222222222 Life Insurance Marketing

7/27/2019 222222222 Life Insurance Marketing

http://slidepdf.com/reader/full/222222222-life-insurance-marketing 1/53

PROJECT REPORT

On

“LIFE INSURANCE MARKETING”

Submitted to:

Kurukshetra University, Kurukshetra

In partial fulfillment of

Degree of bachelor of Commerce

(Principle & practices of Insurance)

Session 2007-2008

Submitted to: Submitted by:

Under the supervision of Neha jain

Ms.Deepika dang College Roll No.22159

Lect.Dept. of commerce Univ. Roll no………..

S.D College (Lahore) S.D college (Lahore)

Ambala Cantt Ambala Cantt



ACKNOWLEDGEMENT

I have made this project in a very simples & attractive manner. So that if anybody studies it,

he/She does not have any problem in Getting Information regarding “LIFE INSSURANCE

MARKETING and it gives me immense pleasure to complete this project. And I hereby

express my gratitude towards all those person who help me to complete this project in a

perfect way.I want to thank my Lecturer Ms. Deepika Dang and to my entire Friend for their best co-

operation and very friendly behavior.



PREFACE

The main objective of this Training Project is to develop information research skills the

students. This would enable to all the student to gather information in a planned manner Or

systematic manner. Now a day, Insurance affecting all spheres of human activities & bringing about many changes in Industries, Educations etc. So that risk in all spheres is

increase. So that demand of insurance is also increase & it gives a real fillip to business of

life insurance. Because people is more concern about their life then property. But, in present

insurance completely become the structure of business. And provide insurance not only as

risk cover basis but investment basis. So that various new plans were made by the insurance

company in the latest addition of “ Escolife ready rack over “Money plus” plan to serve the

people. This project on “ LIFE INSURANCE MARKETING” is help to understand the

whole concept of marketing, which is used in insurance industry. Because a various good

material & data of present life insurance marketing is being included in this project. So that it

help us to see the present face of life insurance marketing in today scenario. And with the

concept of marketing, includes information about all the distribution channels for a good

marketing in insurance. And the main paints of marketing like customer relationship and

customer satisfaction.



CONTENTS

• Acknowledgment

• Preface

CHAPTER -1

• Introduction:

• Company profile: -

• Life insurance marketing: -

Marketing concept

Role of Agent.

Channel of Distribution.

Other distribution Channel.

Customer relationship with Agent.

CHAPTER –2

• Research methodology: -

Objectives

Samples

Data Collection Method

Limitation



CHAPTER-3

• Analysis & Interpretation Of Data

CHAPTER –4

• Finding

CHAPTER –5

• Conclusion.

Annexure

Bibliography

CHAPTER-1

INTRODUCTION

Life insurance marketing has relation with various concept like Marketing, Salesmanship of

various distribution channels like consultant, Brokers, Corporate agent, Agent, bancassuranceETC. But among the entire distribution channel role of an agent is the most important.

Because it is a primary Channels of distribution. So that role of insurance agents studies out

in details under this project. In Others addition, Various data relating to marketing of life

Insurance by life Insurance Corporation are also study to make this project successful & all

that’s are attached with this project, there is talk about the marketing of life insurance by

getting details about the others concept relating to it. As, customer relationship or needs of

customer satisfaction in life insurance marketing.



HISTORY OF INSURANCE

The story of insurance is probably as old as the story of mankind. The same instinct that

prompts modern businessmen today to secure themselves against loss & disaster existed in

primitive men also. They too sought to avert the evil consequences of fire, Flood & loss of

life & were willing to make some sort of sacrifice in order to achieve security. Though the

concept of insurance is largely a development of the recent past, particularly after the

industrial era-past few centuries-yet it’s beginnings date back almost 6000 years. Life

insurance in it’s modern from came to India from England in the year 1818. Oriental Life

Insurance Company started by Europeans in Calcutta was the first life Insurance company on

Indian Soil. All the insurance companies established during that period were brought up with

the purpose of looking after the needs Of European community & Indian Natives were not

being insured by these companies. However, later with the efforts of eminent people like

babu Muttylal seal, the foreign life insurance companies started insuring Indian lives &



heavy extra premiums were being charged on them. Bombay Mutual life Assurance Society

heralded the birth of Indian life Insurance company in the year 1870, and covered Indian

lives at normal rates. Bharat Insurance Company ( 1896 ) was also one of Such Companies

inspired by nationalism. The Swadeshi Movement of 1905-1907 gave rise to more insurance

companies. The united India in Madras, National Indian & national Insurance in Calcutta &

the Co-operative assurance at Lahore were established I 1906 in 1907, Hindustan Co-

operative Insurance company took it’s birth in one of the rooms of the Jorasanko, house of

great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance &

swdeshi Life (Later Bombay Life) were some of the Companies established during the same

period. Prior to 1912 India had no legislation to regular insurance business. In the year 1912the life insurance companies Act, and the provident fund Act were passed. The life Insurance

companies Act, 1912 made it necessary that an actuary should certify the premium rate tables

& periodical valuations of companies. But the Act discriminated between foreign & Indian

companies on many accounts, putting the Indian companies at disadvantage. The first two

decades of the twentieth century saw lot of growth in insurance Business. From 44

companies with Total business-in-force as Rs.22.44 crore, it rose to 176 companies with

Total business-in-force as Rs,298 crore in 1938. During the mushrooming of insurance

companies many financially unsound concerns were also non-life insurance to provide strict

state control only life insurance business. The demand for nationalization of life insurance

industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to

amend the life insurance Act 1938 was introduced in the Legislative Assembly. However, It

was much later on the 19th of January,1956 that life insurance in India was nationalized.

About 154 Indian insurance companies, 16 non-Indian companies & 75 provident were

operating in India at the time of nationalization. Nationalization was accomplished in two

stages; initially the management of the companies was taken over by means of an Ordinance,

and later, the ownership too by means of a comprehensive bill. he Parliament of India passed

the life insurance corporation act on 19th June 1956, & the life insurance corporation of India

was created on 1st September, 1956, with the objectives of spreading life insurance much

more widely & in particular to the rural areas with a view to reach all insurable persons in the



Country, Providing them adequate financial cover at a reasonable cost. LIC had 5 zonal

offices, 33 Divisional offices & 212 branch offices, apart from its corporate office in the year

1956. Since life Insurance contracts are long term contracts & during the currency of the

policy it require a variety of services need was felt in the later years to expand the operations

& place a branch office at each district headquarter. Re- Organization of LIC took place &

large numbers of new branch were made accounting units. It worked wonders with the

performance of the corporation. It may be seen that from about 200.00 Crores of new

business in 1957 the corporation crossed 1000.00 crores in the year 1969-70, and it took

another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-

organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00crore sum assured on new policies. Today LIC functions with 2048 fully computerized

branch office, 100 divisional offices, 7 Zonal office & the corporate office. LIC’s wide area

network cover 100 divisional offices & connects all the branches through a Metro Area

network. LIC has tied up with some Banks & service providers to offer on-line premium

payment facility is an addition to customer convenience. LIC has launched its SATELLITE

SAMPARK offices. The satellite offices are smaller, leaner & closer to the customer. LIC

continues to be the dominant life insure even in the liberalized scenario of Indian Insurance

& is moving fast on a new growth trajectory surpassing it’s own past records. LIC has issued

over crore policies during the current year. It has crossed the milestone of issuing

1,01.32,955 new policies by 15th Oct 2005, posting a healthy growth rate of 16.67% over the

corresponding period of the previous year. From then to now, LIC has crossed many

milestones & has set unprecedented performance records in various aspects of life insurance

business. The same motives which inspired our forefathers to bring insurance into existence

in this country inspire usat LIC to take this message of protection to light the lamps of

security in as many homes as possible & to help the people in Providing security to their

families.

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

1818: Oriental life company, the first life insurance company on Indian soil started

functioning.



1870: Bombay Mutual life assurance Society, the first Indian life insurance company started.

1912: The Indian Life insurance companies Act enacted as the first statue to regulate the life

insurance business.

1928: The Indian Insurance companies Act enacted to enable the Government to collect

statistical information about both life& Non-life insurance business.

1938: Earlier legislation consolidated & amended to by the insurance Act with the objective

of protecting the interest of the insuring public.

1956: 245 Indian & foreign insurers & provident societies are 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. 5 crore 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.

COMPANY PROFILE

Birla Sun Life Insurance Company Limited

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya

Birla Group and the Sun Life Financial Services of Canada. It started operations in March

2001 after receiving its registration licence from IRDA in January 2001.



BSLI’s core strategy since inception has been to ‘create value’ for all its stakeholders. This

has been driven through innovative and customer focused products and a multi channel

distribution capability in individual and group insurance. The company started its operations

with the launch of innovative unit-linked insurance products, being the first private life

insurance company in India to do so. The company has geared up through superior value

creation and technology in fulfilling its aims to provide multiple products and benefits,

greater investment opportunities and to provide the vast investor populace in India with

better liquidity and security.

The transition of the insurance industry in India from a public monopoly to a competitive

environment presents interesting opportunities both to the insurance players as well as to the

customers. BSLI plans to spot emerging trends and capitalise on these opportunities for the

benefit of its customers. BSLI aims at being a leader in product innovation with new products

designed to cater to specific customer needs.

The company has a clear thrust on investment linked insurance products and believes in

maximising investment returns for the policyholders. Its unit-linked products offer varied

investment options for policyholders to choose, based on their risk appetite. BSLI has been

fully complying with its rural and social sector obligations. Social and rural services network

of the group is being tapped for this purpose.

Its clients have already appreciated the company’s superior underwriting processes and

infrastructure. Its direct sales force of more than 60,000 high quality licensed insurance

advisors in major cities and towns in India are the company’s flag bearers. The company’s

insurance advisors have qualified for the prestigious Million Dollar Round Table (MDRT),

COT and TOT, one of the highest international honours in the life insurance industry, in all

the years of its operations.



Products

The current range of products offered by BSLI includes:

:: Flexi Life Line

:: Flexi Cash Flow

:: Flexi Save Plus

:: Flexi SecureLife

:: Classic Life Premier

:: Birla Sun Life Term & Premium Back Term Plan

:: Life Companion

:: Prime Life & Prime Life Premier

:: Gold Plus

:: Simply Life

:: Single Premium Bond

:: Supreme Life

:: Children’s Dream Plan, Dream Plan

:: Birla Sun Life Insurance Gold-Plus Plan

:: Birla Sun Life Bima Kavach Yojana

:: Birla Sun Life Group Protection Solutions

:: Birla Sun Life Social Development Plan

:: Birla Sun Life Group Gratuity Plan

:: Birla Sun Life Group Superannuation Plan

:: Birla Sun Life Group Interest Credit Plan

:: Birla Sun Life Credit Guard Plan

The Aditya Birla Group

The Aditya Birla Group is India's first truly multinational corporation. Global in vision,

rooted in Indian values, the Group is driven by a performance ethic pegged on value creation

for its multiple stakeholders.

Its 66 state-of-the-art manufacturing units and sectoral services span India, Thailand,

Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China.



A US$ 6.7 billion conglomerate, with a market capitalisation of US$ 7 billion, it is anchored

by an extraordinary force of 72,000 employees belonging to over 20 different nationalities.

Over 30 per cent of its revenues flow from its operations across the world.

A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in

which it operates. Such as viscose staple fibre, non-ferrous metals, cement, viscose filament

yarn, branded apparel, carbon black, chemicals, fertilisers, sponge iron, insulators and

financial services.

The Group has also made successful forays into the IT and BPO sectors.

Sun Life Financial Inc

Sun Life Financial Inc is a leading financial services organization headquartered in Toronto,

Canada, operating in key markets around the world.

The Sun Life Financial group of companies and their joint ventures offer individuals and

corporate customers a diverse range of financial products and services that fall into two

principal business areas: wealth management and protection.

Throughout its international operations, Sun Life Financial has an employee base of

approximately 13,800 people plus an extensive global distribution network of career sales

forces, independent agents, investment dealers and financial planners.

Tracing its roots back to 1865, Sun Life Financial Inc. and its partners today have operations

in key markets worldwide, including Canada, the United States, the United Kingdom, Hong

Kong, the Philippines, Indonesia, India and China. As of December 31, 2004, the Sun Life

Financial group of companies has total assets under management of USD 298.6 billion.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine

(PSE) stock exchanges under ticker symbol "SLF".

http://www.sunlife.com/slcorp/genericpage/0,3324,bGFuZy1lbmdsaXNoX3NpdGUtc2xjb3JwX2Vudi1saXZlX3B6bi1nZW5lcmljX3NlYy0xOF9zdGF0LV9lZC1fbmF2LTMzMzgxX25hdi0zMzM4MQ==,00.html

http://www.sunlife.com/slcorp/genericpage/0,3324,bGFuZy1lbmdsaXNoX3NpdGUtc2xjb3JwX2Vudi1saXZlX3B6bi1nZW5lcmljX3NlYy0xOF9zdGF0LV9lZC1fbmF2LTMzMzgyX25hdi0zMzM4Mg==,00.html

http://www.sunlife.com/slcorp/genericpage/0,3324,bGFuZy1lbmdsaXNoX3NpdGUtc2xjb3JwX2Vudi1saXZlX3B6bi1nZW5lcmljX3NlYy0xOF9zdGF0LV9lZC1fbmF2LTMzMzgyX25hdi0zMzM4Mg==,00.html

http://www.sunlife.com/slcorp/genericpage/0,3324,bGFuZy1lbmdsaXNoX3NpdGUtc2xjb3JwX2Vudi1saXZlX3B6bi1nZW5lcmljX3NlYy0xOF9zdGF0LV9lZC1fbmF2LTMzMzgxX25hdi0zMzM4MQ==,00.html



Key features of the company

Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance

Solutions in India.

Within 4 years of its launch, BSLI has cemented its position as a leading player in the

Private Life Insurance Industry.

There has been focus on Investment Linked Insurance Products, supported with

protection products to maintain leadership in product innovation.

Multi Distribution Channels- Direct Sales Force, Alternate Channels and Group

offering convenient channels of purchase to customers.

Web-enabled IT systems for superior customer services

First to have issued policies over the Internet.

Corporate governance and a high degree of transparency in all business practices and

procedures.

First to have an operational Business Continuity Plan.

Strong fundamentals based on the Aditya Birla group's local insight and Sun Life

financials's global expertise.

FUNDAMENTALS OF LIFE INSURANCE

http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_AboutUs/Company_Profile/abtus_comprofile2.aspx#aditya

http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_AboutUs/Company_Profile/abtus_comprofile2.aspx#sunlife


http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/BSLI_AboutUs/Company_Profile/abtus_comprofile2.aspx#aditya





Meaning

Life insurance is a contact by which the insurer in consideration of premium undertakes to

pay a certain sum of money on the death of the insured Or the expiry of a fixed period. But

life insurance is different from other forms of insurance in the sense that the subject matter of

insurance is life of human being. From the moment of beieth until life has ceased all man live

in uncertainty. In other word we can say that death is certain, But the time uncertain. So there

is uncertainty of the time, when the suffering & financial crises may be fall on the family.

Therefore, the provision for children up to their earning period end for widow up to long life

should be made. Life insurance will adequately meet this financial.

Definition’s1. * J.H Magee

“ The life insurance Contract embodies an agreement in which broadly started, the insurance

undertakes to pay a stipulated sum upon the death of the insures, Or at some designated time

to a designated beneficiary”

2. *R.S Sharma :-

“ Life insurance contract may be defined where by insurer, inconsideration of a premium

paid either in lump sum Or in periodical installments, undertakes to pay an annuity Or a

certain sum of money either on the death of the insured Or an the expiry of a certain number

of year”

3. *Insurance Act::

“ Life insurance business is the business of effecting contract upon human life” Essential

Elements Of Life Insurance Contact

1. Parties Of Contract: -

There is a difference between the insured & the policy owner & the insured are often the

same person. For example, if Joe buys a policy on his own life, he is both owner & the

insured. But if Jane, his wife, buys a policy on Joe’s life, she is the owner & he is the insured.

The policy owner is the guarantee 7 he or she will be the person who will pay for the policy.

The insured is a participant in the contact but not necessarily a party to it. The beneficiary

receives policy proceeds upon the insured’s death. The owner designates the beneficiary, but



the beneficiary unless the policy has an irrevocable beneficiary changes, policy assignments,

Or case value borrowing in cases where the policy owner is not the insured, insurance

companies have sought to limit policy purchases to those with an “ insurable interest”

requirement usually demonstrates that the purchaser will actually suffer some kind of loss if

the CQV dies. Such a requirement prevents people from benefiting from the purchase of

purely speculative policies on people they expect to die. In at least one case, an insurance

company which sold a policy to a purchaser with no insurable interest, was found liable in

court for contributing to the wrongful death of the victim [liberty National Life v. Weldon,

267 Ala.171 (1957)]

2. Contact Terms: -Special provisions may apply, Such as suicide where in the policy becomes null if the insured

commits suicide within a specified time (usually two years after the purchase date; some

states provide a statutory one-year suicide clause”. Any misrepresentations by theinsures on

the application are also grounds for nullification. Most US states specify that the

contestability period cannot will the insurer have legal right to contest the claim on the basis

of deny claim. The policy matures when the insured dies Or reaches a specified age ( such as

100 years old).

3. Costs, Insurability, & Underwriting: -

The insurer (the life insurance Company) calculates the policy with intent to fund claims to

be paid & administrative costs, 7 to make a profit. The cost insurance is determined using

mortality tables, calculated by actuaries. Actuaries are professionals who employ actuarial

Science, which is based in Mathematics. Mortality tables are statistically –based tables

showing expected annual mortality rates. It is possible to drive life expectancy estimates

from these mortality assumptions. The three main variables in a mortality labels have been

age, Gender & use of Tobacco. More recently in the Us , preferd class specific tables were

introduced. The mortality tables provide a baseline for the cost of insurance. In practice,

these mortality tables are used in conjunction with the health & family history. Each

company using pooled industry experience studies as a starting point individually modifies

mortality tables currently in use by life insurance companies in US. In the 1980s & 90s the



SOA 1975-80 basic select & intimate tables were the typical reference points. While the

2001 VBT & 2001 CSO tables were published more recently. The newer tables include

separate mortality tables for smokers & no- Smokers & the CSO tables include separate

tangles for preferred classes. Recent US select mortality tables predict that roughly0.35 in

1000 no-smoking males aged 25 will die during the first year of coverage after underwriting.

Mortality approximately doubles for every extra ten years of age so that the mortality in the

first year for underwritten non-smoking men is about 2.5 in 1000 people at age 65. Compare

this with the Us population make mortality rates of 1.3 per 1000 at age 25 & 19.3 at age 665

(without regard to health of smoking status) The mortality of underwriting persons rises

much more quickly that the general population. At the end of 10 years the mortality of that25 year-old, non-smoking male is 0.66/1000/year. Ina group of one thousand 25-year-old

males with a $1000,000 policy, all of average health, a each of a large group to cover the

relatively few expected claims. (0.35 to 0.66 expected deaths in each year X $100,000

Payout per death +$ 35 per policy).A 10 year policy for 25 year old non-smoking male

person with preferred medical history may get offers as low as $90 per year for a $100,000

policy in US life insurance market. The Insurance Company receives the premiums from the

policy owner & invests them to create a pool of money from which it can pay claims &

finance the insurance company’s operations. This investigation & resulting evolution of the

risk is termed underwriting. Health & lifestyle questions are asked. Certain responses Or

information received may merit further investigation. Life insurance companies in the Us

support the medical information Bureau ( MIB) which is a clearinghouse of information on

persons who have applied fore life insurance with participating companies in the last seven

years. As part of the application, the insurer receives permission to obtain information from

the proposed insured’s physicians. Underwriters will determine the purpose of insurance. The

most common is to protect the owner’s family or financial interest in the event of the

insured’s demise. Other purpose include estate planning or in the case of cash-value contract,

investment for retirement planning. Bank loans or buy sell provisions of business agreements

are another acceptable purpose. Life insurance companies are never required by law to

underwrite or to provide Coverage to anyone, with the exception of Civil Rights Act



compliance requirements. The policy can be declined rating increases the premium to

provide for additional risks to the particular insured. Many companies use four general health

categories for those evaluates for a life insurance policy. These categories are preferred best,

preferred standard & Tobacco. Preferred best reserved only for the healthiest individuals in

the general population. This means for instance, that the proposed insured has no adverse

medical history, is not under medication for any condition, & his family have no history of

early cancer, Diabetes Or other conditions. Most people are in the standard category

profession, Travel. & Lifestyle factor into whether the proposed insured will be granted a

policy & which category the preferred best may denied a policy if he Or she travels to a high

risk country underwriting practices can very from insurer which provide for morecompetitive offers in certain Circumstance.

4. Death Proceeds: -

Upon the insured’s death, the insurer requires acceptable of death before it pays the claim.

The normal minimum proof required is a death certificate & insurer’s claim for completed,

Signed (& typically notarized).If the insured’s death is suspicious & the policy amount is

large, the insurer may investigate the circumstance surrounding the death before deciding

whether it has an obligation to pay the claim.

5. Insurance VS. Assurance:-

The specific uses of term “ insurance” & “Assurance” are sometimes

confused. In general, the term insurance refers to providing cover for an event that might

happen while assurance is the provision of cover for an event that is certain to happen. When

a person insures the contents of their home they do so because of events that might happen

(fire, theft, flood ETC). They hope their home will never be burglarized, or burn down, but

they want ensure that they are financially protected if the worst happens. This example of

Insurance shows how it is a way to spending a little money to protect against the rist of

having to spend a lot of money. When a person insures their life they do so knowing that one

day they will die. Therefore a policy that covers death is assured to make a payment. the

policy offers assurance on death ; even if the policy has a prescribed termination date the

policy is still assured on the death & therefore is an assurance policy. Examples include term



assurance & whole life assurance. An accidental through an accident, therefore it is an

insurance policy.( this set of distinctions does not really apply to US jurisdictions where both

forms of coverage are called “ Insurance”. A policy might also be assured for others reasons.

The test of weather a policy is assurance Or insurance is that an assurance policy the insured

even will definitely occur whereas with an insurance policy there is a risk the insures event

might Occur. with the regard to whole life policies, the question is not whether the insured

event will occur, but simply when if the policy hasnonforfeiture values then the policy is

assured to pay. During recent years, the distinction between the two terms has become

largely blurred. This is principally due to many companies offering both types of policy, 7

rather than refer to them selves using both insurance & assurance titles, they instead use justone.



LIFE INSURANCE MARKETING

A business does not carry any meaning unless there is a customer. As such purpose of any

business would be-

Creating customer

Retaining customer

Marketing Concept:

• Marketing involves product & it’s development, pricing, placement – to decide whom

& where to place the product for sale, publicity & public relations, sale & service of

product, as also to decide the channel of distribution for good like agent & others as

also their training. Thus selling & service are only part of marketing & not whole of

it.

• Unlike other goods & services, insurance is intangible.

• The profile of goods in our case of insurance the market the buyer & the seller is

different. Let us see the profiles of each one by one.

• Profile of the good



Unlike ordinary goods/ Services insurance has following special features::

It is intangible

More service oriented

The benefits are felt later on only at the time of receiving claims Amount on

survival, Maturity or death etc.

Profile Of Market:

The market is vide because of vastness of area, difference in economic level,

social statues Etc.

For apt handling it requires segmentation in compatible & Homogenous groups,

which helps in

Prospecting

Selling

Matching products for each segment

It also helps in presentation & saving time

Segment of prospects can be on the following Basis.

Geographical

Demographical- age, occupation, language & economic level

Psycho graphical 0 personality & life style.

Untapped market.

In a study made a few years earlier the potential market for insurance in

India is as under:-

Life insurance penetration in terms of G.D.P is around 2 %

Only about 30% of insurable population is covered leaving 70% for us.

Insurance population is estimated around 650 million

Out of population of 1027 million, male population is 531.3 million & female 495.7

Rural is 72.7% urban 27.8

Thus sky is limit for us



AWARENESS INDEX

BANKS 44.25

NSC 8.20

LIC 6.85

Shares 5.90

Company Deposit 5.60

Fixed Deposit 5.60

Gold 5.10

Others 18.5

• Profile Of Buyer: -

Traditional non acceptance of death, disease & even old age- it will

occur to others & not to me

Hangover of joint family

Even leaving everything to fate

Lack of knowledge of life

Not even aware of his need

Not ready to accept and assess hard realities of old age.

The customer of today is very unlike the consumer of yesterdays. He has

rights under consumer protection Act also under IRDA regulation 2000. It

necessitates transparency in dealing, not giving misleading information

Or with – holding any information & discharge of all requisites functions

properly.

• Profile Sellers: -

To sell this type of product to buyer having peculiar profile, the seller from agent to

the highest echelon in the organization has adopt scientific & time-tested strategies

accepted worldwide for: -

Training to sell

Publicity



Computerization

Customer friendly approach

After sales service

ROLE OF LIFE INSURANCE AGENT

Nature Of Work:

Most people have their first contact with an insurance company through an insurance sales

agent. These workers help individuals, families, and businesses select insurance policies that

provide the best protection for their lives, health, and property. Insurance sales agents who

work exclusively for one insurance company are referred to as captive agents. Independent

insurance agents, or brokers, represent several companies and place insurance policies for

their clients with the company that offers the best rate and coverage. In either case, agents



prepare reports, maintain records, seek out new clients, and, in the event of a loss, help

policyholders settle their insurance claims. Increasingly, some are also offering their clients

financial analysis or advice on ways the clients can minimize risk Insurance sales agents,

commonly referred to as “producers” in the insurance industry, sell one or more types of

insurance, such as property and casualty, life, health, disability, and long-term care. Property

and casualty insurance agents sell policies that protect individuals and businesses from

financial loss resulting from automobile accidents, fire, theft, storms, and other events that

can damage property. For businesses, property and casualty insurance can also cover injured

workers’ compensation, product liability claims, or medical malpractice claims. Life

insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies.Depending on the policyholder’s circumstances, a cash-value policy can be designed to

provide retirement income, funds for the education of children, or other benefits. Life

insurance agents also sell annuities that promise a retirement income. Health insurance

agents sell health insurance policies that cover the costs of 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. An increasing number of insurance sales agents are offering

comprehensive financial planning services to their clients, such as retirement planning, estate

planning, or 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; however, property and casualty agents also sell financial products. Technology has

greatly affected the insurance agency, making it much more efficient and giving the agent the

ability to take on more clients. Agents’ computers are now linked directly to the 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 be offering. The growth of the

Internet in the insurance industry is gradually altering the relationship between agent and

client. In the past, agents devoted much of their time to marketing and selling products to



new clients, a practice that is now changing. Increasingly, clients are obtaining insurance

quotes from a company’s Web site and then contacting the company directly to purchase

policies. This interaction gives the client a more active role in selecting a policy at the best

price, while reducing the amount of time agents spend actively seeking new clients. Because

insurance sales agents also obtain many new accounts through referrals, it is important that

they maintain regular contact with their clients to ensure that the clients’ financial needs are

being met. Developing a satisfied clientele that will recommend an agent’s services to other

potential customers is a key to success in this field. 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 hoursa day, 7 days a week. Insurance carriers 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

Employment:

Insurance sales agents held about 400,000 jobs in 2004. Most insurance sales agents

employed in wage and salary positions work for insurance agencies and brokerages. A

decreasing number work directly for insurance carriers. Although most insurance agents

specialize in life and health insurance or property and casualty insurance, a growing number

of “multiline” agents sell all lines of insurance. A small number of agents work for banks and

securities brokerages as a result of the increasing integration of finance and insurance

industries. Approximately 1 out of 4 insurance sales agents is self-employed. Insurance sales

agents are employed throughout the country, but most work in or near large urban centers.

Some are employed in the headquarters of insurance companies, but the majority work out of

local offices or independent agencies.

Distribution Channels:



Life insurance was once sold primarily by career life agents, captive

agents that represent a single insurance company, and by independent

agents, who represent several insurers. Now, life insurance is also sold

directly to the public by mail, telephone and through the Internet. In

addition, in the 1980s insurers began to market annuities and term life

insurance through banks and financial advisors, professional groups and

the workplace. A large portion of variable annuities and a small portion

of fixed annuities, are sold by stockbrokers. By 2006 affiliated (i.e.,

captive) agents held 35 percent of new individual life insurance sales,

independent agents held 56 percent and others, including stockbrokers,

accounted for the remaining 9 percent, according to LIMRA.

WORKSITE LIFE INSURANCE COMPANY SALES

BY LINE OF BUSINESS, 2006 (1)



(1) Worksite marketing is the selling of voluntary (employee-paid) insurance and

financial products at the worksite. The products may be on either an

individual or group platform and are usually paid through periodic payroll

deductions.

(2) Short-term and long-term disability. Source: East Bridge

Consultants. Customer relationship with agent:: The core service

provided by a property and casualty (P&C) insurance company is the

prompt, efficient, and satisfactory handling of claims against losses to

insured property. Claims handling is the most visible and important

component of customer relations for the P&C industry. Compared to

other sectors of the financial services industry, insurance has been slow

to engage in the business strategy known as customer relationship

management (CRM). Even when CRM has been used, it is almost

exclusively the sales (agency) and marketing areas within the insurance

organization that promote and shepherd its use. As insurers move tosolidify heir customer-centric strategy, they should now leverage CRM to

improve the claims process.

3. Claims departments have used technology mostly at the front end of their process

without a comprehensive strategy. Utilizing a CRM strategy from a claims perspective to

actively manage customer relations at this critical juncture extends and improves on the most

significant difference between insurance and the rest of the financial services industry—

claims processing.4. Because of the extensive information required to support CRM, a complementary

technology strategy is needed to ensure its success. Clear expectations need to be established

between the goals of the business strategy and the technological capabilities of the insurance

company. Infrastructure weakness can undermine attempts to move forward with aggressive

business or technology strategies. This Tower Group Research Note examines ways that



P&C companies can leverage CRM technology and infrastructure to improve their claims

handling performance and contribute to their bottom line.

Other Distribution Channels Of LIC:

Development Officer::

In today's Indian insurance market, the challenge to insurers and intermediaries is two-

pronged: building faith about the company in the mind of the client Intermediaries being able

to build personal credibility with the clients Traditionally tied agents have been the primary

channels for insurance distribution in the Indian market; the public sector insurance

companies have their branches in almost all parts of the country and have attracted local

people to become their agents. The agents are from various segments in society andcollectively cover the entire spectrum of society. A person who has lived in the locality for

many years sells the products of the insurance company with a local branch nearby. This

ensures the last mile touch point being closer to the customer. Of course, the profile of the

people who acted as agents suggests they may not have been sufficiently knowledgeable

about the different products offered, and may not have sold the best possible product to the

client. Nonetheless, the customer trusted the agent and company. This arrangement worked

adequately in the absence of competition. In today's scenario agents continue as the prime

channel for insurance distribution in India, as is the case in most markets, supported by call

centers to a small

extent. Almost all the new players follow this model primarily because the regulations for

other channels are yet to be put in place. However there is great excitement in the industry

over the impending broker regulations, and companies are planning possible channels in their

enthusiasm to increase volumes. The belief that all these channels will grow and seamlessly

integrate to bring in business seems a fallacy. What has emerged is a much more difficult and

evolving market scene with existing players, more new players coming in, and global

marketing practices and ideas being tested. But none of this has changed the fundamental

character of the market, which we believe will take more time than expected.

What should the companies look at?



Basically companies have to take a look at the intermediaries they are using, whether it is

optimal to use them, and what are the alternatives? The new companies have attempted

appealing only to the middle, upper middle and elite classes in the major cities. Contrasted

with Public sector insurance companies, with their offices across the country, the new

companies have miles to go before they reach anywhere. They must overcome the mindset of

the customer that life insurance is Life Insurance Corporation of India (LIC) and general

insurance is General Insurance Corporation of India (GIC) if they hope to grow in the

market. Meanwhile, the public sector companies are going to great lengths to revamp their

image to look and feel more contemporary. Both the public and new private sector

companies are fighting their own battles from the perspective of customer perceptionmanagement:

Public Sector

Companies

Private Sector Companies

Identity is well established, but the perception of " poor service providers" is a stigma. Have

to build their identity in a market where the public does not distinguish them. Products are

not attractive and flexible enough but expensive. Remove the perception that anything that

looks good is expensive

To retain their creamy layer clientele who are the most likely to be wooed by the new

companies Work against the people's mindset that they are not here for the long term Retain

and attract good intermediaries Attract term diaries especially agents with the requisite

qualifications and attributes who can market the company and the product. Match the aura

created by the new companies in the urban market Run the risk of tapping an already insured

market for repeat insurance instead of tapping new virgin pockets in the market In this

process all are targeting the same market --the existing pie is being cut up further, but no

attempt is being made to increase the size of the pie. For example, while attempts are made to

complete the quota of rural insurance in percentage terms, the rural market potential is yet to

be tapped, as the new insurers are not able to attract the right kind of talent into their



distribution force to address this. Intelligent segmentation of distribution channels to match

the market segmentation is what will help the companies to move in this direction.

Focus on multiple distribution channels

Though a multi-channel strategy is better suited for the Indian market as well, it is important

to keep in mind that this market is really a glomeration of multiple markets. Each of the

markets within this conglomeration requires a different approach. Apart from geographical

spread the socio-cultural and economic segmentation of the market is very wide, exhibiting

different traits and needs. Let us look at the various insurance distribution channels and the

challenges faced by them from these perspectives.

AgentsToday's insurance agent has to know which product will appeal to the customer, and also

know his competitor's products in the same space to be an effective salesman who can sell his

company, the product, and himself to the customer. To the average customer, every new

company is the same. Perceptions about the public sector companies are also cemented in his

mind. The new companies are looking for educated, aware individuals with marketing flair,

an elite group who can be attracted only with high remuneration and the lure of a fashionable

job, all of which may not be possible in this business with its price pressures and the

complexity of selling insurance. Unable to attract this segment, they have started easing

recruitment conditions as against the stringent norms they had earlier, thereby diluting the

process. While the public sector companies are able to attract agents, they continue to suffer

from high attrition rates due to indiscriminate agent appointment. The most successful of

these companies' tied agents are hardly of the elite variety of salesman. They are still the

neighborhood do goobers -- the postman, the schoolteacher, and the shopkeeper who know

the people and are themselves known in the community. The challenge here is the lack of

knowledge of the competitive market and the inability to do intelligent comparisons with the

competitor's products. Educating and training these agents is a serious challenge for the

insurance company. The relevance of this kind of agent continues even today as agents are

sought or contacted by families by word of mouth. Insurance companies are advised not to

follow the path of FMCG's/credit card companies, believing that a suited and booted



customer care consultant or financial consultant will necessarily appeal to the average Indian

customer. Another social feature in the market is the considerable respect for age in Indian

society and a belief that an older person knows better. A very young up-market agent who is

a typical salesman may not appeal to a large segment of the middle class, which is looking

for a solid trustworthy person from whom they can buy insurance. In this context it might be

a rewarding exercise to recruit some older people (who have taken VRS2 from banks and

other financial institutions) to sell some lines of products like pension plans, annuities etc.

Gender of agents is another relevant feature in the rural context that makes a difference,

especially for the female population. Women to whom the customers can relate --e.g., nurses,

gram sevikas3 -- can target the female segment of the population more effectively. What isapplicable for the rural women and children health programs and population control

programs is equally applicable for insurance selling also. Max New York Life has adopted a

version of this strategy by appointing gram sahayaks4 to sell and service the rural customers.

With this kind of segmentation of intermediaries the challenge for the insurance company

lies in training and educating these people to become effective sales persons. But this in no

way diminishes the benefits of intermediary segmentation.

Banks

Banks in India are all pervasive, especially the public sector banks. Can they also become the

foremost channel for distribution of insurance? Perhaps in the future. A rigid unionized

workforce and archaic systems, and lack vision of a broader service spectrum encompassing

non-banking products also plague the public sector banks, with their vast branch networks.

The newer banks are constrained by their lack of reach and meager branch strength. For

banks to become a predominant channel for selling insurance will require a paradigm shift.

But the encouraging fact for insurance companies waiting for bancassurance to take off is

that bank branches are here to stay, and customers do want them. A customer survey by

Deloitte Consulting5 in the western developed markets found that for banking activities,

customers place high importance on having convenient branches in their banking

relationships. This is good news for the Indian banks with their many branches, and also

makes a strong case for taking up bancassurance. The major lines of business that can be sold



through bancassurance successfully are term insurance, creditor insurance, and non-life

products like Property, Motor and Personal accident, Homeowners comprehensive insurance

etc. An example is SBI Life,6 which is waiting for the broker regulation to be put in place in

order to move ahead aggressively with the bancassurance model. One of their major product

lines is creditor insurance, and they have launched their first creditor insurance product,

which covers the liabilities of the creditor in case of death of debtor. SBI Life is planning a

similar product for home loan borrowers of State Bank of India. This model has high

relevance in the Indian context with far-flung villages where the insurance potential is in

volume and not in high per capita premiums.

BrokersWith the broker regulation under review and expected any time, this could be he next hope,

especially for the urban market. This will be a new experience for he insurance customer,

accustomed to brokers in financial services, real estate, and travel and tourism. For historical

reasons the image that 'broker' carries in the minds of the customer is not very favorable.

Thus the new breed of insurance brokers face the challenge of establishing credibility. The

positives are that brokers in the urban arena can attract the elite and the upper middle class

customer. Brokers represent the customer and will sell the products of more than one

company. They seek to determine the best fit for the client and can effectively address the

mind block faced by the public about the various companies. This is applicable in the case of

life insurance for the high-end and corporate/group segment. In the non-life segment, broking

is not entirely new, as reinsurance brokers were arranging exotic covers. For individual

customers also, with a wide range of competitive products, the broker can get a good deal.

The corporate broking companies will have to play a prominent role. If NGOs based in rural

areas can be attracted into the rural sector cooperatives arena, they stand a good chance of

succeeding and can help the new players get a foothold in the rural market. These are the

players with the potential to make the difference, as they have the trust of the people. We

envisage scenarios like that in Bangladesh's micro lending growth and the milk co-operatives

in Gujarat selling insurance in addition to milk production and distribution. It would be a new

dawn in Indian insurance distribution! With the right impetus the Indian rural insurance



scenario could be one with high business volume and tremendous growth potential. ICICI

Prudential Insurance and HDFC Standard Life Insurance have already partnered with NGOs8

to sell some low cost insurance in rural areas. However, the challenge lies in establishing

regulations that protect the customer and attract the right players into the brokerage market

rather than creating another middlemen segment eroding the premium.

Work Site Marketing:

This area needs to be tapped, as in any country one of the biggest markets is through the

worksite. With changes in human resources management polices and compensation

packages, group products or work site products do have a definite market that cannot be

ignored. Here the advantages would be: Captive customer base

Potential to sell individual insurance and group insurance

High trust factor

High hit ratio for the intermediaries

The challenges would be the cost effectiveness, product customization and efficient post

sales servicing, which would determine continued business. Technology has a key role to

play in worksite marketing to ensure cost benefits. Banks and financial institutions have beensuccessfully marketing credit cards and other financial products using this channel. If not an

identical model a similar approach can be used for selling insurance.

Internet

Though India is joining the fast growing breed of net users, using net for transactions has not

yet caught up. Though a few banks provide online banking, the usage is still a small

fragment. The insecurity associated with transactions over the net is still an inhibiting factor.

At present most of the insurance companies have product information and/or illustrative tools

on the web. We do not see the web evolving into a means for direct selling of insurance in

the current scenario. In the Indian market, where insurance is sold after considerable

persuasion even after face-to-face selling, the selling over the net, which must be initiated by

the client, would take some more time. While the technology capability is there,

improvements in bandwidth and infrastructure are needed. Also needed are simpler products



where auto-underwriting is feasible. Automobile insurance, one of the segments of insurance

purchased "off the shelf" in India, would be the ideal segment to start with. On the life side,

term assurance for standard lives with simplified underwriting is a possibility. These

channels by themselves will not be able to overcome the mindset of the people, but rather can

only be enablers for the human channels.

Conclusions

The current state of insurance distribution in India is still in flux. On one hand, insurers are

awaiting regulations to be approved for brokerages and banc assurance to be truly launched.

On the other hand they are trying the corporate model of intermediaries in addition to thetraditional models in the market. There is no right and wrong in all this. The success of

marketing insurance depends on understanding the social and cultural needs of the target

population, and matching the market segment with the suitable intermediary segment. In

addition a major segment of the Indian population has low disposable income, meaning that

every penny won will be obtained after a lot of persuasion and the expected value for money

is high. All intermediaries can't sell all lines of business profitably in all markets. There

should be clear demarcation in the marketing strategies of the company from this perspective.

Clients should also receive price differentials for using different channels. This is not a new

concept, as the Public sector Property &Casualty companies are giving discounts in lieu of

agency commission. The channel composition should not be homogeneous but should reflect

the larger society.

For example:

Agents from different economic, social strata and different age and gender.

Bancassurers ranging from multinational banks to micro credit lending agencies.

Brokers stretching from corporate to NGOs to milk co-operatives

These intermediaries need to be empowered with the right learning, training and sales tools

and technology enablers. Coupled with the right product mix, this will help the insurers to

survive and flourish in this competitive market. Let us conclude with a story of a retired

postal clerk who became a success story for selling postal savings and insurance in his



village in Punjab in Northern India. The person is the father of our colleague, who is a retired

postal employee and took up agency for postal savings and insurance to supplement his

meager retirement earnings. Today -- 10 years later -- he is one of the top agents selling

postal savings and insurance in his village, assisted by his illiterate wife and grandson (a

seven year old computer literate) doing all the administrative work from home on a small

Personal computer using a package (developed by our friend who is a programmer) to handle

his client portfolio The entire village population trusts him with the investment advices that

he doles out and has no qualms in handing over small amounts of cash to him for depositing

in the post office. He is their trusted customer care or financial consultant. This we feel is the

essence of distribution of financial products in India.

Distribution Channels

Till date insurance agents still remain the main source through which insurance products are

sold. The concept is very well established in the country like India but still the increasing use

of other sources is imperative. It therefore makes sense to look at well-balanced, alternative

channels of distribution. Birla Sunlife has already well established and have an extensive

distribution channel and presence. New players may find it expensive and time consuming to

bring up distribution network to such standards. Therefore they are looking to the diverse

areas of distribution channel to have an advantage. At present the distribution channels that

are available in the market are:

• Direct selling

• Corporate agents

• Group selling

• Brokers and cooperative societies

• Bancassurance



To make all these channels a success the companies have to be very alert and skillful to

know how to use these channels in a proper way. Bancassurance is on of the most upcoming

channels of distribution and therefore is being discussed in details.

Bancasurance

India has an extensive bank network established over the years. What Insurance companies

have to do is to just take advantage of the customers' long-standing trust and relationships

with banks. This is a mutually beneficial situation as banks can also expand their range of

products on offer to customers, while the insurance company will also earn profits from theexposure.

Another advantage is that banks, with their network in rural areas, help to fulfill rural and

social obligations stipulated by the Insurance Regulatory and Development Authority

(IRDA) recently. Insurance companies should see bancassurance as a tool for increasing their

market penetration in India. It is also good for the one who sees bancassurance in terms of

reduced price, high quality product and delivery at doorsteps. Everybody is a winner here.

The creation of bancassurance operations has made an important impact on the financial

services industry at large. This is though a new concept but it has gained a lot of importance

in the industry at present and has a great future.

Product Innovation

There has been a plethora of new and innovative products offered by the new players.

Customers have tremendous choice from a large variety of products from pure term

(risk)insurance to unit-linked investment products. Customers are offered unbundled

products with a variety of benefits as riders from which they can choose. More customers are

buying products and services based on their true needs and not just traditional money-back

policies, which is not considered very appropriate for long-term protection and savings.

There is lots of saving and investment plans in the market. However, there are still some key

new products yet to be introduced - e.g. health products.



Rural Marketing

Rural India seems to have an appetite for mobile phones, computers, and cars and to add to it

we have insurance. In India with the private players having entered into the insurance

industry, the expected explosion in job opportunities may not actually happen but for

CHAPTER-2

RESEARCH METHODOLOGY

Objectives

This project reports is made after taking following objectives in consideration.

To know the whole concepts of marketing related to life insurance.

To get details study of life insurance agent for marketing.

To get information about other distribution channel of life insurance for

marketing.

To get the data of various insurance agent and policy sales through agent .

To get the Information about all other information for life insurance

marketing.



Data Collection Method

Statistical data are mainly of two types:

(1) Primary Data

(2) Secondary Data

(1) Primary Data:

Data collected by the investigator for his own purpose for the first time

from beginning to end, is called primary data. Primary data’s are always original. The

concerned investigator is the first person to collect this information so that these

data do not need and any adjustment for a concerned study. But primary data arevery costly to collect information in terms of money, time and efforts. Because

primary data are collected for the first time from the source of origin.

Sources of primary data

(1). Direct personal investigation :

In this method data are collected personally by the investigator. There is

a face to face contact with the person from whom the information to is be obtained.

Data are collected by asking question retaliating to the enquiry of the informants.

(2) Indirect oral investigation :

In this method investigator obtains the information not only the person for

whom the information is needed but also from other persons orally whom are

expected to posses the necessary information.

(3) Information from correspondents or agent:

In this methods investigator appoints local agents is different places to collect

the information.

(2) Secondary Data:

Secondary data are those which are already in existence and which have

been collected, for some other purpose than the answering of the question

in hand. This data are also called second - hand data. Obviously since, this



data have already been collected by some body else these are available in

the form of published or unpublished reports. But this data need to be

adjusted to suit the objective of study in hand. and these data are much

less expensive.

Sources of secondary data:

(1) Published sources:

There are various sources included in published sources. They are as follows:

1. Govt Publications

2. Semi Govt. Publications3. Reports of Committes

4. Publication of trade association

5. Publication of research institution

(2) Unpublished sources:

There are some unpublished sources as well. These data are collected by the

Govt. Organization and others, generally for their self use or office records.

This data are not published.

Secondary data from published sources are used for making this project

LIMITATIONS OF THE STUDY

The major limitation of the study is that the Insurance sector is changing at a fast pace

and so the possible forecast is extremely difficult to predict.

The demands of the customer depends on varied factors like his income, living

standard, availability, service, festive season, filing of ITRs, competitors offers etc.



The data collected was secondary data. Although data has been collected from

reliable sources like company’s official site, newspapers, Television clippings etc and

other industry related agencies, still there is a chance of data been exaggerated.

Life insurance agent faces lots of difficulties in making a new customer because

in life insurance to satisfy a new customer for purchase a policy is a very

difficult process.

Other distribution channel also faces difficulty due to negative behavior of

customer towards them.



CHAPTER-3

Table-1

Comparison of Asian life insurance markets in 2006



Source: GNI per capita in purchasing power parties

Figure – 1



Interpretation:

The position of India is firmly positioned in the emerging market sector alongside a number

of other Asian countries, notably China.

Instinctively, this is as it should be: There is a positive relationship between wealth

(measured as gross national income per capita in purchasing power parities) and a country’s

insurance penetration; higher wealth tends to result in a rising penetration in Life as well as

in Non-Life (i.e. the insurance market is growing faster than the overall economy).. There isthe trend over time for non-life market to broaden from the protection of physical assets to

the protection of income and financial assets (e.g. liability, business interruption, credit etc.)

Figure – 2

Economic Development and Growth of Life Insurance Product



Interpretation:

Life insurance markets start more slowly than non-life markets due to lower consumer

awareness and individual income constraints. There is a trend over time from products

emphasising life insurance (death benefits) towards those emphasising saving, especially

retirement saving. One can also observe a trend over time towards unbundling of protection

and saving and for less investment guarantees to be offered by life insurers.

Table –2



New Business undertaken through various Intermediaries during 2007-08

Individual agents 99.78

Corporate agents (Banks &

Others) 0.20

Brokers 0.02

Referrals

Total 100

Source: Annual report of IRDA, 2007-08

Figure – 3

New Business undertaken through various Intermediaries during 2007-08



0.00

20.00

40.00

60.00

80.00

100.00

120.00

1

Individual agents

Corporate agents (Banks &

Others)

Brokers

Referrals

Total

Interpretation:

The Productivity or average Business each individual agent stood as high as 21,97,675during 2007-08.

Table – 3

Million Dollar Round Table Club Membership



Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-8

No of Agents 140 171.00 214 327 429 1420 1790 1317

% of Change 22.14 25.15 52.8 31.19 231 26.06 -26.42

Source: Annual report of LIC of India

Figure – 4

Million Dollar Round Table Club Membership



-2000

200

400

600

800

1000

1200

1400

1600

1800

2000

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

Year

No of Agents

% of Change

Interpretation:

The foregoing analysis reveals that 15% of Life agents are highly productive and remaining

85% of them are not so productive.

Table – 4

Agents and productivity between 1996 and 2004



Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

No of Agents 533133 558517 598217 683190 743064 744003 902199 100321

Average

Business per

agent

1064284 1139047 1259013 1328292 1656370 2355697 1951767 219767

Source: Annual report of LIC of India

Figure – 5

Agents and productivity between 2000 and 2008



0

500000

1000000

1500000

2000000

2500000

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

Year

No of Agents

Average Business per agent

Interpretation:

This analysis reveals that no of agents are increased every year after the 2000-01 with

the great fillip

CHAPTER - 4

FINDINGS



• This study observes that how this products are spread over to individual through

marketing

• The agent is a link between insurer and customer.

• For historical reasons the image that 'broker' carries in the minds of the customer is

not very favorable.

• In the absence of distribution channel there will be no scope of Life Insurance.

• A good relationship between customer and Insurance company is also necessary.

CHAPTER - 5

Conclusion



This project report conclude that life insurance marketing is not a very lengthy

process in comparison to the other business but it is a very difficult

process. Life Insurance marketing has a most important basis for there work

these are distribution channel of life insurance. There are various distribution

channel of Birla Sunlife. They are agents, broker, bancaasurance etc. they worked

as a link between customer and insurance company by selling various

insurance policies.

ANNEXURE



Bibliography

Books

a. Garg, Dr. R.K., (2002) “Elements of Insurance”

b. Panda, Dr. Ghansham (2001) “Principal and Practice of Insurance”

c. Singh, Dr. Inderjeet (2003) “Principal and Practice”

d. Mishra, MN (2000) “Principal and Practice”

e. Jain, Dr S.K. (2005) “Reliance”

Journals

(1) Sekar, Samul B, (2006) “Demand Driven Innovation in Insurance Products” “TitleInsurance”, Vol. No. VI

(2) Rao, TS Rama Krishna, (2006) “ Banking and Bancasurance”,

“ Bancasurance in India, Vol. No. VI

(3) Burke, Jack (2005) “ The art of building a relationship”, “ rate making in Insurance”

Vol. No. V

(4) Jawaharlal, U. (2005) “ Training the management imperative”, “Training in

insurance” Vol. No. V

Websites

a. www.birlasunlife com

b. www.bimaonline.com

c. www.yahoo.com

d. www.google.com

e. www.altavista.com

http://www.bimaonline.com/

http://www.yahoo.com/

http://www.google.com/

http://www.altavista.com/

http://www.bimaonline.com/

http://www.yahoo.com/

http://www.google.com/

http://www.altavista.com/



Date post:	14-Apr-2018
Category:	Documents
Upload:	nagpalanish
View:	216 times
Download:	0 times

222222222 Life Insurance Marketing

Documents