STUDENT DECLARATION

I hereby declare that I have undergone training at MAX NEW YORK LIFE INSURANCE For a period of 5 weeks from . This report is being submitted in partial fulfillment of BACHELOR OF BUSINESS ADMINISTRATION under KUMAOUN UNIVERSITY(K.U). This project has not been presented in any seminar or submitted elsewhere for the award of any degree or diploma.

ACKNOWLEDGEMENT

Thanks to almighty, with the blessing of which this cherished dream of mine led to completion of this project with the desired out-com. This project study was a noble experience for me and without the guidance and cooperation of concerned people and without concentration, dedication and hard work it was not possible for me to complete this project. My deepest gratitude to Mr. AUSTOSH SINGH, my faculty guide for their help, general hospitality, inspiration and all valuable guidance in various stages of

development of this project. I have great pleasure in acknowledge the help receive from all those who favored me with it in giving the final shape to my project.

PREFACE
The competition in the insurance sector is highly volatile in nature. Over the decade only government undertaking company was operating in India but with the opening up of the economy several new players like private sector & multinational insurance entered in Indian horizon. In the giving project I made a comparative analysis of mutual fund & life insurance among MNC. Comparing their features & services one hand & also done a research on the interest of investor regarding mutual fund & life insurance in MAX NEW YORK LIFE INSURANCE LIMITED. Research design method used was descriptive research. The sampling method used was simple random sampling. I have taken a size of 60 respondents. I first formed a structure questionnaire to collect data & the questionnaire is filled by the person, who have one charted insurance company & or more with any other MNC insurance company. On the basis of filled questionnaire, coding sheet is formulated &the conclusions are drawn with the help of graphs, pie charts.

CONTENTS OF TABLE Chapter -1

1.1 Introduction 1.2 Objective of Study 1.3 Period of Study 1.4 Methodology Sample Technique, Research Design, Data Collection 1.5 Scope of Study 1.6 Limitation of Study

Chapter -2
2.1 Industry Profile 2.2 Company Profile

Chapter -3
3.1 Data analysis and Interpretation

Chapter-4
4.1 Findings 4.2 Suggestions and Recommendations 4.3 Conclusion

Bibliography Annexure

Chapter -1
1.1 Introduction 1.2 Objective of Study 1.3 Period of Study 1.4 Methodology Sample Technique, Research Design, Data Collection 1.5 Scope of Study 1.6 Limitation of Study

1.1

INTRODUCTION

Identifying different profiles of the people and giving them a Business Opportunity to join MAX NEW YORK LIFE INSURANCE as an advisor. A market survey was done on life insurance companies. Different questions regarding the companies training programs for advisor, top 5 usp's, training centers etc were asked. The areas covered up in this survey was haldwani. The report contains details of different life insurance companies, which are in healthy competition with MAX NEWYORK life insurance. Insurance industry is growing rapidly day-by-day. India itself has a population of 1.12billion out of which roughly 33.2% people are insured. This clearly shows that most of the people are not insured just because they dont know much about insurance. Most people have some common queries about life insurance: What is Life Insurance? A policy that will pay a specified sum to beneficiaries upon the death of the insured. An agreement that guarantees the payment of a stated amount of monetary benefits upon death of the insured. Why Insurance? Insurance is the protection of life and assets against unforeseen circumstances. Whether it is a general accident policy, a med claim policy or a pension policy, an insurance policy helps you to scope with uncertainty and insecurity.

Who can buy a life insurance policy? Any person above 18 years of age, who is eligible to enter into a valid contract, can go for an insurance policy. Subject to certain conditions, a policy can be taken on the life of a spouse or children.

How is a life insurance policy useful? Planning for the financial consequences of a premature death is an essential part of every financial plan. Generally, the consequences are simply too large to ignore and cannot be totally covered with your own resources. Life insurance is nothing but a contract with an insurance company under which the insured (purchaser) pays a premium in exchange for coverage of specified losses. Life insurance protects your family against the risk of the premature death of you (or your spouse). Life insurance planning should consider your family's short-term needs (for example, medical expenses) and long-term needs (for example, replacing your income).

In the course of our life we are accosted by risk-that of failing health, financial losses, accidents and so on. Insurance is a means by which life's uncertainties are addressed in financial terms. It offers a monetary compensation against those losses. Insurance is considered more as a hedging mechanism rather than a true investment avenue. Life insurance, in particular is essentially acknowledged as a mechanism that eliminates risk-substituting certainty for uncertainty primarily by transferring risk from the insured to the insurer.

1.2

Objectives of study

Frankly speaking, any job or the task, have the specific objective i.e. what is need and what is the requirement of the particular work. In the same way my objective is also to learn something from the summer internship program. It means that the training program in any reputed company give the market knowledge of its subject matter of study.

The right choice of the company in which a student has to do the training is also the part of the learning and what he/she wants to learn in the summer training.

In the short span since the banking sector was opened up, many banks have literally dictated the markets evolution. Catering to all age and income segments, the bank stated out with the traditional financing policies that were easy to understand, the idea was to entice customers used to banking style of functioning.

1.3

Period of the study

The period of the study consists of two months from 22 July to 31 August 2011.

1.4

Research methodology

The research methodology followed during the project is as follows Sample Size Data Collection = = 65 Used Primary Data through Asking Questionnaire Research Design Sampling Technique Types of Questions = = = Descriptive Research Design Non Probability Sampling is Used. Multiple-choice and dichotomous questions are Used in the questionnaire.

1.5

Scope Of The Study

The scope of the project is not wide enough as it is totally based on secondary data , still it can be used :

1. As a medium of collecting information about the concept like Market mechanism. 2. It can be used as a guideline and can be helpful in preparation of some other project. 3. It presents data and information which is reliable and can be used for further study

1.5 Limitations Of The Study

1. It become bit difficult to complete the project as group members are new and Having less experience 2. Many times improper internet facilities created problem. 3. There was less coordination between group members in completion of the project.

Chapter -2
2.1 Industry Profile 2.2 Company Profile

2.1

INSURANCE INDUSTRY PROFILE

Insurance Industry over the world section covers the introductory part of the insurance business in the countries, insurance types used in the country, the insurance process in the country, insurance business as the percentage of the total GDP and lastly the list of the insurance companies operating in the country. Besides the insurance industry in the countries of the world, the special section on the insurance in the states of the United States gives a clear-cut knowledge upon the states. Introduction to the insurance industry, insurance business in the state, and different types of insurances, insurance premiums, insurance process and the major players in the insurance business in the states are being covered in this section

2.1.1 INDIAN INSURANCE INDUSTRY:

The insurance sector in India has a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. 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.

1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5crores from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companys viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
The end of the year 2000 marks a significant change and growth of 'India Insurance'

industry scenario. Monopoly of Public Sector Insurance company marks an end and

Private companies makes inroad. Foreign companies, both Life and General flocked, collaborated and helped astronomical growth of 'Insurance Industry in India'. 'India Insurance' growth was long overdue. Within 1st 12 months of liberation of 'Indian Insurance Industry' 10 licenses for selling life insurance products and 6 licenses for selling non-life products were issued to private companies. The Public sector giant LIC started losing its market share at the cost of stupendous growth of private players. Now 'India Insurance' industry has more than a dozen private life insurance players and 9 private general insurance companies. Aggressive and penetrative marketing strategy coupled with wide product bandwidth was an instant success among the ignorant masses. Most of the private companies registered more than 100% growth till then and are still continuing with such monstrous growth figures. Although, 'Insurance in India' is not regarded as a basic need but it is getting popular among semi urban to rural masses. Top rank private companies like MAX NewYork life, ICICI Prudential Life, Tata AIG, and Bajaj Allianz etc are aggressively researching and innovating products for huge untapped rural 'India Insurance' market. Collaboration with micro finance companies, post offices, rural banks and village management authorities for selling insurance is doing wonders. Life insurance products cover risk for the insurer against eventualities like death or disability. A non-life insurance product covers risks against natural calamities, burglary, etc. They are not as popular as life products in the ' Insurance India's' portfolio. Until very recently it had only corporate buyers, but with natural disasters like, earth quakes, tsunamis, storms and floods becoming more frequent and damaging there has been a sudden spurt in sales of general insurance amongst individuals. Consumerism of life style goods and modern amenities has also contributed to its growth. With more awareness and wide bandwidth of insurance product portfolio the growth for 'India Insurance' story will only get more competitive and more affordable to all sections of Indian society.

2.2

COMPANY PROFILE

Max New York Life Insurance

Max New York Life Insurance

Type Industry Founded Founder(s) Headquarters Number of locations Area served

Private Financial Services 2000 Analjit Singh New Delhi, India 674 offices (2010), 139 offices dedicated to rural business (2010) India Analjit Singh Executive Chairman, Rajesh Sud
Chief executive officer and Managing director

Key people

Individual Insurance (25 products and 8 riders/options) and Group Insurance (6 Products products and 7 riders/option s) Employees 11,666 (2010), 69,778 Agent Advisors (2010)

Website

http://www.maxnewyorklife.com

Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited. One of India's leading multi-business corporations and New York Life International, the international arm of New York Life, a Fortune 100 company .The company has positioned itself on the
quality platform.

Products

Max New York Life - Life Plan Max New York Life Insurance offers a suite of flexible products. It now has 25 individual life and health insurance products and 8 riders enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 7 riders in group insurance business.

Distribution

Max New York Life - Office Networks Max New York Life Insurance has multi-channel distribution spread across the country. Agency distribution is the primary channel complemented by partnership distribution, bancassurance, alliance marketing and dedicated distribution for emerging markets. The Company places a lot of emphasis on its selection process for agent advisors, which comprises four stages - screening, psychometric test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal control on quality of training. The company currently has more than 71,000 agent advisors at 676 offices across 389 cities. The company also has 50 tie-ups with banks, 30 partnership distribution relationships Max New York Life has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. The company has 139 offices dedicated to rural areas.

Training

Max New York Life - Training Programme Max New York Life Insurance invests significantly in its training programme and each agent is trained for around 100 hours as opposed to the mandatory 50 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 400 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. The company currently has around 10500 employees. 193 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2009. MDRT is an exclusive congregation of the worlds top selling

insurance agents and is internationally recognized as the standard of excellence in the life insurance business.

Company Vision
To be the most admired life insurance company in India.

Awards and Recognitions

Max New York Life - Awards and Recognitions The company has received recognition by winning awards such as: 1. Awarded the Asia Insurance Industry Innovation of the Year Award 2009 2. Among the top 25 companies to work for in India, according to Businessworld 2003 Great Workplaces of India 3. Ranked 7th in BT-Mercer-TNS Best Companies to Work For Survey 2008 4. Among the top five most respected insurance companies in India as per Businessworld 2004 & 2006 survey 5. Won Indo-American Corporate Excellence Award for Best Indo-US company in Financial Services Category in 2006 6. Received Best Six Sigma Project award at Sakal Six Sigma Excellence Awards 2006 7. Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by Asia Insurance Review 8. Golden Peacock Award for Excellence in Product Innovation for Max Vijay 9. CIO 100 Technology Award 2008

10. CII Exim Bank Commendation Certificate for Strong Commitment to Excel for the year 2008 11. Awarded the Gallup Great Work Place Award 2009. Although for the last 50 years LIC has been the only company to cater the consumer needs in the insurance sector but in the past 5 years 21 insurance companies have emerged in this scenario Max New York Life Birla Sun Life Bajaj Allianz ICICI Prudential Life Met Life ING Vyasa Om Kotak Mahindra Tata AIG Aviva HDFC Standard Life SBI Life Iffko-tokio Reliance life Bharti Pnb life New players need to recognize the limitations of their rival and decide upon the right mix of distribution channels in their business.

PRODUCTS POLICIES
MAX NEW YORK LIFE INSURANCE CO. has a wide array of insurance plans that have been designed with the philosophy that different individuals are bound to have differing insurance needs. The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend on the age and life stage of the individual apart from a host of other factors.

Life Insurance Plans:

Under Life insurance plans, MAX NEW YORK LIFE INSURANCE CO. offers plans under the following major Categories: Education Insurance Plans Wealth Creation Plans Premium Guarantee plans Protection Plans

Retirement Solutions:

The primary objective of a retirement plan is to help you provide for your financial needs in your post retirement years.

ForeverLife LifeTime Super Pension LifeLink Super Pension

Health Product Suite:

Under Health Product Suite, MAX NEW YORK LIFE INSURANCE CO.offers plans under the following major categories: HealthAssure HealthAssure Plus Hospital Care Cancer Care Cancer Care Plus Diabetes Care Diabetes Care Plus

INTRODUCTION TO CHANNEL DEVELOPMENT AND RECRUITMENT

Who is an insurance advisor? An agent is the representative of an insurance company who sells different policies or product to its clients. Another term used for insurance agents is advisors; MAX NEW YORK LIFE INSURANCE CO. Ltd introduced this term. Today in life insurance companies advisors are known to be the backbone of the whole system. Advisors/agents do not work on monthly payroll basis; they receive a certain commission on the policies they sell to the clients. The eligibility required to become an advisor/agent is that he/she should be 12th pass to operate in urban area and 10th pass for rural areas. Before a person becomes an advisor/agent he/she has to undergo 100hrs training according to IRDA norms, which is compulsory. A person who wants to be an advisor has first to fill a recruitment form and has to pay a fee of Rs. 500/- in favor of MAX NEW YORK LIFE INSURANCE CO . Then, he has to pass a test, which is compiled by IRDA. After he gets through that test he is awarded a license and then his training starts in the company regarding the insurance business. MAX NEW YORK LIFE INSURANCE CO. provides this training in 3 modes as per the suitability of the advisors viz: -

1) Classroom training: - it is a Full Time Training with a period of 17 days regular between
9 am to 5pm at the training centers allotted to the advisor. 2) Online training: - it is another mode of training where the company provides CDS and books to the advisor for his own study.

3) Classroom training: - it is a Part Time Training with a period of 36 days.

Advisor Role. To provide ongoing financial advice for his/her clients: Identify future clients Making appointments Conduct financial review meetings with prospects/clients. Close sales Get referrals Provide service to clients. Follows internal sales and reporting system.

Working Environment of an advisor/agent. To be a part of world-class sales team. Work from your own office or residence. Work full time or part time (an advisor can work part time by undergoing only 50hrs of training and 100hrs training is for full time advisors.) Earn Commission, Bonus & Incentives. No upper limits on earnings. Flexible career.

Opportunities for an Advisor/agent. No startup capital required. Flexible working environment. Be your own boss. Unlimited earning potential. To be a part of a world-class team.

Commission Structure. Different products will have different commission structures. For example: Single Premium products will have a commission of 2%.

Renewal Commission is paid at the following rates: 2nd yr: 7.5% 3rd yr: 7.5% 4th yr: 5% 5th yr: 5% onwards

Payments & benefits-commission Structure for advisors/agents.

Number of Policies Sold Average Premium Rs. Total Premium Earned Rs. Commission @ 25% Bonus @ 40% of Commission Earnings from New Business Rs. Commission on Renewal Premium@7.5% For year 2, 3, and 5% after that Earnings from renewal business Rs. Total Earnings Rs.

Year 1 50 10000 500000 125000 50000 175000

Year 2 75 10000 750000 187500 75000 262500 37500

Year 3 100 10000 1000000 250000 100000 350000 56250 37500 93750 443750

175000

37500 300000

Most preferred profiles to recruit as Advisors/agents.

Housewives Income Tax Consultant Chartered Accountant Sales Personnels working in Automobile Dealership Credit Card Co. Telecom Mutual Fund DSAs M Rs Doctors Teachers VRS Holders Advisors of other insurance companies Post Office Agents Business Men Accountants OI in an organization

How does an advisor/agent work.

Firstly an advisor/agent has to make a list of 100 people that he/she knows. Then the Advisor/agent makes a call to these clients and tries to fix an appointment. When an appointment is fixed the advisor/agent meets the customer & tries to sell the product.

After that the advisor/agent asks for the reference of maximum number of people from the client.

The reference is asked in context to make future calls and the whole procedure is repeated again.

Chapter -3
3.1 Data analysis and Interpretation

INSURANCE ADVISOR SURVEY GENDER OF THE RESPONDENT

Table 1 Frequency Valid Female Male Total 15 50 65 Percent 23.1 76.9 100.0 Valid Percent 23.1 76.9 100.0 Cumulative Percent 23.1 100.0

g n e o th re p n e t edr f e s odn

fe a m le m le a

2 .1 3

7 .9 6

INFERENCE
As we can see from the figure itself that there is a sex ratio difference between males and females, which is 3:1 in the insurance industry. It is mainly because advisors job is demanding in terms of rigorous fieldwork and hence women finds difficult to cope up with it.

MARITAL STATUS OF THE RESPONDENT

Table 2

Frequency Valid Married Unmarried Total 49 16 65

Percent 75.4 24.6 100.0

Valid Percent 75.4 24.6 100.0

Cumulative Percent 75.4 100.0

marital status of the respondent

married unmarried

24.6

75.4

INFERENCE More married people work, as advisors and company prefer to employ them in comparison to unmarried ones because being family people they tend to take their work more seriously. Because generally a laid back attitude has been observed in the unmarried people.

EDUCATIONAL QUALIFICATION OF THE RESPONDENT

Table 3

Frequency Valid Inter Graduate Professional Total 5 40 20 65

Percent 7.7 61.5 30.8 100.0

Valid Percent 7.7 61.5 30.8 100.0

Cumulative Percent 7.7 69.2 100.0

educational qualification of the respondent

inter graduate professional

7.7

30.8

61.5

INFERENCE
Among insurance advisors, it has been observed that 61.5% of them are graduates in comparison to professionals like CAs or MBAs who are just 30.8%. While intermediate pass people just make 7.7% of the whole lot.

MODE OF TRAINING BY IRDA UNDERGONE BY RESPONDENT

Table 4 Frequency Valid Classroom Online None Total 42 12 11 65 Percent 64.6 18.5 16.9 100.0 Valid Percent 64.6 18.5 16.9 100.0 Cumulative Percent 64.6 83.1 100.0

mode of training by IRDA undergone by respondent

classroom online none

16.9

18.5 64.6

INFERENCE

Insurance companies provide training in three modes classroom training, online training and part time training. We find out that 64.6% of the respondents had preferred to take classroom training as according to them it gives a better hang of the insurance business operations since you are one on one with the training manager and hence you can ask any queries then and there only.

EXPERIENCE IN THE FIELD OF THE RESPONDENT

Table 5 Frequency Valid 0 to 6 months 6 to 12 months More than 1 year Total 2 7 56 65 Percent 3.1 10.8 86.2 100.0 Valid Percent 3.1 10.8 86.2 100.0 Cumulative Percent 3.1 13.8 100.0

experience in the field of the respon dent

100

80

Y Axis

60

40

20

0 0 to 6 m onths 6 to 1 m 2 onths m than 1 year ore

INFERENCE
86.2% of the total respondents were found to be well established in this field since they have been working for over one year and majority for the last 10 15 yrs.

CUSTOMER SIZE PER MONTH OF THE RESPONDENT

Table 6 Frequency Valid 1 to 5 5 to 10 More than 10 Total 11 6 48 65 Percent 16.9 9.2 73.8 100.0 Valid Percent 16.9 9.2 73.8 100.0 Cumulative Percent 16.9 26.2 100.0

custo er size per m nth of th respon m o e den t

50

40

Frequency

30

20

10

0 1 to 5 5 to 10 m than 10 ore

INFERENCE
On an average an insurance advisor deals with more than 100 customers in a month and out of them he converts 80% of the calls i.e. he sells policies to them. 73.8% of the respondents had a customer base of more than 10 which was the minimum figured option included in our

questionnaire. And these were the advisors who had been in this field for the last 5 to 8 years or more than that.

CONTACTING THE CUSTOMER BY THE RESPONDENT

Table 7 Frequency Valid Personal meeting & telephone Telephone & references All Total 11 10 46 65 Percent 13.8 15.4 70.8 100.0 Valid Percent 13.8 15.4 70.8 100.0 Cumulative Percent 13.8 29.2 100.0

contacting the custom by the respondent er

personal m eeting & telephone telephone & references all

9

10

46

INFERENCE

When respondents were asked that what are the ways they use for contacting the clientele base they are having then 70.8% of them named telephone calls, personal meetings and references as the major means of keeping in touch with their customers while only 15.4% named telephone calls and references as their sources.

FREQUENCY OF VISITING THE CUSTOMER BY THE RESPONDENT

Table 8

Frequency Valid Once a month Twice a month More than that Total 10 49 6 65

Percent 15.4 75.4 9.2 100.0

Valid Percent 15.4 75.4 9.2 100.0

Cumulative Percent 15.4 90.8 100.0

fr q e c o v itin th c s m r b th r s o d n e u n y f is g e u to e y e e p n e t

5 0

4 0

Frequency

3 0

2 0

1 0

0 o c am n ne o th tw eam n ic o th m reth nth t o a a

INFERENCE
75.4% of the advisors were find to visit their customers almost twice a month for various purposes like updating the customers for new policies and products company is introducing etc. and only 15.4% visited their clients once a month.

ANNNUAL PRODUCTIVITY OF THE RESPONDENT

Table 9

Frequency

Percent

Valid

Cumulative

Percent Valid Below Rs. 50,000 Rs. 50,000 -1,00,000 Above Rs. 1,00,000 Total 4 15 46 65 6.2 23.1 70.8 100.0 6.2 23.1 70.8 100.0

Percent 6.2 29.2 100.0

a n u l po u t it o t er s o d n n n a r d civ y f h e p n e t

5 0

Frequency

4 0

3 0

2 0

1 0

0 b lo R. 5 , 0 e w s 00 0 R. 5 ,0 0- 10 ,0 0 s 0 0 - ,0 0 a o eR. 10 , 0 b v s , 00 0

INFERENCE
The commission earned by the advisors on the policy they sell to their customers is called the premium or the productivity. 70.8% of them had an annual productivity of more than 1 lac due to the large amount of business they gained via insurance only while 23.1% were earning between 50,000 to 1,00,000 because either they were new to this business or they were not able to devote much time to this field.

SOURCE OF INFORMATION OF THE CUSTOMER

Table 10

Frequency Valid Newspapers Television and radio Relatives/friends Other sources Total 15 14 24 12 65

Percent 23.1 21.5 36.9 18.5 100.0

Valid Percent 23.1 21.5 36.9 18.5 100.0

Cumulative Percent 23.1 44.6 81.5 100.0

s uc o inomt no t ec so e o r e f f r aio f h u t mr

2 5

2 0

Frequency

1 5

1 0

0 n wp p r e s a es te v io a dr d le is n n a io r la e /fr n s e tiv s ie d o e s uc s th r o r e

INFERENCE
As per the point of view of the 36.9%advisors, the customers usually get to know about the policies and products of any insurance company via their relatives or friends while 23.1% advisors gave the credit to the advertising in the newspapers as the source of information to the people. TV and Radio had 21.5% of the advisors favoring them.

PURPOSE OF GETTING INSURANCE

Table 11

Frequency Valid Protection Savings Child future Retirement 9 10 9 13

Percent 13.8 15.4 13.8 20.0

Valid Percent 13.8 15.4 13.8 20.0

Cumulative Percent 13.8 29.2 43.1 63.1

Investment Tax saving Total

11 13 65

16.9 20.0 100.0

16.9 20.0 100.0

80.0 100.0

p rp s o g ttin a in u n e u o e f e g n s ra c

p te tio ro c n sa in s v g c ild fu re h tu re m n tire e t in e e t v stm n

1 .8 3 5 2 0

ta s v g x a in

1 .3 5 8

1 .9 6 2

1 .8 3 5

2 0

INFERENCE

20% of the advisors felt that retirement and tax saving are the main purpose of the people for getting an insurance done. While 13.8% felt that child future and protection were the causes for the people to get an insurance done.16.9% favored investment as the reason and 15.4% voted for savings as one of the cause for getting insurance.

NEAREST COMPETITOR OF THE COMPANY WITH WHICH RESPONDENT IS ASSOCIATED

Table 12 Valid Percent 70.8 20.0 9.2 100.0 Cumulative Percent 70.8 90.8 100.0

Frequency Valid LIC Max Newyork OTHERS Total 46 13 6 65

Percent 70.8 20.0 9.2 100.0

nearest competitor of the company with which respondent is associated

80

Percent
60 40 20 0 LIC MAX NEWYORK OTHERS

INFERENCE

LIC is one generic brand, which no one can beat, and hence the biggest competitor of any insurance company.70.8% of the respondents had this viewpoint while only 20% felt that MAX NEW YORK LIFE INSURANCE CO is the next big emerging competitor after LIC of course.

ANY OTHER AGENT IN THE FAMILY OF RESPONDENT

Table 13

Frequency Valid Yes No Total 13 52 65

Percent 20.0 80.0 100.0

Valid Percent 20.0 80.0 100.0

Cumulative Percent 20.0 100.0

a y o er a en in th fam o resp n en n th g t e ily f od t

yes no

20

80

INFERENCE
Only 20% of the total advisors surveyed had some other family member also as an agent along with them and 80% of the advisors were the only one in their family who were into the insurance business.

GENERAL MASS SURVEY

GENDER OF THE RESPONDENT Table 1

Frequency Valid Male Female Total 42 25 67

Percent 62.7 37.3 100.0

Valid Percent 62.7 37.3 100.0

Cumulative Percent 62.7 100.0

G n e O T eR s o d n edr f h epnet

m le a fe a m le

3 .3 7

6 .7 2

INFERENCE
As the figures speak for themselves, total respondents whom we surveyed 62.7% were males while rest were females (37.3%).

MARITAL STATUS OF THE RESPONDENT

Table 2

Frequency Valid Married Unmarried Total 32 35 67

Percent 47.8 52.2 100.0

Valid Percent 47.8 52.2 100.0

Cumulative Percent 47.8 100.0

Marital Status Of The Respondent

married unmarried

47.76 52.24

INFERENCE

As the figure show that 52.24% were married while 47.76% were unmarried. In a way, it helped us because while prospecting the people for making them the advisors we prefer those who are married.

EDUCATIONAL QUALIFICATION OF THE RESPONDENT

Table 3

Frequency Valid Any Professional Degree Post Graduate Graduate Undergraduate/ XII Pass Total 7 42 9 9 67

Percent 10.4 62.7 13.4 13.4 100.0

Valid Percent 10.4 62.7 13.4 13.4 100.0

Cumulative Percent 10.4 73.1 86.6 100.0

E u a n l Q a a nO T e R s o d n d c tio a u lific tio f h e p n e t

a yp o s n l n e fe sio a dg e e re p st g d a o ra u te g da ra u te
1 .4 3 1 .4 0

u d rg d a / X n e ra u te II p ss a

1 .4 3

6 .7 2

INFERENCE

62.7% of the respondents were found to be post graduates and next came under graduates and graduates with 13.4%. Only 10.4% were found to be professionals like CAs or MBAs.

OCCUPATIONAL BACKGROUND OF THE RESPONDENT

Table 4

Frequency Valid Govt/ State Services Private Job Professional Others Total 21 33 8 5 67

Percent 31.3 49.3 11.9 7.5 100.0

Valid Percent 31.3 49.3 11.9 7.5 100.0

Cumulative Percent 31.3 80.6 92.5 100.0

O c p to a B c g u dO T e R s o d n c u a n l a k ro n f h e p n e t

G v S te o t/ ta S rvice e s P te J b riva o P fe sio a ro s n l

7 .5

o e th rs

1 .9 1 3 .3 1

4 .3 9

INFERENCE
Most of the respondents belonged to the private sector like they were working in some bank or in any private enterprise so they were easily convertible into agents because they can take agencies on their name while government people cant do that. Only 31.3% belonged to the government sector.

ANNUAL HOUSEHOLD INCOME

Table 5

Frequency Valid 5 to 8 lacs 3 to 5 lacs 1 to 3 lacs Total 34 19 14 67

Percent 50.7 28.4 20.9 100.0

Valid Percent 50.7 28.4 20.9 100.0

Cumulative Percent 50.7 79.1 100.0

Annual Household Incom e

5 to 8 lacs 3 to 5 lacs 1 to 3 lacs

20.9

50.7

28.4

INFERENCE

Almost 50.7% were found to earn between 5 to 8 lacs. Those people who are earning up to one lakh are avoidable profile for tapping the insurance advisors. We were supposed to look for people who fell in an average income group of earnings between3 to 5 lakh. Even people who had income of 8 lakh were to be ignored because it was difficult to entice them into the insurance business.

OPTION CHOSEN BY THE RESPONDENT TO MAKE EXTRA INCOME

Table 6

Frequency Valid MLM MUTUAL FUND AGENT/ INSURANCE AGENT TRADING OF STOCK INVESTMENT IN PROPERTY Total 8

Percent 11.9

Valid Percent 11.9

Cumulative Percent 11.9

23

34.3

34.3

46.3

23 13 67

34.3 19.4 100.0

34.3 19.4 100.0

80.6 100.0

O tio C o e B T eR s o d n T M k E traIn o e p n hsn y h epnet o ae x cm

MM L MT A F N UUL U D A E T GN/ IN U A C S RN E A E T GN
1 .9 1 1 .4 9

T A IN O RD G F SOK T C IN E T E TIN VSMN P OE T R PRY

3 .3 4

3 .3 4

INFERENCE

34.3% of the respondents wanted to earn that extra income by means of the trading of the stock or being an insurance advisor while 19.4% preferred investing in the property.

BEST INSURANCE COMPANY AS RATED BY THE RESPONDENT

Table 7

Frequency Valid LIC MAX NEW YORK OTHER Total 46 15 6 67

Percent 68.7 22.4 9.0 100.0

Valid Percent 68.7 22.4 9.0 100.0

Cumulative Percent 68.7 91.0 100.0

Best Insurance Company As Rated By The Respondent

LIC MAX NEW YORK other

22.4

68.7

INFERENCE

When the respondents were asked to give a name of insurance company, which they found best then one could easily see the impact of the LIC in life of a common man since 68.7% instantly took the name of LIC only. MAX NEW YORK LIFE INSURANCE CO stood second with 22.4% people recalling its brand name.

INTEREST OF THE RESPONDENT IN JOINING MAX NEW YORK LIFE INSURANCE CO.
Table 8

Frequency Valid CERTAINLY PROBABLY DEFINITELY NOT Total 29 26 12 67

Percent 43.3 38.8 17.9 100.0

Valid Percent 43.3 38.8 17.9 100.0

Cumulative Percent 43.3 82.1 100.0

Interest Of The Respondent In Joining MAX NEWYORK

CERTAINLY PROBABLY DEFINITELY NOT

17.9

43.3

38.8

INFERENCE

If given a choice to join MAX NEW YORK LIFE INSURANCE CO. as its advisor, almost 43.3% of the respondents said that they would certainly be interested while only 38.8% said that they would think over it because as per them their decision depended on the money they will be getting from prudential in comparison to other insurance companies.

Interest of The Respondent In Getting High Returns

Table 9

Frequency Valid Yes No Total 58 9 67

Percent 86.6 13.4 100.0

Valid Percent 86.6 13.4 100.0

Cumulative Percent 86.6 100.0

Interest Of The Respondent In Getting High Returns

yes no

13.4

86.6

INFERENCE

86.6% of the total respondents said that they would definitely like to join a business where they will be rewarded with high returns without actually spending a single penny from their pocket. While 13.4% said they are not interested since as per them there is no such business where you dont have to invest any thing.

METHODOLOGY USED TO RECRUIT ADVISOR

The basic aim of the company in providing us with this assignment was to find out the peoples perception of their brand in the market and via this increasing their advisor base by encasing on their brand name. 1) Hence, our sales pitch in recruiting the good profile advisor was based on: Money: For those who are needy, greedy and speedy Excellent back end support, attractive payments and benefits and Extensive training for that edge over competition Reward and Recognition For those who want to be recognized and honored Several programs including foreign trips, seminars etc. Selected club memberships like presidents club, MAX NEW YORK Pru Star Club, MDRT club etc. Achievements rewarded with trophies and certificates as well with Point rewards to give you a flying start. Carrier Prospects For people who want to climb the success ladder fast. Programs like PINNACLE, AGENCY CHAMPION and TIGER TEAM has been devised.

This whole strategy was based on the MASLOW s THEORY OF NEEDS. 2) Then, instead of going personally and meeting these already well-established Advisors, we tried the concept of holding BOP (Business Opportunity Presentation). For this we drafted an invitation, which was a gimmick so as to entice these advisors into coming to our own office, and it was based on the pretext of ONE MILION POLICY CELEBRATIONS, the target that MAX NEW YORK has just achieved. And result was good in the sense that we were able to convert 5 to 10 advisors for our company then and there only. 3) Then, we targeted high profile people like CA s or MBAs or govt. people. For that, we drafted a letter in which we just gave them a hang of what our them (for recruiting them as our advisors) and asked them interested. We got at least 10-15 calls of people who were interested and wanted to become our advisors. Meetings were held with them and they were converted. The BOP letter and then invitation for the BOP i.e. Business Opportunity Presentation has been attached at the end in the annexure. proposal was for to contact us themselves if they are

SWOT ANALYSIS

Strengths:

Vast untapped market

In a country of 1 billion people there is a huge potential market for life insurance products. In India the penetration of the insurance sector in the rural and semi-urban areas is low. There is a market of 900 million for life insurance and 200 million for householders insurance policy. In addition to this the affluent section can be tapped for Overseas Mediclaim and Travel Insurance policies.

Huge pool of skilled professionals

Whether it is banks or insurance companies there is no dearth of skilled professionals in India to carry out a successful banc assurance venture. Weakness:

Lack of networking among bank branches

In spite of growing emphasis on total branch mechanization (TBM) and full computerization of bank branches, the rural and semi-urban banks have still to see information technology as an enabler. Complete integration of branch network involves huge investments for creating IT and communication infrastructure.

Low savings rate

Though we have a huge market for insurance policies, the middle class who constitutes the bulk of this market is today burdened under inflationary pressures. The secret lies in inculcating savings habit but considering the amount of surplus funds available with the middle class for investing in future security, the ability to save is very nominal

Opportunities:

Data mining

Banks have a huge customer database which has to be properly leveraged. Target segments should be identified and tapped.

Wide distribution networks of banks provides a great opportunity to sell insurance products through banks Another potential area of growth of banc assurance is exploiting the corporate customers and tying up for insurance of the employees of corporate clients

Threats:

Human Resource Challenges

Success in bancassurance venture requires a change in mindset. Though we have a large talent pool, the inability to sell complex insurance products on the part of bank professionals and their reluctance to learn can be severe setback. There has to be a change in the thinking, approach and work culture.

Non-response from the target groups can also pose a challenge as it happened in the USA in 1980s

FUTURE GROWTH PROSPECTS OF COMPANY:

IN the total market share, LIC has reduced its share from 91% to 70%. This means that a private insurance player has got more margins in their hand which has increased from 9% to 30% in last 2years only. In the private market share, MAX NEW YORK LIFE INSURANCE CO leads with 39% of the market share in its hand followed by Bajaj Allianz with 18% shares and then comes Birla Sun Life with 15% market shares. MAX NEW YORK LIFE INSURANCE CO . has been maintaining its NO 1 position since last 5 years because of its prolific product range and commanding brand equity. It has a highest capital base of Rs. 925 crores and a team of more than 56,300 well-trained advisors. It enjoys a brand recall rate of 92% and gives credit of its success to the 5 core values Integrity Customer Boundary Less Ownership Passion

Private Players 30%

Total Market Share

LIC Private Players LIC 70%

MARKET SHARE IN PRIVATE SECTOR

COMPETITIVE ANALYSIS WITH HDFC-STANDARD LIFE:

HDFC Standard Life Insurance Company is a joint venture between India's largest housing finance provider, HDFC and Europe's largest mutual life assurance company The Standard Life Assurance Company (U. K). Standard Life, UK, founded in 1825, has been at the forefront of the UK insurance industry for 175 years by combining sound financial judgment with integrity and reliability. It is the Largest Mutual Life company in Europe and has total assets of Rs. 5,50,000 crore. Training activities for agents/advisors. As per IRDA guidelines, 100hrs training is compulsory. Both online & classroom training are available. Training is compulsory with both part-time & full time Options. A clear exam is conducted by IRDA, the minimum qualification required is12th pass for urban areas 10th pass for rural areas.

Commission Structure.

Depends on the product, like on savings 20-40% Ist year premium. On investment 2% On pension 7.5%

Modes & ways through which the company recruits agents.

Direct contacts. Newspaper adds. Consultants. Member of the company can introduce a new member.

Current agent force 500-600 in NOIDA.

Top 5 USPs (Unique Selling Proposition) Of HDFC Std.Life

Best insurer according to Outlook. Well supported by foreign Ist private sector life insurance Company to be granted a license. Declared bonus every year from the day of incorporation (only company.) Provides fast service to the customers in terms of claim

Chapter-4
4.1 Findings 4.2 Suggestions and Recommendations 4.3 Conclusion

4.2

RECOMMENDATIONS AND SUGGESTIONS

During the exposure of 2 months I had in the insurance industry via MAX NEW YORK LIFE INSURANCE CO, it helped me to develop the basic understanding of how this industry works and the work experience & knowledge gained has also helped me to give the recommendations as stated below:

An insurance policy is a product, which needs a lot of convincing before it can be sold because what I analyzed in this internship that there are very few people who have a basic knowledge about life insurance especially the lower middle class society. So, it is essential for the advisor to know what the customer actually needs and then letting the customer know what benefits he will get out of it.

The limitation here is how to win the trust of people when so many companies are

offering the same product range. Here, MAX NEW YORK LIFE INSURANCE CO. needs to encash its brand name because after the survey I conducted what I concluded is that after LIC if people know any other insurance company is then it is ICICI Prudential.

During the calls where I went along with the Unit manager, I observed that people in general have the perception that insurance is all about getting discount in tax. People should be made realize that it is a great way of saving for the future too.

Besides doing market research, my other job was also to increase the advisor base of the

company. And company preferred the profiles of the already established insurance advisors of the other company especially the LIC ones. What I suggest is that before approaching these prominent agents we need to do a SWOT analysis of the co. they are into. Like LIC Agents usually complain of LOW returns and hence MAX NEW YORK LIFE INSURANCE CO. can tap them on this loophole of LIC.

 Instead of approaching these good profile agents personally, the company can hold

Seminars Or Club Meetings because every one comes for free lunches. Once they come, they can be given Business Opportunity presentations about the incentives, commission structure etc MAX NEW YORK LIFE INSURANCE CO.is offering to its advisors.

Since the commission structure has been fixed by the IRDA only so no insurance

company can give more commission on products but every company has a different mode of distributing commission, since MAX NEW YORK LIFE INSURANCE CO. has all kind of products and policies with it (including the products which LIC have and even those which LIC do not have) thus every agent can earn as much (NO UPPER LIMIT ON EARNINGS) as he wants because he has more choice to offer to the customer. This can be one of the sales pitch for the MAX NEW YORK LIFE INSURANCE CO.

4.3

CONCLUSION

The basic aim of the company in providing us with this assignment was to find out the peoples perception of their brand in the market and via this increasing their advisor base by enchasing on their brand name. I learned how to recruit insurance advisor and convinced them for job profile. When I was doing this project I met several people & collected their responses, some of them give positive response, some gave negative response &some cant say any thing, they dont believe in private sector. I also personally met 9 to 10 person in a day. I also do Tele-calling & appointment. It is very helpful in the collection of the customer databases.

Under this project: No. of customer met; more than 100 No. of customer called (phone); 50 No. of forms filled; more than 60 No. of customer converted; 40

MAX NEW YORK LIFE INSURANCE CO. is the number one private life insurance company in India with a market share of 42.2%. Birla sun life stands second in private life insurance companies with a market share of 18.5%. Looking in private sector MAX NEW YORK LIFE INSURANCE CO. has been the dominant player because the amount of gap between the market shares is huge. But if we analyze in all sectors of life insurance then LIC has been the most dominant player since 1956. The impact of LIC has been so much in both rural and urban areas that people use the term LIC instead of life insurance.

 MAX NEW YORK LIFE INSURANCE CO .faces a big challenge in front of them to

stay in the race with Life insurance Corporation (LIC) because with the entrance of other companies like ICICI Prudential , HDFC Standard Life & Birla Sun Life the competition has become tougher.

But insurance is also growing day by day, India has a population of 1.2 billion and only

33.3% population is insured. This means insurance is an upcoming industry but MAX NEW YORK LIFE INSURANCE CO. has to work a lot on their strategies to overcome LIC.

BIBLIOGRAPHY

Monthly Fact Sheet MAY 2005 Mutual fund Review MAY 2005 Study Material for AMFI exam Investment update report of other AMCS Various Business Newspaper Magazines Websites WWW. AMFINDIA. COM
WWW.MAXNEWYORK.COM WWW.INVESTMSRTINDIA.COM WWW.PERSONALFN.COM WWW.ECONOMICTIMES.COM

 WWW.STOCKINDIA.COM

ANNEXURE

QUESTIONNAIRE

Dear Sir/Madam, I am a student of-------------------------, conducting a marketing survey on .. I request you to fill this questionnaire & I assure that this data will be used only for study purpose & it will be kept confidential.

1.

Name

_________________________________ _________________________________ _________________________________ _________________________________

2. Address

3.

Age

a. Less than 25 b. 25 35

c. 35-45 d. 45 and above

4. Qualification

a. Graduate b. Postgraduate

c. Diploma d. Other discipline

5. Occupation
a. Business b. Professional c. Job holder d. Other

6. What is your average annual income?

a. b. c. d. Up to 1 lakh 1 lakh to 3 lakhs 3 lakhs to 5 lakhs 5 lakhs and more

7. Your family size a. Below 5 members b. 5 10 members c. Above 10 members

8.

According to you life insurance is,

e. f. g. h. i. A tax saving plan A saving scheme with good return A financial security for the family Risk coverage All the above

9. Have you taken any life insurance product of MAX NEW YORK LIFE INSURANCE CO. ?

YES

NO

If yes

Which are in these?

j.

k. l. m. n. o.

Unit gain plan Invest gain plan Whole life plan Children plan Pension plan Others __________________

10. Are you aware of the benefits in your policy? Yes No

If yes what are they? Sum assured Additional benefits Maturity date Risk coverage

11. According to you what are the disadvantages in an insurance plan? Lapsation Liquidity Fixed term Unable to decide your premium Unable to decide the sum assured High risk coverage at high premiums Other disadvantages

12. In which of the following would you like to invest? 13. Equity fund Debt fund Balanced fund Cash fund Mutual fund Recurring deposits

Any suggestion for MAX NEW YORK LIFE INSURANCE CO.

______________________________________________________ ______________________________________________________

Thank you for sparing your valuable time