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TATA AIG LIFE INSURANCE

PROJECT REPORT

ON

RECRUITING QUALITY ADVISOR IN CURRENTSENARIO

Submitted by

Richa Gupta

(Student)

Sherwood College Of Professional Management

Lucknow

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RECRUITING QUALITY ADVISOR INCURRENT SCENARIO

Prepared by

RICHA GUPTA

BBA 3 Yr

Sherwood College Of Professional Management

Lucknow

Under the guidance of

Sunanda B Singh

Unit Manager

TATA AIG LIFE LUCKNOW

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Table of Contents

1. Acknowledgement. 4

2. Introduction5

3. Research Problem..19

4. Research Plan20

5. Data Analysis..21

6. Data Interpretation.22

7. Discussion.25

8. Appendix30

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Acknowledgement

The successful completion of my project would be incomplete unless I mention

some of the persons, as an expression of gratitude, which made it possible,

whose constant guidance and encouragement served as a beckon light and

helped in successfully completing my project.

I take this opportunity of expressing my gratitude to Sunanda B Singh (Unit

Manager), Kamlesh Bahadur Singh (Branch Manager), Prof. of Sherwood and

my friends who have always been of immense help during the making of this

project, which helped me a great deal in enhancing my knowledge by virtue of

practical application. Their guidance and support carried with me all through thepreparation of this project.

I would also like to give credit to all the people who helped me by filling in the

questionnaires and seniors who have very sincerely provided different support

and help whenever required.

I would also thanks to the institute to provide adequate facilities for collecting

information.

Thank you

Richa Gupta

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INTRODUCTION

Insurance in India

Insurance is a federal subject in India and has a history dating back to 1818. Life

and general insurance in India is still a nascent sector with huge potential

for various global players with the life insurance premiums accounting to

2.5% of the country's GDP while general insurance premiums to 0.65% of

India's GDP. The Insurance sector in India has gone through a number of

phases and changes, particularly in the recent years when the Govt. of

India in 1999 opened up the insurance sector by allowing private

companies to solicit insurance and also allowing FDI up to 26%. Eversince, the Indian insurance sector is considered as a booming market with

every other global insurance company wanting to have a lion's share.

Currently, the largest life insurance company in India is still owned by the

government.

History of Insurance in India

Insurance in India has its history dating back till 1818 started by Anita Bhavsar,

when Oriental Life Insurance Company was started by Europeans in Kolkata to

cater to the needs of European community. Pre-independent era in India saw

discrimination among the life of foreigners and Indians with higher premiums

being charged for the latter. It was only in the year 1870, Bombay Mutual Life

Assurance Society, the first Indian insurance company covered Indian lives at

normal rates.

At the dawn of the twentieth century, insurance companies started mushrooming

up. In the year 1912, the Life Insurance Companies Act, and the Provident FundAct were passed to regulate the insurance business. The Life Insurance

Companies Act, 1912 made it necessary that the premium rate tables and

periodical valuations of companies should be certified by an actuary. However,

the disparage still existed as discrimination between Indian and foreign

companies. The oldest existing insurance company in India is National

Insurance Company Ltd, which was founded in 1906 and is doing business even

today. The Insurance industry earlier consisted of only two state insurers: Life

Insurers i.e. Life Insurance Corporation of India (LIC) and General Insurers i.e.

General Insurance Corporation of India (GIC). GIC had four subsidiarycompanies. With effect from December 2000, these subsidiaries have been de-

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linked from parent company and made as independent insurance companies:

Oriental Insurance Company Limited, New India Assurance Company Limited,

National Insurance Company Limited and United India Insurance Company

Limited.

Related Acts

The insurance sector went through a full circle of phases from being unregulated

to completely regulate and then currently being partly deregulated. It is

governed by a number of acts.

The Insurance Act, 1938

The Insurance Act, 1938 was the first legislation governing all forms of

insurance to provide strict state control over insurance business.

Life Insurance Corporation Act, 1956

Even though the first legislation was enacted in 1938, it was only in 19 January

1956, that life insurance in India was completely nationalized, through a

Government ordinance; the Life Insurance Corporation Act, 1956 effective from

1.9.1956 was enacted in the same year to, inter-alia, form LIFE INSURANCECORPORATION after nationalization of the 245 companies into one entity.

There were 245 insurance companies of both Indian and foreign origin in 1956.

Nationalization was accomplished by the govt. acquisition of the management of

the companies. The Life Insurance Corporation of India was created on 1

September, 1956, as a result and has grown to be the largest insurance company

in India as of 2006.

General Insurance Business (Nationalizations) Act, 1972

The General Insurance Business (Nationalization) Act, 1972 was enacted to

nationalize the 100 odd general insurance companies and subsequently merging

them into four companies. All the companies were amalgamated into National

Insurance, New India Assurance, Oriental Insurance, and United India Insurance

which were headquartered in each of the four metropolitan cities.

Insurance Regulatory and Development Authority (IRDA) Act, 1999

Till 1999, there were not any private insurance companies in Indian insurance

sector. The Govt. of India then introduced the Insurance Regulatory andDevelopment Authority Act in 1999, thereby de-regulating the insurance sector

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and allowing private companies into the insurance. Further, foreign investment

was also allowed and capped at 26% holding in the Indian insurance companies.

In recent years many private players entered in the Insurance sector of India.

Companies with equal strength competing in the Indian insurance market.

Currently, in India only 2 million people (0.2 % of total population of 1 billion),

are covered under Medi-claim, whereas in developed nations like USA about

75 % of the total population are covered under some insurance scheme. With

more and more private players in the sector this scenario may change at a rapid

pace.

In India, Insurance is a national matter, in which life and general insurance is yet

a booming sector with huge possibilities for different global companies, as life

insurance premiums account to 2.5% and general insurance premiums account

to 0.65% of India's GDP. The Indian Insurance sector has gone through severalphases and changes, especially after 1999, when the Govt. of India opened up

the insurance sector for private companies to solicit insurance, allowing FDI up

to 26%. Since then, the Insurance sector in India is considered as a flourishing

market amongst global insurance companies. However, the largest life insurance

company in India is still owned by the government.

Insurance Companies in India

Bajaj Allianz Life Insurance Company Limited

Birla Sun Life Insurance Co. Ltd

HDFC Standard life Insurance Co. Ltd

ICICI Prudential Life Insurance Co. Ltd.

ING Vysya Life Insurance Company Ltd.

Life Insurance Corporation of India

Max New York Life Insurance Co. Ltd

Met Life India Insurance Company Ltd.

Kotak Mahindra Old Mutual Life Insurance Limited TATA AIG Life Insurance Co. Ltd

Tata AIG Life Insurance Company Limited

Reliance Life Insurance Company Limited.

Aviva Life Insurance Co. India Pvt. Ltd.

Shriram Life Insurance Co, Ltd.

Sahara India Life Insurance

Bharti AXA Life Insurance

Future Generali Life Insurance

IDBI Fortis Life Insurance Canara HSBC Oriental Bank of Commerce Life Insurance

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Religare Life Insurance

DLF Pramerica Life Insurance

Star Union Dai-ichi Life Insurance

Agriculture Insurance Company of India

Apollo DKV Insurance

Cholamandalam MS General Insurance

HDFC Ergo General Insurance Company

ICICI Lombard General Insurance

IFFCO Tokio General Insurance

National Insurance Company Ltd

New India Assurance

Oriental Insurance Company

Reliance General Insurance

Royal Sundaram Alliance Insurance Shriram General Insurance Company Limited

Tata AIG General Insurance

United India Insurance

Universal Sompo General Insurance Co. Ltd

TATA AIG Life Insurance

Mission: "To emerge as the leading company offering a comprehensive range of

life insurance and pension products at competitive prices, ensuring high

standards of customer satisfaction and world class operating efficiency, and

become a model life insurance company in India in the post liberalization

period".

Trustworthiness

Ambition

Innovation Dynamism

Excellence

TATA AIG Life Insurance Company Limited is a joint venture between the

Tata Groups and American International Group. TATA AIG Life Insurance is

registered with an Authorized capital of Rs 2000 Crores and a Paid-up capital of

Rs 1000 Crores. TATA AIG owns 74% of the total capital and American

International Groupthe remaining 26%.

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Tata Company enjoys the largest banking franchise in India. Along with its 7

Associate Banks, TATA AIG Group has the unrivalled strength of over 14,500

branches across the country, arguably the largest in the world.

American International Groupis the life and property & casualty insurance unit.

International group, part of the world's top 6 group of banks by market value and

a European leader in global banking and financial services, is one of the oldest

foreign banks with a presence in India dating back to 1860. American

International Groupis the fourth largest life insurance company in France, and a

worldwide leader in Creditor insurance products offering protection to over 50

million clients. American International Group operates in 41 countries mainly

through the banc assurance and partnership model.

TATA AIG Life has a unique multi-distribution model encompassingBancassurance, Agency and Group Corporate.

TATA AIG Life extensively leverages the TATA AIGGroup as a platform for

cross-selling insurance products along with its numerous banking product

packages such as housing loans and personal loans. TATA s access to over 100

million accounts across the country provides a vibrant base for insurance

penetration across every region and economic strata in the country ensuring true

financial inclusion.

Agency Channel, comprising of the most productive force of more than 63,000

Insurance Advisors, offers door to door insurance solutions to customers.

The two basic elements to all individuals for life insurance are

a. Risk coverage (i.e. Term Insurance)

b. Savings for future (i.e. Pure Endowment)

Term Insurance covers Risk and Risk means Death. Here a lump sum

amount is payable only if death occurs during a selected period. If the insured

survives till the end of the selected period, nothing becomes payable.

The insurer will receive a lump sum amount either at death during the term or at

maturity of the term.

Whole life insurance risk covers the death of the insured, whenever it may

happen. It means that there is no fixed term under whole life insurance. Most

policies provide a dividend to the policy holder which helps with retirement.

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Nomination and Assignment

Nomination: An act by which the policy holders authorizes another person to

receive the policy moneys. The person so authorized is called Nominee.

Assignment: Assignment means legal transference. A method by which the

policy holder can person on his interest to another person. An assignment can be

made by an endorsement on the policy document or as a separate deed.Assignment can be of two types Conditional & Absolute.

The age at which the receipt of pension starts in an insurance-cum-pension plan.

Most insurance companies offer an optional feature called "waiver of premium".

This typically states that in the event you become totally disabled for a period of

six months or longer, the insurance company will pay your premium until you

are no longer disabled. This feature is optional (available at an extra cost) and

must be chosen at the time of your application.

Guaranteed savings or bonus

Some insurance policies guarantee the amount of money that you would receive

upon maturity or the minimum amount that you would receive upon maturity.

Usually, this amount is a proportion of the sum assured such as a bonus or a

guaranteed addition of say Rs 70 per Rs 1,000 of the sum assured. This means if

you have an insurance policy for a sum assured of Rs 100,000 then you earn a

bonus of Rs 7,000 each year on the sum assured.

Other policies may offer you a guaranteed bonus as a percentage such as a

guaranteed addition of 3.5% per annum on a compounded basis. This means you

earn Rs 3,500 on a sum assured of Rs 100,000 in the first year while in the

second year you earn Rs 3,623 (3.5% of Rs 103,500). Some companies also

offer unit-linked policies.

When one is worrying too much about ones savings, investments, etc and when

one feels insecure about his/her life, its time for him/her to insure his/her life.

And what can be better than TATA AIG Life Insurance! TATA , a leading

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company in India, offers a comprehensive range of life insurance and pension

products.

TATA AIG Life Insurance is an integral part of the TATA AIG Group. It is a

joint venture between the Tata Group and International group Assurance. It is

also the largest banking franchise in India. TATA AIG Life Insurance

comprises Bancassurance, Agency and Group Corporate.

TATA AIG Life Insurance features both individual and group products like:

Unit Linked Products: this is a single non participating product group that

meets both the financial as well as insurance needs.

Pension Products: these comprehensive plans help to meet your post

retirement financial needs.

Pure Protection Products: nobody can predict future. So, any time anything

can shatter ones dreams. Pure Protection Products help to keep one safe and

secure during these trouble times.

TATA AIG Life also offers some protection cum savings products and money

back scheme products. TATA AIG also has products for brokers. Theseproducts take inspiration from the endeavors of various industries and make

your life easy.

Other TATA AIG Life Insurance plans are:

Retirement Solutions

Protection Plans

Specialized Term Insurance:

Group Term with ROP

Group Loan Protection Products

Group Savings Protection Products

Group Micro Insurance

Uncertainties in life have increased by manifold and so has the demand for an

insurance cover. However, the choice for an insurance plan depends on

different requirements of an individual.

Take for instance, if you want to make sure that your family is well taken care

of in case something happens to you, but at the same time cannot bear the

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burden of costly premiums then term insurance is the answer for you.

Term insurance is the least expensive form of life insurance that promises to

pay your family a lump sum amount in case of ones death during the term of

the policy. However, unlike other saving plans you dont get your money back

in term insurance plans.

The general thumb rule for investing in a life insurance policy is 8-10 times the

annual income, 5 times is the absolute minimum.

Customised plans

Term insurance plans can be customised to suit ones needs by exercisingadditional optional benefits. Under some plans companies give you the sum

assured on diagnosis of any of the critical illnesses specified by the company.

They offer different riders like accidental death, critical illness and waiver of

premium.

Further, to get a bigger slice of the insurance pie, insurance companies offer an

array of plans ranging from individual to group plans and debt protection plans.

For instance, for Premium Back Term Plan under Birla Sun Life Insurance

(BSLI) the entire amount of premium that you pay over the period of time is

returned.

Shield by TATA AIG Life Insurance, unlike other term insurance plans,

offers an option of increasing sum assured over a period of time. The unique

feature of this policy is that although the life cover increases automatically, the

premium payable remains constant throughout the term of the policy, without

the need for medical examination at each stage. This avoids the need to take a

new policy, which will come at a higher cost. Aviva LifeShield also gives you

the option to increase the sum insured.

Loan protection plan

One of the most innovative ideas offered by the insurance industry is loan

protection plan. It provides a lump sum amount on the death of an assured life.

However, under this if you have taken a home loan, your family is not affected

in the event of ones death.

However, under this, the lump sum amount reduces as the outstanding loan

decreases as per the loan schedule.

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Some of the companies that offer loan protection plans are TATA AIGLife,

Birla Sun Life and HDFC Standard Life. "BSLI has variants of term insurance

plans depending upon the needs of the policy holders.

On the one hand, there are term insurance plans that cover only the outstanding

loan amount where level premium is cheap.

On the other hand, there are term insurance plans that cover a flat loan amount

where the benefit is that, in case of an unfortunate event, the policy holder gets

a flat amount that can be used to repay the outstanding amount. The balance

will remain with the policy holders to meet the needs and lifestyle of hisdependents. BSLI also offers term plans where the policy holder gets money at

the end of the term," says Kedar Mulgund, Appointed Actuary, BSLI.

Benefits

The best time to opt for term insurance is during the early stages of life, as a

low premium rate applicable to a young person gets locked for the rest of the

policy term. In case of Aviva Life, an annual premium of Rs 3160 fetches an

insurance cover of Rs 10 lakh over the period of 10 years for an individual of

25 years of age.

Likewise in case of HDFC Standard Life, an insurance cover for 15 years

requires a regular premium of Rs 2670 at the age of 25. Premium for the same

policy at the age of 40 works out to Rs 4380. Apart from this, premiums up to

Rs 1,00,000, under Sec 80C, are available as deduction on the taxable income.

Other than this if the person is availing some riders like critical illness or

accelerated sum assured, an assessee can avail tax deductions under section

80D.

ULIP vs term insurance

ULIP is essentially a long-term commitment between the policy holder and the

insurance company. Today, many individuals are adding ULIP to their

portfolio to generate wealth and protection over the long term. However term

insurance is a complete protection plan that promises to pay your family a

lump sum amount in return of the small premium. But unlike ULIPs, in most of

the term plans, you dont get your money back.

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TATA AIG Life Insurance offers a slew of products designed for various

segments of society. These include money back products, pension products,

protection cum savings products, and unit linked products. All these products

cater to various requirements of its end users.

MoneyBack-Products

These are traditional saving plans with additional advantage of life cover and

guaranteed cash inflow at regular intervals. Key features of money back plan are

periodic return options suited to your needs, and competitive premium rates.

Apart from normal death cover, the plan also provides four additional covers.Sanjeevan Supreme is designed for individuals who want to plan for various

financial obligations at specified times in life.

Pension-Products

Pension products have been designed keeping in mind the needs of retired

individuals. Four products currently offered under this segment are Horizon II

Pension, Unit Plus Pension, Lifelong Pensions and Immediate Annuity. Under

these plans, one can choose retirement date, the plan option and the regularpremium amount.

Protection-cum-Savings-Products

These products are designed to provide savings and protection at the same time.

These products offer the option of tailoring your policy according to your

requirement and needs, by opting for riders (extra covers).

Smart-ULIP

The portfolio is linked to the volatile market, and fluctuates with it. The

investment risk in portfolio is borne by the policyholder. For first seven years,

guarantee is offered on select NAVs. Guaranteed Maturity NAV continues after

the premium payment term. It is an investment based on market economy and

offer high returns. The plan gives one maximum opportunity for growth while

protecting investments against adverse market conditions. Attractive Tax

benefits can be availed under the Income Tax Act, 1961.

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT

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PORTFOLIO IS BORNE BY THE POLICYHOLDER

In the current volatile market scenario a plan which not only protects customer

investment, but also enables him/her to get market related returns. TATA AIG

Life - Smart ULIP is the perfect answer to the need of customer, and will give

not only Guarantee on select NAVs during the first seven years, but also gives

the added attraction of participating in the market upside.

Key Features:

Guarantee of the highest of select NAVs, during the first seven years

on Maturity

Investment cum Insurance plan giving market related returns.

Convenience through shorter premium paying term, giving you a

choice between 2 premium paying terms (PPT).

Power of more - Guaranteed Maturity NAV, continues beyond the

premium payment term

Innovative structured investment fund -FlexiProtect Fund.

Hassle free plan - we manage your investment, giving you maximum

opportunity for growth while protecting your investments against

adverse market conditions.

Attractive Tax benefits under the Income Tax Act, 1961

Product type:

This is a unit linked, non participating insurance plan.

ULIP-Elite

Under this plan, you can invest in a wide variety of funds and manage them as

per your convenience. Gold and platinum protection covers are available. You

have to pray premium only for a limited term of 3, 5, 7 or 10 years. You can also

protect yourselves against accident and critical illness with the rider cover. You

can also add-on to your kitty through top-up premiums facility. When the policyends, Fund Value as on the Maturity Date is paid. Settlement option is also

available.

GroupCriti9

This is a non-participating Group Health Plan providing protection against nine

critical illnesses where assured sum is paid in lump sum on diagnosis of any one

of covered critical illnesses. It has guaranteed renewability till 65 years of age.

Critical illnesses covered are Cancer, Heart Attack (Myocardial Infarction),Stroke, Coronary Artery Bypass Surgery, Kidney Failure (End Stage Renal

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Disease), Major Organ Transplant, Coma, Multiple Sclerosis and Heart Valve

Surgery. The plan is offered to various groups like employee-employer

relationship, credit life groups, customers of bank / financial institutions,

depositors groups etc.

UnitPlus

As a parent you want to secure your childs future against rising cost of

education and other necessities. Unit Plus Child Plan could be your solution.

Key features of the plan are market related returns to match increasing cost of

education, loyalty units to celebrate your child reaching 18 years. New

Investment Fund (Equity Optimizers Fund) in addition to existing funds, pay

premium for a limited period, and flexible plan which adapts to your changingneeds.

Key features:

Unmatched flexibility to match the changing requirement

Twin benefit of life cover and market linked returns

Option of single or regu

Horizon

TATA AIG Life Horizon offers the flexibility of Unit Linked Plan along with

Automatic Asset Allocation. Key features of the plan include twin benefit of

insurance cover and market linked returns, expert management of funds from

inception to maturity, automatic asset allocation of funds, automatic rebalancing

of funds at yearly intervals, automatic cover continuance, liquidity option after 3

years, facility to top up your investment kitty, and tax benefit.

ADVISOR

An agent is a primary source for procurement of insurance business and as such

his role is the corner stone for building a solid edifice of any life insurance

organization. To effect a good quality of life insurance sale, an agent must be

equipped with technical aspects of insurance knowledge, he must possess

analytical ability to analyze human needs, he must be abreast with up to date

knowledge of merits or demerits of other instruments of investment available in

the financial market, he must be endowed with a burning desire of social service

and over and above all this, he must possess and develop an undeterred

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determination to succeed as a Life Insurance Salesman. In short he must be an

agent with professional approach in life insurance salesmanship. Such an agency

force is expected to be helpful not only in proper field underwriting but also

after sale servicing, concomitant and essential elements for higher retention of

business.

REQURIEMENTS FOR BEING AN ADVISOR

A pass in 12th standard.

Minimum age of 18 years with no upper limit.

Good communication skills

Best suited for well consented male/female marketing professionals, in

public dealing jobs, UTI agents, Post office staffs, housewives and

energetic students. Offers lifelong income in the form of commission over a period of

time

Freedom to work part/full time

No fixed working hours

ATTRIBUTES OF INSURANCE PROFESSIONALS

We can identify certain positive manifestation of a professional agent:

He will possess excellent and proven salesmanship skill. He will have

knowledge of human nature and psychology. He will have a sound

knowledge of the product, his institution, his competitors and entire

financial market.

He will have a regular and systematic business production with a time-

bound plan.

He will have an increasing and decent income and increasing clients.

He will derive enormous job satisfaction.

He will follow proper business ethics and accepted code of conduct.

All his actions will be consumer oriented.

He will be accepted as a friend, philosopher and guide by his clients.

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His professionals status will be evidenced by his becoming a club

member of one of the higher clubs.

His public recognition in the institution will also be enlightened byqualifying for special honors like MDRT etc.

ROLE OF AGENTS UNDER IRDA REGULATION

1. Full information must be provided to the proponent at the point of sale to

enable him to decide on the best cover or plan to minimize instances of

cooling off by the proponents.

2. An agent should be well versed in all the plans, the selling points and also

be equipped to assess he needs of the clients.

3. Adherence to the prescribed Code of Conduct for agents is of crucial

importance. Agents must, therefore, familiarize themselves with provisions

of the Code of Conduct.

4. Agents must provide the office with the accurate information about the

prospect for a fair assessment of the risk involved. The agents confidential

report must, therefore, be completed very carefully.

5. Agents must also possess adequate knowledge of policy servicing and

claim settlement procedures so that the policyholders can be guided

correctly.

6. Submission of proposal forms and proposal deposit to the branch office

immediately to avoid delays and to enable the office to take timely decisions.

7. A leaflet or brochure containing relevant features of the plan that is beingsold should be available with the agents.

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RESARECH PROBLEM

The problem which has to be study is related to problem in Recruiting

quality advisors. As already discussed the qualities of an advisor required

by the organization, now there should be some parameter to measure them so

that the deactivation of recruited advisors can be reduced and also some ways

to motivate them, to enhance their performance and increase the profit of theorganization.

Indices of customer retention in the recent past are disturbing trends for

Agents as well as for insurance organization. As per a study on an insurance

company, the first premium lapsation of 16.4% was recorded in the F.Y

ended 31.03.2003 as compared to 17.37% in the previous F.Y. The main

reasons being high degree of lapsation around 18% of total number of

policies due to non-need based selling, deficient after sales service,

unrealistic sales and faulty recruitment system. Cumulative lapsation ratios ofNew Business varying from 35% to 60% in different divisions during the

mean duration of 0 to 3 years, is really a cause of concern. High retention of

business would go a long way to ensure a healthy growth in his/her Business

Portfolio (fulfilling Club membership criteria) and thereby increases his/her

renewal commission earnings an essential enabling factor to face the present

and emerging competition in the financial sector with needed confidence in

the days to come.

My main concern of discussion in the research project is on:

Defining the qualities of an advisor,

Parameter that will define the qualities,

Reason for inactivation of advisors and

How focused recruiting of advisor result in reduction of inactivation of

advisors.

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RESEARCH DESIGN

Exploratory design-

We will do the exploratory design to know the all the possible aspects of our

research. There are different exploratory design survey that are mentioned

below-

Expert interview- we can do the expert interview from Unit managers to know

the different processes and requirement for recruiting quality advisors.

Focus group discussion- This is the most optimum method to know the views

of the sales unit who have taken to sale the policy. Our research is directly

related with major fraction of sales units and unit managers who have to sale the

policies. So by conducting the focused group discussion among the

homogeneous group who have taken education loan, we can know about the

problem in the processing of recruiting quality advisors.

In-depth interview- By asking questions from advisors having different

financial background and different course they are pursuing, we come to know

their personal experiences about processing of saales.

Case study & secondary data analysis- Secondary data analysis consists of

internet, research paper, various journals, published articles and editorials. By

getting various chunks of data we can correlate these with our problem.

Conclusive design-We will do the conclusive design survey to find the result on

the basis of those data that we have collected by the exploratory survey.

Descriptive design- Here we will do the descriptive design survey with the help

of questionnaire that will be form on the basis of those points that we have go by

the exploratory design survey. We will do the multiple cross-sectional

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descriptive design survey that will be done by getting filled questionnaire by

different institute in Lucknow.

SAMPLING DESIGN

Sample unit: Unit managers and sales department

Sample size: 70

Sampling Method: Quota sampling

Research Instruments: Questionnaires

Quota Sampling:

The reason behind this is that we can divide the unit managers who have

recruited different advisors into different strata (here we can divide the advisors

into different strata on the basis of financial background, course they are

pursuing & where they live) and then collect information through Questionnaire

approach.

We use Quota Sampling for our convenience of data collection.

DATA ANALYSIS

1. An advisor should possess excellent and proven salesmanship skill the

results found are that 34 respondents are strongly agreed, 17 agreed, none

are neutral, 19 disagreed and none is strongly disagreed.

2. An advisor should have knowledge of human nature and psychology the

results found are that 20 respondents are strongly agreed, 7 agreed, 12 are

neutral, 16 disagreed and 15 strongly disagreed.

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10. His public recognition in the institution will also be enlightened by

qualifying for special honors the results found are that 19 respondents are

strongly agreed, 17 agreed, none are neutral, 34 disagreed and none is

strongly disagreed.

11. He must possess and develop an undeterred determination to succeed as a

Life Insurance Salesman the results found are that 35 respondents are

strongly agreed, 19 agreed, none are neutral, 16 disagreed and none is

strongly disagreed.

Reason for the inactivation of advisors

12. Advisor turn inactivate because of he is unable to give the result as desire

by the organization the results found are that 34 respondents are strongly

agreed, 17 agreed, none are neutral, 19 disagreed and none is strongly

disagreed.

13. He turns to give more priority to other works and perform as advisor only

as part time the results found are that 31 respondents are strongly agreed,

14 agreed, none are neutral, 19 disagreed and 3 strongly disagreed.

14. He is unable to convince the customer to buy the product the results found

are that 29 respondents are strongly agreed, 16 agreed, 5 are neutral, 18

disagreed and 2 strongly disagreed.

15. He is unable meet the complex need of customer the results found are that

27 respondents are strongly agreed, 16 agreed, 6 are neutral, 18 disagreed

and 3 is strongly disagreed.

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16. He is unable to establish relationship with the customer the results found

are that 34 respondents are strongly agreed, 17 agreed, none are neutral,

19 disagreed and none is strongly disagreed.

17. Do you feel pressure for recruiting the advisors form your organization

the results found are that 37 respondents are strongly agreed, 16 agreed,

none are neutral, 17 disagreed and none is strongly disagreed.

18. Higher educated agents give better results the results found are that 24

respondents are strongly agreed, 7 agreed, 16 are neutral, 19 disagreed

and 4 strongly disagreed.

19. Younger agents perform better or are more result oriented the results

found are that 25 respondents are strongly agreed, 17 agreed, 13 are

neutral, 5 disagreed and 10 strongly disagreed.

20. Do you feel most of the agents take the job as part time the results found

are that 32 respondents are strongly agreed, 18 agreed, none are neutral,

11 disagreed and 9 strongly disagreed.

DISCUSSION

From the above finding it can be concluded that recruiting of advisor or quality

advisor depends upon the knowledge of the persons about the product, the

company is offering and the communication skill of the advisor to deal with the

customer.

Need base product and capacity based sales: -

The agent before offering any products must know his clients well enough.

He must have the knowledge about the state personal habits, health

occupation, financial position and income, moral character, his family history

and all other related aspects which help in field underwriting of a case. After

accumulating the needed data/of clients information if the life is apparently

found insurable, only in such a case proposal should be procured. An agent

has a long-term stake in the health of an insurance organization; therefore, he

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It has been observed that due to non scientific methods (i.e. large scale

recruitment without any screening method) being adopted in recruitment of

the agency force there is a very sizable percentage of drop-outs amongst

them. Though there are some Pre-recruitment training procedures as per

present regulation, the mass recruitment of agents put some obstacles to the

training centres. This aspect, for obvious reasons, needs immediate review

followed by necessary corrections measures. The LIC therefore, should take

conscious steps not only to recruit persons with needed aptitude as agents but

also ensure their proper training to groom them for a true professional .

approach in the career chosen by them. The LIC should also review

periodically the percentage of consistent performing agents in number as well

as in terms of new and existing business. The necessary steps should be taken

to ensure a consistent growth in the number of such agents. The salesman

must be trained, motivated and controlled in such a way that they becomemore skilled in identifying and satisfying customer.s needs faithfully,

efficiently & constantly.

Future marketing strategies to meet the challenges:

The three words Liberalization, Globalization and Privatization have brought

about a radical change in the world and have given a new orientation to the

market conditions. The participation in the new system is not optional; it is

an essential requirement of the developments. The LIC agents have to

diversify their activities to meet the complex needs of the customers.

Spreading of education, economic activities and social consciousness have

made the job of LIC agents more challenging and complex. The old

techniques of selling will not help them. They have to adopt latest marketing

strategies (i.e Psychomarketing strategies). It is an unending process for

capitalizing the opportunities and avoiding threats arising out of the changing

economic situation and consumer awareness. More companies today are

moving their effort from Transaction Marketing to Relationship Marketingfor the development of long-term customerrelationship. The agents,

therefore, have to adopt, .Relationship marketing. as against the present

Transaction selling. The term relationship marketing means nothing but the

time hounoured after sales services tempered with marketing approach and

total consumer creativity responsiveness and trust. The performance of

agents who will now depend on not how many hours he works but the quality

of service, his attitude to customers and the image that he will create for the

entire life insurance business. Thus the agent under the changing economic

scenario can achieve their objectives by practicing psycho-marketing

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strategies. Their objectives are survival and growth. Maximisation of

business is an end to achieve these objectives

5 steps to select an insurance advisor:

Presence of a life insurance policy is essential in every individual's

financial portfolio. But at the same time, it is also important that the right

insurance products be bought and that too for the right reasons. With so

many insurance products vying for a place in the individual's portfolio,

conducting a proper evaluation can become quite a task. Taking the help of

an insurance advisor/agent can help solve this problem.

An insurance advisor/agent can play the part of the direct link between the

insurance company and the insurance seeker i.e. you. He is the one who can

help you select the right policy i.e. one which can help you fulfill your

insurance needs. But for this, it is important that you connect with an expert

and qualified insurance advisor/agent.

We present a 5-step strategy that will help you identify and select the right

insurance advisor.

Is your insurance advisor certified?

Before selecting an insurance advisor, you should ensure that he has the

necessary IRDA (Insurance Regulatory and Development Authority)

certification. IRDA has laid down certain guidelines, which need to be

followed by every individual who intends to qualify as an insurance

advisor. Only on the completion of these requirements, an individual is

allowed to sell insurance policy. Therefore, before selecting an agent,

you must ensure that he has acquired the necessary qualifications and

that he holds a valid license to sell insurance.

Does he offer investment solutions?

You should understand that the job of an insurance advisor is not limited

only to selling insurance i.e. providing the insurance form, getting the

same filled and submitted. Instead, with the changing scenario, more

emphasis is now given to financial planning as a broader exercise. Now

your insurance advisor is required to have a comprehensive

understanding of your requirements and accordingly he should beequipped to offer you the policy that best suits you. Thus, his job has

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APPENDIX

Information to be used only for research purpose

The Questionnaire seeks your unbiased opinions as it is for research purpose

only. This is an attempt to assess your perceptions about the advisors processes

and functions. You are requested to kindly give your honest responses. Your

responses will be kept confidential.

Personal Data Form

Name___________________________________________

Contact No._______________________________________

Gender Male____________ Female____________

Designation______________________________________

Organization______________________________________

Experience in insurance sector (No. of years) _________________________

Questionnaire

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Instructions: For each statement, please write the number in the space provided

to indicate your degree of agreement according to the following scale-

1 2 3 4 5

Strongly agree Agree Uncertain Disagree Strongly

disagree

1. An advisor should possess excellent and proven salesmanship skill.

____________

2. An advisor should have knowledge of human nature and psychology.

____________

3. He should have a sound knowledge of the product, his institution, his

competitors and entire financial market. _____________

4. He should have a regular and systematic business production with a

time-bound plan._______________

5. He should have an increasing and decent income and increasing

clients. ____________

6. He should derive enormous job satisfaction. _______________

7. He should follow proper business ethics and accepted code ofconduct. ____________

8. All his actions should be consumer oriented._______________

9. He should be accepted as a friend, philosopher and guide by his

clients.____________

10.His public recognition in the institution will also be enlightened by

qualifying for special honours.________________

11.He must possess and develop an undeterred determination to succeed

as a Life Insurance Salesman._____________

Reason for the inactivation of advisors

12.Advisor turn inactivate because of he is unable to give the result as

desire by the organization.________________

13.He turns to give more priority to other works and perform as advisoronly as part time._________________

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14.He is unable to convince the customer to buy the

product.______________

15. He is unable meet the complex need of customer._____________

16.He is unable to establish relationship with the customer.__________

17.Do you feel pressure for recruiting the advisors form your

organization?___________

18.Higher educated agents give better results.________________

19.Younger agents perform better or are more result oriented________

20. Do you feel most of the agents take the job as part time . __________

21. Please recommended your feeling for recruiting quality

advisor.____________

22.What steps can be taken for reduction deactivation of advisors?

42741468 sbi life insurance

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