co. Ltd.

3 HDFC Standard life insurance co. Ltd.

4 ICICI Prudential life insurance co. Ltd.

5 ING Vysya life insurance co. Ltd.

6 Life insurance corporation of india

7 Max new York life insurance co. Ltd.

8 SBI Life insurance co. Ltd.

9 Tata AIG Life insurance co. Ltd.

10 Reliance Life insurance co. Ltd.

11 Aviva Life insurance co. Pvt. Ltd.

12 Bharti AXA Life insurance co. Ltd.

13 Future Generali india Life insurance co. Ltd.

14 Met Life india insurance co. Pvt. Ltd.


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2A.-About Aviva Life insurance

Aviv is UKs largest and the worlds fifth largest insurance Group. It is one of the

leading providers of life and pensions products to Europe and has substantial

businesses elsewhere around the world. With a history dating back to 1696, Aviv

has a 35 million-customer base worldwide. It has more than 332 billion of assets

under management.

In India, Aviv has a long history dating back to 1834. At the time of

nationalization it was the largest foreign insurer in India in terms of the

compensation paid by the Government of India. Aviv was also the first foreign

insurance company in India to set up its representative office in 1995.

In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest

Group of companies. A professionally managed company, Dabur is the

country's leading producer of traditional healthcare products.

In accordance with the government regulations Aviva holds a 26 per cent stake

in the joint venture and the Dabur group holds the balance 74 per cent share.

With a strong sales force of over 12,000 Financial Planning Advisers (FPAs), Aviva

has initiated an innovative and differentiated sales approach to the business.

Through the Financial Health Check (FHC) Avivas sales force has been able

to establish its credibility in the market. The FHC is a free service administered by

the FPAs for a need-based analysis of the customers long-term savings and

insurance needs. Depending on the life stage and earnings of the customer, the

FHC assesses and recommends the right Insurance product for them.

Aviva pioneered the concept of Banc assurance in India, and has leveraged its

global expertise in Banc assurance successfully in India. Currently, Aviva has


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Banc assurance tie-ups with ABN Amro Bank, American Express Bank, Canara

Bank, Centurion Bank of

When Aviva entered the market, most companies were offering traditional life

products. Aviva started by offering the more modern Unit Linked and Units With

Profit products to the customers, creating a unique differentiation. Avivas

products have been designed in a manner to provide customers

2B.-Vision

To be the dominant Life, Health and Pensions player built on trust By

world- class people and service.

2C. Mission

To become one of the top quartile life Insurance companies in India.

Be a national player.

Be the brand of the first Choice.

Be the Employer of the Choice.

Become principal of choice for agents.

2D.-Values

Every member of the Avivas team is committed to 5 core values:

Integrity, Customer First, Boundary less, Ownership, and Passion. These are

the values which have become the keystones of Avivas success.


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2E.-Management team

Name Designation

TR Ramachandran Chief Executive Officer & Managing Director

Rajeev Arora Director, Finance & Actuarial

Monica Agrawal Director, Corporate Initiatives & Business

Gaurav Rajput Associate Director, Marketing

Sumit Behl Director, Business Risk & Internal Audit

Ravi Bhadani Company Secretary and Senior Vice President

Munish Sharda Director, Direct Sales Force

Rishi Piparaiya Director, Bancassurance

Sandip Mallik Director, HR

Jyoti Vaswani Chief Investment Officer & Director

Sanjeeb Kumar Appointed Actuary

Snehil Gambhir Director Operations & Business Excellence

Rajiv Sehgal Chief Information Officer & Sr, Vice President, IT

Vijayalakshmi Natarajan Senior Vice President, Operations.


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2F.-Awards and Recognition

Aviva India won a Bronze at the Effies 2010 for the Aviva Great Wall ofEducation, part of Aviva's Street to School Program. The Effies are among

the top award platforms for the advertising community in India and

worldwide. Aviva Great Wall of Education was awarded this elite

recognition for the marketing effectiveness displayed during this

campaign.

Aviva India has won a Gold at the SPIKES Asia Awards, 2010 for the 'AvivaGreat Wall of Education' which is part of the Street to School programme.

The SPIKES Awards is one the most prestigious awards for creativeadvertising across the Asia Pacific region. Aviva Great Wall of Education

was awarded this elite recognition for the category- 'Best use of Ambient

Media'.

Aviva India has won the "Corporate Social Responsibility Award" at theprestigious Asia Insurance Industry Awards 2010 for its corporate social

responsibility programme 'Street to School' for demonstrating how

corporate social responsibility can be closely and successfully tied withbusiness strategy.

Aviva Life Insurance India was selected from a number of high profilecompanies competing for the honour of receiving the award.

Aviva India has won two major awards, at the CMO Asia Awards held inSingapore Excellence in Branding and Marketing in Banking and

Financial services, and Social Marketing. Aviva India was selected for the

two prestigious awards from among more than 200 nominations from

across Asia.


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Aviva has been felicitated with the "Bronze Award for Excellence inPeople Management" by Grow Talent Company Limited and Business

world. This honour was given based on our ranking amongst the top 25

companies as per the Grate Place to Work survey in the last four years. Aviva was ranked 4th in the Best Workplaces in India study for the year

2008 by the Great Place to Work Institute. We were the only Insurance

company in the top 10 ranking that year.

Aviva India won the coveted Award for Talent Management during thenational round of Asia Pacific HRM Congress.

Aviva India was also felicitated by the HR Excellence Award by AmityBusiness School.

2G.-Achievements

First life insurance Company in India to have IS0 9001:2000certifications.

Number one private insurance company. Highest number of MDRT eligibility among private players.

2H.-PRODUCT & SERVICE

The right investment strategies won't just help you plan for a more comfortable

tomorrowwill help you get Kal par Control.

At Aviva, life insurance plans are created keeping in mind the changing needs

of you and your family. Our life insurance plans are designed to provide you with

flexible options that meet both protection and savings needs.


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We offer our customers a full range of transparent, flexible and value for money

products that include whole life (Life Long), endowment (Life Saver, Easy Life

Plus), child policy (Young Achiever) single premium (Life Bond, Life Bond Plus),

Pension (Pension Plus), Term (Life Shield), fixed term protection plan (FreedomLife Plan) and a 5 year recurring premium investment cum protection plan

(LifeBond5). Aviva products are modern and contemporary unitized products

that offer unique customer benefits like flexibility to choose cover levels,

indexation and partial withdrawals.

We also offer you a choice of investment options. You can choose between our

Unit Link Fund or our profits Fund.

The With Profits Fund guarantees that the selling price of the units will never fall.

The unit value of this fund is increased by crediting bonuses on a daily

compounding basis. The fund provides investment security to your capital.

The Unit Linked Fund is designed to provide relatively more progressive capital

growth wherein you automatically receive the benefit related to the investment

performance of the fund.

Under Unit Linked Fund, on some of our products we offer a choice of fund

options:

Protector Fund: Progressive returns on your investment by investing higher

element of

assets in debt securities, with minimum exposure to equities. The fund comprises

of debt securities in the range of 60-100%, equities in the range of 0-20% and

money market and cash in the range of 0-20%.


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Secure Fund: The investment objective of this fund is to provide progressive

return on your investment with a minimum guarantee on maturity. The fund

comprises of debt securities in the range of 50-100%, equities in the range of 0-

20% and money market and cash in the range of 0-20%.

Growth Fund: The investment objective of this fund is to provide high capital

growth by investing higher element of assets in the equity market. The fund will

comprise of debt securities in the range of 0-50%, equities in the range of 0-85%

and money market and cash in the range of 0-20%.

Balanced Fund:The investment objective of this fund is to provide capitalgrowth by availing opportunities in debt and equity markets and providing a

good balance between risk and return. The fund comprises of debt securities in

the range of 50-90%, equities in the range of 0-45% and money market and cash

in the range of 0-10%.

Aviva also offers a whole range of group insurance products and corporate

solutions. We have a dedicated team that works with corporate across thecountry.

1) EASY LIFE PLUS

Easy Life Plus is a simple, unit-linked endowment plan with the benefit of life

protection. By choosing an appropriate premium level and term, you can

match the maturity date of the plan to a specific savings need such as your

childs education, wedding or any other financial need.

Easy Life Plus also offers an extra protection against accident without requiring

you to undergo any medical examinations.


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Easy Life Plus offers a With Profits or 3 Unit Linked investment fund options, which

give you the flexibility of choosing how your money should be invested in terms

of the risk and the security of the return on the investment. You can invest 100%

of your premiums either in With Profits Fund or in any of the Unit Linked Funds. Theminimum allocation in each selected unit linked fund must be 10%.

2) YOUNG ACHIEVER

Young Achiever is a regular premium life insurance product designed to meet

the financial needs of your children- be it higher education, marriage,

establishing themselves while starting a career or a business, or any other need.

Through this policy, you save regularly to meet your children's needs, and at the

same time their financial needs are taken care of should something unfortunate

happen to you. Young Achiever can be purchased on the life of any one of the

parents with the child as the nominee.

Young Achiever offers a With Profits or 3 Unit Linked investment fund options,

which give you the flexibility of choosing how your money should be invested in

terms of the risk and the security of the return on the investment. You can invest

100% of your premiums either in With Profits Fund or in any of the Unit Linked

Funds. The minimum allocation in each selected unit linked fund must be 10%.

3) LIFE BOND 5

Life Bond 5 is an investment plan where you pay premiums only for 5 years and

get investment returns with maximum tax benefits. This unit-linked plan gives you

the flexibility that you, as a smart investor, seek both at the time of investment

and at maturity.

Life Bond 5 offers 3 Unit Linked investment fund options, which give you the

flexibility of choosing how your money should be invested in terms of the risk and

the security of the return on the investment. You can invest your premiums in any


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one fund or in a combination of funds. The minimum allocation in each selected

fund must be 10%.

4) LIFE SAVER

Life Saver is a unit linked endowment plan designed to meet your specific long-

term savings needs such as education and wedding costs for your children, with

the added reassurance of a life cover to meet those costs in the unfortunate

event of your death before the policy matures. You can take Life Saver on single

life or jointly with your spouse (first death basis).

Life Saver can be purchased on any life between 18 to 65 years. However, for

any rider cover the maximum entry age is 55 years.

Life Saver offers a With Profits or 3 Unit Linked investment fund options, which

give you the flexibility of choosing how your money should be invested in terms

of the risk and the security of the return on the investment. You can invest 100%

of your premiums either in With Profits Fund or in any of the Unit Linked Funds. The

minimum allocation in each selected unit linked fund must be 10%.

5) PENSION PLUS

Pension Plus is a tax efficient, personal pension plan that is designed to help you

earn a regular income, even after you stop working. Through this plan, you build

a fund till you retire which provides you financial security after retirement.

Pension Plus can be purchased for any life between 18 to 65 years of age. The

minimum age at maturity is 40 years and the maximum age at maturity is 70

years. You have the option of either paying regular premiums or paying a single

premium. The minimum annual premium is Rs. 6,000 for regular premium and Rs

1,00,000 for a single premium option. The minimum policy term is 5 years.


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6) FREEDOM LIFE PLAN

Freedom Life Plan is a unit-linked limited premium paying endowment plan with

guaranteed loyalty additions. This unit linked plan gives you the flexibility to

customize the plan to suit your individual needs and alter it subsequently with

your changing needs. You can take Freedom Life Plan on single life or jointly

with your spouse (first death basis).

Freedom Life Plan offers 3 Unit Linked investment fund options, which give you

the flexibility of choosing how your money should be invested in terms of the risk

and the security of the return on the investment. You can invest your premiums

in any one fund or in a combination of funds. The minimum allocation in each

selected fund must be 10%.

7) TREASURE PLUS

Treasure Plus is a savings cum protection plan that helps create wealth for your

child. Treasure Plus, brought to you by Aviva Life Insurance, is a long term

investment plan with the added advantage of an insurance cover for you with

your child as the beneficiary. Whats more, you can purchase the plan just by

giving a declaration of good health. No medical tests are required.

Treasure Plus is available with Secure Fund as the investment fund. Secure Fund

is a unit linked fund designed to provide relatively more progressive capital

growth. The money is invested in a range of assets with 0%-20% exposure in

equity, 60%-100% in debt securities and 0%-20% in money market instruments.


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3A.- ABOUT PROJECT


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The main objective of the Advisor Recruitment-Channel Development is to

recruit quality Insurance advisors (IA) for the company for providing life

Insurance solutions to the customers. IA plays a vital role in the growth of

company with respect of companys earnings as well as they create value forthe organization after achieving some milestones. IA are integral part of the

team and sales manager assigned to them help them to groom them in terms of

personality development, selling skills and handling objections of customers.

3B.-Benefits of Becoming IA for Aviva Life insurance:

3C.-Companys Expectation from IA:

Help others to realize their Financial goals. Changing life is more rewardingand Satisfying.

Rewarding Career

Countries Finest Agent Advisor Team. Maximum MDRT insurance Agents.A Successful Team

Best remuneration system in the industry.Attractive Remuneration

Be your Entrepreneur.Independence

In House training session from professional Trainers.World-Class Training

Commitment to grow your career from AA to top Management.Commitment to Career Agency

System

Easy Access to IT tools and use of Technology in order to supportstakeholders.

Infrastructure Support

Customised product and flexible option for choosing product.Full Range of Products and

Services

The Sales, Promotions and Marketing collaterals which provide you to takeyour business to new heights.

Sales and Marketing Support

Higher paid up capital of 587 crores more than the IRDA norms.Financial Strength


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Regular input activity. Follow the sales process. Achieve sales targets.

Attend training programme. Participate in weekly reviews. Follow the Avivas ethics and business standards policy.

3D.-ELIGIBILTY MODEL

From this eligibility model company judge prospective person. The company

follows unique eligibility criteria for IA selection by which company is able is to

always justify its mission. The basic objective of having an eligibility model for

recruitment is to have good retention and greater effectiveness in the delivery

of service.

3E.-Five criterias for IA selection

1. 25 plus years of age:

This age showsattainment of maturity and responsibility. People are more

consistent in this age.

2. Married:

Married people have more eager to earn money. Family pressures

increase responsibility and secondly customers are convinced more by the

stability of a married IA.

3. Staying in the same city for more than 5 years:

Person who stays more than 5 year has huge natural market which helps

him to get more business in short period.

4. Graduate:


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Graduate people have basic skills like communication skills, numerical

ability, I.P relation, convincing abilities etc. so it is easy to teach them further.

5. Household income above 2 lakhs:

It shows the financial stability of the person.

3F.-Other criteria for IA selection:

1. Financial stability:

Aviva is focuses on classes and not on masses thus they select strong agent

advisors.

2. To have a rich and active social circle:

it helps to get higher case rate and case size. Also the chances of policy lapsing

can be less and renewals can be more.

3. Greed for money:

Firm selects advisors who understand the language of commission. Because

people who want fix amount as their earnings are not suitable for this business.

4. Independent:

Aviva selects people who want to be entrepreneur. Housewives or brokers who

want flexible hours for work are prospective person for this business.

5. Excellent interpersonal skills:

Because developing and maintaining good relations can get policies. Secondly

since most of the insurance companies provide a plethora of similar products,

sales depend on the convincing ability of the IA and the rapport the IA is bale

to build. Also results in C of Is.

7. Excellent communication skills: Since IA needs to communicate about the

organization, products, career as IA, about why insurance is important, which

product will suit his requirement etc.


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3G.-Desirable Candidates

1) Housewives.

2) Employees having VRS.

3) CAs.

4) Mutual Fund Brokers.

5) NSC brokers.

6) Tax Consultants.

7) Businessman.

8) Doctors.

3H.- DEVELOPMENT STRATEGIES

Management team has developed certain strategies in order to expand

channel distribution network. These model are followed across the country

uniformly and top management feels that these rules are the building block of

Avivas success in India as well as across the world. There are 2 basic principles

that are required in order to execute these strategies such as

1) Prospecting: Identify the right person who fits in the eligibility model.

2) Selection: Select them for further plan of actions.


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3I.-RULE OF 31

Rule of 31 is associated with the daily activities which is follow to recruit quality

advisors. It says that everyday collect at least 3 names of the prospective AA

and do 1 screening every day.

3J.-Ways of Name Gathering

There are several ways for gathering names in order to follow rule of 31.

Natural Market:

A natural market consist of people to whom you know well from your

family, friend circle, relative can be a good prospect. The most admired

way for recruitment in Aviva life insurance is through natural market.

Natural market persons are easily approachable and most of the

successful recruitment in Aviva is from natural market.

Personal Observation:

It means identify the right person through observation. For e.g. a person

residing in your locality and very famous in taking initiative in social

activities can be a good prospect.

Nominator Call:

A nominator is a person who is very much influential in the market as well

as in societies. Name gathering and identification is easy in this case, but

these people are highly unapproachable. These people can be

veryproductive in giving references of the prospect. They are not

prospect by default.

Centre of Influence (CoI) Call:

A centre of influence person is people who are influential and you know

them personally. They are approached for giving references of the client.


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3K.-Flow Based approach to Channel Development

Process

YES

NO

NO

YES

Start

Name Gathering in my market 100

Short listin

Contactin

Interested?End

Initial Screening

NAT

Career Seminar & my market 100

Interested?End

Career interview

FCS

Contract with aviva life insurance

IC-33 ?Reappear

End


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NAME GATHERING IN MY MARKET 1OO

Name gathering in MY MARKET 100 consists of people whom you know from

natural market and references you get from their sources. As a management

trainee were given a task to gather 100 names. Figure shows the MY MARKET 100

format in which the database is created.

Name of the prospective Agent

Address of Contact

Age

Marital Status

Qualification

No. of years in the City

Financial Status

Profession

Annual IncomeNatural Market

Comments

SHORT LISTING

Candidates are shortlisted from the MY MARKET 100 as per the eligibility criteria

laid down by the company. Only eligible candidates are considered for the

next process.


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CONTACTING

Candidates are called either as nominator, CoI, Prospective Agents and a

meeting is fixed with them according to the convenience of both the party.

Here script plays very important role in fixing appointment with the prospect.

INITIAL SCREENING

Initial screening is taken if candidate is found eligible using 5 point model. In

intial screening, a sales manager first gives the introduction about the company.

Then several questions such as his family background, his natural market, traits

for a sales person, and his present and past experiences of his jobs are

questioned.

Every candidate is required to get at least 3 points in eligibility model the

company. The eligibility standards for IA selection are as follows. In case of score

less than 3, special Sales Manager approval is required.

NAT

Numerical Ability test is taken.

CAREER SEMINAR AND my market 100

All the prospects are required to attend career seminar at Aviva Life insurance

which provides broader aspects of growth as an Insurance Advisor.

My market 100 is a worksheet which is given to each prospect to judge his

natural market. The prospects are required to mention at least 100 contacts

from their natural market.


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CAREER INTERVIEW

My market 100 is evaluated in Career Interview. If candidates market is found

worth, he is selected to attend training and Development programme.

FCS

All the selected candidates are required to attend 50 hours (earlier it was 100

hours) training session for receiving the license from IRDA to become an

Insurance Advisor.

CONTRACT

All the successful candidates having legal license of IRDA are contracted with

Aviva Life insurance.

Advisor induction program(AIP)

The advisor induction program is carried out right after the advisor receives

his/her license. AIP is an orientation program and aims to impart product

knowledge, company knowledge and selling skills. which form the essentials for

a strong business.


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At the end I would like to conclude that private companies should try to create

awareness among people about their company.


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To introduce innovative products offering a right mix of flexibility/risk/return

depending, which will suit the requirement of the customers and should target

specific niches, which are poorly served or not served at all. Number of formalities

should reduce, as customer feels irritated with lots of formalities.

It is seen that till today a large portion of population is unaware of various

insurance plans and with the importance of insurance, these include educated

professionals also. Therefore, the Private sector insurance companies should

focus on improving awareness and the increase the understanding about

insurance plans thus increasing their scope of sale .

Aviva Life Insurance Company should lay more stress on advertisements, both in

print as well as in other media.

Opening up the sector will certainly mean new products, better packaging and

improved customer service. Both new and existing players will have to explore

new distribution and marketing channels. Potential buyers for most of this

insurance lie in the middle class. New insurers must segment the market carefully

to arrive at appropriate products and pricing. Recognizing the potential, in the

past three years, the nationalized insurers have already begun to target niches

like pensions, women or children.

4A.-SUMMARY


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Life insurance business in terms of first year premium has shown a growth of more

than 95% over the previous year and non life, or general insurance, is not far

behind either, growing at 22% during 2007-08. In this market, competitive edge

provided by product innovation can sustain only for a couple of months, sinceproducts can easily be cloned. Hence Channel development is the only

process through which an insurer can have SCA over other competitor.

Strategic approach for calling Nominators/CoI/prospect has several

advantages through which company maintains integration of system.

4B.-RECOMMENDATION

Aviva life insurance as an insurance firm has a very strong presence in India and

is rapidly expanding its operations in India. After working on this project I feel

that following are some of the ways in which the company can improve the

current market base and selection procedure for IAs, the key revenue

generating resource for the company:

Increase awareness among the general publicPeople are still not aware about the importance of the insurance so there

is need of some regular awareness camps etc. This will also help

organisation in building up customers friendly brand.

aviva must conduct seminars and presentations at all kinds of placeswhether cities or towns and focus should be on people who have large

network of references.

Highlight the core strengths of the company like oldest firm in insurancesector, highest paid up capital, etc.

Very less people know about highlights of the company.


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Firm is not well known though it is oldest firm. No one knows positive points of the company, like registered under

companies act, six sigma and so on.

Moreover presentations should be conducted at places where more andmore people are available such as educational institutes, society clubs,

hospitals etc.


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www.google.com www.irdaindia.org www.insurance.com
http://www.google.com/http://www.irdaindia.org/http://www.insurance.com/http://www.insurance.com/http://www.irdaindia.org/http://www.google.com/


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Amit Ojt Report