raunak report final
TRANSCRIPT
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FINAL REPORT
ON
HDFC STANDARD LIFE
INSURANCE
SUBMITTED BY:
KUNAL JALAN
Roll No. 7
MBA-IRM
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ACKNOWLEDGEMENT
It is a matter of great pleasure to acknowledge the guidance, enormous
assistance and co-operation extended to me from every corner, while
proceeding with my internship.
I sincerely express my gratitude to Mr. Alok Kumar Panda (Branch Sales
Manager) for allowing me to pursue my internship in HDFC Standard Life,
Sambalpur.
I would also like to express my gratitude to all other people who had extended
their helping hand directly or indirectly throughout the internship, and without
whose help my internship would not have been completed. I would also like to
thank my parents for their guidance and support. They have remained a source
of inspiration for me.
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INTRODUCTION
An Overview of Insurance industry in India and Emergence of
Private Insurance Player in India
The Government of India liberalized the insurance sector in March 2000,
which lifted the entry restrictions for private insurance players, allowing foreign
players to enter into the Indian market and start their operations in India and
ending the monopoly of LIC in the life insurance sector in India. Each foreign
company needs to have a 26% equity capital to enter into the Indian insurancemarket. Many foreign companies have joined their hands with the Indian
companies and started their operations in early 2001. Now there is a proposal to
increase the equity capital to 49% which would attract more foreign companies
to in India.
Previously, insurance was considered as a saving instrument in India
rather than a product which offers protection and security to the person who is
insured. According to LIC survey in 1996, more than 40% of the insurancebuyers felt that insurance is a means of savings. Risk coverage is a secondary
objective.
Before emergence of private insurance player in India there was only LIC but
that was also in a scatter manner but after facing lots of problem government of
India decided to merge all insurance company and made that as LIC.
Insurance in India used to be tightly regulated and monopolized by state-run
insurers. Following the move towards economic reform in the early 1990s,
various plans to revamp the sector finally resulted in the passage of the
Insurance Regulatory and Development Authority (IRDA) Act of
1999.Significantly, the insurance business was opened on two fronts. Firstly,
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domestic private-sector companies were permitted to enter both life and non-life
insurance business. Secondly, foreign companies were allowed to participate.
COMPANY PROFILE
HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life is one of Indias leading private life insurance companies,
which offers a range of individual and group insurance solutions. It is a joint
venture between Housing Development Finance Corporation Limited (HDFC),
Indias leading housing finance institution and Standard Life plc, a leading
provider of financial services in the United Kingdom.
HDFC Standard Lifes product portfolio comprises solutions, which meet various
customer needs such as Protection, Pension, Savings, Investment, and Health.
Customers have the added advantage of customizing their Plans, by adding
optional benefits called riders, at a nominal price.
The company currently has 25 retail and 4 group products in its portfolio, along
with five optional rider benefits catering to the savings, investment, protection
and retirement needs of customers.
HDFC Standard Life continues to have one of the widest reaches among new
insurance companies through a network of 595 offices serving over 720 cities
and towns across the country. The company has also increased its depth in
existing markets with a strong base of more than 207,000 Financial Consultants.
Standard Life was awarded the Best Pension Provider in 2004, 2005 and 2006
at the Money Marketing Awards, and it was voted a 5 star life and pensionprovider at the Financial Adviser Service Awards for the last 10 years running.
The 5 Star accolade has also been awarded to Standard Life Investments for
the last 10 years, and to Standard Life Bank since its inception in 1998.
Standard Life Bank was awarded the Best Flexible Mortgage Lender at the
Mortgage Magazine Awards in 2006.
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The HDFC Standard Life generated Total Premium Income of Rs. 5564.69
cores in FY 2009-10 registering a year-on-year growth of 15%. The growth was
primarily driven by the companys structured sales processes based on
customer needs and their assessments, wide range of product portfolio and
diverse distribution network. The financial year 2009-10 was a defining year with
the unfolding of several unexpected events - sharp correction in financial
markets and a spread of recessionary trends. These events also had an impact
on the Indian life insurance industry. HDFCs new policies issued grew by 16%
over the last year. However, given the uncertainty in the overall scenario,
customers have reduced their annual premium commitment on new policies. At
the same time, existing policies continued to be in force reflected in our renewalpremium, which posted a healthy growth of 34%.
The sales of HDFC standard life is increasing year by year due to the
companys structured sales processes based on customer needs and their
assessments, wide range of product portfolio and diverse distribution network.
PARENTAGE
HDFC Limited
HDFC Limited, India's premier housing finance institution has assisted more
than 3.8 million families own a home, since its inception in 1977 across 2400
cities and towns through its network of over 289 offices. It has international
offices in Dubai, London and Singapore with service associates in Saudi Arabia,
Qatar, Kuwait and Oman to assist NRI's and PIO's to own a home back in India.
As of March 2011, the total asset size has crossed more than
Rs. 1, 32,727crores including the mortgage loan assets of more than
Rs. 1, 17,126 crores. The corporation has a deposit base of over Rs. 24,625
crores, earning the trust of nearly one million depositors. HDFC has setbenchmarks for the Indian housing finance industry. Recognition for the service
to the sector has come from several national and international entities including
the World Bank that has lauded HDFC as a model housing finance company for
the developing countries. HDFC has undertaken a lot of consultancies abroad
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Customer centric
People Care One for all and all for one
Team work
Joy and Simplicity
DECISION MAKER
Mr. Deepak S. Parekh is the Chairman of the Company. He is also the
Executive Chairman of Housing Development Finance Corporation Limited
(HDFC Limited). He joined 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).
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Presently the Top 10 Life Insurance Companies are as follows:
Insurance Companies Market share
LIC 64%
ICICI Prudential Life Insurance 8.93%
Bajaj Allianz Life Insurance Co. 7.36%
SBI Life Insurance Co Ltd. 6.44%
Reliance Life Insurance Co Ltd. 2.96%
HDFC SLIC Ltd. 2.88%
Birla Sun Life Insurance Co Ltd. 2.11%
Max New York Life insurance Co Ltd. 1.91%
Kotak Mahindra Life Insurance Ltd. 1.19%
Aviva Life Insurance Company India Ltd. 1.05%
PRODUCTS OFFERED BY HDFC LIFE
HDFC Standard Life offers a bouquet of insurance solutions to meet every need.
The company caters to both, individuals as well as to companies looking to
provide benefits to their employees. For individuals, the company has arranged
of protection, investment, pension and savings plans that assist and nurture
dreams apart from providing protection. The customers can choose from a range
of products to suit their life-stage and needs. For organizations, they have a
host of customized solutions that range from Group Term Insurance, Gratuity,
Leave Encashment and Superannuation Products. These affordable plans apart
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from providing long term value to the employees help in enhancing goodwill of
the company. The products of the company are categorized into various
sections which are as follows:
A. INDIVIDUAL PRODUCTS
B. GROUP PRODUCTS
C. RURAL PRODUCTS
D. SOCIAL PRODUCTS
E. TAX BENEFITS
For Individuals, HDFC Standard Life has a range of protection, investment,
pension and savings plans that assist and nurture dreams apart from providing
protection. Customer can choose from a range of products to suit his life-stage
and needs.
For Organizations, HDFC Standard Life has a host of customized solutions that
range from Group Term Insurance, Gratuity, Leave Encashment and
Superannuation Products. These affordable plans apart from providing long term
value to the employees help in enhancing goodwill of the company.
Individual Products:
1. HDFC Children's Plan
2. HDFC Endowment Assurance Plan
3. HDFC Loan Cover Term Assurance Plan
4. HDFC Money Back Plan
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5. HDFC Personal Pension Plan
6. HDFC Single Premium Whole Of Life Plan
7. HDFC Term Assurance Plan
8. HDFC Unit Linked Endowment
9. HDFC Unit Linked Endowment Plus
10. HDFC Unit Linked Pension
11. HDFC Unit Linked Pension Plus
12. HDFC Unit Linked Young Star
13. HDFC Unit Linked Young Star Plus
At HDFC Standard Life realize that not everyone has the same kind of needs.
Keeping this in mind, varied range of products that customer can choose from to
suit all needs. These will help secure customer future as well as the future of
family.
Protection Plans:
Customer can protect his family against the loss of his income or the burden of
a loan in the event of his unfortunate demise, disability or sickness. These plans
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offer valuable peace of mind at a small price. HDFC Standard Life Protection
range includes Term Assurance Plan & Loan Cover Term Assurance Plan.
Investment Plans:
HDFC Standard Life Single Premium Whole of Life plan is well suited to meet
long term investment needs. HDFC Standard Life provides with attractive long
term returns through regular bonuses.
Pension Plans:
HDFC Standard Life Pension Plans help secure financial independence even
after retirement. Pension range includes Personal Pension Plan, Unit Linked
Pension and Unit Linked Pension plus Savings Plans.
Savings Plans:
HDFC Standard Life Savings Plans offer flexible options to build savings for
future needs such as buying a dream home or fulfilling childrens immediate and
future needs.
Group Products:
1. Group Term Insurance,
2. Group Variable Term Insurance
3. Group Unit Linked Plan
4. Gratuity Group Unit Linked Plan
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5. Superannuation Group Unit Linked Plan
6. Leave Encashment
HDFC offers products as per the l ife stages of the customers and their
respective needs. The insurance need will change as your life does, from
starting to work to enjoying your golden years and all the stages in between.
Each one of these stages may pose a different insurance need/cover for you. In
this section, we have drawn up the basic life stages and help you analyze
various insurance needs accordingly.
STAGE 1: YOUNG & SINGLE
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My job at HDFC Standard Life was To understand the acceptance of private life
insurance companies in India vis--vis LIC.
Today insurance forms the most integral part of every individuals financial
investments. I spent time in understanding the customer and their financialprofile and also their risk appetite.
Before getting into selling procedure I managed to get adequate knowledge of
various financial products and tried to find out where the products were best
fitted as per customer need. The most important part of any insurance is to
convince the customer. The insurance person should have empathy to find out
what a customer exactly needs. By this behavior I managed to approach
different customers explaining various products.
Most of the customers dont believe in private insurance companies due to the
fear of uncertainty as they believe that LIC is the only efficient insurance
company which fulfills their requirement pertaining to financial investment. My
job was to convince those customers by making them aware with brand image of
HDFC Standard Life. I managed to reflect them with the benefit of HDFC
Standard Life products.
OBJECTIVE
1. To create awareness among the people who are not aware of the
insurance plans.
2. To generate revenue for the organization.
3. To built up my convincing skill.
TARGET
To achieve premium of Rs. 50, 000/- per week.
CUSTOMERS
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The target customers are the middle class people basically the salaried people
who believe in saving and investment. Insurance is mean to save, so a salaried
customer is very much attracted to these policies. Life insurance is one of the
tax saving option, today tax can be saved twice on a life insurance policy once
the customers pays their premiums and once the customer receives maturity
benefits. So the customers are always in search of such policies where they get
such features and benefits and HDFC Life provides such benefits with a least
coasts. HDFC Life provides certain retirement benefits, these retirement plans
ensure customers that their post-retirement years are spent in peace and
comfort. They make sure that they have regular income after they retire and also
help them to maintain their standard of living.
These people can be as follows:
Friends
Neighbors
Co-workers
Existing client base
Members of ones club, society or association
Ones childrens teachers
Customers can also be segregated into various categories and they are:
CUSTOMERS
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ACHIEVEMENTS VS TARGET
WEEK TARGET ASSIGNED TARGET ACHIEVED
1 50000 TRAINING
2 50000 50000
3 50000 NIL
4 50000 100000
5 50000 NIL
ACHIEVEMENTS AND ANALYSIS
WEEK 1 FROM 16TH MAY TO 21ST MAY
Introduction with the company employees.
History of insurance.
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Training about all the products.
How to interact and convince the customers.
The trainer of HDFC Life gave us a complete overview of the company and not
only had that he also told us about the history of insurance companies. The
second day onwards he started with the different products of the company and
explained us each and every product in details.
ANALYSIS
The first week of my sip I analyzed that for every work we should have a proper
strategy preparation planning convincing power and many more thing. Also I
made analysis on my company.
WEEK 2 FROM 23TH MAY TO 28TH MAY
Telecalling
Appointments
The second week onwards I started with telecalling. The main purpose of
telecalling is to get appointments. I succeeded in getting a few appointments. I
met with many people but they have a mindset that private companies are not
good and LIC is the best. I was able to convince Mr. Madhav Mundra to invest
Rs. 50, 000 in HDFC SL Crest Plan.
ANALYSIS
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According to my first week analysis I started gradually my work and approached
those people who are little bit known to me and also started collecting leads by
asking for references.
WEEK 3 FROM 30TH MAY TO 04TH JUNE
Telecalling
Appointments
This week I was not able to generate any business because some personal
problem of my client in last moment. So I analyzed that I should not expect only
from 1 person I should have more clients in my hand at the end of the week.
ANALYSIS
My third week analysis was not good as my client didnt turned up and I believed
that he will be convinced.
WEEK 4 FROM 06TH JUNE TO 11TH JUNE
Telecalling
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Market survey
Appointments
I generated business of Rs. 1, 00,000 as I was able to convince Mr. Mayank
Mundra and Mr. Gopal Mundra, Kamtiwala Jewellers of Sambalpur and they
invested in the same HDFC SL Crest Plan. I also with my team mates did a
market survey in Golebazar Market and we were able to create awareness
among the people and also share their experiences in this sector.
ANALYSIS
The fourth week was a week of experience for me as I met with many people
during the survey and gained a good practical knowledge as a few people
shared their experiences and their losses in the insurance sector
WEEK 5 FROM 13TH JUNE TO 18TH JUNE
Appointments
Telecalling
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Mr. Samit Ghosh gave us some telephone techniques and the way of getting
appointments as we were facing problems in getting appointments. With this
help I took a few appointments but was unable to convince in our plans.
ANALYSIS
As per all my past 5 weeks I have analyzed many things. As above I have
mentioned all my achievement where it is there 2 of weeks are 0 and after that
every week I was able to generate some business for the company. This is only
because I analyzed the way of convincing people and approaching. Not only had
this as our trainer trained us every week that also helped me a lot. And
accordingly my performance improved as compared to before.
SWOT ANALYSIS
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STRENGTH
Strategic fit between the strategy
adopted and the offering.
Superior customer service vs.
competitors.
Consistent Brand Image
High degree of customer
Satisfaction.
Good place to work.
Lower response time with
efficient and effective service.
One of the largest private sector
insurance companies in India.
WEAKNESS
Some gaps in range for certain
sectors.
Customer service & staff need
training.
Most of the people are not willing
to invest in private insurance
company.
Lack of faith in private insurance
company.
In case of some policy premium is
much high.
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CONCLUSION
Opportunities
Profit margins will be good.
Could extend to overseas
broadly.
New specialist applications or
services could be develop
Could seek better customer
deals.
Can make foray in rural market.
Will come out with some saving
plans for students with nominal
investment.
Threats
Competitive market.
Competitors coming with different
new types of product.
Very high competition prevailing
in the industry.
Lack of infrastructure in rural
areas could constrain investment.
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Summer Training in HDFC Standard Life really helped me in gaining immense
experience and knowledge. I learned in general how an insurance industry like
HDFC Standard Life uses various marketing skills to market their range of
products. I learned:
How they take care of their customers.
How they work.
What value addition to be done for the products in order to survive in fiercely
competitive and rapidly changing scenario?
Being in HDFCSL, I gained certain practical experiences of Financial Industry. I
have also learned the rate of commission given to the agents; I elicited certain
motivational scheme which motivates insurance agents to increase their
customer base.
Customers are the key aspect of any business and its applicable for the
insurance sector too. For any insurance company, to get a new customer is 10
times costlier then to retain an existing one. Hence a sales person or insurance
agent should convince more customers in less time to significantly increase
companys efficiency to deal with more customers.
Except these, I got the experience that how the private sector insurance
companies are working in the market and what is the procedure of attracting the
customers.
Life insurance Corporation has completed more than three decades and thats
where counts, inters of brand name, different number of policies for differed
class and age group of customers.
The Private players are on the way, but they need a lot of time investment for
creating a favorable brand image. So by this I want to conclude that insurancesector is one of the booming sectors, but they can sustain only when they
provide product relevant to customer benefit and which can fulfill customer
need.
QUESTIONNAIRE
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Q.1 What is your Age?
Ans: (a) 18-23 (b) 24-29 (c) 30-35 (d) 35 and above
Q. 2 What is your marital status?
Ans: (a) Married (b) Unmarried
Q.3 What is the Educational Qualification?
Ans: (a) Under graduate (b) Graduate (c) Post graduate.
Q.4 From how many No. of years you are in Sambalpur?
Ans: (a) Less than 5 years (b) More than 5 years
Q.5 What is your Occupation?
Ans (a) Business (b) Profession (c) service
Q.6 What type of work do you prefer- job with timely salary or lucrative
commissions if you crack a deal?
Ans: (a) Timely salary (b) Lucrative commissions
Q.7 What is your annual household income?
Ans (a) Less than 2 lac (b) Between 2 to 5 lac (c) Between 5 to 8 lac
(d) More than 8 lac
Q. 8 what is your perception about insurance sector?
Ans: (a) Hard and lucrative (b) Hard but not rewarding (c) Smooth and rewarding
(d) No idea
Q.9 Do you know about HDFC standard life insurance?
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Ans: (a) Yes (b) No
Q.10 Do you have any insurance policy?
Ans: (a) Yes (b) No
Q.11 Name of Insurance Company?
Ans: (a) LIC (b) ICICI (c) HDFC Standard life (d) Others
Q.12 Do you hold any license of any insurance company?
Ans: (a) Yes (b) No
Q.13 Are you satisfied with company?
Ans: (a) Yes (b) No
Q.14 Do you know about HDFC Standard Life Insurance recruitment policies
related to Financial Consultant
Ans: (a) Yes (b) No
Q.15 Will you be interested to become Financial Consultant?Ans: (a) Yes (b) No
Q.16 If No what is the reason of not joining HDFC STANDARD LIFE?
Ans: (a) No time (b)Lack of interest (c)Satisfied with current job (d)Others
Q.17. Which insurance company would you like to join as advisor?
Ans: (a) LIC (b) HDFCSLIC (c) Others (d) None
ABBREVIATIONSBREVIATIONS
HDFC- Housing development and Finance Corporation
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SLIC- Standard Life Insurance Company
IRDA- Insurance Regulatory and Development Authority
CORPORATE OFFICE:
HDFC Standard Life Insurance Company Limited13 th Floor, Lodha Excelus,
Apollo Mills Compound,
N.M. Joshi Road,
Mahalaxmi,
Mumbai - 400011
MAHARASHTRA
BRANCH OFFICE:
HDFC Standard Life Insurance Company Limited
Kadambari Complex,
Nayapada, Golebazar,
Sambalpur - 768001
ODISHA
WORKING TIME:
Monday to Friday: 9:30 a.m to 5:30 p.m
Saturday: 9:30 a.m to 1:00 p.m
BIBLIOGRAPHY
Websites:
http://www.hdfclife.com/
http://www.irda.gov.in/
http://www.standardlife.com/
http://www.india-insurance.com/hdfc-standard-life/
http://www.hdfclife.com/http://www.india-insurance.com/hdfc-standard-life/http://www.hdfclife.com/http://www.india-insurance.com/hdfc-standard-life/