Birla Sun Life Insurance Co. Ltd

COMPARATIVE STUDY OF CHANNEL DEVELOPMENT PROCESS OF BIRLA SUN LIFE & ICICI PRUDENTIAL
PROJECT REPORT

2006

SUBMITTED BY PEEYUSH KUMAR TRIPATHI In the partial fulfillment of the requirement of Master of Business Administration (2005-2007)

BABU BANARSI DASINSTITUTE OF TECHNOLOGY DUHAI-GHAZIABAD

INDEX

 Meaning of project  Introduction  About Insurance  IRDA  Indian Insurance Industry  Market Share Analysis  Company Profile:          Birla Sun Life Insurance ICICI Prudential Introduction to the Topic Research Methodology Analysis Results Recommendations Limitations Bibliography

PREFACE
The business of insurance is related to the protection of economic value of assets. The assets would have been created through the efforts of the owner, in the expectation that, either through the income generated there from the some other output, some of his needs would be met. If assets get lost earlier, being destroyed or made non-functional, through an accident or other unfortunate event, the owner and those deriving benefits there from suffer. Insurance is a mechanism that helps to reduce such adverse consequences. Insurance plays a major role in different perspective. For economic development investments are necessary. Investments are made out of savings. A life insurance company is a major investment for the mobilization of saving of people, particularly from the middle and lower income groups. These savings are channeled in to the investments for economic growth. In order to amenable to statistical predictions, insurance risks must be handled on a large scale. All organization face change in their environment with resultant change in their markets and in the ability to satisfy their markets. Each organization is faced with new marketing problems and opportunities in their existing and potential market. Marketing decision makers cope with these challenges in a variety of ways. The marketer’s is being required to forecast, forecast the risk and uncertainness in their own way, supported by market research. Man on earth can entirely eliminate knows no method but scientific method can minimize the element of uncertainties that can result from back of information without orientation, Market research is a process of collecting information about who, why and how of actual and potential consumers in a particular market.

ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all those who, directly or indirectly made this project possible. I have got considerable help and support in making this project report a reality from many people. I would like to thank Mr. Praveen Saxena (Agency Manager), Birla Sun Life Insurance Co. Ltd., Karkardooma- New Delhi whose great help and proper guidance helped me in completing this project. This work is the reflection of his thought, ideas, concept and above all his modest effort. I would also like to say thanks to Prof. Pragya Agrawal (Faculty Mentor) for his constant suggestion which have resulted in successful completion of the project. I would like to extend my thanks to Prof. K.K.Garg (Head of Deptt. -M.B.A. Program), Babu Banarsi Das Institute of Technology, and all the faculty members for the co-operation extended by them.

PEEYUSH KUMAR TRIPATHI

INTRODUCTION

A well developed and evolved insurance sector is needed for economic development as it is provides long term funds for infrastructure development and the same time strengthen the risk taking ability.

Life insurance is also now being regarded as a versatile financial planning tool in India. India being a country having a huge population of around one billion people with only 35%of the insurance population in India possessing life insurance. The country has a vast potential that has been left untapped till now.

Therefore, what this has led to is the flooding of life insurance market with a number of private players which in collaboration with recognized foreign companies’ promises to deliver the best of services at the least price. All these companies are trying to grasp the maximum of market share in life insurance sector. For that they are developing a channel i.e. recruiting world-class insurance advisors/agents who sell their products or policies. Who are these advisor/agents? Who can become an advisor/agent? How they are recruited in BIRLA SUN LIFE INSURANCE CO. LTD.? How much they can earn as an insurance advisor/agent? , these are some questions we have tried to answer in the project.

This report gives the details of recruitment and selection process of the life insurance advisors. Thus by going through the report one will get to know about the recruitment and selection process of life insurance advisors/agents in BIRLA SUN LIFE INSURANCE CO. LTD. The report also covers the comparative study of the channel development process in the company with that of ICICI Prudential.

INSURANCE
Insurance is basically a sharing device, a tool for managing risk. The losses to assets caused by unexpected contingencies like fire, earthquake, accidents, etc. are met out of a common pool contributed by a large number of persons who are exposed to similar risk. This contribution is known as premium, is used to pay the losses suffered by the unfortunate few. The concept of insurance is based on certain principals. 1. The contingency of the insured event should be fortuitous in nature, i.e. beyond human control. 2. The insured should not make any profit out of it. It requires a large number of insured to make the principal of insurance work, based on law of profitability.

Business of insurance is related to the protection of the economic value of assets. The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output, some of his needs would be met. However, if the asset gets lost earlier, being destroyed or made non-

functional, through an accident or other unfortunate event, the owner and those deriving benefits there from suffer.

The business of insurance done by insurance companies (called insurers) is to bring together persons with common interests (sharing the same risks) collecting the share or contribution (called premium) from all of them, and paying out compensations (called claims) to those who suffer.

PURPOSE AND NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental occurrences. Such possible occurrences are called perils, Fire, floods, breakdown, lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset, we say that the asset is exposed to that risk. Perils are the events. Risks are the consequential losses or damages. The risk to a owner of a building, because of the peril of an earthquake, may be a few lakhs or few crores of rupees, depending on the cost of the building and the contents in it.

The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of a human being, death is certain, but the time of death is uncertain, In the case of a person who is terminally ill, the time of death is not uncertain, though not exactly known. He cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril cannot be avoided through insurance. The peril can sometimes be avoided, through better safety and damage control management. Insurance only tries to reduce the impact of the

risk and the owner of the assets and those who depend on that asset. It only compensates the losses – and that too, not fully.

Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of non economic losses are love and affection of parents, leadership of managers, sentimental attachments to family heirlooms, innovative and creative abilities, etc.

CONTRACT OF LIFE INSURANCE
Life insurance contract is an agreement that the insurer will pay a sum of money, called the sum assured, on the happening of a specified event, usually the death of the assured or his survival to the end of the specific term. On the other hand, the assured will pay an immediate smaller payment or a series of regular smaller payments, called premium. There are two important legal aspects of life insurance worth nothing. 1. UTMOST GOOD FAITH: A life insurance contract is not just a contract of good faith, which any commercial transaction is, but it is a contract of utmost good faith. Since one party to the contract, the assured, knows all the facts which the other party, the insurer, cannot know despite reasonable efforts. There is a positive duty on the former to voluntarily disclose, accurately and fully, all facts material to the risk being proposed. A fact is considered material if it would influence the judgment of a prudent insurer in deciding whether to insure a particular risk, or the terms on which to insure it. For instance the existing of other life insurance policies is a material fact. The impact of unlimited duty to; disclose is mitigated to some extent by sec. 45 of insurance act. Which requires

the following to be proved by the insurer in order to avoid the contract

1

That a material fact was either misrepresented or not disclosed by the policy holder.

2. That such a misrepresentation or non disclosure by the policy holder was in his knowledge. 3. That it was done fraudulently.

INSURABLE INTEREST: It is the relationship of the insured with the subject
matter (assured) which is recognized in law and gives a legal right to insure that person. Thus a person is presumed to have unlimited insurable interest in his own life. There are other presumptions of insurable interest, for example a person having insurable interest on the life of his or her spouse. A parent is also presumed to be having insurable interest on the life of her child. Except those, insurable interest is limited to the financial loss a person might suffer due to the loss of the subject matter. Thus insurable interest of the creditor on the life of the debtor will be limited to the outstanding loan and interest thereon.

TYPES OF INSURANCE

 Life insurance  Non-life insurance or General insurance

These insurance are provided both by government and private insurance companies. The IRDA Act, 1999 amending the Insurance Act, 1938 in Section 2 sub-section 7(a) state: “Indian Insurance Company means any Insurer being a company-

(a) which is formed and registered under Companies Act, 1956(1 of 1956); (b) in which aggregate holding of equity shares by a foreign company either by itself or through its subsidiary companies or its nominees do not exceed 26% paid up equity capital of such Indian Insurance Company; whose sole purpose is to carry on life insurance business or general insurance business or re-insurance business.”

The important activities of a life insurance company are:a) Procuring from prospective buyers proposals to grant life insurance cover;

b) Checking up and specifying the terms of acceptance called Understanding;

c) Issue contractual documents called policy incorporating various terms and condition; d) Provide after sales services including payment of money as per contract; e) Conducting other supporting activities like, investment of funds, carrying out solvency measures, finalization of accounts, getting or causing audit of accounts, actuarial valuation including updating mortality tables; and f) Developing new products, sales promotion activities including publicity, training of its personal (Sales/ administration).

ROLE OF INSURANCE IN DEVELOPMENT OF THE ECONOMY

Every rupee invested in life insurance contributes in three ways to the development of the economy.

i.

Firstly, it relieves those insuring from the worry and anxiety they may have about how they or their family would meet the cost of certain events, such as the marriage of the children, the premature death of the main income provider or maintaining a regular income in their retirement. If an individual is free from these worries he can perform better in his job.

ii.

Secondly, it directs people’s savings. The insurer invests these funds in various business enterprises, government bonds, loans to public and private projects including infrastructure and socially orientated projects. Thus the insurance premium provides the much needed funds for the development of the nation’s economy.

iii.

Thirdly, these savings act as an anti inflationary force in the nation’s financial structure. Inflation happens when prices of good go up. One of the causes is when a lot of buying takes place, due to the spending of a major portion of income by people. Savings in insurance reduce buying, as people will have less money to spend.

LIFE INSURANCE

NEED FOR LIFE INSURANCE

Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children and loved ones need not be compromised. Insurance planning equips you to smooth out the uncertainties and adversities that life might send your way, so that the best that life has to offer, secure in the knowledge that your beloved ones are well provided for.

As life insurance became more established, it was realized what a useful tool it was for a number of situations, including –

a) Temporary needs/ threats: The original purpose of life insurance remains an important element, namely providing for replacement of income on death etc., typically the case of the breadwinner dying an early death.

b) Regular Saving: Providing for ones family and oneself, as a medium to long-term exercise (through a series of regular payment of premiums). This has become more relevant in recent times as people seek financial independence from their family. c) Investment: Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlike regular saving products, investment products are traditionally lump sum investment, where the individual makes a one-time payment. d) Retirement: Provision for one’s own later years becomes increasingly necessary, especially in a changing cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in one’s old age, generally identified as the problem of living too long.

ADVANTAGE OF LIFE INSURANCE

(1) It is superior to the traditional saving Instruments. As well as providing a secure vehicle to build up savings etc, it provides peace of mind to the policyholder. In the event of untimely death, of say the main earner in the family, the policy will pay out the guaranteed sum assured, which is likely to be significantly more than the total premiums paid. With more traditional savings instruments, such as fixed deposits, the only return would be the amount invested plus any interest accrued.

(2) It encourages saving and forces thrift. Once an insurance contract has been entered into, the insured has an obligation to continue paying premiums, until the end of the term of the policy; otherwise the policy will lapse. In other words, it becomes compulsory for the insured to save regularly and spend wisely. In contrast savings held in a deposit account can be accessed or stopped easily.

(3) It provides easy settlement and protection against creditors. Once a person is appointed for receiving the benefits (nomination) or a transfer of rights is made (assignment), a claim under the life insurance contract can be settled easily. In addition, creditors have no rights to any monies paid out by the insurer, where the policy is written under trust. Under the Married Women’s Property Act (M.W.P Act), the money available from the policy forms a kind of trust which cannot be attached by judgment creditors.

(4) It helps to achieve the purpose of the Life Assured. If someone receives a large sum of money, it is possible that they may spend the money unwisely or in a speculative way. To overcome this, the person taking the policy can instruct the insurer that the claim amount is given in installments.

(5) It can be enchased and facilitates quick borrowing.: Some contracts may allow the policy to be surrendered for a cash amount, if a policyholder is not in a position to pay the premium. A loan, from certain policies, can be taken for a temporary period to tide over the difficult. Some

lending institutions will accept a life insurance policy as collateral for a personal or commercial loan.

(6) Tax Relief: The policyholder obtains Income Tax rebated by paying the insurance premium. The specified forms of saving which enjoy a tax rebate, include Life Insurance Premiums and contributions to a recognized Provident Fund etc., section 10 (10D) & other sub-sections of Section 80C of the Income Tax Act 1961.

LIFE INSURANCE IN INDIA

The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more risky for coverage.

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. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. 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 Life Insurance 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. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 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 much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State lead planning and development.

The (non-life) insurance business continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC).

Life insurance business in India was nationalized with effect from 1st September, 1958. From this date, the life insurance business transacted by 154 Indian life insurers, the Indian business of 16 foreign insurers and 75 provident societies was taken over by

Government of India Act, 1956, passed by the Parliament on 18-6-56. The Life Insurance Corporation of India (LIC) which had been established w.e.f. 19-5-1956 as a body corporate having perpetual succession and common seal with power to acquire, hold and dispose property and to sue and be sued in its name.

Under Section 30 of the Act, from the appointment date i.e. 1-9-56, LIC acquired the exclusive privilege of carrying on life insurance business in India and the certificate of registration granted to any insurer under the Insurance Act, 1938 ceased to have effect from the said date.

Now the above, provision of section 30 have been altered by insertion of Section 30A consequent to the enactment of the IRDA Act, 1999. As a result the exclusive privilege given to the LIC has been withdrawn.

The Government of India liberalized the insurance sector in March 2000 with 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 capital 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 and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 14 life insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

BACKGROUND
A faster development and wider impact of the insurance industry were to be achieved through a process of insurance reforms resulting in the liberalization of the market and in the passage of the Insurance Regulatory and Development Authority (IRDA) Act, 1999. The reforms procedures recognized simultaneously the need for development of the sector in addition to the traditional concept of regulation and thus conferred on the Authority the obligation to develop the sector as well.

MISSION STATEMENT

The IRDA main mission was stated as follows:

•

To protect the interest of and secure fair treatment to policyholders:

•

To bring about speedy and orderly growth of the insurance industry, for the benefit of the common man, and to provide long terms funds for accelerating growth of the economy;

•

To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates:

•

To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regard;

•

To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievances redressed machinery;

•

To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players;

IRDA POWERES AND FUNCTIONS

Subject to the provisions of IRDA Act (1990), IRDA will: regulate, promote and ensure orderly growth of the insurance business and re-insurance business, which will include the following main functions (excerpts):

•

Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;

•

Protection of the interest of the policy holders in matters concerning assigning off policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and others terms and conditions of contracts of insurance;

•

Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents.

•

Promoting and regulation professional organizations connected with the insurance and re-insurance business;

•

Levying fees and other charges for carrying out the purposes of the Act;

•

Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;

•

Specifying the percentage of life insurance and general insurance business to be undertaken by the insurer in the rural or social sector.

IMPACT OF LIBERALIZATION

The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service quality of the insurance. As a result LIC down the years have seen the declining phase in its career. The market share was distributed among the private players. Though LIC still holds the 75% of the insurance sector but the upcoming natures of these private players are enough to give more competition to LIC in the near future. LIC market share has decreased from 95% (2002-03) to 81 %( 2004-05).The following companies has the rest of the market share of the insurance industry.

INDIAN INSURANCE INDUSTRY

Insurance industry, as on 1.4.2000, comprised mainly two players:

Life Insurers:
•

Life Insurance Corporation of India (LIC)

General Insurers:
•

General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsurer)

GIC had four subsidiary companies, namely (with effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies.

1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited, 3. National Insurance Company Limited 4. United India Insurance Company Limited.

Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001)

Insurance Industry in the year 2000-2001 had 16 new entrants, namely:

Life Insurers:

S.No.

Reg. Numb er

Date of Reg.

Name of the Company

1 2 3

101 104 105

23.10.2000 15.11.2000 24.11.2000

HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Ltd.

4 5 6 7 8 9 10

107 109 110 111 114 116 117

10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001

Kotak Mahindra Old Mutual Life Insurance Limited Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited. ING Vysya Life Insurance Company Private Limited Bajaj Allianz Life Insurance Company Limited Metlife India Insurance Company Pvt. Ltd.

General Insurers :

S.No.

Registration Number

Date of Registration 23.10.2000

Name of the Company

1

102

Royal Sundaram Alliance Insurance Company Limited

2

103

23.10.2000

Reliance General Insurance Company Limited.

3

106

04.12.2000

IFFCO Tokio General Insurance Co. Ltd

4

108

22.01.2001

TATA AIG General

Insurance Company Ltd. 5 113 02.05.2001 Bajaj Allianz General Insurance Company Limited 6 115 03.08.2001 ICICI Lombard General Insurance Company Limited.

Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002)

Insurance Industry in this year, so far has 5new entrants; namely

Life Insurers:

S.N Reg. o. 1 Number 121

Date of Reg.

Name of the Company

03.01.200 AMP Sanmar Life Insurance Company 2 Limited.

2

122

14.05.200 Aviva Life Insurance Co. India Pvt. Ltd. 2

General Insurers :

S.No. Registration Number 1 123

Date of Registration 15.07.2002

Name of the Company

Cholamandalam General Insurance Company Ltd.

2.

124

27.08.2002

Export Credit Guarantee Corporation Ltd.

3.

125

27.08.2002

HDFC-Chubb General Insurance Co. Ltd.

Yr: 2003-2004: (From 1st Jan 2003 till Date) Insurance Industry in this year, so far has 1new entrants; namely Life Insurers:

S.No.

Registration

Name of the Company

Number 1 127 Sahara India Insurance Company Ltd.

Yr: 2004-2005: Insurance Industry in this year, so far has 1new entrants; namely

Life Insurers:

S.No.

Registration Number

Date of Reg.

Name of the Company

1

128

17.11.2005

Shriram Life Insurance Company Ltd.

PROTECTION OF THE INTEREST OF POLICY HOLDERS:

IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in

both life and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and policyholders' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim.

The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims.

It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public.

All insurers are required to set up proper grievance redress machinery in their head office and at their other offices.

The Authority takes up with the insurers any complaint received from the policyholders in connection with services provided by them under the insurance contract.

MARKET SHARE ANALYSIS

PARTICULARS LIC PRIVATE PLAYERS

2004-05 87.7 12.3

2005-06 71.04 28.96

2006-07 71.44 28.56

growth in market share of private players
100 90 80 70 60 50 40 30 20 10 0 87.7 71.04 LIC Pvt. Players 28.96 12.3

m a r k e t s h a r e (%)

2004-05 years

2005-06

BIRLA SUN LIFE

Birla Sun Life Insurance Co. Ltd. is a joint venture between the Aditya Birla Group, one of the largest houses in India and Sun Life Financial Inc., a leading international financial

services organization. The local knowledge the Aditya Birla Group with the expertise of Sun Life Financial Inc., offers formidable protection for customer’s future.

The Aditya Birla Group has a turnover closed to Rs.33000 crores with a market capitalization of Rs.53400 crores (as on March 31, 2006). It has over 72000 employees across all its units worldwide. It is led by its Chairman-Mr. Kumar Manglam Birla. Some of the key organizations within the group are Hindalco, Grasim, Aditya Birla Nuvo, etc.

Sun Life Financial Inc. and its partners today have operations in key markets worldwide, including Canada, United States, United Kingdom, Hong Kong, Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Insurance Inc. had assets under management of over $ 343 billion, as on March 31, 2006. Sun Life Financial Inc. is a leading Player in the life insurance market in Canada.

Birla Sun Life Insurance (BSLI) in its five successful years of operations has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the launch of Unit Linked Life Insurance Plans amongst the private players in

India. It was the first players in the industry to sell its policies through the banc assurance route and through the internet; it was the first private player to introduce a pure term plan in the Indian market. This was supported by sales practices, which brought a degree of transparency that was entirely new to the market. The process of getting sales illustrations

signed by customers, offering free look period on all policies, which are now industry standards were introduced by BSLI. Being a customer centric company, BSLI has invested heavily in technology to build world-class processing capabilities. BSLI has covered more than a million lives since inception and its customer base is spread across more than 1000 towns and cities in India. All this has assisted the company in cementing its place amongst the leaders in the industry in terms of new business premium income. The company has a capital base of Rs.460 crores as on March 31, 2006.

SOME IMPORTANT FACTS:
• Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance Solutions in India. • Within 4 years of its launch, BSLI has cemented its position as a leading player in the Private Life Insurance Industry • There has been focus on Investment Linked Insurance Products, supported with protection products to maintain leadership in product innovation

•

Multi Distribution Channels- Direct Sales Force, Alternate Channels and Group offering convenient channels of purchase to customers.

•

Web-enabled IT systems for superior customer services.

• •

First to have issued policies over the Internet. Corporate governance and a high degree of transparency in all business practices and procedures.

• •

First to have an operational Business Continuity Plan. Strong fundamentals based on the Aditya Birla group's local insight and Sun Life Financial’s global expertise.

VISION:
To be a world class provider of financial security to individuals and corporates and to be amongst the top three private sector life insurance companies in India.

MISSION:
To be the first preference of our customers by providing innovative, need based life insurance and retirement solutions to individuals as well as corporates. These solutions will be made available by well-trained professionals through a multichannel distribution network and superior technology.

Its endeavor will be to provide constant value addition to customers throughout their relationship with it, within the regulatory framework. It provides career development opportunities to its employees and the highest possible returns to shareholders.

ADITYA BIRLA GROUP

The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. A US$ 8.3 billion conglomerate, with a market capitalizations of US$ 14 billion, it is anchored by an extraordinary force of 82,000 employees belonging to over 20 different nationalities. Over 22 per cent of its revenues flow from its operations across the world. The Group's products and services offer distinctive customer solutions. Its 72 state-of-the-art manufacturing units and sector services span India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China.

A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in which it operates. Such as viscose staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron,

insulators and financial services. The Group has also made successful forays into the IT and BPO sectors.

PARTNERS:

Partner Company Birla Sun Life Insurance Sun Life (Canada) Company Ltd. Birla NGK Insulators Pvt.

Key products / services

insurance solutions

NGK Insulators Limited (Japan) insulators Ltd. TIDCO (Tamil Nadu Industrial Tanfac Industries Ltd. Development Corporation) Tata Televentures and Tata Idea Cellular Ltd. Industries Birla Sun Life Asset Sun Life (Canada) Management Company Ltd. Birla Sun Life Distribution Sun Life (Canada) Company Ltd. investment planning services mutual funds cellular telecommunications fluorine chemicals

Aditya Vikram Birla: putting India on the world map:

A formidable force in Indian industry, Mr. Aditya Birla dared to dream of setting up a

global business empire at the age of 24. He was the first to put Indian business on the world map, as far back as 1969, long before globalization became a buzzword in India. In the then vibrant and free market South East Asian countries, he ventured to set up world-class production bases. He had foreseen the winds of change and staked the future of his business on a competitive, free market driven economy order. He put Indian business on the globe, 22 years before economic liberalization was formally introduced by the former Prime Minister, Mr. Narasimha Rao and the former Union Finance Minister, Dr. Manmohan Singh. He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the Philippines and Egypt. Interestingly, for Mr. Aditya Birla, globalization meant more than just geographic reach. He believed that a business could be global even while being based in India. Therefore, back in his home-territory, he drove single-mindedly to put together the building blocks to make our Indian business a global force.

Under his stewardship, his companies rose to be the world's largest producer of viscose staple fibre, the largest refiner of palm oil, the third largest producer of insulators and the

sixth largest producer of carbon black. In India, they attained the status of the largest single producer of viscose filament yarn, apart from being a producer of cement, grey cement and rayon grade pulp. The Group is also the largest producer of aluminium in the private sector, the lowest first cost producers in the world and the only producer of linen in the textile industry in India. At the time of his untimely demise, the Group's revenues crossed Rs.15,000 crore

globally, with assets of over Rs.16,000 crore, comprising of 55 benchmark quality plants, an employee strength of 75,000 and a shareholder community of 600,000. Most importantly, his companies earned respect and admiration of the people, as one of India's finest business houses, and the first Indian International Group globally. Through this outstanding record of enterprise, he helped create enormous wealth for the nation, and respect for Indian entrepreneurship in South East Asia. In his time, his success was unmatched by any other industrialist in India. That India attains respectable rank among the developed nations was a dream he forever cherished. He was proud of India and took equal pride in being an Indian. Under the leadership of our Chairman, Mr. Kumar Mangalam Birla, the Group has sustained and established a leadership position in its key businesses through continuous value-creation. Spearheaded by Grasim, Hindalco, Aditya Birla Nuvo, Indo Gulf Fertilizers and companies in Thailand, Malaysia, Indonesia, the Philippines and Egypt, the Aditya Birla Group is a leader in a swathe of products — viscose staple fibre, aluminium, cement, copper, carbon black, palm oil, insulators, garments. And with

successful forays into financial services, telecom, software and BPO, the Group is today one of Asia's most diversified business groups

GROUP COMPANIES:

GRASIM INDUSTRIES LTD:
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies, with a turnover of Rs. 6247.10 crore for FY 2005. Starting as a textiles manufacturer in 1948, Grasim's businesses today comprise Viscose Staple Fibre (VSF), cement, sponge iron, chemicals and textiles. The company holds a dominant position in its businesses:

Viscose staple fibre:
The Aditya Birla Group is the world's largest producer of VSF, commanding a 24 per cent global market share. The company meets over 98 per cent of India's domestic VSF requirements.

Cement:
The Aditya Birla Group is the 11th largest cement producer in the world and the seventh largest in Asia

Sponge iron:
It is the largest merchant producer of sponge iron in India

Chemicals:
Grasim has India's second largest caustic soda unit

Textiles:
Its premium brands, the 'Grasim' and 'Graviera' range of fabrics have distinctively positioned them as 'the power of fashion'. All of Grasim's units have earned ISO 9002 and 14001 certifications. Product quality, innovation and eco-friendliness are a hallmark of all the company's divisions.

HINDALCO INDUSTRIES LTD:
Hindalco Industries Limited, a flagship company of the Aditya Birla Group, is structured into two strategic businesses — aluminium and copper — and is an industry leader in both these segments. A non-ferrous metals powerhouse, close to global scale, it ranks

among India's top 10 companies in terms of market capitalization. In FY 2005, Hindalco recorded a turnover of Rs. 9523 crore.

Hindalco commenced its operations in 1962 with an aluminium facility at Renukoot in the eastern part of Uttar Pradesh. Over the years, it has grown into the largest integrated aluminium manufacturer in the country.

ADITYA BIRLA NUVO LTD:
Aditya Birla Nuvo Ltd., is the Aditya Birla Group's most diversified conglomerate, with a turnover of Rs. 1860.62 crore for FY 2005. It is a leading player in its key business segments, including viscose filament yarn (VFY), carbon black, branded garments, textiles and insulators. Over the past three years, Aditya Birla Nuvo through its subsidiaries has made successful forays into insurance, IT services and Business Process Outsourcing (BPO), striking a balance between manufacturing, brands and services.

ULTRATECH CEMENT LTD. UltraTech Cement Limited, makers of premier cement, is a subsidiary of Grasim Industries Ltd., the flagship company of the Aditya Birla Group. The group is the eleventh largest cement manufacturer in the world and number one in India. Its basket of products includes ordinary Portland cement, Portland blast furnace slag cement, Portland Pozzolana cement and Grey Portland cement. It also exports clinker and cement.

UltraTech has five integrated plants, five grinding units, and three terminals — two in India and one in Sri Lanka. All the plants have ISO 9001 certification. Most of the plants

have also been certified for ISO 14001 and OSHAS 18001. UltraTech is the country's largest exporter of cement clinker. The company exports over 2.5 million tonnes per annum, which is about 30 per cent of the country's total clinker exports. The export market comprises of countries around the Indian Ocean, Africa, Europe and the Middle East. Export is a thrust area in the company's strategy for growth. The cement division of L&T was demerged in 2004 after Grasim made the 30 per cent open offer for equity shares, gaining control over the new company, christened UltraTech. Besides the long term strategic value in the wake of rising demand for cement, with the growth of housing and infrastructure sectors in the country, the acquisition brings significant synergy gains to the parent company. Narmada Cement Company Limited, a subsidiary, was amalgamated with UltraTech in May 2006.

SUN LIFE FINANCIAL
Sun Life Financial is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China

and Bermuda. As of June 30, 2006, the Sun Life Financial group of companies had total assets under management of CDN$387 billion.

MISSION:
To provide lifetime financial security.

VISION:
To be an international leader in wealth management and protection.

VALUES:
Integrity:
It aspires to the highest standards of business ethics and good governance

Excellence:
It pursues operational excellence through the people it employ, constant innovation, superior service and value-based risk management.

Customer focus:
It always works with the customers’ interest in mind, and partner with them directly or through their employers to provide sound financial solutions over their lifetimes.

Building value:
Everything it does, from the products and services we offer to the way in which it deliver them, adds value for our customers and builds value for our stakeholders.

ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential Plc, a leading international financial services group headquartered in the United Kingdom. This joint venture is formed in the year Dec, 2000 and ICICI Prudential was amongst the first private sector Insurance companies to begin operation in Dec, 2000 after receiving approval from the Insurance Regulatory Development Authority (IRDA).

For the year ended March 31, 2006, the company garnered Rs 24.12 billion of weighted new business premium and wrote 837,963 policies. The sum assured in force stands at Rs 458.88 billion. The company has a network of over 72,000 advisors; as well as 9 banc assurance partners and over 200 corporate agent and broker tie-ups. It is also the only life insurer in India to be assigned AAA credit rating from Fitch Ratings. For the past five years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. ICICI Bank and Prudential Plc hold 74 percent and 26 percent stake respectively.

PARTNERS:

ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company, which has today emerged as one leading mutual funds in India. Riding on the success of this relationship, the two companies joined hands ones more in 2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading edge life insurance solutions.

ICICI BANK
ICICI Bank is India's second-largest bank with total assets of about Rs. 2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05 bn (US$ 449 mn) for the year ended March 31, 2005). ICICI Bank has a network of about 614 branches and extension counters and over 2,200 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Centre and representative offices in the United States, United Arab Emirates, China, South Africa and Bangladesh. Our UK subsidiary has established a branch in Belgium. ICICI Bank is the most valuable bank in India in terms of market capitalization. ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees At June 5, 2006, ICICI Bank, with free float market capitalization of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all the companies

listed on the Indian stock exchanges.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI

become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and

by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

PRUDENTIAL PLC:

Established as the Prudential Mutual Assurance and Loan Association in 1848, today it is an international financial services company with a product range which extends from personal banking insurance, pensions and retail investments, to institutional fund management and property investments. Its portfolio of well-known and respected brands, including Prudential, M&G Investments, Jackson National Life, Prudential Corporation Asia and Egg, has attracted more than 19 million customers (and policy holders and unit holders) worldwide. Across the Group it has £234 billion of funds under management (at 31 December 2005). Prudential has significant operations in the UK, the US and Asia, contributing to a diversity of earnings. Worldwide it employ more than 20,000 people and our shareholders number 60,942 (at 31 December 2005). We are listed on the London and New York stock

In Asia, Prudential Corporation Asia has 23 operations in 12 countries. These include strategic partnerships with some of the region’s leading players, including CITIC Group (for life business in China), ICICI Bank (for life and mutual fund business in India) and Bank of China International (for Mandatory Provident Fund business in Hong Kong). Prudential Corporation Asia offers a wide range of savings, protection and investment products tailored to the needs of our customers in each of the 12 markets in which it operate. In addition to its life insurance operations Prudential has asset management businesses in India, Hong Kong, Japan, Taiwan, Malaysia, Singapore, Korea, Vietnam and China managing over £26 billion (as of 30 June 2005).

BE AN ADVISOR:

Being an insurance advisor aspire to provide state of the art customer services and opportunities and venues for enterprising people to grow and prosper.

Backed by latest technology, they will offer their customers:-

 Complete and diversified product portfolio.  Faster and more accurate service.  Multi channel distribution system.  High quality financial advises.

Eligibility norms provided by IRDA for becoming an insurance advisor:

 Person should be at least 18 years of age;  Person have completed 10+2;  Person should attain 100 hours training.

Other than this the person should possess:

 Good communication skills  Relationship skills  Confidence  Self motivation  Persuasion  Urge to be financially independent

BEING AN ADVISOR WITH BIRLA SUN LIFE INSURANCE:

Being a Birla Sun Life Insurance advisor can be an enriching and exciting career option. It’s an opportunity to associate with an industry leader, be in touch with the latest and finest insurance practices from around the globe, and grow both personally and professionally.

Here are some of the benefits of being a Birla Sun Life Insurance Advisor:   Unlimited earning potential   A clear career path   All round support through exclusive advertising, your own in-house

consultant, and world-class training

  A comprehensive benefit package

What does it take to be a Birla Sun Life Insurance advisor?
At Birla Sun Life Insurance, we believe that our Advisors are our ambassadors to the customers. They are a key source of business for the organization, and are the continuing link with our clients. That is why, we take a lot of care in recruiting and developing our advisor force, so that we continue to set higher standards of quality in service and salesmanship. To cater to the needs of the knowledge-oriented marketplace, we look for graduates who are service-oriented, good communicators and enjoy meeting new people. Prior sales experience is an added benefit. Some of the qualities we seek are:  self- motivation  a master communicator  a go-getter  a graduate

TRAINING:
At Birla Sun Life Insurance, we understand the importance of training in a dynamic business environment. Our advisors go through both generic and specific, professional programs that help them remain well-informed and knowledgeable about the company’s products in the market. There is a further focus on soft skills such as communication,

managing long-term relationships and selling skills, which are very relevant in a servicedriven industry like life insurance.

State of the art infrastructure training facilities coupled with an excellent faculty, guarantee an exceptional learning environment. For advisors who might be occupied with their daily business/professional routines, Birla Sun Life Insurance also offers convenient training options such as online and self-learning are also provided by the organization.

An 18-day training schedule covers the mandatory IRDA training requirements and Birla Sun Life Insurance product-training module. Revision session ensure that the candidates thoroughly understand the course contents and are well prepared for the licensing examination. Theoretical training is interspersed with practical appointment settings with potential customers, giving advisors a feel of how their business will work from the very first day. All through, the Agency Manager and the management provide continuous support to the advisors in achieving independence towards garnering business.

CAREER:

At Birla Sun Life Insurance, career development is emphasized upon from the very day the advisor joins the system. Though individual meetings with his or her manager, the advisor can discuss various issues related to business development and career enhancement. Expectations from the organization in terms of chalking a career in the insurance industry are also discussed.

OPPORTUNITIES FOR BEING AN ADVISOR:

 To be a part of world class sales team  Work from your office or residence  Work fulltime or part time  Earn commission, bonuses and incentives  Flexible career  Unlimited earning potential

ROLE OF AN ADVISOR:

An insurance advisor plays an important role. He is link between the insurance company on the one hand and the prospect on the other hand. He has to understand the life insurance needs of the prospect and offer to meet them by providing insurance solution in the form of company’s product. In your role an insurance advisor, unless you are convinced of your self-worth, you may not be effective in your professional pursuit. The question arises whether an insurance advisor is a professional like a doctor, a lawyer or a

chartered accountant. There are four basic requirements for any vocation to be called a profession:

 It requires acquisition of expertise on the part of its practitioner and also its updating.

 There has to be customer-orientation, so that the focus of the professional is on satisfying the needs of the customer and his own needs get satisfied if the customer is satisfied.

 Certain of ethics in dealing with clients, fellow-professionals, etc, have to be observed.

 The vocation should be noble in that it contributes to the society.

THE REQUISITES OF A TIDE ADVISOR IN BIRLA SUN LIFE:

1. One copy of date of birth proof (10th mark sheet). 2. One copy of 12th class/graduation mark sheet. 3. One residence proof. 4. 8 passport size photographs. 5. PAN Card.

ADVISOR QUALITY PARAMETER:

We have to identify right kind of quality people to be advisors with ICICI PRU. For this purpose I targeted the following sets of people:

1. CA, CS, ICWA 2. DOCTORS 3. LAWYERS 4. TAX CONS 5. MARKETING EXECUTIVES OF DIFFERENT BANKS 6. UNEMPLOYED 7. RETIRED PEOPLE 8. HOUSE WIVES 9. LOCAL POLITICIANS

TECHNIQUES USED IN RECRUITMENT:

To approach the above mentioned people I used the following methods:

PROSPECTING: I decided to do prospecting in front of the BANKS AND
FINANCIAL INSTITUTIONS as a large number of marketing executives visit these

places throughout the day. I used to meet these people and offer them to join Birla Sun Life Insurance as FINANCIAL ADVISORS. I got the maximum recruitments through prospecting. The best thing about prospecting was that at the end of the day I used to have more than 50 references to call for the next day. 1. COLD CALLING: It was also a very successful technique in recruitment of advisors. Though the conversion rate was very low but I got very potential advisors through cold calling. I used business directories, yellow pages, telephone directories, news papers for the same purpose.

2. TAKING REFRENCES: Taking references is very essential in the insurance business as this business is based on contacts. I took references from the following:

RELATIVES

DATABASE

FRIENDS

NAMES

NEIGHBOURS

CUSTOMES

3. PAMPHLET DISTRIBUTION: I distributed pamphlets at Railway Stations, Bus Stops, busy red lights, highlighting the advantages of being an

advisor with BIRLA SUN LIFE INSURANCE . I got a good response and call backs and was able to find some good prospects through this procedure.

RESEARCH OBJECTIVE:
As the topic of research project is “ comparative study and analysis of the channel development process in Birla Sun Life Insurance and ICICI Prudential.” It highlights the customers’ perception and interest in to become an advisor. There are several other objective which are as follows: • • • • To find out comparative study and analysis of channel Development Process. To study the recruitment process of Advisors. To study the market share of Birla Sun Life Insurance Vs ICICI Prudential. To study the promotional strategies of Birla Sun Life Insurance Vs ICICI Prudential.

RESEARCH DESIGN:
The research design is of exploratory type as it tries to explore the customers’ perception to make a reasonable comparison between the two companies.

DATA COLLECTION METHOD
There are two types of Data Collecting method.

Types of data Primary data  Secondary data

Primary data:
Primary data means data that are collected by different techniques like Questionnaire, Depth interview, Surveys, Schedules etc. In this project I have collected data by Questionnaire.

Secondary data:

Secondary data means data that are already available i.e: they refer to the data which have already been collected and analysed by someone else .Usually published data are available in : (a) Various publications of the central , state or local governments. (b) Various publications of the foreign governments. (c) Technical and trade journals .

Sources of Secondary data:(a) Books , magazines and newspapers . (b) Reports and publications of various associations connected with industry . (c) Historical documents . (d) Internet

SAMPLING
Area of sampling is Delhi and Ghaziabad only. The sample size is 100 which include all between age group 18-60 years with minimum qualifications required t o be an advisor in the company.

DATA ANALYSIS

 Which company do you think is representing itself in a better way to attract potential candidates to be an advisor in the company?

COMPANY NO. OF RESPONDENTS

BIRLA SUN LIFE 30

ICICI PRUDENTIAL 35

OTHERS 35

OTHER S 35 %

BIRLA LIF SUN 30 E %

ICIC PRUDENTIA I L 35 %

 If you get an opportunity, which company would you like to join as an advisor?

COMPANY NO. OF RESPONDENTS

BIRLA SUN LIFE 25

ICICI PRUDENTIAL 37

OTHERS 38

OTHERS 38%

BIRLA SUN LIFE 25%

ICICI PRUDENTIAL 37%

 For what reason would you join it?

REASON/COMPANY BRAND NAME REASONABLE CHARGES/FEE BETTER SERVICE GOOD CAREER OPPORTUNITIES

BIRLA SUN LIFE 10 3 5 7

ICICI PRUDENTIAL 24 2 4 7

OTHERS 29 1 1 7

35 30 25 20 15 10 5 0 BIRLA SUN LIFE ICICI PRUDENTIAL OTHERS

BRAND NAME

BETTER SERVICE REASO NABLE CHARGES/FEE GO O D CAREER O PPO RTUNITIE S

which company’s promotional strategies effect you most ?

COMPANY RESPONDENTS

BIRLA SUN LIFE INSURANCE 30

ICICI PRUDENTIAL OTHERS 45 25

50 40 30 20 10 0 BIRLA SUN LIFE ICICI OTHERS PRUDENTIAL Series1

\

 Do you think Birla Sun Life Insurance Company would be able to position itself as a strong insurance player?

OPTIONS

YES

NO

Can't Say

RESPONDENTS

45

40

15

4 3 2 1 15 40 45 10 20 Series1 30 Series2 40 50 0 0 0 0

RESULTS

From the above analysis it can be concluded that the competition is very tough even in the procurement and retention of potential advisors (in the channel development process). ICICI Prudential is the market leader in the life insurance market of private players and data show that it is giving stiff competition to Birla Sun Life Insurance Company.

Though customers hope a brighter future of the company yet it has to apply a lot of efforts to bring the market under its control.

RECOMMENDATIONS

Birla Sun Life Insurance has to improve its brand image, i.e., it has to position itself in the minds of prospects in a better way in comparison to others. It should provide better career opportunities for the retention of its potential advisors. Further it has to provide training to its recruited advisors by good and efficient training methods which might be a little bit customized if needed.

It should more emphasize in advertising as it the most powerful tool to position any brand in the mindsets of customers. There is also a need to modify the services and benefits provide by the company to its customers and employees (advisors).

LIMITATIONS

As we all know that for every good work there should be some leakages also. Here leakage means some drawbacks. What I had found in my quest SUMMER TRAINING which are expected to be as follows:

 Lack of proper advertisement over the market.  Growing awareness is very low.  Segmented area is very specific.  Network over the work is very exhaustive.  Company always believes their own channels.  Flow of information moves very slow.  Carelessness in selection procedure.

BIBLIOGRAPHY

Books:
Principles of Marketing Marketing ManagementResearch MethodologyKotler Philip Saxena Rajendra Kothari C. R.

Websites:
www.birlasunlife.com www.irdaindia.org www.financialexpress.com

SUMMER TRANING PROJECT REPORT 2006 COMPARATIVE STUDY OF CHANNEL DEVELOPMENT PROCESS OF BIRLA SUN LIFE & ICICI PRUDENTIAL

SUBMITTED TO PRAVEEN SAXENA

SUBMITTED BY PEEYUSH TRIPATHI

BABU BANARSI DASINSTITUTE OF TECHNOLOGY DUHAI-GHAZIABAD

ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all those who, directly or indirectly made this project possible. I have got considerable help and support in making this project report a reality from many people. I would like to thank Mrs. Sabnam Chopra(Manager R&D), & Dr. M.K. Srivastava whose great help and proper guidance helped me in completing this project. This work is the reflection of his thought, ideas, concept and above all his modest effort. I would also like to say thanks to Prof. Pragya Agrawal (Faculty Mentor) for her constant suggestion which have resulted in successful completion of the project. I would like to extend my thanks to Prof. K.K.Garg (Head of Deptt. -M.B.A. Program), Babu Banarsi Das Institute of Technology, and all the faculty members for the co-operation extended by them.

ROHIT KUMAR PANDEY

MEANING OF PROJECT

THE WORD PROJECT HAS A GREAT IMPORTANCE IN THE DEVELOPMENT OF NEW THINGS, IDEA OR TECHNIQUE.THE IMPORTANCE BECOMES SPECIFIC FOR THE ACADEMIC PURPOSE. WHEN THE STUDY IS ABOUT MANAGEMENT THEN IT BECOMES MORE SPECIFIC.EACH SINGLE ALPHABET OF THIS WORD REPRESENTS DIFFERENT MANAGEMENT TERMS: P-IT IMPLIES ‘PLANNING’. PLANNING GIVES THE FRAME WORK OF FUTURE IT IS A PREDETERMINED PROCEDURE ABOUT THE FUTURE WORK. R-IT IMPLIES ‘RESOURCES’ OR THE AVAILABLE MEANS; WITH WHICT WE WILL GO AHEAD.RESOURCES HAVE THEIR OWN ROLE IN THE DEVELOPMENT OF ANY ORGANIZATION. O-IT IMPLIES ‘OPERATION’OR THE EXISTING OF ADOPTED SEQUENTIAL PROCEDURE. J-IT IMPLIES ‘JOINT EFFORTS’ WHICH DIRECTLY INDICATES TOWARDS COORDINATION OR TEAMWORK. E- IT IMPLIES ‘EFFECTIVNESS’. EVERY ASPECT OF THE PROJECT SHOULD BE EFFECTIVE. C- IT MEANS TO ‘COLLECT’. THAT IS TO BRING TOGETHER ALL THE RELEVANT THINGS, WHICH RE NECESSARY TO MAKE ANY PROJECT EFFECTIVE. T-IT IMPLIES ‘TECHNIQUES’. WITHOUT A NEW OR DEVELOPED TECHNIQUE, AN ORGANIZATION CANN’T COMPLETE IN THIS HIGHLY CHANGING.