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ASIAN SCHOOL OF BUSINESS MANAGEMENT

CERTIFICATE FROM THE ORGANIZATION

This is to certify that the project entitled “Chanel development at Max New York life” is a bonafide work of Sudipta Kumar Rout, a student of Asian School of Business Management (ASBM), bearing Roll No. PGPBIFSM/08-10/54, and was successfully conducted at Max New York Life, Bhubaneswar, from 13th April to 6th June ’09, for the partial fulfillment of the course Post Graduate Programme in Banking Insurance and Financial Service Management (PGPBIFSM) of ASBM, Bhubaneswar.

Mr. Subhasish Sabat, Sales Manager,

Max New York Life, Bhubaneswar.

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CERTIFICATE BY THE GUIDE

This is to certify that the project work entitled “Chanel Development at Max New York Life” is a piece of work done by Sudipta Kumar Rout, student of Asian School Of Business Management, under my guidance and supervision for the partial fulfillment of the course PGPBIFSM, Asian School Of Business Management, Bhubaneswar.

To the best of my knowledge and belief the work of the candidate himself and has been duly completed. Simultaneously, the thesis fulfills the requirements of the rules and regulations related to the summer internship of the institute and I am assured that the project is up- to the standard both in respect to the contents and language for being referred to the examiner.

Signature of the Faculty Guide

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DECLARATION

I hereby declare that the project report entitled “Chanel Development at Max New York Life” is the produce of my sincere effort. This Summer Internship Project Report is being submitted by me alone, at Asian School of Business Management, Bhubaneswar, for the partial fulfillment of the course PGPBIFSM, and the report has not been submitted to any other educational institutions for any other purpose.

Date:

Signature

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ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibilities to complete this thesis. I would like to thank Prof. Dr. Biswajeet Pattnaik, Director, Asian School of Business Management, Dr. Kalyan Shankar Ray, Dean, Asian School of Business Management, Ms. Bijay sahu, Branch Manager, Max New York Life Insurance, Bhubaneswar and college authorities first for providing me the opportunity to work with one the prestigious organization.

I want to thank A Sales Manager, Max New York Life Bhubaneswar Mr. Subhasish Sabat for giving me permission to commence this thesis in the first instance, to do the necessary research work and for being my Company Guide.

With a deep sense of gratitude and humble submission I would like to express my heartiest gratefulness to my Faculty Guide Prof. S.D. Sharma, Asian School of Business Management, whose help, stimulating suggestions and encouragement helped me in all the times of research for and writing of this thesis.

Date:

Signature:

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PREFACE

Indian insurance industry is emerging rapidly after year 2000. To survive in this highly

competitive scenario, managers are being pressured to improve quality, recruit quality

and skilled people and eliminate inefficiency. The collective efforts of the employer,

managers and other relative people assume relevance in this context. And this is where

marketing management and human resources play important role.

Recruitment is very important in today’s scenario. But still it is ignored and considered as

a secondary aspect. In case of insurance industry recruitment only decide success or

failure of company.

I have made an attempt to study this aspect of Insurance industry in my project. In this

project, recruitment for developing channel at Max New York Life is considered. I have

tried to find out how exactly recruitment is very important for this firm as well as this

industry, which are the different strategies firm use to recruit quality people and so on. It

is more qualitative rather than a quantitative data.

To get knowledge of above question and to fulfill the requirements for my project on

“Channel Development At Max New York Life”, I have worked in MNYL and searched

some internet sites.

On the basis of my study, I have included following topics as the important aspect of

Channel Development At Max New York Life.

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Insurance industry introduction.

Strategies for recruitment.

Eligibility of recruitment and so on.

In this project I have tried to give attention to all the above topics and study them in

depth. But I would still like to receive all sorts feedback to enhance my knowledge on the

topics as far as this industry is concern.

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TABLE OF CONTENTS.

Acknowledgement 5

Preface 6

Table of Contents 8

List of Abbreviations 11

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CHANEL DEVLOPMENT AT MNYL 2009SECTION A: INTRODUCTION 10

A.1 ABOUT INSURANCE INDUSTRY 11

A.2 ABOUT MAX NEW YORK LIFE 16

A.3 ABOUT PROJECT 29

SECTION B: CHANNEL DEVELOPMENT STRATEGIES 30

B.1 ELIGIBILITY MODEL 31

B.2 DEVELOPMENT STRATEGIES 34

B.3 SCRIPTS AND OBJECTION HANDLING 43

SECTION C: CHANNEL DEVELOPMENT PROCESS 45

C.1 NAME GATHERING IN-P200 46

C.2 SHORTLISTING 46

C.3 APPROACHING 47

C.4 INITIAL SCREENING 47

C.5 NAT 48

C.6 CAREER SEMINAR 48

C.7 CAREER INTERVIEW 48

C.8 FCS 48

C.9 CONTRACT 48

SECTION D: CONCLUSION 50

D.1 EXPERIENCE 51

D.2 SUMMARY 52

D.3 RECOMMENDATION 54

D.4 BIBLIOGRAPHY 55

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Section A

INTRODUCTION.

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A.1 about the Insurance Sector in India

Insurance sector is an opportunity for India.

This business is growing at the rate of 30-34% annually.

Presently it covers market of RS.450 billion.

Together with banking sector it contributes about 7% to GDP.

Gross premium collection is about 2% of GDP.

Still 80% of Indian population is without life insurance.

This is an indicator that growth potential for the insurance sector is immense.

Insurance sector contribute a lot in economic development.

It provides long term fund for infrastructure development.

It is estimated that over the next ten years India would require investments of the

order of one trillion US dollar.

The Insurance sector, to some extent, can enable investments in infrastructure

development to sustain economic growth of the country.

There are two legislations that govern the sector-

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The Insurance Act- 1938 The IRDA Act- 1999.

Historical Perspective

In 1818 it was conceived as a means to provide for English Widows.

The Bombay Mutual Life Insurance Society started its business in 1870.

It was the first company to charge same premium for both Indian and non-Indian

lives.

The Oriental Assurance Company was established in 1880.

Till the end of nineteenth century insurance business was almost entirely in the

hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life

Insurance Companies Act of 1912 and the provident fund Act of 1912.

Several frauds during 20's and 30's sullied insurance business in India.

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By 1938 there were 176 insurance companies.

The first comprehensive legislation was introduced with the Insurance Act of 1938

that provided strict State Control over insurance business.

The insurance business grew at a faster pace after independence.

The Government of India in 1956, brought together over 240 private life insurers

and provident societies under one nationalized monopoly corporation and Life

Insurance Corporation (LIC) was born.

Nationalization was justified on the grounds that it would create much needed

funds for rapid industrialization.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

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1956: 245 Indian and foreign insurer and provident societies taken over by the central government and nationalized. LIC formed by an act of parliament-LIC act 1956-with a capital contribution of Rs 5crore for government of India.

Insurance Sector Reforms

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor

R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its

future direction. The Malhotra committee was aimed at creating a more efficient and

competitive financial system suitable for the requirements of the economy keeping in

mind the structural changes currently underway and recognising that insurance is an

important part of the overall financial system where it was necessary to address the need

for similar reforms. In 1994, the committee submitted the report and some of the key

recommendations included:

i) Structure: Government stake in the insurance Companies to be brought down to 50%.

Government should take over the holdings of GIC and its subsidiaries so that these

subsidiaries can act as independent corporations. All the insurance companies should be

given greater freedom to operate.

ii) Competition: Private Companies with a minimum paid up capital of Rs.100cr should

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

Insurance through a single entity. Foreign companies may be allowed to enter the

industry in collaboration with the domestic companies. Postal Life Insurance should be

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allowed to operate in the rural market. Only one State Level Life Insurance Company

should be allowed to operate in each state.

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

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

made independent

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

be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in

any company (there current holdings to be brought down to this level over a period of

time)

v) Customer Service: LIC should pay interest on delays in payments beyond 30 days.

Insurance companies must be encouraged to set up unit linked pension plans.

Computerization of operations and updating of technology to be carried out in the

insurance industry.

The committee felt the need to provide greater autonomy to insurance companies in order

to improve their performance and enable them to act as independent companies with

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

body- The Insurance Regulatory and Development Authority.

Reforms in the Insurance sector were initiated with the passage of 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

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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

The Government of India liberalized the insurance sector in March 2000 with the passage

of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry

restrictions for private players and allowing foreign players to enter the market with some

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

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

this limit to 49 percent.

The opening up of the sector is likely to lead to greater spread and deepening of insurance

in India and this may also include restructuring and revitalizing of the public sector

companies. In the private sector 15 life insurance companies have been registered. A host

of private Insurance companies operating in life segments have started selling their

insurance policies since 2001. Table shows the current market players in the life

Insurance Industry (Source IRDA).

A.2 ABOUT MAX NEW YORK LIFE

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Max New York Life Insurance Company Ltd. is a joint venture between New York Life and Max India Limited.

New York Life is a Fortune 100 company and Max India Limited is one of India's leading multi-business corporations.

The company has positioned itself on the quality platform.

It has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork.

The strategy is to establish itself as a trusted life insurance specialist through a quality approach to business.

In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds.

The Company's paid up capital is Rs. 1782 crore, which is more than the norm laid down by IRDA.

Max New York Life has identified individual agents as its primary channel of distribution.

The Company places a lot of emphasis on its selection process, which comprises four stages –

Screening,

Psychometric test,

Career seminar

Final interview.

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The agent advisors are trained in-house to ensure optimal control on quality of training.

Max New York Life invests significantly in its training programme.

Each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace.

Training is a continuous process for agents at Max New York Life and ensures development of skills and knowledge through a structured programme spread over 500 hours in two years.

This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and the agents have the highest productivity among private life insurers.

213 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2008.

MDRT is an exclusive congregation of the world’s top selling insurance agents and is internationally recognized as the standard of excellence in the life insurance business.

Having set a best in class agency distribution model in place, the company is spearheading a major thrust into additional distribution channels to further grow its business.

The company is using a five-pronged strategy to pursue alternative channels of distribution.

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These include the franchisee model, rural business, direct sales force involving group insurance and telemarketing opportunities and corporate alliances.

Max New York Life offers a suite of flexible products.

It now has 36 life insurance products and 8 riders that can be customized to have more than 800 products.

REWARD AND RECOGNITION

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CHANEL DEVLOPMENT AT MNYL 2009ceeeCeEEEEEEOEO

E

MDRT

Ex. Council

Paul Colgan Trophy

Centurion

Agent of the Year

Paid Cases, FYC, Persistency, Rider, Referral and CEIP Leader

Career Foundation Club

Career Producer Award

Career Success Award

Hi-Flier

Ten-A-Monther

Premium Leader

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1) Premium Leader

Qualifying Criteria- Rs. 1 Lakh AFYP in a month

Reward and Recognition- Mention in leaders Report, Lunch

2) Ten-A-Monther

Qualifying Criteria- 10 applications in a month and Rs. 30,000 AFYP

Reward and Recognition- MNYL Crystal Glass, mention in Leaders Report,

Lunch

3) Hi-Flier

Qualifying Criteria- 20 applications in a month

Reward and Recognition- MNYL Silver Medal, MNYL Crystal Glass, Mention

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In leaders Report, Lunch

4) Career Success Award

Qualifying Criteria- 15 paid cases & Rs. 40,000 FYC at the end of

Month 3

Reward and Recognition- Recognition Award

5) Career Producer Award

Qualifying Criteria- 25 paid cases & Rs. 80,000 FYC at the end of

Month 6


6) Career Foundation Club

Qualifying Criteria- 50 paid cases & Rs. 1.8 lakhs FYC in July- June for

Recruits during this period.

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Reward and Recognition- Attend CFC meeting to be held at Zone level

7) Paid Case, FYC, Persistency, rider, Referral and CEIP Leader

Qualifying Criteria- Top Agent in each category in each GO

Reward and Recognition- Recognition Plaque

8) Agent of the Year

Qualifying Criteria- Highest Points in each GO


9) Centurion

Qualifying Criteria- 100 net paid cases in a year

Reward and Recognition- Centurion Trophy

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10) Paul Colgan Trophy

Qualifying Criteria- Highest FYC with 100 or more paid cases and

95% Or more 13th month persistency

Reward and Recognition- Recognition Trophy

11) Executive Council

Qualifying Criteria- July 2006 to June 2007: 4,30,000 Council Credits

January 07 to June 07: 1,60,000 Council Credits

40 paid cases in the Council Period.

Reward and Recognition- Trip to Malaysia to attend the Executive

Council Meeting.

12) MDRT (Million Dollar Round Table)

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Qualifying Criteria- MDRT FYC Rs. 7,19,800 Premium Rs.14,39,600

Reward and Recognition- MDRT dues for all qualifiers. Top 35 by FYC will

Bear domestic travel and visa costs. Next 15 will

Bear Registration fees, domestic travel and visa

Cost, Rest All will bear international airfare, domestic travel and Visa costs.

13) CEO’S Council

Qualifying Criteria- July 2006 to June 2007: 8,00,000 Council Credits

Jan 2007 to June 2007: 3,20,000 Council Credits

Reward and Recognition- Trip to Amsterdam to attend the CEO Council

meeting.

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PRODUCTS OF MNYL

Whole Life Plans

Unit Linked Insurance Plans

Endowment Plans

Children Plan

Money Back Plans

Pension Plans

Health & Accident Related Riders

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Vision

To become the most admired life Insurance Company in India.

Mission

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

Be a national player.

Be the brand of the first Choice.

Be the Employer of the Choice.

Become principal of choice for agents.

Values

This vision to become India's most admired life insurance company will be

realized through our unique set of values, which are as follows:

1. Excellence

"In every aspect of work. Ranging from the in-house training institute to the

detailed Personal Insurance Plan. Max New York Life is focused on achieving the

highest standards of quality in every aspect of their business".

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2. Honesty

"Is the heart of the Life Insurance business. Max New York believes that above all,

Life Insurance is based on trust. Transparency, Dependability and Integrity will

form the cornerstones of the Max New York Life experience."

3. Knowledge

"Is what makes experts. Max New York Life is focused on the Life Insurance

business. Perfectly combining global expertise with local knowledge, Max New

York Life is the Indian Life Insurance specialist."

4. Caring

"For the customer. Max New York Life is redefining the Life Insurance paradigm

to focus on the needs of the customers. The Max New York service process is

responsive, personalized, humane and empathetic."

5. Culture:

Our "in house culture recipe" has some of the finest ingredients going into its

making. Some of the more prominent aspects of our culture are stated below:

Achievements

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

Top five most respected private life insurance in India according to Business

World survey.

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Continuous presence in Top 50 MDRT global list.

CSR

Max New York Life has been instrumental in changing the paradigm of life insurance in

India. It is the first life insurance company in India to introduce because related

marketing.

Children are at the very heart of Max New York Life's strategy. SOS Children's Villages

of India is internationally recognized for its work in giving underprivileged children a

wholesome life. The mission of SOS is "to help orphaned and abandoned children, by

providing them with a family, a permanent home, education and strong foundation for an

independent life." Its mission ties in with Max New York Life's philosophy of helping

people secure the future of their near and dear ones.

The company donates a part of the total money collected on all policies sold, to SOS

Children's Villages of India at the end of the year.

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BOARD OF DIRECTOR MAX NEW YORK LIFE

Mr. Analjit SinghChairman, Max India Limited

Mr. Anuroop (Tony) SinghVice Chairman,Max New York Life Insurance

Mr. Rajesh SudCEO & Managing Director,Max New York Life Insurance

Mr. Rajit MehtaExecutive Director & Chief Operating Officer,Max New York Life Insurance

Mr. John HarrisonDirector,Max New York Life Insurance

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A.3 ABOUT PROJECT

The main objective of the “Channel Development” is to recruit quality agent advisors

(AA) for the company for providing life Insurance solutions to the customers. AA plays a

vital role in the growth of company with respect of company’s earnings as well as they

create value for the organization after achieving some milestones. AA are integral part of

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

personality development, selling skills and handling objections of customers.

Company’s Expectation from AA:

Regular input activity.

Follow the sales process.

Achieve sales targets.

Attend training programme.

Participate in weekly reviews.

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Follow the MNYL ethics and business standards policy.

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Section B

CHANNEL DEVELOPMENT STRATEGIES.

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B.1 ELIGIBILTY MODEL

From this eligibility model company judge prospective person. The company follows

unique eligibility criteria for AA selection by which company is able is to always justify

its mission. The basic objective of having an eligibility model for recruitment is to have

good retention and greater effectiveness in the delivery of service.

Four criteria’s for AA selection

1. 25 plus years of age:

This age shows attainment of maturity and responsibility. People are more

consistent in this age.

2. Married:

Married people have more eager to earn money. Family pressures increase

responsibility and secondly customers are convinced more by the stability of a married

AA.

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

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

more business in short period.

4. Graduate:

Graduate people have basic skills like communication skills, numerical ability, I.P

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

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Other criteria for AA selection:

1. Financial stability:

MNYL is focuses on classes and not on masses thus they select strong agent advisors.

2. To have a rich and active social circle:

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

less and renewals can be more.

3. Greed for money:

Firm selects advisors who understand the language of commission. Because people who

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

4. Independent:

MNYL select people who want to be entrepreneur. Housewives or brokers who want

flexible hours for work are prospective person for this business.

5. Persuasion:

He should be persuasive in nature because the AA needs to follow up on regular basis

with prospective and new clients without being a nuisance value.

6. Excellent interpersonal skills:

Because developing and maintaining good relations can get policies. Secondly since most

of the insurance companies provide a plethora of similar products, sales depend on the

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convincing ability of the AA and the rapport the AA is bale to build. Also results in C of

I’s.

7. Excellent communication skills:

Since AA needs to communicate about the organization, products, career as AA, about why insurance is important, which product will suit his requirement.

Desirable Candidates

1) Housewives.

2) Employees having VRS.

3) CA’s.

4) Mutual Fund Brokers.

5) NSC brokers.

6) Tax Consultants.

7) Businessman.

8) Doctors.

9) Travel agents.

10) Lawyers

11) Diamond merchants.

12) Social workers.

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B.2 DEVELOPMENT STRATEGIES

Management team has developed certain strategies in order to expand channel

distribution network. These model are followed across the country uniformly and top

management feels that these rules are the building block of MNYL’s success in India as

well as across the world. There are 2 basic principles that are required in order to execute

these strategies such as

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

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

RULE OF 31

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

advisors. It says that everyday collect at least 3 names of the prospective AA and do 1

screening every day.

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Ways of Name Gathering

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

Natural Market:

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

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

for recruitment in MNYL is through natural market. Natural market persons

are easily approachable and most of the successful recruitment in MNYL is

from natural market.

Personal Observation:

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

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

activities can be a good prospect.

Nominator Call:

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

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

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these people are highly unapproachable. These people can be very

productive in giving references of the prospect. They are not prospect by

default.

Centre of Influence (CoI) Call:

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

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

Prospect Call:

o Prospects itself are approached. They can be anyone from natural market,

Nominator’s reference, CoI‘s reference or by other means.

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QUESTIONNAIRE

Hello. This is SUDIPTA KUMAR ROUT. I would appreciate it if you could lend me just

2 minutes of your time for my project on Insurance Industry. I would like to assess if you

are interested in taking a business opportunity available in the insurance sector which

requires no investment of yours.

1. Where do you invest your Money?

a. Stock Markets

b. Mutual Funds

c. Life Insurance

d. Property

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2. Name any 3 Insurance Companies you are aware of?

a. _____________________________________

b. _____________________________________

PROPERTY.

55 %

MUTUAL FUND.

25 %

INSURANCE

15 %

SHARES

5 %

INVEST - MENT

OPTIONS.

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c. _____________________________________

3. In a year how much money do you invest? (approx)

_________________________________________

4. Are you aware of any Insurance products?

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a. ____________________________________

b. ____________________________________

c. ____________________________________

5. Which among the following products do you own?

a. Whole Life/ Endowment

b. Money Back

c. Unit Linked Insurance Plan

d. Term Plan

e. Education/ Child Plan

6. What is the reason of having the above cover?

a. Security

b. Investment

c. Tax Benefits

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7. Are you aware of the earning potential in insurance sector?

a. Rs.20,000 to 30,000

b. Rs.30,000 to 50,000

c. Rs.50,000 to 75,000

d. Rs.75000 to 1,00,000

8. Would you like to add a business to your current profile?

a. Yes

b. No

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9. Which is the quality according to you that would be required for

Being successful in business?

a. Communication

b. Networking

c. Both

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NAME: ______________________________________

ADDRESS: ______________________________________

______________________________________

CONTACT NO.: ______________________________________

ANNUAL SALARY: ______________________________________

Thank You for your valuable time and for your information the agency business in

insurance sector is successfully pursued by businessman, housewife, freelancers, IT

Consultants/CA, professionals like Doctors, Architects, Trader Segments, Auto, Real

Estate, etc.

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B.3 SCRIPTS AND HANDLING OBJECTIONS

MNYL has its own scientifically handled script they use worldwide for approaching the

future AA for the Company. The company periodically modifies the versions of the

scripts if needed as per requirement. All the mangers are required to follow the scripts.

There are several kinds of scripts. The classification of scripts is follows:

1) Nominator Script:

Nominator is a person who is not prospect for firm but he gives reference to firm. The

main objective of this script is to fix an appointment with the nominator.

2) CoI Script:

Centre of influence is a people whom you know. The main objective of this script is to fix

an appointment with the CoI or to collect the references from them.

3) Prospect Call Script:

With the help of this script, firm tries to motivate people to visit MNYL office. The main

objective of this script is to call the prospect in MNYL for the initial screening.

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4) In person Nominator Script:

This script includes many questions which help to get references quickly. This script is

used to entertain Nominators and influence them to collect references from them.

5) CoI in person Nominator Script: This script is used to collect references from CoI’s.

All the scripts are also contained with expected objections from the

prospects/CoI/nominators. These objections are based on the rich experiences and have

adequate strategy to avoid objection. In any Case, an objection is found to be unlisted it is

responsibility of SM to bring back in the spirit of original script provided them.

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Section C

CHANNEL DEVELOPMENT PROCESS.

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C.1 NAME GATHERING IN P200

Name gathering in P200 consists of people whom you know from natural market and

references you get from their sources. As a management trainee were given a task to

gather 200 names. Figure shows the P200 format in which the database is created.

1. Name of the prospective Agent

2. Address of Contact

3. Age

4. Marital Status

5. Qualification

6. No. of years in the City

7. Financial Status

8. Profession

9. Annual Income

10.Natural Market

11.Comments

C.2 SHORT LISTING

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Candidates are shortlisted from the P200 as per the eligibility criteria laid down by the

company. Only eligible candidates are considered for the next process.

C.3 CONTACTING

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

with them according to the convenience of both the party. Here script plays very

important role in fixing appointment with the prospect.

C.4 INITIAL SCREENING

Initial screening is taken if candidate is found eligible using 4 point model. In initial

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

questions such as his family background, his natural market, traits for a sales person, and

his present and past experiences of his jobs are questioned.

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

eligibility standards for AA selection are as follows. In case of score less than 3, special

zonal head approval is required.

FIVE POINT SYSTEM:

Age 25 and over 1 point

Graduate 1 point

Married 1 point

Lived in city more than 5 years 1 point

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NAT score 1 point (if passed)

C.5 NAT

Numerical Ability test is taken. Passing Score is 50%.

C.6 CAREER SEMINAR AND P200

All the prospects are required to attend career seminar at MNYL which provides broader

aspects of growth as an Agent Advisor.

P200 is a worksheet which is given to each prospect to judge his natural market. The

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

C.7 CAREER INTERVIEW

P200 is evaluated in Career Interview. If candidate’s market is found worth, he is selected

to attend training and Development programme.

C.8 FCS

All the selected candidates are required to attend 22 day training session for receiving the

license from IRDA to become an Agent Advisor.

C.9 CONTRACT

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

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In this firm has its own statistic. That means if we will contact 60 people in a month.

Then we can convert 2 people for a batch as an AA.

60 Cold prospects.

20 Initial screening.

16 Test.

08 Seminar.

04 Career Interview.

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02 FCS Batch.

SECTION D

CONCLUSION

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D.1EXPERIENCE

My Experience with MNYL will always be grateful for me. I learned many things in MNYL. The very first thing I learned in MNYL is to handle objections from the customers. Different type of scripts of MNYL helps in this.

Working on deadline for achieving target is most crucial process in this sector and I am thankful to my sales Manager who were always behind me to support during initial call and helps me to complete my training.

The GO meet to reward successful AA and SM for the month is another example which clearly emphasizes that MNYL has strong belief in maintaining a healthy relationship with their stakeholders.

Overall “Channel Development” was a fair attempt from me. During the project I was able to make 200 names.

My telephonic conversation with the prospect always gave me a positive direction to build my confidence and even in bad phase of response I learnt the art of making calmness.

I shared a lot of activities with my colleagues. All the trainees from different background also remained a source of energy for my daily activities.

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D.2 SUMMARY

Life insurance business in terms of first year premium has shown a growth of more than 95% over the previous year and non life, or general insurance, is not far behind either, growing at 30% during 2008-09. In this market, competitive edge provided by product innovation can sustain only for a couple of months, since products can easily be cloned. Hence “Channel development” is the only process through which an insurer can have SCA over other competitor.

Strategic approach for calling Nominators/CoI/prospect has several advantages through which company maintains integration of system.

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D.3 RECOMMENDATION

Max New York Life as an insurance firm has a very strong presence in India and is rapidly expanding its operations in India. After working on this project I feel that following are some of the ways in which the company can improve the current market base and selection procedure for AAs, the key revenue generating resource for the company:

Increase awareness among the general public

In survey I come to know only 5 % people are heard about this company.

Only 10 % people known about this company. It shows less brand image of company.

25% people experienced this company by taking policy.

But 60 % people are unaware about this company. It is because of lack of advertisement.

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

Very less people know about highlights of the company.

Firm is not well known though it is oldest firm.

No one knows positive points of the company, like registered under companies act, six sigma and so on.

Have a re-look at the existing product range and design products which can attract masses rather than just serving only classes.

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D.4 BIBLIOGRAPHY.

www.maxnewyorklife.com

www.google.com

http://www.google.com/

http://www.maxnewyorklife.com/

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channel devlopment

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