factors influencing recrutiment of financial consultants

7/31/2019 Factors Influencing Recrutiment of Financial Consultants

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INTRODUCTION TO INDIAN INSURANCE INDUSTRY

Insurance may be described as a social device to reduce or eliminate risk of life and

property. Under the plan of insurance, a large number of people associate themselves bysharing risk, attached to individual.

The risk, which can be insured against include fire, the peril of sea, death, incident, &

burglary. Any risk contingent upon these may be insured against at a premium

commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called insurer

undertakes in exchange for a fixed sum called premium to pay the other party happening

of a certain event.

Insurance is a contract whereby, in return for the payment of premium by the insured, the

insurers pay the financial losses suffered by the insured as a result of the occurrence of

unforeseen events.

With the help of Insurance, large number of people exposed to a similar risk make

contributions to a common fund out of which the losses suffered by the unfortunate few,

due to accidental events, are made good.

The domestic insurance industry in India is estimated to be around US$ 60.5 billion by 2010,

of which US$ 35 billion will come from rural and semi-urban areas. While the life insurance

market is expected to grow to US$ 35 billion, non-life insurance market will touch an

estimated US$ 25 billion.

With the largest number of life insurance policies in force in the world, Indias insurance

sector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per cent in 1999-2000,

far ahead of China where insurance accounts for just 1.7 per cent of the GDP and even

the US where insurance penetration stands at 4 per cent of the GDP. One area that


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continues to cause concern is the number of customer grievances in insurance, especially

in a few specific classes. This calls for more transparency in designing the contract

wording and on insisting that the applicant is sufficiently informed about the coverage

and more particularly the exclusions. In addition, the legislation itself requires to be

transformed to meet the needs of the emerging markets. The Law Commission of India

which has gone extensively into the various insurance laws has submitted its report. The

demand for health insurance covers has seen a healthy increase, and today the sector is

the fastest growing segment in the non-life insurance industry in India, which grew at

over 40% last year. It is also emerging as an increasingly significant line of business for

life insurance companies. During the last five years, the premium from health insurance

products in non-life companies has grown from 675 crores in 2001-02 to Rs 3200 crores

in 2006-07, almost 5 times its level 5 years back. While this rate of growth appears to be

very healthy, it is on a low base, and health insurance penetration in the country

continues to be low. Only about 25 million persons are presently covered for health

through commercial insurance, in a country of over 1.1 billion people. Overall, the Indian

health sector is still characterized by the near absence of any significant risk protection

against major health-related expenditure, as insurance and other organized forms of

payment for health services, including ESIS, CGHS and other such schemes barely

constitute a tenth of all health expenditure in the country. Almost four-fifths of the health

spending in the country is private, out-of-pocket expenditure. In the absence of such

protection, the financial impact of hospitalization can be very pronounced, and indeed is

reported as one of the leading causes of impoverishment in the country.

Indian insurance companies recorded a 19.9 per cent growth in premium in dollar terms

(adjusted for inflation) in 2006-07, compared to the world market growth rate of 2.9 per

cent. This rate of growth of the industry looks particularly impressive when seen against

the fact that the combined penetration of both life and non-life is less than 2 per cent of

the GDP compared to world average of 7.52 per cent. Clearly, the scope for growth is

enormous.

Led by the Life Insurance Corporation (LIC), the life insurance industry registered a

growth of 110 per cent in fiscal 2006-07, taking the total business to US$ 19.2 billion


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from the previous years US$ 9.1 billion. The life insurance market has grown rapidly

over the past six years, with new business premiums growing at over 40 per cent per year

owing to the entry of a host of new players with significant growth aspirations and capital

commitments.

The total life insurance market premiums is likely to more than double from the current

US$ 40 billion to US$ 80-US$100 billion by 2012, says a study by McKinsey. The study

titled India Insurance 2012: Fortune Favours the Bold, expects a rise in premiums

between 5.1 and 6.2 per cent of the GDP in 2012 from the current 4.1 per cent driven by

greater insurance intensity per capita as the average per capita income increases and rise

in penetration in urban and rural areas. The life insurance premium contributions per

capita have jumped from a little over US$ 7 in 1999-2000 (pre-liberalization) to US$

38.5 in 2006-07.

Life insurance penetration in India - which was less than 1 per cent till 1990-91 -

increased to 2.53 per cent in 2005, and to 3 per cent in 2006-07. While the impetus for

growth has come from both public and private insurers, the number of players in this

segment have also increased to 16 (15 in private sector), with Life Insurance Corporation

(LIC) being the dominant player (market share of over 74 per cent).

The general insurance industry grew 11.6 per cent between April and November in 2007-

08 with robust performances by private players. The 13 non-life insurers collected US$

4.7 billion in premium against US$ 4.2 billion in the same period last year. While the

public sector could increase its premiums by just 3.57 per cent, 9 private sector players

clocked premium growth of 26.49 per cent. Private sector players market share has

grown to about 40 per cent in FY08 as compared to the public sectors 60 per cent.

INSURANCE SECTOR POLICY BY GOVERNMENT

Foreign direct investment up to 26 per cent is permitted under the automatic route

subject to obtaining a license from the IRDA.


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IRDA has removed administered pricing mechanism, i.e. de-tariffing in respect of fire

and engineering along with motor insurance of general insurance for premium, effective

from 1 January, 2007.

The control rates on fire, engineering and workmens compensation insurance classes

have been removed from 1 September, 2007.

Some state governments have also taken a dynamic role in this sector. The Government

of Andhra Pradesh after piloting the Arogya Sri health insurance scheme in three

districts plans to issue health cards to 18 million BPL (below the poverty line) families.

As a result, about 60 million of the States 80 million people will have insurance cover.

The Karnataka Government has partnered with the private sector to provide coverage at a

low cost in the Yeshaswini Insurance scheme. Launched in 2002, the scheme provides

coverage for major surgical operations, including those pertaining to pre-existing

conditions, to Indian farmers who previously had no access to insurance.

With less than 10 per cent of the population having some sort of health insurance, the

potential market for health insurance is huge. A McKinsey-CII report estimates the

number of potential insurable lives at 315 million. In 2006-07, the fast-growing Indian

health insurance business grew 40 per cent to US$ 812 million. The sector is projected to

grow to US$ 5.75 billion by 2010.

Some Developments in The Indian Insurance Industry follows:

Society Generale has entered into a joint venture with India Bulls Financial Services for

a life insurance joint venture in India through its French life insurance company Sogecap.

Tata have formed a joint venture with US based American Int. Group (AIG) Max India

has formed a joint venture with US based life insurance company, New York Life.

Indian Farmers Fertilizer Cooperative (IFFCO) has formed a joint venture with Tokio

Marine and Fire of Japan to form IFFCO Tokio General Insurance Company.


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State Bank of India has formed a joint venture with Cardiff SA of France (the insurance

arm of BNP Paribas Bank) as SBICardiff Life.

ICICI has joined hands with UK based Prudential- ICICI Prudential Life Insurance.

The rapid growth of insurance industry, especially in the life segment has brought to the

fore a number of issues which is a vital link between the insured and insurer. In order to

spread the message of insurance to the far corners of the country, the IRDA had enlarged

the scope of the intermediaries structure from the traditional tied agents to the corporate

agent, micro insurance agent, the Banc assurance mode and the referral system. Insurers

have also adopted other channels of sales to suit e-selling such as computer points at

convenient locations, on-line insurance purchase etc.

These systems have been in place for some time now, some of them for the last eight

years. Some of the practices that have crept into the system in terms of remuneration or

reimbursement of expenses or incentive schemes and so on require a detailed

examination to ascertain whether they are in conformity with the provision of the

Insurance Act and their impact on the acquisition cost.

Nature of industry

Goods and services: The insurance industry provides protection against financial

losses resulting from a variety of perils. By purchasing insurance policies, individuals and

businesses can receive reimbursement for losses due to car accidents, theft of property,

and fire and storm damage; medical expenses; and loss of income due to disability or

death.

Industry organization:The insurance industry consists mainly of insurance carriers

(or insurers) and insurance agencies and brokerages. In general, insurance carriers are

large companies that provide insurance and assume the risks covered by the policy.


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Insurance agencies and brokerages sell insurance policies for the carriers. While some of

these establishments are directly affiliated with a particular insurer and sell only that

carriers policies, many are independent and are thus free to market the policies of a

variety of insurance carriers. In addition to supporting these two primary components, the

insurance industry includes establishments that provide other insurance-related services,

such as claims adjustment or third-party administration of insurance and pension funds.

These other insurance industry establishments also include a number of independent

organizations that provide a wide array of insurance-related services to carriers and their

clients. One such service is the processing of claims forms for medical practitioners.

Other services include loss prevention and risk management. Also, insurance companies

sometimes hire independent claims adjusters to investigate accidents and claims for

property damage and to assign a dollar estimate to the claim.

Some insurance policies cover groups of people, ranging from a few to thousands of

individuals. These policies usually are issued to employers for the benefit of their

employees or to unions, professional associations, or other membership organizations for

the benefit of their members. Among the most common policies of this nature are group

life and health plans. Insurance carriers also underwrite a variety of specialized types of

insurance, such as real-estate title insurance, employee surety and fidelity bonding, and

medical malpractice insurance.

Other organizations in the industry are formed by groups of insurance companies, to

perform functions that would result in a duplication of effort if each company carried

them out individually. For example, service organizations are supported by insurance

companies to provide loss statistics, which the companies use to set their rates.

Recent developments:Congressional legislation now allows insurance carriers and

other financial institutions, such as banks and securities firms, to sell one anothers

products. More insurance carriers now sell financial products such as securities, mutual

funds, and various retirement plans. This approach is most common in life insurance

companies that already sold annuities, but property and casualty companies also are

increasingly selling a wider range of financial products. In order to expand into one


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anothers markets, insurance carriers, banks, and securities firms have engaged in

numerous mergers, allowing the merging companies access to each other's client base and

geographical markets.

Insurance carriers have discovered that the Internet can be a powerful tool for reachingpotential and existing customers. Most carriers use the Internet simply to post company

information, such as sales brochures and product information, financial statements, and a

list of local agents. However, an increasing number of carriers are starting to expand their

Web sites to enable customers to access online account and billing information, and some

carriers even allow claims to be submitted online. Many carriers also provide insurance

quotes online based on the information submitted by customers on their Internet sites. In

fact, some carriers will allow customers to purchase policies through the Internet without

ever speaking to a live agent.

Working conditions/Hours: Many workers in the insurance industryespecially

those in administrative support positionswork a 5-day, 40-hour week. Those in

executive and managerial occupations often put in more than 40

Hours. There are several occupations in the insurance industry where workers may work

irregular hours outside of office settings. Those working in sales jobs need to be available

for their clients at all times. This accommodation may result in these individuals working

50 to 60 hours per week. Also, call centers operate 24 hours a day, 7 days a week, so

some of their employees must work evening and weekend shifts. The irregular business

hours in the insurance industry provide some workers with the opportunity for part-time

work. Part-time employees make up 8 percent of the workforce.

Employment

The insurance industry had about 2.3 million wage and salary jobs in 2006. Insurancecarriers accounted for 62 percent of jobs, while insurance agencies, brokerages, and

providers of other insurance-related services accounted for 38 percent of jobs.

The majority of establishments in the insurance industry were small; however, a few

large establishments accounted for many of the jobs in this industry. Insurance carriers


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tend to be large establishments, often employing 250 or more workers, whereas agencies

and brokerages tend to be much smaller, frequently employing fewer than 20 workers.

Many insurance carriers home and regional offices are situated near large urban centers.

Insurance workers who deal directly with the public are located throughout the country.Almost all of those working in sales work out of local company offices or independent

agencies. Many others in the industry work for independent firms in small cities and

towns throughout the country.

Significant Points

Job growth in this large industry will be limited by corporate downsizing, newtechnology, and increasing direct mail, telephone, and Internet sales, but numerous

job openings will arise from the need to replace workers who leave or retire.

Growing areas of the insurance industry are medical services and health insurance,and its expansion into other financial services, such as securities and mutual funds.


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Jobs in office and administrative occupations usually may be entered with a highschool diploma, but employers prefer college graduates for sales, managerial, and

professional jobs.

Growth of Indian insurance industry

With an annual growth rate of 15-20% and the largest number oflife insurance policies in

force, the potential of the Indian insurance industry is huge. Total value of the Indian

insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion). According to

government sources, the insurance and banking services contribution to the country's

gross domestic product (GDP) is 7% out of which the gross premium collection forms a

significant part. The funds available with the state-owned Life Insurance Corporation

(LIC) for investments are 8% of GDP.

Till date, only 20% of the total insurable population of India is covered under various life

insurance schemes, the penetration rates of health and other non-life insurances in India is

also well below the international level. These facts indicate the of immense growth

potential of the insurance sector.

The life insurance industry in India grew by an impressive 36%, with premium income

from new business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff

competition from private insurers. This report, Indian Insurance Industry: New Avenues

for Growth 2012, finds that the market share of the state behemoth, LIC, has clocked

21.87% growth in business at Rs.197.86 billion by selling 2.4 billion new policies in

2004-05. But this was still not enough to arrest the fall in its market share, as private

players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in

2003-04.

Though the total volume of LIC's business increased in the last fiscal year (2004-2005)


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compared to the previous one, its market share came down from 87.04 to 78.07%. The 14

private insurers increased their market share from about 13% to about 22% in a year's

time. The figures for the first two months of the fiscal year 2005-06 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.

There are presently 12 general insurance companies with four public sector companies

and eight private insurers. According to estimates, private insurance companies

collectively have a 10% share of the non-life insurance market.


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INSURANCE HISTORY

INDIAN INSURANCE INDUSTRY:

Insurers

Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:

Life Insurers:

Life Insurance Corporation of India (LIC)

General Insurers:

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

GIC had four subsidary companies, namely ( with effect from Dec'2000, these

subsidiaries have been de-linked from the parent company and made as independent

insurance companies.

1. The Oriental Insurance Company Limited2. The New India Assurance Company Limited3. National Insurance Company Limited4. United India Insurance Company Limited.
http://www.licindia.com/http://gicofindia.in/http://www.orientalinsurance.nic.in/http://www.newindia.co.in/http://www.nationalinsuranceindia.com/http://www.uiic.co.in/http://www.uiic.co.in/http://www.nationalinsuranceindia.com/http://www.newindia.co.in/http://www.orientalinsurance.nic.in/http://gicofindia.in/http://www.licindia.com/


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Year: 2000-2001: (16 new entrants)

life insurers:

S.No. Registration

Number

Date of

Reg.

Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 Metlife India Insurance Company Ltd.

11 133 04.09.2007 Future Generali India Life Insurance Company Limited

12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.maxnewyorklife.com/http://www.iciciprulife.com/http://www.omkotakmahindra.com/http://www.birlasunlife.com/http://www.tata-aig-life.com/http://www.sbilife.co.in/http://www.ingvysyalife.com/http://www.allianzbajaj.co.in/http://www.metlife.co.in/http://www.fg-life.in/http://www.idbifortis.com/http://www.idbifortis.com/http://www.fg-life.in/http://www.metlife.co.in/http://www.allianzbajaj.co.in/http://www.ingvysyalife.com/http://www.sbilife.co.in/http://www.tata-aig-life.com/http://www.birlasunlife.com/http://www.omkotakmahindra.com/http://www.iciciprulife.com/http://www.maxnewyorklife.com/http://www.hdfcinsurance.com/


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General insurers :

S.No. Registration

Number

Date of

Registration

Name of the Company

1 102 23.10.2000 Royal Sundaram Alliance

Insurance Company Limited

2 103 23.10.2000 Reliance General Insurance

Company Limited.

3 106 04.12.2000 IFFCO Tokio General

Insurance Co. Ltd

4 108 22.01.2001 TATA AIG General Insurance

Company Ltd.

5 113 02.05.2001 Bajaj Allianz General

Insurance Company Limited

6 115 03.08.2001 ICICI Lombard General

Insurance Company Limited.

7 131 03-08-2007 Apollo DKV Insurance

Company Limited

8 132 04-09-2007 Future Generali India Insurance

Company Limited

9 134 16-11-2007 Universal Sompo General

Insurance Company Ltd.
http://www.irdaindia.org/www.royalsundaram.comhttp://www.irdaindia.org/www.royalsundaram.comhttp://www.irdaindia.org/www.royalsundaram.comhttp://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.itgi.co.in/http://www.itgi.co.in/http://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.icicilombard.com/http://www.icicilombard.com/http://www.apollodkv.co.in/http://www.apollodkv.co.in/http://www.irdaindia.org/www.fg-general.inhttp://www.irdaindia.org/www.fg-general.inhttp://www.universalsompo.com/http://www.universalsompo.com/http://www.universalsompo.com/http://www.universalsompo.com/http://www.irdaindia.org/www.fg-general.inhttp://www.irdaindia.org/www.fg-general.inhttp://www.apollodkv.co.in/http://www.apollodkv.co.in/http://www.icicilombard.com/http://www.icicilombard.com/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.itgi.co.in/http://www.itgi.co.in/http://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.irdaindia.org/www.royalsundaram.comhttp://www.irdaindia.org/www.royalsundaram.com


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

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

Life Insurers:

Sino. Registration

Number

Date of

Reg.

Name of the Company

1 121 03.01.2002 Reliance Life Insurance Company Limited.

2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

General Insurers :

Sino. Registration

Number

Date of

Registration

Name of the Company

1 123 15.07.2002 Cholamandalam General

Insurance Company Ltd.

2. 124 27.08.2002 Export Credit Guarantee

Corporation Ltd.

3. 125 27.08.2002 HDFC-Chubb General

Insurance Co. Ltd
http://www.reliancelife.com/http://www.reliancelife.com/http://www.avivaindia.com/http://www.cholainsurance.com/http://www.cholainsurance.com/http://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.cholainsurance.com/http://www.cholainsurance.com/http://www.avivaindia.com/http://www.reliancelife.com/


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Year: 2003-2004: (From 1st Jan 2003 till Date)

Insurance Industry in this year, so far has 1new entrants

Life Insurers:

S.No. Registration

Number

Date of

Reg.

Name of the Company

1 127 06.02.2004 Sahara India Insurance Company Ltd.

Year: 2004-2005:

Insurance Industry in this year, so far has 1new entrants

Life Insurers:

S.No. RegistrationNumber

Date of

Reg.Name of the Company

1 128 17.11.2005 Shriram Life Insurance Company Ltd

Year: 2006-2007:

Insurance Industry in this year, had 1new entrants

Life Insurers:

S.No. RegistrationNumber Date of

Reg.

Name of the Company

1 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.
http://www.saharalife.com/http://www.saharalife.com/http://www.saharalife.com/http://www.bharti-axalife.com/http://www.bharti-axalife.com/http://www.saharalife.com/http://www.saharalife.com/


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Year: 2007-2008 :

Insurance Industry in this year, had 2 new entrants

S.No

.

Registratio

n

Number

Date of

Reg.

Name of the Company

1 133 04.09.200

7

Future Generali India Life Insurance Company

Limited

2 135 19.12.200

7

IDBI Fortis Life Insurance Company Ltd.

Year: 2008-2009:

Insurance Industry in this year, so far has 3 new entrants in Life and 1 new entry in

General

Life Insurers:

S.N

o.

Registrati

on

Number

Date of

Reg.

Name of the Company

1 136 08.05.20

08

Canara HSBC Oriental Bank of Commerce Life Insurance

Company Ltd.

2 138 27.06.20

08

Aegon Religare Life Insurance Company Ltd.

3 140 27.06.20

08

DLF Pramerica Life Insurance Company Ltd.
http://www.irdaindia.org/www.fg-life.inhttp://www.irdaindia.org/www.fg-life.inhttp://www.irdaindia.org/www.fg-life.inhttp://www.idbifortis.com/http://www.canarahsbclife.com/http://www.canarahsbclife.com/http://www.aegonreligare.com/http://www.dlfpramericalife.com/http://www.dlfpramericalife.com/http://www.aegonreligare.com/http://www.canarahsbclife.com/http://www.canarahsbclife.com/http://www.idbifortis.com/http://www.irdaindia.org/www.fg-life.inhttp://www.irdaindia.org/www.fg-life.in


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General Insurers:

S.No. RegistrationNumber

Date of

Reg.Name of the Company

1 139 27.06.2008 Bharti Axa General Insurance Company Ltd.
http://www.irdaindia.org/www.bharti-axagi.co.inhttp://www.irdaindia.org/www.bharti-axagi.co.in


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INTRODUCTION TO HDFC

The first private sector retail Housing Finance Company in India was incorporated in

1977 with almost 90% of the initial share holding in the hands of domestic institution and

retail investors and currently 77% of the shares hold by foreign institutional investors and

a primary objective of meeting a social needs of the common mass of India as well as

promising ownership by providing long term finance to households for their needs.

However, the needs were according to National Building Organization. The demand

was estimate at 2 million units per year and the total housing shortfall is estimated to be

19.4 million units with the division of 12.6 million for rural and 6.64 million for urban. Itis listed on both BSE and NSE and having the market capitalization of Rs 79 billion. It

has 118 offices and having the second largest employment generator in India with the

staff strength of 1099.

KEY PLAYERS

Mr. Deepak S Parekhis the Chairman of the Company. He is also the Executive Chairman

of Housing Development Finance Corporation Limited (HDFC Limited). He joined

HDFC 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).

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

1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian

Institute of Technology, Bombay and a Masters Degree in Business Administration from

The American University, Washington DC.


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FINANCIAL STRENGTH

Was promoted with an initial share capital of 100 million. Asset Base of more than Rs 21459 cr. AAA (High Security and High Safety) rated for seven consecutive years.

MISSION

To be the top new life insurance company in the country.

Values

1. SERVICE

Offer a high quality customer service. Trained consultants who would advice the customers in choosing the right

product for him.

2. TRUST

Commitment to the Indian market to establish themselves as the mostprofessional Life Insurance Company in India.

3. INNOVATION

Commitment for developing quality products for the specific needs of theIndian customers.

Use latest technology.


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HDFC IS A HIGHLY DIVERSIFIED GROUP. ITS GROUP

COMPANIES ARE:

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 FundHDFC reality.com: Helps to search properties in all major cities in India

HDFC securities.

i. HDFC LIMITED:

HDFC was incorporated in1977 with the primary objective of meeting a social

need that of promoting home ownership by providing long term finance to

households for their housing needs. HDFC was promoted with an initial share

capital of Rs. 100.

ii. HDFC BANK LIMITED:

The Housing Development Finance Corporation Limited (HDFC) was amongstThe first to receive approval from the Reserve Bank of India to set up a bank in

the private sector. The bank was incorporated in August 1994 the name of HDFC

Bank Limited, with its registered office in Mumbai.


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iii. HDFC ASSET MANAGEMENT:

HDFC Fund is dominant player in the Indian Mutual Fund space, recognized its

high levels of ethical and professional conduct a commitment towards enhancing

investor interest.

iv. HDFC STANDARD LIFE INSURANCE:

HDFC STANDAED LIFE is the name, which is working as one of the best

private insurance company in insurance sector. HDFC STANDARD LIFE

Insurance company ltd. was incorporated on 14th august 2000. It got the certificate

of registration on 23rd October.

INTRODUCTION TO STANDARD LIFE

Standard was incorporated d in 1825. It is mainly a U.K based company having

31 branches in U.K itself and many other branches in all over the world. It is also

renounced as the European Largest Mutual Life Insurance Company and recently

voted Company do the decade by independent financial advisor U.K.

STANDARD LIFE:

STANDARD HEALTH CARE

STANDARD INVESTMENT


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SOME FACTS ABOUT THE COMPANY:

1. Founded in 18252. Mutual life insurance3. Largest mutual life insurance company in Europe4. Assets under management over Rs 707836 cr. Total assets under management Rs

707836 cr.

5. New premium income Rs 76277 cr.6. AAA rated by Standard & Poors and Moodys.

THE JOINT VENTURE OF HDFC AND STANDARD LIFE:

Be granted license by the IRDA to operate in life insurance sector. Each of the JV HDFC

Standard Life Insurance Company Ltd was one of the first companies to who is highly

rated and conferred with many awards. HDFC is rated AAA by both CRISIL and

ICRA. Similarly, Standard Life is rated AAA both by Moodys and Standard and

Poors. These reflect the efficiency with which HDFC and Standard Life manage their

assets base of Rs 15000cr and Rs 600,000 Cr respectively.

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 keeping in mind the changing needs of family. Its life insurance plans are

designed to provide you with flexible options that meet both protection and savings

needs. It offers a full range of transparent, flexible and value for money products. HDFC

SLIC products are modern and contemporary unitized products that offer unique

customer benefits like flexibility to choose cover levels, indexation and partial

withdrawals.


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RECRUITMENT OF FINANCIAL

CONSULTANT


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INTRODUCTION TO RECRUITMENT

Recruitment is the process of searching the candidates for employment and stimulating

them to apply for jobs in the organization. Recruitment is the activity that links the

employers and the job seekers. A few definitions of recruitment are:

1 A process of finding and attracting capable applicants for employment. Theprocess begins when new recruits are sought and ends when their applications are

submitted. The result is a pool of applications from which new employees are

selected.

2 Recruitment of candidates is the function preceding the selection, which helpscreate a pool of prospective employees for the organisation so that the

management can select the right candidate for the right job from this pool. The

main objective of the recruitment process is to expedite these election process

3 Recruitment is a continuous process whereby the firm attempts to develop a poolof qualified applicants for the future human resources needs even though specific

vacancies do not exist. Usually, the recruitment process starts when a manger

initiates an employee requisition for a specific vacancy or an anticipated vacancy.

RECRUITMENT NEEDS ARE OF THREE TYPES

1 PLANNEDi.e. the needs arising from changes in organization and retirement policy.

2 ANTICIPATEDAnticipated needs are those movements in personnel, which an

organization can predict by studying trends in internal and external

environment.


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3 UNEXPECTEDResignation, deaths, accidents, illness give rise to unexpected needs.

Purpose and importance

1. Attract and encourage more and more candidates to apply in the organisation.

2. Create a talent pool of candidates to enable the selection of best candidates for the

organization.

3. Determine present and future requirements of the organization in conjunction with its

personnel planning and job analysis activities.

4. Recruitment is the process which links the employers with the employees.

5. Increase the pool of job candidates at minimum cost.

6. Help increase the success rate of selection process by decreasing number of visibly

under qualified or overqualified job applicants.

7. Help reduce the probability that job applicants once recruited and selected will leave

the organization only after a short period of time.

8. Meet the organizations legal and social obligations regarding the composition of its

workforce.

9. Begin identifying and preparing potential job applicants who will be appropriate

candidates.

10. Increase organization and individual effectiveness of various recruiting techniques

and sources for all types of job applicants.


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SOURCES OF RECRUITMENT

Every organisation has the option of choosing the candidates for its recruitment processes

from two kinds of sources: internal and external sources. The sources within the

organisation itself (like transfer of employees from one department to other, promotions)

to fill a position are known as the internal sources of recruitment. Recruitment candidates

from all the other sources (like outsourcing agencies etc.) are known as the external

sources of recruitment.

SOURCES OF RECRUITMENT


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FACTORS AFFECTING RECRUITMENT

The recruitment function of the organisations is affected and governed by a mix of

various internal and external forces. The internal forces or factors are the factors that can

be controlled by the organisation. And the external factors are those factors which cannot

be controlled by the organisation. The internal and external forces affecting recruitment

function of an organisation are:

FACTORS AFFECTING RECRUITMENT


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RECRUITMENT PROCESS

The recruitment and selection is the major function of the human resource department

and recruitment process is the first step towards creating the competitive strength and the

strategic advantage for the organisations. Recruitment process involves a systematic

procedure from sourcing the candidates to arranging and conducting the interviews and

requires many resources and time. A general recruitment process is as follows:

1. Identify vacancy2. Prepare job description and person specification3. Advertising the vacancy4. Managing the response5. Short-listing6. Arrange interviews7. Conducting interview and decision making


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medical care and loss of income due to illness or injury. They also may sell dental

insurance and short-term and long-term-disability insurance policies. Agents may

specialize in any one of these product areas, or function as generalists, providing multiple

products to a single customer.

An increasing number of insurance sales agents are offering comprehensive financial

planning services to their clients. These services include retirement planning, estate

planning, and assistance in setting up pension plans for businesses. As a result, many

insurance agents are involved in cross-selling or total account development. Besides

offering insurance, these agents may become licensed to sell mutual funds, variable

annuities, and other securities. This practice is most common with life insurance agents

who already sell annuities, but many property and casualty agents also sell financial

products.

Insurance sales agents also prepare reports, maintain records, and seek out new clients. In

the event that policy holders experience a loss, agents help them settle their insurance

claims. Increasingly, some agents are also offering their clients financial analysis or

advice on how to minimize risk.

Insurance sales agents working exclusively for one insurance company are referred to as

captive agents. Independent insurance agents, or brokers, represent several companiesand match insurance policies for their clients with the company that offers the best rate

and coverage.

Technology has greatly affected the insurance business, making it much more efficient

and giving the agent the ability to take on more clients. Agents computers are now

linked directly to insurance carriers via the Internet, making the tasks of obtaining price

quotes and processing applications and service requests faster and easier. Computers also

allow agents to be better informed about new products that the insurance carriers may beoffering.

Increasing competition in the insurance industry has spurred carriers and agents to find

new ways to keep their clients satisfied. One solution is to increase the use of call centers,

which usually are accessible to clients 24 hours a day, 7 days a week. Insurance carriers


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and sales agents also are hiring customer service representatives to handle routine tasks

such as answering questions, making changes in policies, processing claims, and selling

more products to clients. The opportunity to cross-sell new products to clients will help

agents businesses grow. The use of call centers also allows agents to concentrate their

efforts on seeking out new clients and maintaining relationships with old ones.

Work environment.

Insurance sales agents working as captive agents are usually based in small offices, from

which they contact clients and provide information on the policies they sell. Independent

insurance agents, or brokers, may work in offices of varying sizes, depending on the size

of the agency. However, much of their time may be spent outside their offices, traveling

locally to meet with clients, close sales, or investigate claims. Agents usually determine

their own hours of work and often schedule evening and weekend appointments for the

convenience of clients. Some sales agents may meet with clients during business hours

and then spend evenings doing paperwork and preparing presentations to prospective

clients. Although most agents work a 40-hour week, some work 60 hours a week or

longer.

Education and training.

For insurance sales agent jobs, many companies and independent agencies prefer to hire

college graduatesespecially those who have majored in business or economics. High

school graduates may be hired if they have proven sales ability or have been successful in

other types of work. Agents learn many of their job duties on the job from other agents.

Many employers have their new agents shadow an experienced agent for a period of time.

This allows the agent to learn how to conduct their business, how the agency interacts

with clients, and how to write policies.

Employers also are placing greater emphasis on continuing professional education as the

diversity of financial products sold by insurance agents increases. It is important for


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insurance agents to keep up to date on issues concerning clients. Changes in tax laws,

government benefits programs, and other State and Federal regulations can affect the

insurance needs of clients and the way in which agents conduct business. Agents can

enhance their selling skills and broaden their knowledge of insurance and other financial.

Licensure.

more Insurance sales agents must obtain a license in the States where they plan to work.

Separate licenses are required for agents to sell life and health insurance and property and

casualty insurance. In most States, licenses are issued only to applicants who complete

specified prelicensing courses and who pass State examinations covering insurance

fundamentals and State insurance laws. The insurance industry is increasingly moving

toward uniform State licensing standards and reciprocal licensing, allowing agents who

earn a license in one State to become licensed in other States more easily. Most State

licensing authorities also have mandatory continuing education requirements focusing on

insurance laws, consumer protection, ethics, and the technical details of various insurance

policies.

Job prospects.

Multilingual agents should have good job prospects because they can serve a wider range of

customers. Additionally, insurance language tends to be quite technical, so agents who have a

firm understanding of relevant technical and legal terms will also be desirable to employers.

Many beginning agents fail to earn enough from commissions to meet their income goals and

eventually transfer to other careers. Many job openings are likely to result from the need to

replace agents who leave the occupation or retire, as a large number of agents are expected to

retire over the next decade.

Agents may face increased competition from traditional securities brokers and bankers as they

begin to sell insurance policies. Insurance sales agents will need to expand the products and

services they offer as consolidation increases among insurance companies, banks, and brokerage

firms and as demands increase from clients for comprehensive financial planning.


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Recruitment process of insurance agent in HDFC standard life

insurance

Recruitment process Under the regulation of Insurance Agents Regulatory Act 2000,

any person desirous of obtaining an agent''s licence shall have to pass the pre-recruitment

examination in life or general insurance business conducted by an examination body duly

recognised by the Insurance Regulatory and Development Authority (IRDA).

Step 1: Information gathering/contacts\

Step 2: Evaluation of required qualification

Step 3: Training

Step 4: Irda exam for license procurement.

Information gathering

Gathering data through contacts and many other sources to explore people who will be

interested in becoming a financial consultant.

Evaluation of required qualification

Employers prefer to hire insurance agents who have college degrees, particularly in

business or economics. They might consider hiring a high school graduate who has

proven sales ability.

Insurance sales agents should be flexible, enthusiastic, confident, disciplined, hard

working, and willing to solve problems. They should communicate effectively and


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inspire customer confidence. Because they usually work without supervision, sales agents

must be able to plan their time well and have the initiative to locate new clients.

TRAINING

Agents can enhance their selling skills and broaden their knowledge of insurance and

other financial services by taking training at colleges and universities and by attending

institutes, conferences, and seminars sponsored by insurance organizations.

IRDA EXAM FOR LICENSE PROCUREMENT

Every state requires insurance agents to be licensed. They are required to obtain separate

licenses to sell life and health insurance or property and casualty insurance. In most

states, sales agents, in order to become licensed, must complete pre-licensing courses and

pass state examinations.

Be our Certified Financial Consultant

Name:

Sex :

Address :

State :


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Branch:

(Select the place nearest to you)

Email :

Telephone :

Age :

Educational Qualifications :

Do you hold a licence to act as an insurance Agent for Life/ General/Composite

Insurance? Yes NO

If 'YES' : Licence No :

Do you hold a Life and/or General Insurance Agency

If 'YES' :Name Of General Insurer :

If 'YES' :Name Of Life Insurer :

IRDA Regulations for becoming an agent : The three pre-requisites laid down byIRDA to qualify as an agent under the licensing regulations are:


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Educational Qualification: Possess a minimum educational qualification of 12th

standard or equivalent (if population >5000) and 10th standard or equivalent (if

population < 5000).

Practical Training: Complete one hundred hours (100) of practical training in lifeinsurance business.

Pre-recruitment Test: Pass the pre-recruitment test, based on an examinationconducted by the Insurance Institute of India or another approved body.

The regulations also mention a 'Tied Agency System' wherein an agent can representonly one life insurer or one general insurer or both, at a time. A person having both

agencies, life and non-life shall be known as a 'Composite Agent'.

DUTIES,POWER AND FUNCTIONS OF IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..

(1) Subject to the provisions of this Act and any other law for the time being in force,the Authority shall have the duty to regulate, promote and ensure orderly growth of

the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1),the powers and functions of the Authority shall include

(3) a) Issue to the applicant a certificate of registration, renew, modify, withdraw,suspend or cancel such registration.


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b)protection of the interests of the policy holders in matters concerning assigning

of policy, nomination by policy holders, insurable interest, settlement of

insurance claim, surrender value of policy and other terms and conditions of

contracts of insurance.

a) specifying requisite qualifications, code of conduct and practical training forintermediary or insurance intermediaries and agents.

b) specifying the code of conduct for surveyors and loss assessors

c)

promoting efficiency in the conduct of insurance business.

d) promoting and regulating professional organisations connected with theinsurance and re-insurance business.

e) levying fees and other charges for carrying out the purposes of this Act;f) calling for information from, undertaking inspection of, conducting enquiries

and investigations including audit of the insurers, intermediaries, insurance

intermediaries and other organisations connected with the insurance business.

g) control and regulation of the rates, advantages, terms and conditions that maybe offered by insurers in respect of general insurance business not so

controlled and regulated by the Tariff Advisory Committee under section 64U

of the Insurance Act, 1938 (4 of 1938).

h) specifying the form and manner in which books of account shall bemaintained and statement of accounts shall be rendered by insurers and other

insurance intermediaries.

i) regulating investment of funds by insurance companies.


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j) regulating maintenance of margin of solvency. adjudication of disputesbetween insurers and intermediaries or insurance intermediaries.

k) supervising the functioning of the Tariff Advisory Committee.l) specifying the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organisations referred to in

clause(f).

m)specifying the percentage of life insurance business and general insurancebusiness to be undertaken by the insurer in the rural or social sector.

n)

exercising such other powers as may be prescribed


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RESEARCH METHODOLOGY

Research is defined as a scientific and systematic search for pertinent information on aspecific topic. The function of a marketing research is to provide information, which

assist marketer in recognizing and reacting to marketing oppurtunities and problems. In

essence, researchers mix managers to take the better decision.

TITLE

Recruitment of financial consultant

TITLE JUSTIFICATION

Recruitment is the process of finding and attracting capable applicants for employment.

The process begins when new recruits are sought and ends when their applications are

submitted. The result is a pool of applications from which new employees are selected.

Insurance agents, who may be referred to as insurance sales agents, help clients choose

insurance policies that suit their needs. Clients include individuals and families as well as

businesses. Captive agents work for an insurance company, and only sell that company's

products. Independent insurance agents, or brokers, represent several companies. Types

of insurance include property and Casualty, life, health, disability, and long-term care

insurance. It is important to study whether people are interested in becoming a financial

consultant. It should be kept in mind while recruiting that motivate people to become a

financial consultant , whether it is salary package, job prospects etc according to whichpeople are approached. People can be approached by various ways such as telecalling,

personal contacts or any other sources.
http://personalinsure.about.com/od/insurancetermsglossary/g/casualty.htmhttp://personalinsure.about.com/cs/onlinelearning/g/44.htmhttp://personalinsure.about.com/cs/onlinelearning/g/44.htmhttp://personalinsure.about.com/cs/onlinelearning/g/39.htmhttp://personalinsure.about.com/cs/onlinelearning/g/30.htmhttp://personalinsure.about.com/od/longtermcare/a/ltcguide.htmhttp://personalinsure.about.com/od/longtermcare/a/ltcguide.htmhttp://personalinsure.about.com/cs/onlinelearning/g/30.htmhttp://personalinsure.about.com/cs/onlinelearning/g/39.htmhttp://personalinsure.about.com/cs/onlinelearning/g/44.htmhttp://personalinsure.about.com/od/insurancetermsglossary/g/casualty.htm


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Objective:

Recruitment of agents:1. Collection of data

2. Making phone calls

3. Taking of appointments

4. Making the customer understand about the importance of insurance and

the benefits of becoming a financial consultant.

5. Providing awareness of the procedure and collection of documents.

Significance of the study

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in

procedure.

RESEARCH DESIGN

A marketing research design maybe described as a series of advance decisions that when

taken together comprises a master plan or model for the conduct of the investigation. A

marketing research design comprises of three types of research design. They are:

4 Exploratory Research5 Descriptive Research6 Experimentation

Exploratory Research seeks to discover new relationships. It takes insights into the

phenomenon or develops understanding. It looks for hypothesis. It works when the


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problem is not clear or vague or much less general. It aims at pruning down the

alternatives.

Descriptive Research aims at producing accurate description of variable relevant to

decision making being faced without establishing the cause-effect relationship that exist

between the variable.

Experimentation is a research process where the researcher manipulates one or more

variable under the permitted conditions with an aim of aim data collection thereby

exhibiting cause-effect relationship.

METHODOLOGY

Data can be classified under the two main categories, depending upon the sourcres used

for the collection purpose, i.e, Primary data. The validity and accuracy of final

judgement is most crucial and depends heavily upon how well the data is gathered in the

first place. The methodology adopted for data gathering also affects the conclusion drawn

there from.

Primary data: Primary data those data, which are collected by the investigator himself for

the purpose of a specific enquiry or study. Such data are original in character and are

generated by surveys conducted by individuals or research institutions. Thus and are

generated by surveys conducted by individuals of research institutions. Thus we say that

is being collected for the first is called primary data. Methods thats can be used for

collection of primary data are as follows:

Primary data: Primary data are those data, which are collected by the investigator

himself for the purpose of a specific enquiry or study. Such data are original in character

and are generated by surveys conducted by individuals or research institutions. Thus we


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can say that the data that is being collected for the first time is called primary data. These

are:

1.Direct personal observation

2.Telephone survey

3.Indirect personal interview

4.Questionnaire method

Secondary data: When a person uses data, which has already been collected by

someone else, then such data is known as secondary data. Secondary data should be used

with extra caution since someone else has collected it for his/her use. Before using such

data the investigator must be satisfied with regard to the reliability, accuracy, adequacy

and suitability of the data to the given problem under investigation.

Methods that can be used for collection of secondary data are as follows:

Newspapers and Magazines like Economic Times, Insurance Times etc. Internet

Both Primary data collection methods and Secondary data collection methods have

various advantages as well as limitations. Thus it would be prudent to use both these

methods to ones advantage.

SAMPLING METHODOLOGY

Sampling Unit : Individuals

Sampling technique : Convenient and Judgmental sampling

Sampling area : South Delhi

Sample Size : 100


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LIMITATION OF THE STUDY

The study could not be made that comprehensive due to time constraints. Some

customers feel uncomfortable to reveal some personal information relating to income etc.

It might have happened that some more essential information could have been collected.

1. Time constraints: Due to time limitation sample was chosen according to

convenience. The numbers of respondents were restricted to hundred only as

more number of respondent means more time.

2. Biases and non-cooperation of the respondents: There is probabilitythat

the respondents didnt give true answers due to different reasons. There may

also be a probability that they gave wrong information.

3. Financial constraint: Research work would have been more valuable if it

would have covered all the consumers in their respective areas. But due to

cost limitation this was not possible.

4. Geographical selectivity in research limiting to Delhi city only.

5. People are not interested in giving personal opinion.


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FACTS AND FINDINGS

Q1. Do you have adequate knowledge about insurance?

a. Yesb. .No

Reponses No of respondents

Yes 46

No 54

Q2Have you ever been approached for becoming a financial consultant?

a. Yes

b. No


Yes 57

No 43


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Q3 If yes , how have you been approached for becoming a financial

consultant?

a. By telecallingb. By existing financial consultantc. By personal contactsd. Others


By telecalling 25

By existing financial consultant 29

By personal contacts 34

Others 12

Q4 Are you interested in becoming a financial consultant?

a. Yesb. No


Yes 46

No 54


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Q5 What motivates you to become a financial consultant?

a. Salary packageb.

Reputation of HDFC

c. Job prospectsd. Working environment


Salary package 32

Reputation of HDFC 24

Job prospects 32

Working environment 12

Q6 What are your expectations from HDFC? ( rank them according to the

order of preference)

a. Good packageb. Cooperative colleaguesc. Good working environmentd. Career growth opportunitye. Working hours


Good package 22

Cooperative colleagues 11

Good working environment 21

Career growth opportunity 32

Working hours 14


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Q7. What extra incentives do you expect from HDFC?

a. Regular bonusb. Trips and picnicsc. Promotionsd. Gift vouchers


Regular bonus 28

Trips and picnics 18

Promotions 32

Gift vouchers 22

Q8 What is the duration you wish to be employed in HDFC for?

a.

01 yearb. 13 yearc. 35 yeard. Above 5 year


01 year 25

13 year 32

35 year 23

Above 5 year 20


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DATA ANALYSIS AND INTERPRETATION


a. Yesb. .No

Interpretation

After the survey I found that 54% of respondents dont have adequate knowledge about

insurance and 46% percent have.

46%

54%

no of respondents

yes

no


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Q2Have you ever been approached for becoming a financial consultant?

a. Yes

b. No

Interpretation

After the survey I found that 57% of respondents have been approached for becoming afinancial consultant and 43% are not.

57%

43%

No of respondents

YES

NO


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Q3 If yes , how have you been approached for becoming a financial

consultant?

a. By telecallingb. By existing financial consultantc. By personal contactsd. Others

Interpretation

After the survey I found that highest percent of people are approached through personal

contacts.

25%

29%

34%

12%

No of respondents

By telecalling

By existing fiancial

consultant

By personal contacts

Others


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Q4 Are you interested in becoming a financial consultant?

a. Yesb. No

Interpretation

After the survey I found that 46% are interested in becoming financial consultant and

54% are not.

46%

54%

No of respondents

yes

no


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Q5 What motivates you to become a financial consultant?

a. Salary packageb. Reputation of HDFCc. Job prospectsd. Working environment

Interpretation

After the survey I found that salary package and job prospects are the highest motivator

to people for becoming a financial consultant.

32%

24%

32%

12%

No of respondents No of respondents

Salary package

Reputation of HDFC

Job prospects

Working environment


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Q6 What are your expectations from HDFC? ( rank them according to the

order of preference)

a. Good packageb.

Cooperative colleagues

c. Good working environmentd. Career growth opportunitye. Working hours

Interpretation

After the survey I found that 32% of people expects career growth opportunity,22% goodpackage, 21% good working environment,14% working hours and 11% cooperativecolleagues.

22%

11%

21%

32%

14%

No of respondents

good package

cooperative colleagues

good working

environment

career growth

opportunity

working hours


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a. Regular bonusb. Trips and picnicsc.

Promotions

d. Gift vouchers

Interpretation

After the survey I found that highest percent of people expects promotions from HDFC

and lowest is gift vouchers.

28%

18%32%

22%

No of respondents

Regular bonus

Trips and picnics

Promotions

Gift vouchers


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Q8 What is the duration you wish to be employed in HDFC for?

a. 01 yearb. 13 yearc. 35 yeard. Above 5 year

\

Interpretation

After the survey I found that Highest percent of people like to be in HDFC for 1

to 3 year span of time.

25%

32%

23%

20%

No of respondents

0 - 1 year

1 - 3 year

3 - 5 year

Above 5 years


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RECOMMENDATIONS

1. HDFC Standard Life is having large number of channel partners but is notsupporting & taking care of all of them equally which results in increasing

discontent among new channel partners. Company should take some positive

action against it.

2. Company executives should visit customers on regular basis.

3. They should pay proper attention towards checking of various components ofinsurance before end user delivery, otherwise it tend towards defaming of

brand name in comparison to rivals.

4. Need to expand customer care centers as customer base of HDFC StandardLife is increasing with tremendous updraft.

5. Proper attention should be paid for advertisement planning otherwise it maylead to problem for customer as well as for company

6. Company should come up with some event management company to organizevarious promotional activities like carnivals, etc


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CONCLUSION

After making an in depth study about the HDFC Standard Life insurance have come

to the conclusion that there has been tremendous changes in the Insurance History.

The opening up of Insurance sector has changed the whole look of Insurance

Industry. Salary package and job prospects are the highest motivator for becoming a

financial consultant. Highest percent of people like to be in HDFC for 1 to 3 year

span of time. HDFC Standard Life Insurance Company continues to have one of the

widest reaches among new insurance companies. The company doubled the number

of offices to 104 across the country.


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BIBLIOGRAPHY

Books

Insurance management by Karam Pal, B.S Sodhi , M.C Garg . Human resource management by T.N Chabbra

Websites

www.yahoo.com www.google.com www.wikipedia.com www.hdfcslic.com

Brochures

HDFC Brochures

Newspapers

Economic Times

Hindustan Times
http://www.yahoo.com/http://www.yahoo.com/http://www.google.com/http://www.google.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.hdfcslic.com/http://www.hdfcslic.com/http://www.hdfcslic.com/http://www.wikipedia.com/http://www.google.com/http://www.yahoo.com/


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ANNEXURE

QUESTIONNAIRE

Please tick the appropriate box

Name:

Age:

Designation:

Annual household income:

1. upto Rs 2 lakh 2. Rs 2 lakh to lakh

3. 5 lakh to 8 lakh 4. Above 8 lakh


1. YES

2. NO

Q2. Have you ever been approached for becoming a financial consultant?

1. YES

2. NO


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Q3 If yes ,how have you been approached?

1. By telecalling

2. By existing financial consultant

3 . By personal contacts

4 . Others

Q4.Are you interested in becoming a financial consultant?

1. YES

2. NO

Q5. What motivates you to become a financial consultant?

1. Salary package

2. Reputation of HDFC

3. Job prospects

4. Working environment


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Q6.What are your expectations from HDFC? (rank them according to the

order of preference).

1. Good package2. Cooperative colleagues3. Good working environment

4. Career growth opportunity5. Working hours


1. Regular bonus2. Trips and picnics

3. Promotions

4.Gift vouchers


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Q8. What is the duration you wish to be employed in HDFC for?

1.01 year2. 13 year

3.35 year

4.Above 5 year

factors influencing recrutiment of financial consultants

Documents