A Summer Training Report On CAREER PATH IN HDFC STANDARD LIFE
Submitted to Guru Gobind Singh Indraprastha University In partial fulfillment of the Requirements for the award of Degree of Bachelor of Business Administration(B & I)
MAHARAJA SURAJMAL INSTITUTE C-4,JANAK PURI,NEW DELHI-110058
ACKNOWLEDGEMENT
I would like to thank my project guide, all professors for supporting me during this project and providing me an opportunity to learn outside the classroom. It was a truly wonderful learning experience.
I would like to thank my industry guide Mr. Ashish Pratap Sisodia (Channel Development for guidi guiding ng me th thro roug ugh h my summ summer er in inte tern rnsh ship ip and and rese resear arch ch proj projec ect. t. Hi Hiss Manager) for encouragement, time and effort are greatly appreciated.
I would also like to thank Mr. Deepesh Kumar (Channel Development Manager) of Vikas “Careerr Path In HDFC SLIC”, he actually Puri branch who suggested me such a nice topic “Caree helped us during our initial days and was always there with us during hard times.
I would like to thank all those people who helped in filling up the questionnaire and provided valuable feedback which helped in data analysis and supported our research.
Last but not the least I would like to thank Mr. Bill Gates for his MS Office I could not be able to make my Project Report in printed and attract form.
PREETI
DECLARATION
I hereby declare that the project report titled “CAREER PATH IN HDFC SLIC” is my own work and has been carried out under the able guidance of Mr.
Ashish Pratap Sisodia, Channel Development Manager,Vikas Puri Branch – New Delhi 110058 110058 and , Facu Faculty, lty, of Maha Maharaja raja Surajm Surajmal al Institute. Institute. All care has been taken to keep this report error free and I sincerely regret for any unintended discrepancies that might have crept into this report. I shall be highly obliged if errors (if any) are brought to my attention.
9.DATA ANALYSIS, INTERPRETATION AND PRESENTATION. 10.SWOT ANALYSIS…………………………………………………….. 11.CONCLUSION………………………………………………………….. 12.SUGGESTIONS AND RECOMMENDATIONS…………………….. 13.BIBLIOGRAPHY……………………………………………………… 14.ANNEXURE………………………………………………………….
1. RESEARCH METHODOLOGY RESEARCH METHODOLOGY
All the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group during my job training. I have collected data from Chartered Accountants, Tax Consultants, Businessman, Share Brokers, Lawyers, Working Professionals, House Wives and Retired Persons in Pune.
1. OBJECTIVES OF RESEARCH PROJECT:
PRIMARY OBJECTIVES:
To recruit more and more Financial Consultant and to promote the benefits those are provided by HDFC Standard Life to its Financial Consultants To find find the differ different ent way of recrui recruiti ting ng and select selecting ing the Financ Financial ial Consultan Consultants ts who can produce more and fruitful results. To study awareness of the HDFC Standard life insurance SECONDARY OBJECTIVES:
To determine the need and purpose of Financial Consultant. To understand the deciding criteria for people to become Financial Consultant. To collect and analysis the information of prospect candidates in order to make them appear in front of management so that they can be selected as Financial consultant. To offer suggestions based upon the findings.
2. RESEARCH PLAN:
1. Preliminary Preliminary Investigation: Investigation: In which data on the situation surrounding the problems shall
be gathered to arrive at · The correct definition of the problem. · An understanding of its environment.
2. Exploratory Study: To determine the approximate area where the problem lies.
3 RESEARCH DESIGN:
Research was initiated by examining the secondary data to gain insight into the problem. By analyzing the secondary data, the study aim is to explore the short comings of the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement.
4. DEVELOPING THE RESEARCH PLAN:
The data for this research project has been b een collected through self Administration. Due to time limitation and other constraints direct personal interview method is used. A structured questionnaire was framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. In questionnaires open ended and closedended, both the types of questions has been used. 5.COLLECTION OF DATA:
1: Secondary Data: It was collected from internal sources. The secondary data was collected
on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the companies database and website of the company. 2: Primary data: All the Chartered Accountants, Tax Consultants, Insurance Agents, Auto
loan providers were personally visited and interviewed. They were the main source of Primary data. dat a. The method of collec collectio tion n of primar primary y data data was direct direct person personal al interv interview iew through through a structured questionnaire.
6. SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics.
•
Sampling Units: Chartered Accountants, Tax Consultants, Lawyers, Business Man,
Professionals and House Wives of Delhi.
•
Sample Technique: Random Sampling.
•
Research Instrument: Structured Questionnaire.
•
Contact Method: Personal Interview.
7.LIMITATIONS:
I. Lo Lots ts of pe peop ople le had not give given n the the corr correc ectt info inform rmat atio ion n about their insurance plans. II.
During my research timing generally I found ladies, so they were quite nervous and suspicious to give me the exact details.
III. I hav haven’t en’t eenoug nough h tim timee to res research earch d due ue to very lless ess ti time me to meet with people.
IV. Sam Sample ple si size ze is not so en enoug ough h to kno know w the exa exact ct gra graph ph of the entire population. V. Lots of pe people ople had th thee que questio stions ns ma mark rk abo about ut th thee priv private ate sector insurance companies.
2.EXECUTIVE SUMMARY OF THE PROJECT Introduction HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions and providing the career opportunities to its employees. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.
OBJECTIVE OF THE STUDY:
1. To study the benefits for the employees of the organization. 2. To study the career path of the organization. 3. Recruitment of financial consultant. 4. SWOT analysis
SCOPE OF THE STUDY
The study will limited to HDFC Standard and its employees’ career path for their bright future and also employees employees and Delhi’s Delhi’s people survey about the perception perceptionss toward toward the HDFC SLIC environment in the organization.
SIGNIFICANCE OF THE STUDY
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal factors and opportunities and threats are external factors.
MANAGERIAL USEFULNESS OF THE STUDY
Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was the only insurance company in India. After the opening up of Insurance sector in India there has been been a glut glut of in insu sura ranc ncee compan companie iess in Indi India. a. Th Thes esee compa compani nies es have have come come up wi with th innovative and flexible insurance policies to cater to varying needs of the individual. Opening up of the Insurance sector has also forced the LIC to tighten up its belt and deliver better service. All in all it has been a bonanza for the consumer.
Research Methodology THE MARKET SURVEY (QUESTIONNAIRE)
A market survey was undertaken to get some knowledge about the working environment of organization, salary package, career path, for the employees and quality of work life does plays a pivotal role role for the better men power and which kind is most powerful powerful.. This survey was undertaken Subhash Nagar of DELHI & DELHI’s people and questionnaire method was used.
SAMPLE SIZE
The sample size for the survey conducted was 200 respondents
SAMPLING TECHNIQUE Random sampling technique was used in the survey conducted.
of the collected data. The data is also neatly presented with the help of statistical tools such as graphs and pie charts. charts. Percentages Percentages and averages averages have also been used to represent data clearly and effectively.
STUDY AREA
The samples referred to Delhi City & Branch in Subhash Nagar, New Delhi City.
3. LITERATURE REVIEWS 1. Choo Choosing sing the Right Career Career Path Path By Michael Dylan July, 2007 http://www.woopidoo.com/articles/dylan/career-path.htm
Choosing Choosi ng the right career career path is one of the most defining defining decisions we can make in life. Our job not only says a lot about what kind of person we are, but will influence what type of car we drive, what kind of house we live in, the people we associate with, and more. But above all these things, is the fact that we spend spen d most of our waking moments at wo work!. rk!. Which means that if our job does not fulfill us or does not allow us to pursue our life goals, than it is not the career
we
should
spend
the
rest
of
our
life
doing.
We have to get clear about what it is that gives us fulfillment in life, what fascinates us, or what we are passionate about. Once our interests are defined, we have to think about what career paths are available in that area. Sometimes there will be clear paths to take, like when our passion is designing websites, the job options could be to become a web designer, web programmer, or similar positions. But other interests may need more creative ways of thinking, like if you are passionate about collecting rare coins, your path may not be so clear. You may have to look into several sources of income; Owning a coin dealership, writing a guide to coll ollecting
rare
coins, ns,
having
a
website
built,
and/ nd/or
selling
coi oin ns
online.
Because of the responsibilities of modern life and the necessity of money to support our lifestyle and family, we can't just quit our job and immediately pursue our passion. It may take months or years of planning while we continue to work in our 9 to 5 job and bring in a regular wage. The important thing is that we are moving towards the goal of doing what inspires us in life. Without the clear focus and continual small steps towards achieving our dream job, we would
just
be
kidding
ourselves.
We may have to take evening or weekend classes, attend seminars, read books, or associate with people in your area of interest. If it's a product that you plan to sell, perhaps you could start selling it from home, at weekend markets, or setting up a website to sell it from.
When we're moving towards our dream job and have a clear path before us it makes our 9 to 5 job less of a problem. Rather than going to work each day and hating the things we do, we can appreciate the job for being a step towards doing what really inspires us. It is putting food on the table, paying the rent, and funding the way towards the right career path.
2. A recessi recession-proof on-proof career career path? path? Only for th thee lucky ones
How long will the economic downturn last? While some claim to see green shoots, others – such as my colleague Martin Martin Wolf – see a slow and painful painful process ahead. I have little to add to that debate, but I can guarantee that for some of us, the impact of this downturn will last a lifetime. That is the conclusion I draw from the research of Till Marco von Wachter, an economist at Columbia University, who has been tracing the lasting effects of bad luck in the job market. Having to look for a job at the wrong time can force us into compromises whose repercussions can last years or even decades. For example, when von Wachter teamed up with two US government economists, Jae Song and Joyce Manchester, to study the experiences of those hurled into unemployment by mass layoff lay offss in the 1982 US recess recession ion,, they they discove discovered red horren horrendous dously ly long-l long-last asting ing effect effects. s. The recession itself – one often compared with today’s downturn – was savage, but it was over in less than two years. Yet von Wachter and his colleagues discovered that those who lost their jobs had incomes about 20 per cent lower than would otherwise be expected, even two decades later.
It is possible that this result is really capturing the effect of being a less productive (and thus expendable) worker, or of being trapped in a declining industry. But that is unlikely. Such mass layoffs are by their nature indiscriminate, and the researchers tried hard to compare like with like. The results remain robust – and they match similar research done in Germany, and earlier studies in the US with smaller data sets. Why such a big effect? In part, it is a question of luck. Most people who have secured a decent, secure, full-time job have enjoyed a dose of luck in doing so. “It is hard to get lucky twice,” A similar problem lies in wait for those graduating during a recession. “People have to make compro com promis mises, es,”” says says von Wachte Wachter, r, which which often often means means taking taking a stopgap stopgap job with with a less less glamorous employer, and trying to switch careers or switch employers later on. The longer this process takes, the longer the impact on o n the unlucky cohort of graduates.
3. Over Overcome come Y Your our Career Career Change Change Fear: Fear: 5 Expert Tips Tips
By: Michael Jones February 1, 2007 Source:- http://blogs.payscale.com/content/2007/02/overcome_your_c.html
If you're ready for a career change but haven't yet figured out how to get there, follow these tips from Harvard's Dr. Timothy Butler and Butler and life coach C.J. Liu. Liu. Before you know it, you'll be on
your
way
to
a
new
career.
1. Look Look at the the issu issues es that that make make yo you u crav cravee cha change nge an and d ou outl tlin inee yo your ur go goal als. s.
What are you satisfied with about your current situation? What are you dissatisfied with? Is it your boss or the culture of your organization? Or do you really want to change careers? Outline Outli ne your goals - for example, more money, more time off or more flexibility flexibility.. Write Write it all down.
2.
Work
to
understand
your
inner
critic
Observe thoughts that trap you with fear and prevent you from achieving your objectives.
Write these down on a piece of paper, then crumple it up and throw it away to symbolize your freedom
3.
from
thoughts
Recognize
that
interfere
recurring
with
your
patterns
goals
in
and
dreams.
your
life
What makes you happy? What are your recurring interests and social needs? What makes a work
environment
feel
or
not
so
good
to
you?
Write
it
down.
4. Netw Networ ork k an and d inve invest stig igat atee care career er inte intere rest stss that that ma map p to yo your ur go goal alss an and d need needss
Once you've identified your patterns and desires, start thinking about careers that make sense for you. Give yourself one to three months to explore your curiosity by finding people who do these jobs and talking about the pros and cons of their work. Explore anything and everything until
5.
you're
Make
a
satisfied
plan
that
-
takes
or
until
your
your
financial
time
situation
runs
into
out.
account.
Change is never simple, but having a plan that outlines your steps and financial requirements makes it doable. Will your new career require additional education, a small business loan, time off from work or relocation? Make a plan with financial considerations and a realistic timeline and that you can follow through on.
By:- Suzanna Rose & Laurie Larwood Yaer 1998 Source:http://www.questia.com/read/28638447?title=Women%27s%20Careers%3a %20Pathways%20and%20Pitfalls
A growing interest in women's careers has spread to personal, academic, and organizational life. The proliferation and quality of research on women and work that we saw as program chairs of the 1986 International International Conference on Women and Organizati Organizations ons inspired us to edit this this bo book ok..
That That hi high ghly ly su succ cces essf sful ul co conf nfer eren ence ce was was th thee sour source ce of seve severa rall ch chap apte ters rs
included here. Our goal was to select timely topics that had immediate relevance to career women, students, and scholars of women and work. Part I of the book begins with an introduction by the editors which highlights five major issues that affect working women and what has been learned about those issues in the 1980s. Other chapters are ordered thematically. In Part II, "Personal Career Planning," the themes touch on pathways and pitfalls confronting women as they plan their career strategies. In Chapters 2, 3, and 4, Shapiro and Farrow discuss the merits of mentors, Case analyzes women's speech, and Ely explores women's leadership styles, respectively; with an ey eyee to how wome women n can ap appl ply y th thee in info form rmat atio ion n to th thei eirr ow own n work work si situ tuat atio ion. n. Famil Family y relationships also have been shown to affect women's careers. In Chapter 5, "Husbands' Job Satisfaction and Wives' Income," and Chapter 6, "Have Women's Career and Family Values Changed?" questions are raised concerning the relationship between marriage, family, and careers. In Chapter 7, Chao and Malik present a career planning model which ties together in indi divi vidu dual al,,
orga organi niza zati tion onal al,,
development.
and and
soci societ etal al cons constr trai aint ntss
and and
fa faci cili lita tato tors rs of prof profes essi sion onal al
5. Chan Changing ging Caree Careers rs for More Money Money
By: Ms. Liu May 21, 2009
Source:http://blogs.payscale.com/career-coach/2009/05/changing-careers-for-moreSource:http://blogs.payscale.com/career-coach/2009/05/changing-careers-for-moremoney.html I read your article online, "Ask " Ask the Career Coach" Coach" on Payscale.com. I found it very interesting and helpful and will practice the steps you mentioned in order to find the job of my dreams.
I am very dissatisfied at my current job. I am an office manager for a cigar distributor company. It is a small company; I am in the office most of the time by myself. I oversee all operations of the company. My role includes everything from answering phones, making sales, taking care of the books and conducting weekly meetings with sales staff in different states to
packaging
and
shipping
cigars,
etc.
My employer is also in the process of starting a construction company, for which I am preparing all related documents and applications. I used to work with my current employer in a cons onstruct uction
company
he
used
to
own
prior
to
starting
the
cigar
business ess.
I am unhappy because I don't see any room for growth any time soon unless the construction company kicks off in the next few months. But I am thinking of now; I need change now. The sala salary ry is not not bad bad but but I want want more more an and d I do don' n'tt fo fore rese seee gett gettin ing g more more an any y ti time me soon soon.. Also, my husband owns a subcontractor company. It’s small but he has been in business for over 10 years. He owns the company along with his mother and brother. I help sometimes since I do have experience in construction, but can only help so much. I do not want them to feel like I want to take over. So I decided to start my own company with my husband to do jobs on the side with both of us keeping our current positions. That did not work since the license he has is already under his company's name. Now I would need a license in order for us to be able to pull permits under our company's license. So we are stuck in that sense and I am very disappointed that it did not go far.
6. Care Career er paths of global global managers: managers: Towards Towards future future research research
By: Tineke Cappellen & Maddy Janssens 12 September 2005.
The aim of this paper is to identify potentially productive areas where future research on global managers’ careers is warranted. Approaching career as a path, we conceptualize a global career path path as an int inters ersect ection ion of three three domain domains: s: an indivi individua dual, l, an organi organizat zationa ionall and a global global environment domain. To identify, within each domain, d omain, the most important factors influencing a global career, we first conducted a review of the literature on boundaryless careers and global managers. This review allowed us to identify those factors that are most relevant to the changing nature of careers and global assignments. We then reviewed past empirical research on international careers to map how previous studies have addressed those factors, further guiding us to formulate directions for future research on global careers. As well as indicating these the se specif specific ic resear research ch implic implicati ations ons,, we propos proposee a context contextual ualize ized d resear research ch approach approach that that facilitates understanding of different career moves over time as well as the overall direction of a global career path.
CHAPTER 3
INTRODUCTION THE INSURANCE INDUSTRY IN INDIA AN OVERVIEW With the largest number of life insura insurance nce policies in force in the world, Insurance Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 1560.41 billion (for the financial year 2006 – 2007). Together with banking services, it adds about 7% to the country’s Gross Domestic Product (GDP). The gross premium collection is nearly 2% of GDP and funds available with LIC for investments are 8% of the GDP. Even so nearly 65% of the Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. A large part of our population is also subject to weak social security and pension systems with hardly any old age income security. This in itself is an indicator that growth potential for the insurance sector in India is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and strengthens the risk taking ability of individuals. It is estimated that over the next ten years India would require investments of th thee orde orderr of one tr tril illi lion on US doll dollar ars. s. The The In Insu sura ranc ncee sect sector or,, to some some exte extent nt,, can can enab enable le investments in infrastructure development to sustain the economic growth of the country. (Source: www.indiacore.com)
HISTORICAL PERSPECTIVE
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 insurance charged for Indian lives was more than the non - Indian lives, as Indian lives were considered more risky to cover. The Bombay Mutual Life Insurance Society started its business in 1870It was the same 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 Triton Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of the 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 frauds during the 1920's and 1930's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of1938 that strict State Control is there over the insurance business. The insurance business grew at a faster pace than other business. 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 the much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State led 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).
KEY MILESTONES 1912 : The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business. 1928: The Indian Indian Insura Insurance nce Compani Companies es Act enacted enacted to enable enable the governm government ent to collec collectt
statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended by the Insurance Act with the objective of
protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers along with provident societies were taken over by the
central government and nationalized. LIC was formed by an Act of Parliament- LIC Act 1956with a capital contribution of Rs. 5 crore c rore from the Government of India.
INDUSTRY REFORMS
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.
PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA
The life insurance industry in India grew by an impressive 47.38%, with premium income at Rs. 1560.41 billion during the fiscal year 2006-2007. Though the total volume of LIC's business increased in the last fiscal year (2006-2007) compared to the previous one, its market share came down from 85.75% to 81.91%.
The 17 private insurers increased their market share from about 15% to about 19% in a year's time. The figures for the first two months of the fiscal year 2007-08 also speak of the growing share of the private insurers. The share of LIC for this period has further come down to 75 percent, while the private players have grabbed over 24 percent. With the opening up of the insurance industry in India many foreign players have entered the market. The restriction on these companies is that they are not allowed to have more than a 26% stake in a company’s ownership. Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the Indian market and 19 private life insurance companies have been granted licenses.
WHO ARE THE COMPETITORS OF HDFC SLIC?
CHAPTER 4
INTRODUCTION TO HDFC & STANDARD LIFE
HDFC HDFC Incorporated in 1977 with a share capital of Rs 10 Crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 Crores. The gross premium income for the year ending March 31, 2007 stood at Rs. 2,856 Crores and new business premium income at Rs. 1,624 Crores. The company has covered over
, 8, 77,000 lives year ending March
31, 2007. HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai, India. HDFC also has an International Office in Dubai, UAE with service associates in Kuwait, Oman and Qatar. HDFC is the largest housing company in India for the last 27 years.
SNAPSHOT-I •
Incorporated in 1977 as the first specialized Mortgage Company in India.
•
Almost Alm ost 90% of ini initi tial al shareh sharehold olding ing in the hands hands of domest domestic ic insti institut tutes es and retail retail investors. Current 77% of shares held by foreign institutional investors.
•
Besides the core business of mortgage HDFC has evolved into a financial conglomerate with holdings In:
HDFC Standard Life insurance Company- HDFC holds 78.07 %.
HDFC Asset Management Company – HDFC holds 50.1%
HDFC Bank- HDFC holds 22.25%.
Intelenet Global (Business Process Outsourcing) – HDFC holds 50%
.HDFC Chubb General Insurance Company – HDFC holds 74%.
SNAPSHOT-II •
Loan Approvals (up to Dec 2007)
•
•
•
Loan Disbursements (up to Dec. 2007) Housing Units Financed
Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of
Housin Hou sing g Deve Develop lopmen mentt Fin Finance ance Cor Corpor porati ation on Lim Limit ited ed (HD (HDFC FC Lim Limit ited) ed).. He joi joined ned HDF HDFC C Limited in a senior management position in 1978. He was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).
thee Ma Manag nagin ing g Di Dire rect ctor or and CE CEO O of th thee Com Compa pany ny si sinc ncee Mr. Deep Deepak ak M Satw Satwale alekar kar is th November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Sat Satwal walekar ekar obt obtain ained ed a Bac Bachel helors ors Deg Degree ree in Tec Technol hnology ogy fro from m the Ind Indian ian Ins Instit titute ute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC.
GROUP COMPANIES HDFC Bank: World Class Indian Bank- among the top private banks in India. HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager. Intelenet Global: BPO services for international customers. CIBIL: Credit Information Bureau India Limited. HDFC Chubb: Upcoming Private companies in the field of General Insurance. HDFC Mutual Fund HDFC reality.com: Helps Helps to search properties in all major cities in India HDFC securities
STANDARD LIFE Standard Life is Europe’s largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years is a modern company surviving quite a few changes since selling its first policy in 1825. The company expanded in the 19 th century from kits original Edinburgh premises, opening offices in other towns and acquitting other similar businesses.
Standard Life Currently has assets exceeding over £ 70 billion under its management and has the distinction of being accorded “AAA” rating consequently for the six years by Standard and Poor.
SNAPSHOT
•
Founded in 1875, company supporting generation for last 179 years.
•
Currently over 5 million Policy holders benefiting from the services offered.
•
Europe’s largest mutual life insurer.
JOINT VENTURE
Country of registration or Share class Name incorporation and proportion held Year end Nature of business
Heng An Standard Life China Ordinary shares 50.0% 31 Dec Life assuranceHDFC Standard Life Insurance Company Limited** IndiaOrdinary shares 18.6% 31 Mar Life assuranceHDFC Asset Management Company Limited* ** India Ordinary shares 49.9% 31 Mar Investment management* Owned by a subsidiary undertaking of the Company.** The Company Company also has a 14.5% 14.5% int intere erest st in Housing Housing Develo Developme pment nt Financ Financee Corpor Corporati ation on Limited (“HDFC Limited”). HDFC Limited owns 81.4% and 50.1%of HDFC Standard Life Insurance Company Limited and HDFC Asset Management Company respectively. This gives theGroup an effective interest in thesecompanies of 30% and 57% respectively. The Company does not exercise dominant influence over either of these joint ventures.The current operations of these companies are not significant in relation to the accounts of the Group.
CHAPTER 5
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED
INTRODUCTION
HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is a joint venturee between ventur between HousingDevel HousingDevelopment opment Finance Corpor Corporation ation Limited (HDFC Ltd.) India And UK based Standard Life Company. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.4:18.6 joint venture to form HDFC Standard Life Life In Insu sura ranc ncee Comp Company any Li Limi mite ted. d. Mr. Mr. Deepa Deepak k Satwa Satwale lekar kar is th thee MD and and CEO CEO of th thee venture.HDFC Standard Life brings to you a whole range of insurance Solutions be it group or individual or NAV services for Corporations, they can be easily customized as per specific needs. HDFC Standard Life Insurance India boasts of covering around 8.7 lakh lives by March'2007. The gross incomes standing at a whopping Rs. 2, 856 crores, HDFC Standard Life Insurance Corporation is sure to become one of the leaders and the first preference for any life insurance customer. HDFC Standard Life Insurance Company Ltd. offers a range of individual and group insurance solutions. It is a joint venture between Housing Development D evelopment Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance institution and one o ne of the subsidiaries of Standard Life plc, leading providers of financial services in the United Kingdom. The Standard Life group has been looking after the financial needs of customers for over 180 years. It is a leading pension’s provider in the UK. Both the promoters are well known in their respective fields of activities. For more details you may log on to http://www.hdfcinsurance.com
HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Reach of the JV player is highly rated
and been conferred with many awards. HDFC is rated ‘AAA ’ by both CRISIL and ICRA. Similarly, Standard Life is rated ‘AAA’ both by Moody’s and Standard and Poor’s. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr. respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14 th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4% staple and Standard of as a staple 18.6% Mr. Deepak Satwalekar is the MD and CEO of the venture. HDFC Standard Life Insurance Company Ltd. Is one of India’s leading Private Life Insurance Companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) India’s leading housing finance institution and the Standard Life Assurance Company, a leading provider of financial services from the United Kingdom. Both the promoters are will known for their ethical dealings and financial strength and are thus committed to being a long-term player in the life insurance industry- all important factors to consider when choosing your insurer.
BUSINESS GROWTH HDFC Standard Life, one of India’s leading private life insurance companies declared its annual results for the financial year ending March 31, 2009 . The company generated Total Premium Income of Rs. 5564.69 crores in FY2008-09 registering a year-on-year growth of 15%. The growth was primarily driven by the company’s structured sales processes based on customer needs and their assessments, wide range of product portfolio and diverse distribution network.
Mr. Paresh Parasnis, Principal Officer Officer and Executive Director, said, ““The The financial year 200809 was a defining year with the unfolding of several unexpected events – sharp correction in financial markets and a spread of recessionary trends. These events also had an impact on the Indian life insurance industry. We are happy that our new policies issued grew by 16% over the last year. However, However, given the uncertainty uncertainty in the overall scenario, customers customers have reduced reduced their the ir annual annual premi premium um commit commitment ment on new polici policies. es. At the same same time, time, existi existing ng polici policies es continued to be in force reflected in our renewal premium, which posted a healthy growth of
34%.”
In line with overall market conditions, con ditions, growth in Effective Premium Income (EPI) in respect of retail business increased by 5%, growing from Rs. 2,425 crores in 2007-08 to Rs. 2,552 crores in 2008-09. HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy and is an internationally accepted indicator of an insurance company’s performance. HDFC Standard Life maintained its healthy pipeline of products last year by launching11 products apart from slashing the premium rates of its Term Assurance Plan premium rates by about 25% across different age bands. “Our entry into the health insurance market last year with the launch of two products – Surgi Care and Critical Care was a significant move in line with our business objective. The low penetration of health insurance in India gives us a tremendous opportunity to provide quality health insurance. Our health products along our complete range of life insurance and pension’s portfolio meet almost every aspect of an individual’s requirements,” Mr. Parasnis added.
KEY STRENGTH Financial Expertise As a joint venture of leading financial services group. HDFC standard Life has the financial expertise required to manage long-term investments safely and efficiently.
Range of Solutions HDFC SLIC has a range of individual and group solutions, which can be easily customized to specif spe cific ic needs. needs. These These group group soluti solutions ons have have been design designed ed to offer offer comple complete te flexib flexibili ility ty combined with a low charging structure.
Strong Ethical Values: HDFC SLIC is an ethical and Cultural Organization. False selling or false commitment with the customers is not allowed.
Most respected Private Insurance Company HDFC SLIC was awarded No-1 Private Insurance Company in 2004 by the World Class Magazine Business World for Integrity, Innovation and Customer Care .
CORPORATE OBJECTIVE •
Focus on the productivity of each consultant, corporate or individual, while stressing on the quality of proposals
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Quick roll out of Products
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Efficiency of Operations
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Meet Social & Rural sector obligations
VISION 'The most successful and admired life insurance company, which means that we are the most trus tr uste ted d co comp mpan any, y, th thee ea easi sies estt to dea deall wi with th,, of offe ferr th thee be best st val value ue fo forr mo mone ney, y, an and d se sett th thee standards.
'The most obvious choice for all'.
VALUES Values that we observe while we work: Integrity Innovation Customer People Care Teamwork Joy and Simplicity
.
BOARD MEMBERS
Brief profile of the Board of Directors
Mr. Deepak S Parekh
is the Chairman of the Company. He is also the Executive
Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined join ed HDFC Limited Limited in a senior management position position in 1978. He was inducted inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales). Mr. Keki M Mistry
joined the Board of Directors of the Company in December, 2000.
He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. Mr. Alexander M Crombie
joined the Board of Directors of the Company in April,
2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland. Ms. Marcia D Campbell
is currently the Group Operations Director in the Standard
Life group Life group and is respons responsibl iblee for Group Group Operat Operation ions, s, Asia Asia Pacific Pacific Develo Developme pment, nt, Strate Str ategy gy & Planni Planning, ng, Corpor Corporate ate Respons Responsibi ibilit lity y and Shared Shared Servic Services es Centre. Centre. Ms. Campbell joined the Board of Directors in November 2005. Mr. Keith N Skeoch
is currently the Chief Executive in Standard Life Investments
Limite Lim ited d and is respons responsibl iblee for overse overseein eing g Invest Investmen mentt Proces Processs & Chief Chief Execut Executive ive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Control Controlss and Strate Strategy gy HSBS HSBS Securit Securities ies and Managin Managing g Direct Director or Int Intern ernati ational onal Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005.
Mr. Gautam R Divan
is a practising Chartered Accountant and is a Fellow of the
Institut Inst itutee of Chartered Accountants Accountants of India. India. Mr. Divan was the Former Chairman and Managi Man aging ng Commit Committee tee Member Member of Midsne Midsnell ll Group Group Intern Internati ational onal,, an Intern Internati ational onal Associ Ass ociati ation on of Indepe Independen ndentt Account Accounting ing Firms Firms and has author authored ed severa severall papers papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr Mr.. Ranj Ranjan an Pant Pant
is a global global Manage Managemen mentt Consul Consultan tantt advisi advising ng CEO/Bo CEO/Board ardss on
St Stra rate tegy gy and and Chan Change ge Mana Managem gemen ent. t. Mr. Mr. Pa Pant nt,, until until 2002 2002 was was a Partn Partner er & Vi Vice ce-Presid Pre sident ent at Bain Bain & Company Company,, Inc., Inc., Boston Boston,, where where he led the worldw worldwide ide Utilit Utility y Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honours) from Birla Institute of Technology and Sciences. Mr. Ravi Narain is the Managing Director & CEO
of National Stock Exchange of
India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). Mr. Deepak M Satwalekar is the Managing Director and CEO
of the Company
since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since sin ce 1993. 1993. Mr. Satwal Satwaleka ekarr obtain obtained ed a Bachel Bachelors ors Deg Degree ree in Technol Technology ogy from from the In Indi dian an Inst Instit itut utee of Te Tech chno nolo logy gy,, Bomb Bombay ay an and d a Mast Master erss Degr Degree ee in Busi Busine ness ss Administration from The American University, Washington DC. Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in law and and hold holdss a Mast Master er's 's de degr gree ee in econ econom omic icss from from Delh Delhii Univ Univer ersi sity ty.. Sh Shee has has been been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited.
MARKET SHARE HDFC Limited.
HDFC is India’s leading housing finance institution and has helped build more than 23,00,000 houses since its incorporation in 1977.
In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.
As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors.
Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year
Stable and experienced management
High service standards
Awar Aw arde ded d The The Ec Econo onomi micc Ti Time mess Corp Corpor orat atee Ci Citi tize zen n of th thee year year Award Award fo forr it itss long-standing commitment to community development.
Presented the ‘Dream Home’ award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards.
Standard Life Group (Standard Life plc and its subsidiaries)
The Standard Life group has been looking after the financial needs of customers for over 180 years
It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs
Its investment manager currently administers £125 billion in assets
It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's
Standard Life Life was awarded the 'Best Pension Pension Provider' in 2004, 2005 and 2006 at
the
Money Marketing Marketing Awards, and it was voted a 5 star life life and pensions provider at
the
Financial Adviser Service Awards for the last 10 years running running . The '5 Star' has also also been awarde awarded d to Standard Standard Life Life Investme Investments nts for the the last 10 years, years, Standard Life Life Bank since its its iinception nception in 1998. Standard Life Bank was 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards Awards in
accolade and to
awarded the
2006
MILESTONES IN THE HISTORY
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HDFC is India’s leading housing finance institution and has helped build more than 23, 00,000 houses since its incorporation in 1977.
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In Financial Year 2003-04 its assets under management crossed Rs.36,000Cr. As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors.
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Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year
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Awarded The Economic Times Corporate Citizen of o f the year Award for its longstanding commitment to community development.
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Presented the ‘Dream Home’ award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards
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HDFC Standard Life Insurance is the first private life insurance company to be granted
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a license by IRDA Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India’s number 1 personal finance magazine
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Rated by ‘Business world’ as ‘India’s Most Respected Private Life Insurance Company’ in 2004.
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47 Has the highest brand recall, close to 80% (Source: AC Neilson ORGMARG, April 2005)
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Has one of the widest branch networks with offices in over 100 cities servicing over 440 towns
PRODUCTS & SERVICES
The right investment strategies won't just help plan for a more comfortable tomorrow -- they will help you get “Sar Utha ke Jiyo”. At HDFC SLIC, life insurance plans are created c reated keeping in mind the changing needs of family. Its life insurance plans are designed to provide you with flex flexib ible le opti option onss th that at meet meet both both prot protec ecti tion on an and d savi savings ngs needs needs.. It of offe fers rs a fu full ll rang rangee of transparent, flexible and value for money products. HDFC SLIC products are modern and contemporar contem porary y unitized unitized products products that offer unique customer benefits like flexibilit flexibility y to choose cover levels, indexation and partial withdrawals. (Source: www.hdfcslic.com)
Innovative Innovat ive products, products, smart marketing, marketing, and aggressive aggressive distribution distribution have enabled enabled fledgling fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. Some of these products include investment plans with insurance and good returns (unit linked plans), multi – purpose insurance plans, pension plans, child plans and money back plans. (www.wikipedia.com)
Products of HDFC standard life insurance Individual Group Social
Individual Products
We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.
Protection Plans
You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term our Term Assurance Plan & Loan Cover Term Assurance Plan. Plan.
Investment Plans
Our Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.
Pension Plans
Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Plan, Unit Linked Pension, Unit Linked Pension Plus
Savings Plans
Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children immediate and future needs. Our Savings Savings range range includ includes es Endowment Endowment Assurance Assurance Plan, Plan, Unit Unit Linked Linked Endowm Endowment ent,, Unit Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Unit Linked Enhanced Life Protection II, Children's Plan Plan,, Unit Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young Star Plus II II..
Group Products One-stop shop for employee-benefit solutions
HDFC Standard Life has the most comprehensive list of products for progressive employers who wh o wi wish sh to provi provide de th thee best best an and d most most in innov novat ativ ivee empl employ oyee ee benef benefit it solu soluti tions ons to th thei eir r employees. We offer different products for different needs of employers ranging from term insura ins urance nce plans plans for pure pure protec protectio tion n to volunt voluntary ary plans plans such such as sup supera erannua nnuati tion on and leave leave encashment. We now offer the following group products to our esteemed corporate clients: •
Group Term Insurance
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Group Variable Term Insurance
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Group Unit-Linked Plan
An invest investmen mentt soluti solution on that that provid provides es fun fundin ding g vehicle vehicle to manage manage corpus corpuses es wit with h Gratuity, Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes Social Product Development insurance plan
Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is paid to those member beneficiaries to help meet some of the immediate financial needs following their loss. Eligibility •
Members of the development agency and their spouses with:
•
Minimum age at the start of the policy 18 years last birthday
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Maximum age at the start of policy 50 years last birthday
ADVERTISEMENT AND SALES PROMOTION
Film opens in the compound of a house. Father is checki che cking ng som someth ething ing ins inside ide the bon bonnet net of an old small car. His daughter, around 27-28 years old, is working on a lap top next to him
Daughter continues affirmatively as she signs on a cheque. Daughter: “Aur wo bhi badi wali.
Daughter: “Relax dad, plan kiya.” Dad doesn’t know what to say: “Par...”
Super: Unit Linked Savings Plans MVO:: “Un MVO “Unit it Lin Linked ked Sav Saving ingss Pla Plans ns fro from m HD HDFC FC Standard Life. zimmedari nibhao, Aaj bhi kal bhi ”
Daughter: “Dad”. Father: “Bolo” Daught Dau ghter: er: “Na “Nayi yi car len lenee mei mein n hee bh bhala alaai ai hai.” Dad nods in agreement without looking up. Dad: “Hmmm…”
Dad looks at her Dad: “Huh, Badi kyon?”
and
asks.
Dad doesn’t know what to say as he looks at the cheque. Daughter pleads: “Please…dad”
Father daughter are MVO: “Sar Utha Utha Ke Jiyo.”
sitting.
FINANCIAL PERFORMANCE HDFC Standard Life, one of the leading private life insurance companies in India declared its annual results for the financial year ending March 31, 2008. The company generated New Business Premium Income of Rs. 2,685 crores in FY2007-08 registering a year-on-year growth of 63%. The growth was primarily driven by the success of the company's initiative on structured sales processes based on customer needs and their assessments. HDFC Standard Life, one of the leading private life insurance companies in India declared its annual results for the financial year ending March 31, 2008. The company generated New Business Premium Income of Rs. 2,685 crores in FY2007-08 registering a year-on-year growth of 63%. The growth was primarily driven by the success of the company’s initiative on structured sales processes based on customer needs and their assessments.
Mr. Deepak Satwalekar, MD & CEO, HDFC Standard Life attributed this growth to the quality of life insurance solutions offered by the company and its increased geographical reach. He also emphasised, “We believe that our success is a result of our efforts in giving customers, the best long-term long-term solutions solutions to take care of their insurance insurance needs. Our endeavour endeavour to provide provide high quality insurance and pension solutions to customers through quality pre-sales advice, based on a sound need-based solutions approach, and post-sales service has started to pay off.” Highlights of Financial Year 2007-08
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New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium Income is up by 70% at Rs. 4,859 crores as against Rs. 2,856 crores in FY2006-07
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Alternate Channels including bancassurance has recorded an impressive growth of over 63% to contribute 41% to the Effective Premium Income (EPI)
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Group business funds under management have increased to Rs. 959 crores, registering a growth of 83% over FY2006-07
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The average premium has increased to Rs. 33,000
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Company products and services are now available in 726 cities and towns across the
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country Strength of Financial Consultants has increased to 1,45,000.
HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy and is an intern internati ationa onally lly accept accepted ed indica indicator tor of an insura insurance nce company company’s ’s perfor performan mance. ce. The tot total al premium income (including renewal premium) grew by 70% to touch a figure of Rs. 4,859 crores. High levels of persistency have resulted in higher level of renewal premiums. Although there has been a slight dip from 89% to 86%, we continue to have the highest persistency level in the industry. The cumulative sum assured for all policies issued upto March 31, 2008 crossed Rs. 87,000 crores.
In offering unit linked products, the structured sales process adopted by the company has paid rich dividends. “We believe that we should be able to lengthen the maturity profile of our policy portfolio, now that the regulatory disincentive has been removed with effect from April 1, 2008,” added Mr. Satwalekar. HDFC Standard Life offers, both, life insurance policies as well as pension products on a unit linked platform as also the conventional ‘with profits’ platform.
Over 50% of the sum assured as on March 31, 2008, is in respect of non unit-linked policies. Over 30% of funds under management are in respect of non-linked business, which reflects the balanced book between conventional and unit-linked business in the total portfolio of the company.
The company’s national relationships with large public and private sector banks have also helped it reach out to a larger number of customers across the country. The company plans to further strengthen these relationships through the introduction of products specially designed for this channel.
HDFC Standard Life continues to have one of the widest reaches among new insurance companies. The company strengthened its number of offices from 103 to 572 across the country in less than 3 years. Through these offices, the company today services customer needs in over 726 cities and towns. The company also increased its depth in existing markets by increasing its Financial Consultant strength from 74,000 as on March 31, 2007 to 1,45,000 as on March 31, 2008. There has been a huge jump of 300% over the last 3 years in the number of its Financial Consultants who have qualified to become members of the prestigious Million
Dollar Round Table (MDRT) Club. The strength of MDRT qualified members has gone up to 496 as on December 31, 2007.
As against the regulatory requirement of writing 18% of all policies in rural areas, HDFC Standard Life has issued over 217,000 policies accounting for 23% of all policies issued during 2007-08.. Additionall 2007-08 Additionally, y, during 2007-08, HDFC Standard Life has covered 51,326 lives under the social sector category, as against the requirement of 25,000 lives. Overall, the company has covered over 9,59,000 lives during the year ending March 31, 2008.
To meet the demands arising from the company’s rapid growth, shareholders have contributed additional Rs. 470 crores of equity to take the paid-up share capital as on March 2008 to Rs. 1,271 crores. HDFC Standard Life, one of the leading private life insurance companies in India declared its annual results for the financial year ending March 31, 2008. The company generated New Business Premium Income of Rs. 2,685 crores in FY2007-08 registering a year-on-year growth of 63%. The growth was primarily driven by the success of the company's initiative on structured sales processes based on customer needs and their assessments.
FUTURE PLANS HDFC Standard Life, plans IPO in '09
Mumbai, HDFC has booked a profit of around Rs 120 cr in a Rs 200 cr transaction involving sale of 7.15% stake in HDFC Standard Life to its British partner. The promoters of HDFC Standard Life have said also said that they will dilute stake through an IPO before 2009.
New HDFC Standard Life policy
Mumbai Mum bai,,
HDFC HDFC Standa Standard rd Life has launche launched d a new product product called called "Unit "Unit Linked Linked Wealth Wealth
Maximiser Plus". This is a single premium investment cum protection plan, with a minimum premium of Rs 1 lakh. The policyholder has the option to choose from five fund options Money Plus Fund, Bond Opportunities Opportunities Fund, Large-cap Fund, Mid-cap Mid-cap Fund, and Manager's Manager's Fund. HDFC Standard Life will offer regular loyalty units of 0.10 per cent every year as long as the policy is not surrendered. The accumulated value of the funds is received at the end of the policy term. In the event of unfortunate demise of the policyholder during the policy tenure, HDFC Standard Life will pay the greater of the Sum Assured (less all applicable withdrawals) and the total fund value to the family members of the policyholder. The policy offers life insurance cover until the age of 99 years
CHAPTER 6
CAREER PATH IN HDFC SLIC HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions and providing the career opportunities to its employees. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.
CAREER PATH Channel Development Department
Sales
Department
Area Manager Channel Development
Channel Develo ment
Recruitment
Territory Manager Business Develo ment
Sales Development Mana er SDM Financial Consultant
Thee Care Th Career er Path Path in HDF HDFC C Standar Standard d Life Insuranc Insurancee Company Company Ltd. mai mainly nly has two operations operat ions in its all branches. branches. HDFC Standard Life Insurance Company Ltd. has divided its operation into two departments for the better management. These departments are:
Channel Development Department
1. Area Area Mana Manage gers rs 2. Chann Channel el Deve Develop lopme ment nt Manag Manager erss 3. Channe Channell Develop Developmen mentt Exe Executi cutives ves 4. Recr Recruit uitme ment nt Cons Consult ultant ant
Sales Department
1. 2.
Territory Manager Business Development Managers
3.
Sales De Development Ma Managers
4.
Financial Consultants
Channel Development Department
Channel Development Development Department is department which plays a major role in the organization. organization. This department department is engaged in recruiting the effective and efficient FCs for the organization so the people they are recruiting is capable to bring the business for the organization and fulfill the organizat organizationa ionall goals goals and objectives. objectives. Recruit Recruiting ing the FCs not only task for the channel channel developm deve lopment ent department department but to provide provide the IRDA training training to the selected selected candidate candidate and preparing preparin g for the IRDA exams for getting the IRDA license. license. After getting the IRDA license license a candidate is able to sell the insurance product and become the Financial Consultant, and he/she transferred to the sales department for the further process.
Role of CDMs & CDEs
1. Team building The first step for for any CDM is make a team for the the recruitment recruitment process. A
CDM can use the different resource for the recruitment like Recruitment Consultants, Project Trainees, E2E vendors vendors & RPs. Through these these resource of recruitment recruitment a CDM can move for the further process. 2. Training & Induction The next step is to provide the training & induction programs for
his/her team (i.e. recruitment resource) and he/she should has to do field work with his/her team. 3. Planning & Implementation of Lead Generation Activities. A CDM required minimum
one BOP per week, he can use the canopy, road shows, BTL activities as well for better recruitment for the organization. 4. Resource Motivation and Drive.
One Vendor Review meet per Week ( Channel Development Manager to Review) One Vendor Meet per Month( AM-CD to Address) Felicitation & Rewards to top performers 5. IRDA Training & Examination A CDM has to arrange FC’s 50 hours training tracking
through LC & RC’s. and IRDA Examination Tracking Tracking through LC & RC’s and increasing I/O Ratio. 6. MIS & Documentation A CDM keeps the records of documentation of vendor contracts &
payment modes and MIS on recruitment & licensing Of FC BM/TM wise Keeping an Eye on first Business track,activisation through LC and HO Biz Update. 7. Relationship Management at Local Level A CDM has to be regular branch visits to keep
the better relationship with local level: •
Relationship Management( RM,TM,BM,SDM & Ops)
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Allocation of FC’s through TM/BM Retail
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FC Recruitment, Licensing & Business Updates to Retail functions
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Updating Ops-Agency Co-Ordinator on Process Changes
8. Checking Quality Parameters •
Q Score
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Q Score >3 is not allowed
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FC Pre Login Interview Sheet
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Fulfillment of RI documents
9. Recruitment Activity Monitor •
Ensure you update RAM daily
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100 % adherence
Sales Department
Sales Sal es Depar Departme tment nt is the most most import importan antt de depar partme tment nt for for an any y organ organiza izatio tion, n, witho without ut it no organization organizat ion move further. further. All the business is is depends on the sales sales departme department nt and all the operations are done for promoting the sales. So i.e. the better management and better sales executive are require require for increasing increasing the sale of Insurance products products (Insurance (Insurance Policies). Policies). The Territor Terr itory y Manager Manager monitors monitors the branch and all the BDMs are the subord subordinat inatee of him. him. TM keeps the eyes on all the activities activities or a branch and his/her subor subordinates dinates like BDMs, SDMs, CDMs, FCs and others. others.
The Channel Channel Development Development departmen departmentt helps in recruiting recruiting the best
Financial Consultant to the organization so he/she would be able to take more business (large amount of Premiums) Premiums) and helps in achieving achieving the organizational organizational goal. After getting the IRDA licence FCs are transferred to sales department from cha nnel development development department department under
different diffe rent SDMs & BDMs. Then sales department department provides provides them product and other training training which can make them to go in the market and to sell the insurance policies.
Be a Financial Consultant
Be a part of HDFC Standard Life Insurance Company Ltd. and grab the unlimited opportunities and enjoy the reward, recognition and many more
Tap into an unlimited earning potential
Utilize spare time productively
Get National & International Recognition
Invest time and not money*
Build stronger and life-long relationship
Reinvent your life
BUSINESS DESCRIPTION Be our Certified Financial Consultant Join HDFC Standard Life Insurance as a Financial Consultant and help analyze your customer’s financial needs, provide customized financial solutions to each one and conduct reviews on a regular basis to keep your customers on track. Along with being a great career move you get associated with HDFC Standard Life Insurance, India’s Most Respected Private Life Insurance Company. We at HDFC Standard Life also offer you unmatched support with various training programmes to help you excel in your endeavour. A great career move in every way Zero investment, there is no start-up capital. You can work full-time or part-time, depending on your convenience Sunrise industry Support every step of the way At HDFC Standard Life, training is an inherent element of our support system - at no extra cost - for our new Financial Consultants EXCELLENT OPPORTUNITY •
Join HDFC Standard Life Insurance as a Financial Consultant and earn a rewarding
career •
Flexiblee work timings – You can work whenever you like. You can work full-time or Flexibl
part-time, depending on your convenience. However, the time you invest will determine your success Any one can join - Young graduates, Housewives, Retired Personnel, Self-employed or Working Professionals. •
•
Zero Investment Investment - There is no start-up capital required. Be your own boss with
flexible working environment, unlimited earning potential and opportunities to be part of a world class sales team. •
Attractive Attrac tive Remuneration Remuneration - Company Company offers offers excell excellent ent commis commissio sions, ns, award award and
rewards
for
the
performers.
You have unlimited earning potential. Commission structure is pretty handsome and is 1540% and renewal commission of 5% second year onwards till the policy is in force. •
Certificate by IRDA- You will get world class training free of cost and certification by
Insurance Regulatory Development Authority.
•
TRAINING- Perfects your knowledge about the insurance industry as well as our
products •
IRDA Training- Prepares you for your career as a Financial Consultant and enables you
to pass the IRDA examination easily •
Disha TrainingTraining- Hones your selling skills, enables you to understand customer needs
and provide need-based insurance solutions •
Advanced Training- Upgrades your capability and knowledge through sophisticated
training programs customised for the changing world of financial products and markets
DESIRED PROFILE:
Age: 18 Yrs to 65 Yrs Education: Intermediate or more Experience: Not Mandatory Type of Job: Full Time or Part Time
JOB DESCRIP DESCRIPTION TION FOR FINANCIAL C CONSULTANTS ONSULTANTS Pre sales role •
Identifying prospective clients.
•
Meeting prospective clients.
•
Understanding the need of the client. c lient.
•
Presenting solutions to client.
•
Closing sales.
Post sales role •
Taking 1-2 references from the client
•
Provi rovidi ding ng ti time mely ly upda update tess to th thee cl clie ient nt fo forr ma main inta tain inin ing g Life Lifelo long ng relationship.
CHAPTER 7
RECRUITMENT RECRUI TMENT PROCES PROCESS S OF FCs Fill up of Agency form
IRDA Training (100 hrs) IRDA Exam
Fail
Pass
Exit
Product Training
Traditional Pr.
ULIP
Product
Internal Assessment
Fail
Pass
Exit Certification
WHAT ARE THE ROLES OF A FINANCIAL CONSULTANT?
Meet people and present services Understand their financial needs Customize Life Insurance Plans Provide efficient after-sale support Help customers protect their lifestyles, Realize their dreams and enjoy their lives
HDFC Standard Life Insurance Company Ltd. the World of Opportunities
HDFC Standard Life welcomes you in the world of opportunities, HDFC SLIC is providing
the great opportunities to its employees and its Career Path in HDFC is the competitive edge in this competitive era. era. The HDFC SLIC has great opportuniti opportunities:es:-
Our Team The Opportunities Choosing the right place/company
Rewards Recognition and respect Support function •
Training
•
Marketing
•
Sales
Unlimited Earnings
Our Team HDFC Standard Life Insurance Company Ltd. has finest team over 70,000+ FCs (Financial
Consul Con sultan tants) ts) compri comprises ses of ret retire ired d person persons, s, Profes Professio sional nals, s, Broker Brokers, s, housew housewive ives, s, studen students ts Entrepreneurs / Businessmen, Charted Accountants and salaried persons which w hich is providing the competitive advantage to the organization to compete its competitors in the insurance sector as competitive human resource.
OUR TEAM COMPRISES OF
Retired Persons Professiona ls
Broke rs
Finest Team Of over 70,000 FCs
Housewive s
Student s
Salarie d
Charted Accounta
Entrepreneu rs /Businessme n
The Opportunitie Opportunitiess
HDFC SLIC is providing the opportunities not only for the limited people, the HDFC SLIC is providing the world wide opportunities to all people to support their family income, financial Independence, start business with zero investments, experience in the Financial domain, no work wo rk pres pressu sure re,, suppl supplem ement ent in inco come me,,
compl complet ete/ e/di dive vers rsif ifie ied d
prod product uct portf portfol olio io,,
li life felo long ng
rela relati tion onsh ship ips, s, build build rela relati tion onsh ship ipss with with a nob noble le caus cause, e, ti time me fl flex exib ibil ilit ity y and and many many more more opportunities. HDFC SLIC providing opportunities to:-
Women •
Supplement family income
•
Financial Independence
Young Entrepreneurs •
Start business with ZERO investment
•
Own boss
•
Hands-on experience in the financial domain
Financial Professionals •
Supplement income
•
A complete/diversified product portfolio
•
Build lifelong relationships
Retired •
Make your second innings stronger than first
•
Build relationships with a noble cause
•
Financial Independence
Choosing the right place/compan place/company y
HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions and providing the career opportunities to its employees. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.
Why you should join the HDF HDFC C Standard Standard Life Insuranc Insurancee Com Company pany Ltd. Ltd. amongst all insurance companies:
HDFC Standard Life Insurance Company Ltd. is the first Private Life Insurance Company to licensed by IRDA
Large network of over 300 branches Over 10lacs. Satisfied customers Over 70,000 Financial Consultants Maximum no. of MDRT qualifiers
Rewards, Recognition and respect
HDFC Standard Life Insurance Company Ltd. is providing the rewards, recognition &
respect to its family member for motivation and to create sprit of self belongingness so that the employees can able to give their potential to the company and to achieve the organizational goals and objective. For Increasing the productivity of the employees HDFC Standard Life Insurance Company Ltd. is providing the different facilities through rewards, recognition & respect:
Star on Debut Club for newcomer FCs Clubs like Bronze, Silver, Gold & Centurion to enhance the earnings Monthly contests Topper’s C lub Sales Conventions at Exotic locations MDRT, COT & TOT Eligibility
Support Function HDFC Standard Life Insurance Insurance Company Ltd. has created a world class support functions
which help its FCs to to increase his earning. Thought you are your own boss but you are never alone, in case of need/help in this profession HDFC SLIC Support system is always with you. For example you are not able to convince your prospect due to some reason like information and other then you can take help from S.D.M.(Sale Development Manager) as well as B.D.M. (Business Development). HDFC SLIC has excellent training and development development facilities facilities and diff differ eren entt Cust Custom omer er Cont Contac actt prog progra rams ms whic which h impr improv oves es an and d shar sharps ps th thee know knowle ledg dge, e, communication skills, convincing power and everything which would help you to increase the business or to aid sales of the organization. Support system:
World class training Support of numerous Customer Contact Programs to aid sales On-field Support from the Sales team Strong Brand Recognition 24 hours Customer Support Superior Product Portfolio
(Lowest Fund Management Charges)
Unlimited Earnings
Commission on issuance of every policy. Commission directly credited credited to bank account of FCs wit within hin 15 days. These commission varies from 7.5-40% according to plan. BASIC COMMISSION
First year Commission payable on regular premium conventional policies issued on or after 21st march 2007 Na me of the plan Endowment Assurance plan Money Back plan Children’s plan Term Assurance plan
1
st
year commission 40% 40% 40% 25%
Lone cover Term Assurance plan Personal Pension Plan
25% 7.5%
RENEWAL COMMISSION:
Renewal commission would be paid from the 2 nd year onwards on regular premium policies. Renewal commission is not payable on single premium plans.
N ame of the plan Endowment Assurance plan Money Back Plan Children’s plan Lone cover Term Assurance Plan Term Assurance plan Personal Pension Plan
Renewal commission 2
nd
year
onwards 5% 5% 5% 5% 5% 2%
BONUS COMMISSION
Bonus commission would be payable on the first year premium received and adjusted on the regular premium policies under the following plans, 1.Endowment Assurance Plan
1.Endowment Assurance Plan
2.Money Back Plan 3.Children’s Plan 4.Term Assurance Plan 5.Lone Cover Term Assurance Plan
Bonus commission is not payable on the single premium plans and on the policies issued under the Personal Pension Plan and all Unit Linked Plans.
Bonus Bon us commi commiss ssio ion n ra rate te would would depen depend d on fi fina nanci ncial al consu consult ltant ant cros crossi sing ng th thee mi mini nimu mum m RNEP(Received Net Effective Premium) within one year.
Period
RNEP
Bonus commission % of the 1st year Premium received
In one year
1,00,000 1,50,000 2,25,000
5% 10% 15%
How do I earn, say, Rs. 25,000pm?
You need to sell Policy worth
Rs.
1,25,000/-
Need to sell
in 2 days
Art of Earning
Average Premium
Rs. 32,000/-
4 Policies
Need to meet at least 12 people.
i.e. 1person
No. Of Policies
4 in a month (Yearly 50)
Average Premium
Incentive Earn
Rs. 32,000/-yearly
20%
in 1st Year & renewal 4%
Expected Business Growth
20%
Year
Business
Commission
Renewals
Total*
1 2 3 4 5
16.00 Lac 19.20 Lac 23.00 Lac 27.60 Lac 33.00 Lac
320000 384000 460000 552000 660000
64000 140800 232800 343200
320000 448000 600800 784800
*Indicative figures
1003200
Eligibility Criteria to become a Financial Consultant
Minimum Eligibility Criteria (Any 3/5 Criteria required, first criteria being mandatory)
Age : 18 and Above th
Education : 10 +2 or higher. Has spent > 3 years in the city of current residence. Income > 3 Lakhs per annum.
Pre-requisites required to become a Financial Consultant Should undergo IRDA Training for 50 hrs.
Should Pass the pre-recruitment exam conducted by Insurance Institute of India.
Documentation Documentatio n Required for Acquiring a License Forms
STEP 1 : REGISTRATION
Agency Application form
Form VA
Exam Form
Agreement Copy ( all pages to be signed by the FC )
Know Your Customer ( KYC ) Addendum
Supporting Personal Documents required
9 Passport size photographs
Age Proof
Proof of Education
Proof of Identity
Proof of Residence
PAN Card or PAN Application
Fee : Rs. 925 /- ( Off Line ) Fee : Rs. 825 /- ( On Line )
STEP 2 – IRDA TRAINING
All Candidates have to undergo and complete 50 hours of IRDA Training.
Types of Training 1. Off Off Line Line (Cla (Class ss Roo Room) m) Tra Traini ining ng 2. On Lin Linee Tra Train inin ing g
IRDA Refresher Classes are conducted for the FC before the IRDA Exam.
STEP 3 – IRDA EXAMINATIO EXAMINATION N
Pre Recruitment Examination can be done by 2 Modes,
1. On line 2. Off line
Exams are conducted by Insurance Institute of India (III)
CHAPTER 8
DATA ANALYSIS, INTERPRETATION & PRESENTATION 1.Your Age? TABLE
Sr. No.
Category
No. of
Percentage
Respondents 1
18-23 Years
40
20%
2 3 4
24-29 Years 30-35 Years 35 & above Total
70 60 30 200
35% 30% 15% 100% Base 200 respondents
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
20% respondent’s age are 18 to 23 years.
➢
35% respondent’s age are 27 to 29 years.
➢
30% respondent’s age are 30 to 35 years.
➢
15% respondent s age are 35 to above years.
2. Marital status?
TABLE
Sr. No.
Category
No. of Respondents
Percentage
1 2
Married Unmarried Total
140 60 200
70% 30% 100% Base 200 respondents
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
70% respondent’s are married.
➢
30% respondent’s are unmarried.
3. Educational Qualification?
TABLE
Sr. No.
Category
No. of
Percentage
Respondents
Under graduate Graduate Post graduate Total
1 2 3
50 80 70 200
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
25% respondent’s are Under graduate.
➢
40% respondent’s are Graduate.
➢
35% respondents are Post graduate.
25% 40% 35% 100% Base 200 respondents
3. Number Of Year’s Are You in Delhi? TABLE
Sr. No.
Category
No. of
Percentage
Respondents
Less than five years More than five years Total
1 2
78 122 200
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
39% respondent’s are in Pune is less than five year’s.
➢
61% respondent’s are in Pune is more than five year’s.
39% 61% 100% Base 200 respondents
5. Your Occupation?
TABLE
Sr. No.
Category
No. of
Percentage
Respondents
Business Profession Service Total
1 2 3
40 108 52 200
20% 54% 26% 100%
Base 200 respondents GRAPH
Interpretation
From the table and graph above it can be seen that ➢
20% respondent’s Occupation is Business.
➢
26% respondent’s Occupation is Profession.
➢
54% respondent’s Occupation is Service.
6. Your annual household income?
TABLE
Sr. No.
Category
No. of
Percentage
Respondents
Less than 2 lacs Between 2 to 5 lacs Between 5to 8lacs More than 8 lacs Total
1 2
98 62 30 10 200
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
49% respondent’s annual household income is less than 2 lacs.
➢
31% respondent’s annual household income is between 2 to 5 lacs.
➢
15% respondent’s annual household income is between 5 to 8 lacs.
➢
5% respondent’s annual household income is more than 8 lacs.
7. Are you a member of a club/gymkhana?
49% 31% 15% 5% 100% Base 200 respondents
TABLE
Sr. No.
Category
No. of
Percentage
Respondents 1 2
Yes No
84 116
42% 58%
Total
200
100% Base 200 respondents
GRAPH
Interpretation
From the table and graph above it can be seen that ➢ 42% respondent’s are member of a club/gymkhana. ➢
58% respondent’s are not member of a club/gymkhana .
8. What is your perception about insurance sector? TABLE Sr. No.
Category
No. of
Percentage
Respondents 1 2
Hard and lucrative Hard but not
60 18
30% 9%
3
rewarding Smooth and
82
41%
rewarding No idea Total
40 200
20% 100% Base 200 respondents
4
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
30% respondent’s perception about insurance sector is Hard & lucrative.
➢
9% respondent’s perception about insurance sector is hard but not
rewarding. ➢
41% respondent’s perception about insurance sector is Smooth & rewarding.
➢
20% respondent’s perception about insurance sector that they have no idea.
9. Do you know about HDFC Standard Life Insurance?
TABLE
Sr. No.
Category
No. of
Percentage
Respondents
Yes No Total
1 2
164 36 200
82% 18% 100% Base 200 respondents
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
85% respondent’s are known about HDFC Standard life insurance.
➢
15% respondent’s are not known about HDFC Standard life insurance.
10. Do you have any Insurance Policy?
TABLE
Sr. No.
Category
No. of
Percentage
Respondents
Yes No Total
1 2
160 40 200
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
80% respondent’s have insurance policy.
➢
20% respondent’s do not have insurance policy.
80% 20% 100% Base 200 respondents
11. Name of Insurance Company?
TABLE
Sr. No.
Category
No. of
Percentage
Respondents
LIC ICICI HDFC SLIC OTHERS Total
1 2
104 16 8 32 160
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
65% respondent’s are insured by LICI.
➢
10% respondent’s are insured by ICICI.
➢
5% respondent’s insured by HDFCSLIC.
➢
20% respondent’s insured by OTHERS.
12. Do you hold any license of any insurance company? TABLE
65% 10% 5% 20% 100% Base 160 respondents
Sr. No.
Category
No. of
Percentage
Respondents 1 2
Yes No
70 130
35% 65%
Total
200
100% Base 200 respondents
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
35% respondent’s are holding license of any insurance company.
➢
65% respondent’s are not holding license of any insurance company.
13. Are you satisfied with the company?
TABLE
Sr. No.
Category
No. of
Percentage
Respondents
Yes No Total
1 2
42 28 70
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
60% respondent’s are satisfied with their insurance company.
➢
40% respondent’s are not satisfied with their insurance company.
60% 40% 100% Base 70 respondents
14. Do you know about HDFC Standard Life Insurance recruitment policies related to financial consultant?
TABLE
Sr. No.
Category
No. of Respondents
Percentage
1 2
Yes No Total
82 118 200
41% 59% 100% Base 200 respondents
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
41% respondent’s are known about HDFC Standard Life Insurance
recruitment policies related to financial consultant. ➢
59% respondent’s are not known about HDFC Standard Life Insurance
recruitment policies related to financial consultant.
15. Will you be interested to become Financial Consultant?
TABLE
Sr. No.
Category
No. of
Percentage
Respondents
Yes No Total
1 2
60 140 200
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
30% respondent’s are interested to become financial consultant.
➢
70% respondent’s are not interested to become financial consultant.
30% 70% 100% Base 200 respondents
16. Would you like to earn an additional income through a business opportunity with HDFC STANDARD LIFE?
TABLE
Sr. No.
Category
No. Of Respondents
Percentage
1 2
Yes No Total
54 6 60
90% 10% 100% Base 60 respondents
GRAPH
Interpretation
From the table and graph above it can be seen that ➢
90% respondent’s are interested to earn additional income.
➢
10% respondent’s are not interested to earn additional income
CHAPTER 9
SWOT ANALYSIS HDFC and Standard Life came together for a possible joint venture, to enter the life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995, the companies signed a 3-year joint venture agreement.
1. STRENGTH
1. Domes Domestic tic image of HDFC supported supported by Prudential Prudential’s ’s international international image is strength of the company. 2. Strong and well spread network of qualified intermediaries and sales person. 3. Strong capital and reserve base. 4. The company provides customer service of the highest order. 5. Huge basket of product range which are suitable to all age and income groups. 6. Large pool of technically technically skilled manpower with in depth knowledge and understanding understanding of the market. 7. The company also provides innovative products to cater to different needs of different customers.
2. WEAKNESS
1. Heavy management expenses and administrative costs. 2. Low customer confidence on the private players. 3. Poor retention percentage of tied up agents.
3. OPPORTUNITIES
1. Insurable population –According to ING only 10% of the population is insured, which represents repres ents around 30% of the insurable insurable population. population. This suggests suggests more than 300m people, people, with the potential to buy insurance, remain uninsured. 2. There There will will be inflow inflow of manage manageria riall and financi financial al expert expertise ise from from the world world’s ’s leadin leading g insurance markets. Further the burden of educating consumers will also be shared among many players. 3. Intern Internati ationa onall compan companies ies will will help help in buildi building ng world world class class experti expertise se in local local market market by
introducing the best global practices.
4. THREATS
1.Other Private Insurance Companies Also vying For The Same uninsuranced Population. 2.Big Public Secter insurance Companies Like LIC India, National insurance Company Ltd, Oriented Insurance Ltd, New India Assurance Company Ltd, And United Insurance Company Ltd. People Trust Them And go to them more. 3.Poaching of Customer by other companies. 4.Most People donot understand the need or are not willing to take insurance policies in general.
CHAPTER 10
CONCLUSIONS HDFC Standard Life, the insurance arm of HDFC is expected to go on stream. Promoted by HDFC & Standard Life, already has good number of employees on board and is recruiting Financial Consultants heavily to take the headcount to many more. It is on the brim of increa inc reasin sing g its its client client throug through h its attract attractive ive scheme schemess and offer. offer.
The project project opportu opportunit nities ies
prov provid ided ed was was mark market et segm segmen enta tati tion on and id iden enti tify fyin ing g pros prospe pect ctiv ivee cl clie ient ntss in potent potentia iall geograp geog raphic hical al locati location on and for recrui recruiti ting ng them them as fi financ nancial ial consult consultant ant so to explor exploree new Business Opportunity. Through this project, it could be concluded that people are not much aware about the various benefit of being Financial Consultant that are currently prevailing in the insurance insurance industry. industry. Insurance Insurance was considered considered as unsought good which require require hard core selling, but in changing trend in income and people becoming financially literate, the demand for insurance is increasing day by day. So, it is the company that first approaches gets its share of reward. Proper after sale service can help the advisors to generate more business. Gradually people are realizing the fact that insurance is not a necessary evil but means to attain worry free life.
This activity much attract unemployed people as for them a source of income is a great help for developing there future. Company’s promotional activities for recruiting Financial Consultant are also very less. less. So, at last the conclusion conclusion is that there is tough competitio competition n ahead for the company from its major competitors in in terms of number of Financial Consultants. Last but not the least I would like to thank HDFC SLI for giving me an opportunity to work in the field of Financial Consultant. I hope the company finds my analysis relevant.
CHAPTER 11
SUGGESTIONS AND RECOMMENDATIONS Finally some recommendations for the company are as fallows:
To make people aware about the benefit of becoming HDFC Standard Life’s Financial Consultant, following activities of advertisement should be done through 1. Print Media. 2. Hoarding & Banners.
3. Stalls in Trade Fares 4. Distribution of leaflets containing details information. 5. Company can recruit sales promoters so that maximum information can be provided to the potential client.
By showing additional and alternative income source along with various schemes for Financial Consultant in the company so that more and more FC can be recruited.
Free life cover for every active Financial Consultant.
Discounted rate premium for its family members.
Make people understand about the meaning of the IRDA authorization and its validity.
Company should organize the program in the society, so that people will be aware about the company
Separate time slot for Working Professionals, House Wives and Retired people.
Agency of non-life products should also be provided along with life.
Company should open more branches in different cities
The importance of alliances and tie-ups means that companies will have to integrate related but separate providers into their systems to ensure seamless delivery.
Build strong relationship with intermediates such as agents.
Advertise about the rural market as it has huge hug e potential
Create a positive perception about insurance
Making purchase of policies a less cumbersome process p rocess
Promote insurance in corporate houses and colleges.
Attracting youth by educating about higher rate of return as compared to banks.
Try to sell the plan according to his need and not according to the agent’s commission.
CHAPTER 12
BIBLIOGRAPHY The following companies and association’s web sites were referred while wh ile collecting information used in the research. 1 . INTERNET SOURCE • http://www.hdfcinsurance.com • http://www.money control.com •
HDFC SLIC BEHIND PVR COMPLEX,VIKAS PURI,NEW DELHI-110058 Dear Sir/Madam, I am a student of MAHARAJA SURAJMAL INSTITUTE and presently doing a market survey sur vey “MARK “MARKET ET RESEAR RESEARCH CH ON FINANC FINANCIAL IAL CONSUL CONSULTAN TANTS TS FOR HDFCSL HDFCSLIC, IC, DELHI”. I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept confidential. Name: ……………………………………………………………………….. Address: …………………………………………………………………….. Contact No :®………………( O)……………… (M)……………………… City: ………...............Pin: …………………. State: ………………………. .
1. Your Age: ____________________ 2. Education Qualification. Undergraduate □
Graduate □
Post graduate □
3. Marital Status. Married □
Single □
No. of Children: __________ 4. Number Of year’s Are You in Delhi. De lhi. Less than five year’s □
More than five year’s □
5. Occupation. Business □
Profession □
Service □
(Please mention below the type of business/profession bu siness/profession you are in incase of service please mention your organization name and designation) ______________________________________________________________________ 6.Your annual household income. <than 2 lack □
Between 2 to 5 lack □
Between 5 to 8 lack □
>than 8 lack □
7.Are you a member of a club/gymkhana?
Yes □
No □
If yes, Name of the club /gymkhana_______________________________________ 8. What is your perception about insurance sector? Hard &lucrative □
Hard but not rewarding □
Smooth &rewarding □
No idea □
9. Do you know about HDFC SLIC? Yes □ No □ 10.Do you have any insurance policy? Yes □
No □
11.Name insurance company? LIC □
ICICI □
HDFC SLIC □
OTHERS □
If others, please specify___________________________________________________ 12. Do you hold any license of any insurance company? Yes □
No □
If yes, please specify which company________________________________________ Reason______________________________________________________________ 13. Are you satisfied with the company? Yes □
No □
Reason specify_________________________________________________________ 14. Do you know about HDFC SLIC’s recruitment policies related to financial consultant? Yes □
No □
15. Will you be interested to become financial consultant? Yes □ No □ 16. Would you like to earn an additional income through a business opportunity with HDFC STANDARD LIFE? YES □