S T PROJECT

8/3/2019 S T PROJECT

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STUDENT DECLARATION

I hereby declare that I have undergone training at MAX NEW YORK LIFE

INSURANCE For a period of 5 weeks from . This report is being submitted in

partial fulfillment of BACHELOR OF BUSINESS ADMINISTRATION under

KUMAOUN UNIVERSITY(K.U).

This project has not been presented in any seminar or submitted elsewhere

for the award of any degree or diploma.


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ACKNOWLEDGEMENT

Thanks to almighty, with the blessing of which this cherished dream of mine led to

completion of this project with the desired out-com. This project study was a noble

experience for me and without the guidance and cooperation of concerned people

and without concentration, dedication and hard work it was not possible for me to

complete this project.

My deepest gratitude to Mr. AUSTOSH SINGH, my faculty guide for their help,

general hospitality, inspiration and all valuable guidance in various stages of

development of this project. I have great pleasure in acknowledge the help receive

from all those who favored me with it in giving the final shape to my project.


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PREFACE

The competition in the insurance sector is highly volatile in nature. Over the decade only

government undertaking company was operating in India but with the opening up of the

economy several new players like private sector & multinational insurance entered in Indian

horizon.

In the giving project I made a comparative analysis of mutual fund & life insurance among

MNC. Comparing their features & services one hand & also done a research on the interest of

investor regarding mutual fund & life insurance in MAX NEW YORK LIFE INSURANCE

LIMITED. Research design method used was descriptive research. The sampling method used

was simple random sampling. I have taken a size of 60 respondents. I first formed a structure

questionnaire to collect data & the questionnaire is filled by the person, who have one charted

insurance company & or more with any other MNC insurance company.

On the basis of filled questionnaire, coding sheet is formulated &the conclusions are drawn with

the help of graphs, pie charts.


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CONTENTS OF TABLE

Chapter -1

1.1 Introduction1.2 Objective of Study

1.3 Period of Study

1.4 Methodology

Sample Technique, Research Design, Data Collection

1.5 Scope of Study

1.6 Limitation of Study

Chapter -2

2.1 Industry Profile

2.2 Company Profile

Chapter -3

3.1 Data analysis and Interpretation

Chapter-4

4.1 Findings

4.2 Suggestions and Recommendations

4.3 Conclusion

Bibliography

Annexure


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Chapter -11.1 Introduction

1.2 Objective of Study

1.3 Period of Study

1.4 Methodology

Sample Technique, Research Design, Data Collection

1.5 Scope of Study

1.6 Limitation of Study


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1.1 INTRODUCTION

Identifying different profiles of the people and giving them a Business Opportunity to join MAX NEW YORK LIFE INSURANCE as an advisor.

A market survey was done on life insurance companies. Different questions regarding the

companies training programs for advisor, top 5 usp's, training centers etc were asked. The areas

covered up in this survey was haldwani. The report contains details of different life insurance

companies, which are in healthy competition with MAX NEWYORK life insurance.

Insurance industry is growing rapidly day-by-day. India itself has a population of 1.12billion out

of which roughly 33.2% people are insured. This clearly shows that most of the people are notinsured just because they dont know much about insurance. Most people have some common

queries about life insurance:

What is Life Insurance?

A policy that will pay a specified sum to beneficiaries upon the death of the insured.

An agreement that guarantees the payment of a stated amount of monetary benefits upon death

of the insured.

Why Insurance?

Insurance is the protection of life and assets against unforeseen circumstances. Whether it is a

general accident policy, a med claim policy or a pension policy, an insurance policy helps you to

scope with uncertainty and insecurity.


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Who can buy a life insurance policy?

Any person above 18 years of age, who is eligible to enter into a valid contract, can go for an

insurance policy. Subject to certain conditions, a policy can be taken on the life of a spouse or

children.

How is a life insurance policy useful?

Planning for the financial consequences of a premature death is an essential part of every

financial plan. Generally, the consequences are simply too large to ignore and cannot be totally

covered with your own resources. Life insurance is nothing but a contract with an insurance

company under which the insured (purchaser) pays a premium in exchange for coverage of

specified losses. Life insurance protects your family against the risk of the premature death of

you (or your spouse). Life insurance planning should consider your family's short-term needs (for

example, medical expenses) and long-term needs (for example, replacing your income).

In the course of our life we are accosted by risk-that of failing health, financial losses, accidents

and so on. Insurance is a means by which life's uncertainties are addressed in financial terms. It

offers a monetary compensation against those losses. Insurance is considered more as a hedging

mechanism rather than a true investment avenue. Life insurance, in particular is essentially

acknowledged as a mechanism that eliminates risk-substituting certainty for uncertainty

primarily by transferring risk from the insured to the insurer.


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1.2 Objectives of study

Frankly speaking, any job or the task, have the specific objective i.e. what is need and what is the

requirement of the particular work. In the same way my objective is also to learn something from

the summer internship program. It means that the training program in any reputed company give

the market knowledge of its subject matter of study.

The right choice of the company in which a student has to do the training is also the part of the

learning and what he/she wants to learn in the summer training.

In the short span since the banking sector was opened up, many banks have literally dictated the

markets evolution. Catering to all age and income segments, the bank stated out with the

traditional financing policies that were easy to understand, the idea was to entice customers used

to banking style of functioning.


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1.3 Period of the study

The period of the study consists of two months from 22 July to 31 August 2011.

1.4 Research methodology

The research methodology followed during the project is as follows

Sample Size = 65

Data Collection = Used Primary Data through Asking

Questionnaire

Research Design = Descriptive Research Design

Sampling Technique = Non Probability Sampling is Used.

Types of Questions = Multiple-choice and dichotomous questions are

Used in the questionnaire.


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1.5 Scope Of The Study

The scope of the project is not wide enough as it is totally based on secondary data ,still it can be used :

1. As a medium of collecting information about the concept like Market mechanism.

2. It can be used as a guideline and can be helpful in preparation of some other project.

3. It presents data and information which is reliable and can be used for further study

1.5 Limitations Of The Study

1. It become bit difficult to complete the project as group members are new and

Having less experience

2. Many times improper internet facilities created problem.

3. There was less coordination between group members in completion of the project.


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Chapter -2

2.1 Industry Profile

2.2 Company Profile


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2.1 INSURANCE INDUSTRY PROFILE

Insurance Industry over the world section covers the introductory part of the insurance

business in the countries, insurance types used in the country, the insurance process in the

country, insurance business as the percentage of the total GDP and lastly the list of the

insurance companies operating in the country. Besides the insurance industry in the

countries of the world, the special section on the insurance in the states of the United States

gives a clear-cut knowledge upon the states. Introduction to the insurance industry,

insurance business in the state, and different types of insurances, insurance premiums,

insurance process and the major players in the insurance business in the states are being

covered in this section

2.1.1 INDIAN INSURANCE INDUSTRY:

The insurance sector in India has a full circle from being an open competitive market to

nationalization and back to a liberalized market again. Tracing the developments in the

Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190

years. The business of life insurance in India in its existing form started in India in the year

1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

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


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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 nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a

capital contribution of Rs. 5crores from the Government of India. The General insurance

business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the

first general insurance company established in the year 1850 in Calcutta by the British.

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 nationalized the general

insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companys 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.

The end of the year 2000 marks a significant change and growth of 'India Insurance'

industry scenario. Monopoly of Public Sector Insurance company marks an end and


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Private companies makes inroad. Foreign companies, both Life and General flocked,

collaborated and helped astronomical growth of 'Insurance Industry in India'.

'India Insurance' growth was long overdue. Within 1st 12 months of liberation of 'Indian

Insurance Industry' 10 licenses for selling life insurance products and 6 licenses for

selling non-life products were issued to private companies. The Public sector giant LIC

started losing its market share at the cost of stupendous growth of private players. Now

'India Insurance' industry has more than a dozen private life insurance players and 9

private general insurance companies. Aggressive and penetrative marketing strategy

coupled with wide product bandwidth was an instant success among the ignorant masses.

Most of the private companies registered more than 100% growth till then and are still

continuing with such monstrous growth figures. Although, 'Insurance in India' is not

regarded as a basic need but it is getting popular among semi urban to rural masses. Toprank private companies like MAX NewYork life, ICICI Prudential Life, Tata AIG, and

Bajaj Allianz etc are aggressively researching and innovating products for huge untapped

rural 'India Insurance' market. Collaboration with micro finance companies, post offices,

rural banks and village management authorities for selling insurance is doing wonders.

Life insurance products cover risk for the insurer against eventualities like death or

disability. A non-life insurance product covers risks against natural calamities, burglary,

etc. They are not as popular as life products in the ' Insurance India's' portfolio. Until very

recently it had only corporate buyers, but with natural disasters like, earth quakes,

tsunamis, storms and floods becoming more frequent and damaging there has been a

sudden spurt in sales of general insurance amongst individuals. Consumerism of life style

goods and modern amenities has also contributed to its growth. With more awareness and

wide bandwidth of insurance product portfolio the growth for 'India Insurance' story will

only get more competitive and more affordable to all sections of Indian society.

2.2 COMPANY PROFILE


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Max New York Life Insurance

Max New York Life Insurance

Type Private

Industry Financial Services

Founded 2000

Founder(s) Analjit Singh

Headquarters New Delhi , India

Number of

locations

674 offices (2010), 139 offices dedicated

to rural business (2010)

Area served India

Key peopleAnaljit Singh Executive Chairman , Rajesh Sud

Chief executive officer and Managing director

Products

Individual Insurance (25 products and 8

riders/options) and Group Insurance (6

products and 7 riders/option

s)

Employees11,666 (2010), 69,778 Agent Advisors

(2010)
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Financial_Serviceshttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Executive_Chairmanhttp://en.wikipedia.org/wiki/Executive_Chairmanhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Managing_directorhttp://en.wikipedia.org/wiki/Managing_directorhttp://en.wikipedia.org/wiki/File:Max-New-York-Life-Logo.jpghttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Financial_Serviceshttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Executive_Chairmanhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Managing_directorhttp://en.wikipedia.org/wiki/Types_of_business_entity


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Website http://www.maxnewyorklife.com

Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited. Oneof India's leading multi-business corporations and New York Life International, the internationalarm of New York Life, a Fortune 100 company . The company has positioned itself on thequality platform.

Products

Max New York Life - Life Plan

Max New York Life Insurance offers a suite of flexible products. It now has 25 individual lifeand health insurance products and 8 riders enabling customers to choose the policy that best fitstheir need. Besides this, the company offers 6 products and 7 riders in group insurance business.

Distribution
http://www.maxnewyorklife.com/http://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Fortune_100http://en.wikipedia.org/wiki/Fortune_100http://en.wikipedia.org/w/index.php?title=Max_New_York_Life_-_Life_Plan&action=edit&redlink=1http://en.wikipedia.org/wiki/File:MNYl_Life_Plans.pnghttp://www.maxnewyorklife.com/http://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Fortune_100http://en.wikipedia.org/w/index.php?title=Max_New_York_Life_-_Life_Plan&action=edit&redlink=1


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Max New York Life - Office Networks

Max New York Life Insurance has multi-channel distribution spread across the country. Agency

distribution is the primary channel complemented by partnership distribution, bancassurance,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 toensure optimal control on quality of training. The company currently has more than 71,000 agentadvisors at 676 offices across 389 cities. The company also has 50 tie-ups with banks, 30

partnership distribution relationships Max New York Life has put in place a unique hub andspoke model of distribution to deepen our rural penetration. This is the first time such a modelhas been put in place for rural marketing of insurance. The company has 139 offices dedicated torural areas.

Training

Max New York Life - Training Programme

Max New York Life Insurance invests significantly in its training programme and each agent istrained for around 100 hours as opposed to the mandatory 50 hours stipulated by the IRDA

before beginning to sell in the marketplace. Training is a continuous process for agents at Max New York Life and ensures development of skills and knowledge through a structured programme spread over 400 hours in two years. This focus on continuous quality training hasresulted in the company having amongst the highest agent pass rate in IRDA examinations andthe agents have the highest productivity among private life insurers. The company currently hasaround 10500 employees. 193 agent advisors have qualified for the Million Dollar Round Table(MDRT) membership in 2009. MDRT is an exclusive congregation of the worlds top selling
http://en.wikipedia.org/w/index.php?title=Max_New_York_Life_-_Office_Networks&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Max_New_York_Life_-_Training_Programme&action=edit&redlink=1http://en.wikipedia.org/wiki/File:MNYL_-_Training_Programme_.pnghttp://en.wikipedia.org/wiki/File:MNYL_-_Training_Programme_.pnghttp://en.wikipedia.org/wiki/File:MNYL_-_Office_Networks.pnghttp://en.wikipedia.org/wiki/File:MNYL_-_Office_Networks.pnghttp://en.wikipedia.org/w/index.php?title=Max_New_York_Life_-_Office_Networks&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Max_New_York_Life_-_Training_Programme&action=edit&redlink=1


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insurance agents and is internationally recognized as the standard of excellence in the lifeinsurance business.

Company Vision

To be the most admired life insurance company in India .

Awards and Recognitions

Max New York Life - Awards and Recognitions

The company has received recognition by winning awards such as:

1. Awarded the Asia Insurance Industry Innovation of the Year Award 2009

2. Among the top 25 companies to work for in India, according to Businessworld 2003 GreatWorkplaces of India

3. Ranked 7th in BT-Mercer-TNS Best Companies to Work For Survey 2008

4. Among the top five most respected insurance companies in India as per Businessworld 2004 &2006 survey

5. Won Indo-American Corporate Excellence Award for Best Indo-US company in FinancialServices Category in 2006

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

7. Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by AsiaInsurance Review

8. Golden Peacock Award for Excellence in Product Innovation for Max Vijay

9. CIO 100 Technology Award 2008
http://en.wikipedia.org/w/index.php?title=Max_New_York_Life_-_Awards_and_Recognitions&action=edit&redlink=1http://en.wikipedia.org/wiki/File:MNYL_-_Awards_and_Recognitions.pnghttp://en.wikipedia.org/wiki/File:MNYL_-_Awards_and_Recognitions.pnghttp://en.wikipedia.org/w/index.php?title=Max_New_York_Life_-_Awards_and_Recognitions&action=edit&redlink=1


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10. CII Exim Bank Commendation Certificate for Strong Commitment to Excel for the year 2008

11. Awarded the Gallup Great Work Place Award 2009.

Although for the last 50 years LIC has been the only company to cater the consumer needs in theinsurance sector but in the past 5 years 21 insurance companies have emerged in this scenario

Max New York Life

Birla Sun Life

Bajaj Allianz

ICICI Prudential Life

Met Life

ING Vyasa

Om Kotak Mahindra

Tata AIG

Aviva

HDFC Standard Life

SBI Life

Iffko-tokio

Reliance life

Bharti

Pnb life

New players need to recognize the limitations of their rival and decide upon the right mix of

distribution channels in their business.


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PRODUCTS POLICIES

MAX NEW YORK LIFE INSURANCE CO. has a wide array of insurance plans that have beendesigned with the philosophy that different individuals are bound to have differing insuranceneeds.

The ideal insurance plan is one that addresses the exact insurance needs of the individual thatwill depend on the age and life stage of the individual apart from a host of other factors.

Life Insurance Plans:

Under Life insurance plans, MAX NEW YORK LIFE INSURANCE CO. offers plans under the

following major

Categories:

Education Insurance Plans

Wealth Creation Plans

Premium Guarantee plans

Protection Plans

Retirement Solutions:

The primary objective of a retirement plan is to help you provide for your financial needs in your

post retirement years.

ForeverLife

LifeTime Super Pension

LifeLink Super Pension

Health Product Suite:


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Under Health Product Suite, MAX NEW YORK LIFE INSURANCE CO.offers plans under the

following major categories:

HealthAssure

HealthAssure Plus

Hospital Care

Cancer Care

Cancer Care Plus

Diabetes Care

Diabetes Care Plus


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INTRODUCTION TO CHANNEL DEVELOPMENT AND RECRUITMENT

Who is an insurance advisor?

An agent is the representative of an insurance company who sells different policies or product toits clients.

Another term used for insurance agents is advisors ; MAX NEW YORK LIFE INSURANCE

CO. Ltd introduced this term.

Today in life insurance companies advisors are known to be the backbone of the whole system.

Advisors/agents do not work on monthly payroll basis; they receive a certain commission on the

policies they sell to the clients.

The eligibility required to become an advisor/agent is that he/she should be 12 th pass to operate in

urban area and 10 th pass for rural areas. Before a person becomes an advisor/agent he/she has to

undergo 100hrs training according to IRDA norms, which is compulsory.

A person who wants to be an advisor has first to fill a recruitment form and has to pay a fee of

Rs. 500/- in favor of MAX NEW YORK LIFE INSURANCE CO . Then, he has to pass a test,

which is compiled by IRDA. After he gets through that test he is awarded a license and then his

training starts in the company regarding the insurance business. MAX NEW YORK LIFE

INSURANCE CO. provides this training in 3 modes as per the suitability of the advisors viz: -

1) Classroom training: - it is a Full Time Training with a period of 17 days regular between9 am to 5pm at the training centers allotted to the advisor.

2) Online training: - it is another mode of training where the company provides CDS and

books to the advisor for his own study.

3) Classroom training: - it is a Part Time Training with a period of 36 days.


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Advisor Role.

To provide ongoing financial advice for his/her clients:

Identify future clients

Making appointments

Conduct financial review meetings with prospects/clients.

Close sales

Get referrals

Provide service to clients.

Follows internal sales and reporting system.

Working Environment of an advisor/agent.

To be a part of world-class sales team.

Work from your own office or residence.

Work full time or part time (an advisor can work part time by undergoing only 50hrs

of training and 100hrs training is for full time advisors.)

Earn Commission, Bonus & Incentives.

No upper limits on earnings.

Flexible career.

Opportunities for an Advisor/agent.

No startup capital required.

Flexible working environment.

Be your own boss.

Unlimited earning potential.

To be a part of a world-class team.


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Commission Structure.

Different products will have different commission structures.

For example: Single Premium products will have a commission of 2%.

Renewal Commission is paid at the following rates:

2nd yr: 7.5% 3rd yr: 7.5% 4th yr: 5% 5th yr: 5% onwards


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Payments & benefits-commission Structure for advisors/agents.

Year 1 Year 2 Year 3Number of Policies Sold 50 75 100Average Premium Rs. 10000 10000 10000Total Premium Earned Rs. 500000 750000 1000000Commission @ 25% 125000 187500 250000Bonus @ 40% of Commission 50000 75000 100000Earnings from New Business Rs. 175000 262500 350000

Commission on Renewal [email protected]% 37500 56250For year 2, 3, and 5% after that 37500Earnings from renewal business Rs. 37500 93750Total Earnings Rs. 175000 300000 443750


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Most preferred profiles to recruit as Advisors/agents.

Housewives

Income Tax Consultant Chartered Accountant

Sales Personnels working in

Automobile Dealership

Credit Card Co.

Telecom

Mutual Fund

DSAs M Rs

Doctors

Teachers

VRS Holders

Advisors of other insurance companies

Post Office Agents

Business Men

Accountants OI in an organization


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How does an advisor/agent work.

Firstly an advisor/agent has to make a list of 100 people that he/she knows.

Then the Advisor/agent makes a call to these clients and tries to fix an appointment.

When an appointment is fixed the advisor/agent meets the customer & tries to sell the

product.

After that the advisor/agent asks for the reference of maximum number of people from

the client.

The reference is asked in context to make future calls and the whole procedure is repeated

again.


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Chapter -3

3.1 Data analysis and Interpretation


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INSURANCE ADVISOR SURVEY

GENDER OF THE RESPONDENT

Table 1

Frequency PercentValid

PercentCumulative

Percent

Valid Female 15 23.1 23.1 23.1

Male 50 76.9 76.9 100.0

Total 65 100.0 100.0

23.1

76.9

femalemale

gender of the respondent


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INFERENCE

As we can see from the figure itself that there is a sex ratio difference between males and

females, which is 3:1 in the insurance industry. It is mainly because advisors job is demanding

in terms of rigorous fieldwork and hence women finds difficult to cope up with it.

MARITAL STATUS OF THE RESPONDENT

T able 2


PercentCumulative

Percent

Valid Married 49 75.4 75.4 75.4

Unmarried 16 24.6 24.6 100.0

Total 65 100.0 100.0

75.4

24.6

married

unmarried

marital status of the respondent


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INFERENCEMore married people work, as advisors and company prefer to employ them in comparison tounmarried ones because being family people they tend to take their work more seriously.Because generally a laid back attitude has been observed in the unmarried people.

EDUCATIONAL QUALIFICATION OF THE RESPONDENT

Table 3

Frequency Percent Valid Percent

Cumulative

PercentValid Inter 5 7.7 7.7 7.7

Graduate 40 61.5 61.5 69.2

Professional 20 30.8 30.8 100.0

Total 65 100.0 100.0


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7.7

61.5

30.8

inter

graduate

professional

educational qualification of the respondent

INFERENCEAmong insurance advisors, it has been observed that 61.5% of them are graduates in comparisonto professionals like CAs or MBAs who are just 30.8%. While intermediate pass people justmake 7.7% of the whole lot.


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MODE OF TRAINING BY IRDA UNDERGONE BY RESPONDENT

Table 4

64.6

18.5

16.9

classroomonline

none

mode of training by IRDA undergone by respondent

INFERENCE


PercentCumulative

Percent

Valid Classroom 42 64.6 64.6 64.6

Online 12 18.5 18.5 83.1

None 11 16.9 16.9 100.0

Total 65 100.0 100.0


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Insurance companies provide training in three modes classroom training, online training and part time training. We find out that 64.6% of the respondents had preferred to take classroomtraining as according to them it gives a better hang of the insurance business operations since youare one on one with the training manager and hence you can ask any queries then and there only.

EXPERIENCE IN THE FIELD OF THE RESPONDENT

Table 5


PercentCumulative

Percent

Valid 0 to 6months

2 3.1 3.1 3.1

6 to 12months

7 10.8 10.8 13.8

More than1 year

56 86.2 86.2 100.0

Total 65 100.0 100.0

0 to 6 months 6 to 12 months more than 1 year

0

20

40

60

80

100

Y A x

i s

experience in the field of the respondent

INFERENCE86.2% of the total respondents were found to be well established in this field since they have

been working for over one year and majority for the last 10 15 yrs.


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CUSTOMER SIZE PER MONTH OF THE RESPONDENT

Table 6


PercentCumulative

Percent

Valid 1 to 5 11 16.9 16.9 16.9

5 to 10 6 9.2 9.2 26.2

Morethan 10

48 73.8 73.8 100.0

Total 65 100.0 100.0

1 to 5 5 to 10 more than 10

0

10

20

30

40

50

F r e q u e n c y

customer size per month of the respondent

INFERENCEOn an average an insurance advisor deals with more than 100 customers in a month and out of them he converts 80% of the calls i.e. he sells policies to them. 73.8% of the respondents had acustomer base of more than 10 which was the minimum figured option included in our


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questionnaire. And these were the advisors who had been in this field for the last 5 to 8 years or more than that.

CONTACTING THE CUSTOMER BY THE RESPONDENT

Table 7


PercentCumulative

Percent

Valid Personal meeting& telephone

11 13.8 13.8 13.8

Telephone &references

10 15.4 15.4 29.2

All 46 70.8 70.8 100.0

Total 65 100.0 100.0

9

10

46

personal meeting& telephonetelephone &referencesall

contacting the customer by the respondent

INFERENCE


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When respondents were asked that what are the ways they use for contacting the clientele basethey are having then 70.8% of them named telephone calls, personal meetings and references asthe major means of keeping in touch with their customers while only 15.4% named telephonecalls and references as their sources.

FREQUENCY OF VISITING THE CUSTOMER BY THE RESPONDENT

Table 8


PercentCumulative

Percent

Valid Once a month 10 15.4 15.4 15.4

Twice a month 49 75.4 75.4 90.8

More than that 6 9.2 9.2 100.0

Total 65 100.0 100.0


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once a month twice a month more than that

0

10

20

30

40

50

F r e q u e n c y

frequency of visiting the customer by the respondent

INFERENCE

75.4% of the advisors were find to visit their customers almost twice a month for various purposes like updating the customers for new policies and products company is introducing etc.

and only 15.4% visited their clients once a month .

ANNNUAL PRODUCTIVITY OF THE RESPONDENT

Table 9

Frequency Percent Valid Cumulative


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Percent Percent

Valid Below Rs.50,000

4 6.2 6.2 6.2

Rs. 50,000 --1,00,000 15 23.1 23.1 29.2

Above Rs.1,00,000

46 70.8 70.8 100.0

Total 65 100.0 100.0

belowRs. 50,000 Rs. 50,000-- 1,00,000 aboveRs. 1,00,000

0

10

20

30

40

50

F r e q u e n c y

annnual productivityof therespondent

INFERENCE

The commission earned by the advisors on the policy they sell to their customers is called the premium or the productivity. 70.8% of them had an annual productivity of more than 1 lac due tothe large amount of business they gained via insurance only while 23.1% were earning between

50,000 to 1,00,000 because either they were new to this business or they were not able to devotemuch time to this field.


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SOURCE OF INFORMATION OF THE CUSTOMER

Table 10


PercentCumulative

Percent

Valid Newspapers 15 23.1 23.1 23.1

Television andradio

14 21.5 21.5 44.6

Relatives/friends 24 36.9 36.9 81.5

Other sources 12 18.5 18.5 100.0

Total 65 100.0 100.0


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newspapers televisionandradio relatives/friends other sources

0

5

10

15

20

25

F r e q u e n c y

source of informationof the customer

INFERENCEAs per the point of view of the 36.9%advisors, the customers usually get to know about the

policies and products of any insurance company via their relatives or friends while 23.1%advisors gave the credit to the advertising in the newspapers as the source of information to the

people. TV and Radio had 21.5% of the advisors favoring them.

PURPOSE OF GETTING INSURANCE

Table 11


PercentCumulative

Percent

Valid Protection 9 13.8 13.8 13.8

Savings 10 15.4 15.4 29.2

Child future 9 13.8 13.8 43.1

Retirement 13 20.0 20.0 63.1


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Investment 11 16.9 16.9 80.0

Tax saving 13 20.0 20.0 100.0

Total 65 100.0 100.0

13.85

15.38

13.85

20

16.92

20

protectionsavings

child futureretirementinvestmenttax saving

purpose of getting an insurance

INFERENCE

20% of the advisors felt that retirement and tax saving are the main purpose of the people for getting an insurance done. While 13.8% felt that child future and protection were the causes for the people to get an insurance done.16.9% favored investment as the reason and 15.4% voted for savings as one of the cause for getting insurance.


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NEAREST COMPETITOR OF THE COMPANY WITH WHICH

RESPONDENT IS ASSOCIATED

Table 12


PercentCumulative

Percent

Valid LIC 46 70.8 70.8 70.8

Max Newyork

13 20.0 20.0 90.8

OTHERS 6 9.2 9.2 100.0

Total 65 100.0 100.0

INFERENCE

LIC MAX NEWYORK OTHERS

0

20

40

60

80

P e r c e n t

nearest competitor of the company with which respondent isassociated


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LIC is one generic brand, which no one can beat, and hence the biggest competitor of anyinsurance company.70.8% of the respondents had this viewpoint while only 20% felt that MAX

NEW YORK LIFE INSURANCE CO is the next big emerging competitor after LIC of course.

ANY OTHER AGENT IN THE FAMILY OF RESPONDENT

Table 13


PercentCumulative

Percent

Valid Yes 13 20.0 20.0 20.0

No 52 80.0 80.0 100.0

Total 65 100.0 100.0

20

80

yes

no

any other agent in the family of respondent


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INFERENCE

Only 20% of the total advisors surveyed had some other family member also as an agent alongwith them and 80% of the advisors were the only one in their family who were into the insurance

business.

GENERAL MASS SURVEY

GENDER OF THE RESPONDENT

Table 1


PercentCumulative

Percent

Valid Male 42 62.7 62.7 62.7

Female 25 37.3 37.3 100.0

Total 67 100.0 100.0


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62.7

37.3

malefemale

Gender Of The Respondent

INFERENCE

As the figures speak for themselves, total respondents whom we surveyed 62.7% were maleswhile rest were females (37.3%).


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MARITAL STATUS OF THE RESPONDENT

Table 2


PercentCumulative

Percent

Valid Married 32 47.8 47.8 47.8

Unmarried 35 52.2 52.2 100.0

Total 67 100.0 100.0

47.7652.24

married

unmarried

Marital Status Of The Respondent


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INFERENCE

As the figure show that 52.24% were married while 47.76% were unmarried. In a way, it helpedus because while prospecting the people for making them the advisors we prefer those who aremarried.


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EDUCATIONAL QUALIFICATION OF THE RESPONDENT

Table 3


PercentCumulative

Percent

Valid Any ProfessionalDegree

7 10.4 10.4 10.4

Post Graduate 42 62.7 62.7 73.1

Graduate 9 13.4 13.4 86.6

Undergraduate/ XII

Pass9 13.4 13.4 100.0

Total 67 100.0 100.0

10.4

62.7

13.4

13.4

any peofessionaldegreepost graduate

graduate

undergraduate/ XIIpass

Educational Qualification Of The Respondent


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INFERENCE

62.7% of the respondents were found to be post graduates and next came under graduates andgraduates with 13.4%. Only 10.4% were found to be professionals like CAs or MBAs.


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OCCUPATIONAL BACKGROUND OF THE RESPONDENT

Table 4


PercentCumulative

Percent

Valid Govt/ StateServices

21 31.3 31.3 31.3

Private Job 33 49.3 49.3 80.6

Professional 8 11.9 11.9 92.5

Others 5 7.5 7.5 100.0

Total 67 100.0 100.0

31.3

49.3

11.9

7.5

Govt/ StateServicesPrivate JobProfessionalothers

Occupatonal Background Of The Respondent


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50.7

28.4

20.9

5 to 8 lacs3 to 5 lacs

1 to 3 lacs

Annual Household Income

INFERENCE

Almost 50.7% were found to earn between 5 to 8 lacs. Those people who are earning up to onelakh are avoidable profile for tapping the insurance advisors. We were supposed to look for

people who fell in an average income group of earnings between3 to 5 lakh. Even people whohad income of 8 lakh were to be ignored because it was difficult to entice them into the insurance

business.


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OPTION CHOSEN BY THE RESPONDENT TO MAKE EXTRA INCOME

Table 6


PercentCumulative

Percent

Valid MLM 8 11.9 11.9 11.9

MUTUAL FUNDAGENT/INSURANCE

AGENT

23 34.3 34.3 46.3

TRADING OFSTOCK

23 34.3 34.3 80.6

INVESTMENT INPROPERTY

13 19.4 19.4 100.0

Total 67 100.0 100.0

11.9

34.3

34.3

19.4

MLMMUTUAL FUNDAGENT/INSURANCEAGENTTRADINGOFSTOCKINVESTMENT INPROPERTY

Option Chosen By The Respondent To Make Extra Income

INFERENCE


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34.3% of the respondents wanted to earn that extra income by means of the trading of the stock or being an insurance advisor while 19.4% preferred investing in the property.

BEST INSURANCE COMPANY AS RATED BY THE RESPONDENT

Table 7


PercentCumulative

Percent

Valid LIC 46 68.7 68.7 68.7

MAX NEWYORK

15 22.4 22.4 91.0

OTHER 6 9.0 9.0 100.0

Total 67 100.0 100.0


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INFERENCE

When the respondents were asked to give a name of insurance company, which they found bestthen one could easily see the impact of the LIC in life of a common man since 68.7% instantlytook the name of LIC only. MAX NEW YORK LIFE INSURANCE CO stood second with22.4% people recalling its brand name.

68.7

22.4

9

LIC

MAX NEW

YORKother

Best Insurance Company As Rated By The Respondent


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INTEREST OF THE RESPONDENT IN JOINING MAX NEW YORK LIFEINSURANCE CO.

Table 8


PercentCumulative

Percent

Valid CERTAINLY 29 43.3 43.3 43.3

PROBABLY 26 38.8 38.8 82.1

DEFINITELY

NOT12 17.9 17.9 100.0

Total 67 100.0 100.0

43.3

38.8

17.9

CERTAINLY

PROBABLYDEFINITELY NOT

Interest Of The Respondent In Joining MAX NEWYORK


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INFERENCE

If given a choice to join MAX NEW YORK LIFE INSURANCE CO. as its advisor, almost43.3% of the respondents said that they would certainly be interested while only 38.8% said thatthey would think over it because as per them their decision depended on the money they will begetting from prudential in comparison to other insurance companies.

Interest of The Respondent In Getting High Returns

Table 9


PercentCumulative

Percent

Valid Yes 58 86.6 86.6 86.6

No 9 13.4 13.4 100.0

Total 67 100.0 100.0


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86.6

13.4

yes

no

Interest Of The Respondent In Getting High Returns

INFERENCE

86.6% of the total respondents said that they would definitely like to join a business where theywill be rewarded with high returns without actually spending a single penny from their pocket.While 13.4% said they are not interested since as per them there is no such business where youdont have to invest any thing.


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METHODOLOGY USED TO RECRUIT ADVISOR

The basic aim of the company in providing us with this assignment was to find out the peoples

perception of their brand in the market and via this increasing their advisor base by encasing ontheir brand name.

1) Hence, our sales pitch in recruiting the good profile advisor was based on:

Money:

For those who are needy, greedy and speedy

Excellent back end support, attractive payments and benefits and

Extensive training for that edge over competitionReward and Recognition

For those who want to be recognized and honored

Several programs including foreign trips, seminars etc.

Selected club memberships like presidents club, MAX NEW YORK

Pru Star Club, MDRT club etc.

Achievements rewarded with trophies and certificates as well with Point rewards to

give you a flying start.

Carrier Prospects

For people who want to climb the success ladder fast.

Programs like PINNACLE, AGENCY CHAMPION and

TIGER TEAM has been devised.


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This whole strategy was based on the MASLOW s THEORY OF NEEDS.

2) Then, instead of going personally and meeting these already well-established Advisors,

we tried the concept of holding BOP (Business Opportunity Presentation).

For this we drafted an invitation, which was a gimmick so as to entice these advisors into

coming to our own office, and it was based on the pretext of ONE MILION POLICY

CELEBRATIONS, the target that MAX NEW YORK has just achieved.

And result was good in the sense that we were able to convert 5 to 10 advisors for our

company then and there only.

3) Then, we targeted high profile people like CA s or MBAs or govt. people.

For that, we drafted a letter in which we just gave them a hang of what our proposal was for

them (for recruiting them as our advisors) and asked them to contact us themselves if they are

interested.

We got at least 10-15 calls of people who were interested and wanted to become our advisors.

Meetings were held with them and they were converted.

The BOP letter and then invitation for the BOP i.e. Business Opportunity Presentation has beenattached at the end in the annexure.


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SWOT ANALYSIS

Strengths:

Vast untapped market

In a country of 1 billion people there is a huge potential market for life insurance products. InIndia the penetration of the insurance sector in the rural and semi-urban areas is low. There isa market of 900 million for life insurance and 200 million for householders insurance policy.In addition to this the affluent section can be tapped for Overseas Mediclaim and TravelInsurance policies.

Huge pool of skilled professionals

Whether it is banks or insurance companies there is no dearth of skilled professionals in Indiato carry out a successful banc assurance venture.

Weakness:

Lack of networking among bank branches

In spite of growing emphasis on total branch mechanization (TBM) and full computerizationof bank branches, the rural and semi-urban banks have still to see information technology asan enabler. Complete integration of branch network involves huge investments for creating

IT and communication infrastructure.

Low savings rate

Though we have a huge market for insurance policies, the middle class who constitutes the bulk of this market is today burdened under inflationary pressures. The secret lies ininculcating savings habit but considering the amount of surplus funds available with themiddle class for investing in future security, the ability to save is very nominal


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Opportunities:

Data mining

Banks have a huge customer database which has to be properly leveraged. Target segments

should be identified and tapped.

Wide distribution networks of banks provides a great opportunity to sell insurance products through banks Another potential area of growth of banc assurance is exploiting the corporate customersand tying up for insurance of the employees of corporate clients

Threats:

Human Resource Challenges

Success in bancassurance venture requires a change in mindset. Though we have a largetalent pool, the inability to sell complex insurance products on the part of bank professionalsand their reluctance to learn can be severe setback. There has to be a change in the thinking,approach and work culture.

Non-response from the target groups can also pose a challenge as it happened in the USAin 1980s


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FUTURE GROWTH PROSPECTS OF

COMPANY:

IN the total market share, LIC has reduced its share from 91% to 70%. This means that a private

insurance player has got more margins in their hand which has increased from 9% to 30% in last

2years only.

In the private market share, MAX NEW YORK LIFE INSURANCE CO leads with 39% of the

market share in its hand followed by Bajaj Allianz with 18% shares and then comes Birla Sun

Life with 15% market shares.

MAX NEW YORK LIFE INSURANCE CO . has been maintaining its NO 1 position since last 5

years because of its prolific product range and commanding brand equity. It has a highest capital

base of Rs. 925 crores and a team of more than 56,300 well-trained advisors. It enjoys a brandrecall rate of 92% and gives credit of its success to the 5 core values-

Integrity

Customer

Boundary Less

Ownership

Passion


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MARKET SHARE IN PRIVATE SECTOR

Total Market Share

PrivatePlayers

30%

LIC70%

LIC

Private Players


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COMPETITIVE ANALYSIS WITH HDFC-STANDARD LIFE:

HDFC Standard Life Insurance Company is a joint venture between India's largest housingfinance provider, HDFC and Europe's largest mutual life assurance company The Standard Life

Assurance Company (U. K).

Standard Life, UK , founded in 1825, has been at the forefront of the UK insurance industry for

175 years by combining sound financial judgment with integrity and reliability.

It is the Largest Mutual Life company in Europe and has total assets of Rs. 5,50,000 crore.

Training activities for agents/advisors .

As per IRDA guidelines, 100hrs training is compulsory.

Both online & classroom training are available.

Training is compulsory with both part-time & full time Options.

A clear exam is conducted by IRDA, the minimum qualification required is-

12th pass for urban areas

10th pass for rural areas.

Commission Structure.

Depends on the product, like on savings

20-40% Ist year premium.

On investment 2%

On pension 7.5%

Modes & ways through which the company recruits agents .


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Direct contacts.

Newspaper adds.

Consultants.

Member of the company can introduce a new member.

Current agent force500-600 in NOIDA.

Top 5 USPs (Unique Selling Proposition) Of HDFC Std.Life

Best insurer according to Outlook. Well supported by foreign Ist private sector life insurance Company to be granted a

license.

Declared bonus every year from the day of incorporation (only company.)

Provides fast service to the customers in terms of claim


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Chapter-4

4.1 Findings

4.2 Suggestions and Recommendations

4.3 Conclusion


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4.2 RECOMMENDATIONS AND SUGGESTIONS

During the exposure of 2 months I had in the insurance industry via MAX NEW YORK

LIFE INSURANCE CO, it helped me to develop the basic understanding of how this

industry works and the work experience & knowledge gained has also helped me to give the

recommendations as stated below:

An insurance policy is a product, which needs a lot of convincing before it can be sold

because what I analyzed in this internship that there are very few people who have a basic

knowledge about life insurance especially the lower middle class society. So, it is

essential for the advisor to know what the customer actually needs and then letting the

customer know what benefits he will get out of it.

The limitation here is how to win the trust of people when so many companies are

offering the same product range. Here, MAX NEW YORK LIFE INSURANCE CO.

needs to encash its brand name because after the survey I conducted what I concluded is

that after LIC if people know any other insurance company is then it is ICICI Prudential.

During the calls where I went along with the Unit manager, I observed that people in

general have the perception that insurance is all about getting discount in tax. People

should be made realize that it is a great way of saving for the future too.

Besides doing market research, my other job was also to increase the advisor base of thecompany. And company preferred the profiles of the already established insurance

advisors of the other company especially the LIC ones. What I suggest is that before

approaching these prominent agents we need to do a SWOT analysis of the co. they are

into. Like LIC Agents usually complain of LOW returns and hence MAX NEW YORK

LIFE INSURANCE CO. can tap them on this loophole of LIC.


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Instead of approaching these good profile agents personally, the company can hold

Seminars Or Club Meetings because every one comes for free lunches. Once they come,

they can be given Business Opportunity presentations about the incentives, commissionstructure etc MAX NEW YORK LIFE INSURANCE CO.is offering to its advisors.

Since the commission structure has been fixed by the IRDA only so no insurance

company can give more commission on products but every company has a different mode

of distributing commission, since MAX NEW YORK LIFE INSURANCE CO. has all

kind of products and policies with it (including the products which LIC have and even

those which LIC do not have) thus every agent can earn as much (NO UPPER LIMIT ONEARNINGS) as he wants because he has more choice to offer to the customer. This can

be one of the sales pitch for the MAX NEW YORK LIFE INSURANCE CO.


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4.3 CONCLUSION

The basic aim of the company in providing us with this assignment was to find out the peoples

perception of their brand in the market and via this increasing their advisor base by enchasing on

their brand name.

I learned how to recruit insurance advisor and convinced them for job profile.

When I was doing this project I met several people & collected their responses, some of them

give positive response, some gave negative response &some cant say any thing, they dont

believe in private sector. I also personally met 9 to 10 person in a day. I also do Tele-calling &

appointment. It is very helpful in the collection of the customer databases.

Under this project:

No. of customer met; more than 100

No. of customer called (phone); 50

No. of forms filled; more than 60

No. of customer converted; 40

MAX NEW YORK LIFE INSURANCE CO. is the number one private life insurance company

in India with a market share of 42.2%. Birla sun life stands second in private life insurance

companies with a market share of 18.5%. Looking in private sector MAX NEW YORK LIFE

INSURANCE CO. has been the dominant player because the amount of gap between the market

shares is huge.

But if we analyze in all sectors of life insurance then LIC has been the most dominant

player since 1956. The impact of LIC has been so much in both rural and urban areas that

people use the term LIC instead of life insurance.


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MAX NEW YORK LIFE INSURANCE CO .faces a big challenge in front of them to

stay in the race with Life insurance Corporation (LIC) because with the entrance of other

companies like ICICI Prudential , HDFC Standard Life & Birla Sun Life the competition

has become tougher.

But insurance is also growing day by day, India has a population of 1.2 billion and only

33.3% population is insured. This means insurance is an upcoming industry but MAX

NEW YORK LIFE INSURANCE CO. has to work a lot on their strategies to overcome

LIC.


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BIBLIOGRAPHY

Monthly Fact Sheet MAY 2005

Mutual fund Review MAY 2005

Study Material for AMFI exam

Investment update report of other AMCS

Various Business Newspaper

Magazines

Websites

WWW. AMFINDIA. COM

WWW.MAXNEWYORK.COM

WWW.INVESTMSRTINDIA.COM

WWW.PERSONALFN.COM

WWW.ECONOMICTIMES.COM
http://www.investmsrtindia.com/http://www.personalfn.com/http://www.economictimes.com/http://www.investmsrtindia.com/http://www.personalfn.com/http://www.economictimes.com/


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WWW.STOCKINDIA.COM

ANNEXURE
http://www.stockindia.com/http://www.stockindia.com/


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QUESTIONNAIRE

Dear Sir/Madam,

I am a student of-------------------------, conducting a marketing survey on.. I request you to fill this questionnaire & I

assure that this data will be used only for study purpose & it will be kept confidential.

1. Name _________________________________

2. Address _________________________________ _________________________________

_________________________________

3. Age

a. Less than 25 c. 35-45 b. 25 35 d. 45 and above


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4. Qualification

a. Graduate c. Diploma

b. Postgraduate d. Other discipline

5. Occupation

a. Business c. Job holder b. Professional d. Other

6. What is your average annual income?

a. Up to 1 lakh b. 1 lakh to 3 lakhsc. 3 lakhs to 5 lakhsd. 5 lakhs and more

7. Your family size

a. Below 5 members b. 5 10 membersc. Above 10 members

8. According to you life insurance is,e. A tax saving planf. A saving scheme with good returng. A financial security for the familyh. Risk coveragei. All the above

9. Have you taken any life insurance product of MAX NEW YORK LIFE INSURANCECO. ?


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YES NO

If yes

Which are in these? j. Unit gain plank. Invest gain planl. Whole life planm. Children plann. Pension plano. Others __________________

10. Are you aware of the benefits in your policy?

Yes No

If yes what are they?

Sum assuredAdditional benefitsMaturity dateRisk coverage

11. According to you what are the disadvantages in an insurance plan?

LapsationLiquidityFixed termUnable to decide your premiumUnable to decide the sum assuredHigh risk coverage at high premiumsOther disadvantages


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12 . In which of the following would you like to invest?

Equity fundDebt fundBalanced fundCash fundMutual fundRecurring deposits

13. Any suggestion for MAX NEW YORK LIFE INSURANCE CO.______________________________________________________

______________________________________________________

Thank you for sparing your valuable time

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