Group 2 - New York

8/7/2019 Group 2 - New York

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Name Roll No Scarlet Almeida 04

Mihir D Bhammar 05 Deepa Karappan 13

Kunal Doshi 15

Dipti Gawas 19

Siddesh Kurdikar 33

Sandeep Pandita 39


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Introduction

Product offered

Distribution channel

Regulatory Changes

Product Innovation

Recommendations


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Is a joint venture between Max India Limited & New York LifeInsurance.

74% Max India Ltd & 26% New York Life

Developed a strong corporate governance model based onCHEKIT.

Caring : Focus on customers first Honesty : It is all about trust

Excellence : Ability to perform at a consistentlyhigh level

Knowledge : Expertise

Integrity : Truthfulness

Teamwork : Togetherness


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Incorporated in 2000, started commercial operation in April 2001

Paid up capital as on 31st

August, 2010 is Rs 1973 Cr

First life insurance company to be awarded CII-EXIM Bankcommendation certificate forStrong Commitment to Excel.

Re-Insurer: SWISS RE

In its integrated voice response system, Max New York Lifecommunicates in ten regional Indian languages

Max New York Life has issued policies with a sum assured ofmore than Rs.100,000 Cr

In one year Max New York Life has added more than 1 millionnew customers


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Particulars (Rs Crores) 2009-10 2008-09

Financial Performance

New Bussines premium (First Year

Premium and Single Premium)

1,849 1,842

Adjusted First Year Premium 1,668 1,619

Renewal Premium 3,011 2,014

Commision Expences 421 392

Operating Expences 1,615 1,680

Shareholder (Profit)/(Loss) After Tax -21 -393

Key Bussines Parameter

Solvency Capital Ratio 321% 304%

Share Capital 1,839 1,782

Assest Under Managenet 10,121 5,557

No.of Policies In-Force('000S) 2,985 2,526

Sum Assured In-Force 123,287 93,593

No. of Employee 10,454 15,402

No. of Agents 72,813 84,355No. of Office 705 700


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During the financial year ended March 31, 2010, Max New York Life's gross writtenpremiums rose 26% to 48.6 billion rupees (US$1.08 billion), from 38.56 rupees the

previous year.

New business premiums at 18.49 billion rupees remained consistent at previousyear's level in spite of the financial turmoil.

Renewal premiums at 30.11 billion rupees recorded a growth of 50% as compared to

20.14 billion rupees in the financial year 2009 which reflects greater persistency.

Conservation ratio was 84% in the latest fiscal year .

Company has issued more than 2,70,000 polices in rural areas during the year,accounting for 29% of total policies

Covered more than 8 million lives under the social sector category in India.


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Max New York Life offers a suite of flexible products It now has 25 products covering both life and health insurance and 8 riders Can be customized to over 800 combinations enabling customers to choose the

policy

Product Portfolio comprises of :

Traditional Products: WLP & LPP

ULIPS: Shiksha Plus II & Shubh Invest

Universal : Secure Dreams

Health Plans: Medicash Plus & Wellness Plus

Term Plans: Platinum Protect


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Term Plan: Insurance cover for chosen tenure

No Maturity benefits

Tax benefits on premiums and Death proceeds

Additional protection through riders

Target Custom ers:Inexpensive, People having a greater financial liability

Platinum Protect Insurance cover for chosen tenure

Minimum Sum Assured: 25,00,000

Tax benefits on premiums and Death proceeds


Target Custom ers:Inexpensive, People having a greater financial liability


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Whole Life Participating: Insurance cover up to age 100

Option to Participate in Progressive Bonuses

Tax benefits on premiums and maturity proceeds


Bonus declared every year from 3rd policy year onwards

Target Custom ers:Life Long Cover & Asset creation for future generation

Life Partner Plus: Insurance cover up to age 75

Option to Participate in Progressive Bonuses with a Guaranteed Money Back

Tax benefits on premiums and maturity proceeds Additional protection through riders

Bonus declared every year from 3rd policy year onwards

Target Custom ers:Retirement Plan & Childrens Education Plan


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Shiksha Plus II Sum Assured up to 20 times of Annual Premium

Premium Funding incase of Death of Parent

Tax benefits on premiums and maturity proceeds


Family Income Benefit @ 10%

Target Custom ers: Young Parents

Shubh invest Sum Assured up to 30 times of Annual Premium

Inbuilt Dread Disease rider On Death: SA + Fund Value

Low Allocation charges

Personal Investment Manager

Target Custom ers:Middle Class since case size of 15000 -24000


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Secure Dreams Premiums invested in corporate Bonds and Government Securities

Funding of Premium incase of Death of Life Insured

On Death: Sum Assured + Maturity

Sum Assured : 10 times of ATP

Premiums from 15000/- to 2,00,,000/-

Target Customers :Guaranteed returns

Smart Bond Single Premium varying between I L to 10 L

Guaranteed returns Sum Assured : First year: 5 times; Second year Onwards: 2 times

Target Custom ers:Guranteed returns & One time payment


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Medicash Plus: Hospitalization Benefit Surgical Benefit

Lower Premiums

Sum Assured restored on renewals

Target Customers :Middle class customers

Wellness Plus : 38 Critical illness covered

Sum assured up to 20 L

Sum Assured released on diagnoses of the listed diseases. Lower Premiums

Target Custom ers:Applicable to all


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Max New York Life has multi-channel distribution. For eg.

Agency distribution

Partnership distribution

Bancassurance

Alliance marketing

Dedicated distribution for emerging markets


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MNYL has mainly used ZERO Level channels to sell its products to thecustomers thus helping in removal of the intermediaries which dilutes the profit.

Various channels employed are:-

Insurance Agents

Direct Selling Agents

Internet

Banc-assurance (First level)


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Agency: In MNYL , business is done mainly through Agent Advisor

o AAP(Agency Association Program)

o CEIP

o More than 70, 000 Agent advisors across India


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Agency:o Training is given prime importance to see to that Agents deliver

the accurate Information & be process oriented.

o Incentives are launched on all India level to motivateAgents

o Regular Town Hall sessions & Agent surveys are conducted toreceive feedback and analyze the same.

o Fact Finding or Need Analysis of customers is compulsory toensure Policies sold on need and not on Greed


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Banc assurance : It is an innovative distribution channel involving banks to

sell insurance products of Insurance Companies.

10 year strategic relationship with Axis Bank

Provides Life Assurance solutions to bank customers in650 cities through more than 1000 Axis Bank Branches

Promising to serve 20 Lac customers in 5 years.

Tie Ups: Barclays Finance, Urban Cooperative banks, Yesbank


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Direc t Sales Team(DST )

Max New York Life Insurance makes a data base ofpotential customers; contact them on the telephoneto market different policy of the company.

Strategic Business Partners

Amsure

Peerless


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IRDA has instructed certain major changes to all insurance companies post 1st ofSeptember 2010

Due to which certain products were withdrawn for the MNYL Product portfolio

For eg.

Smart Invest Pension Super

Smart Express

Fortune builder


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SHIKSHAPLUS II

LIFE

PARTNERPLUS

SHUBHINVEST

LIFE PAYMONEYBACK


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Private Total

Premium

data upto

Sept 10

Individual Single Premium 2727.157

Individual Non-Single Premium 22162.68

Group Single Premium 1806.868

Group Non-Single Premium 3205.558

Premium data upto Sept 10 -Private Total

Individual Single

Premium

Individual Non-

Single Premium

Group Single

Premium

Group Non-Single

Premium

Max New York

Premium

data upto

Sept 10

Individual Single Premium 195.6871

Individual Non-Single Premium 1528.691

Group Single Premium 11.00241

Group Non-Single Premium 75.98484

Premium data upto Sept 10 MNYLIndividual Single

Premium

Individual Non-Single

Premium

Group Single Premium

Group Non-Single

Premium


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Private Total no of policies upto sept 10

Individual Single Premium 647813

Individual Non-Single Premium 11002129

Group Single Premium 738

Group Non-Single Premium 4209

no of policies upto sept 10 -private total

Individual Single

Premium

Individual Non-

Single Premium

Group Single

Premium

Group Non-Single

Premium

Max New York no of policies upto sept 10Individual Single Premium 11814




no of policies upto sept 10 -MNYL

Individual Single

Premium

Individual Non-

Single Premium

Group Single

Premium

Group Non-Single

Premium


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Private Total

no of livesinsuredupto sept10





no of lives insured upto sept 10- Private total

Individual Single

Premium

Individual Non-

Single Premium

Group Single

Premium

Group Non-Single

Premium

Max New York

no of livesinsuredupto sept10



Group Single Premium 1445693Group Non-Single Premium 9769146

no of lives insured upto sept 10- MNYL

Individual Single

Premium

Individual Non-

Single Premium

Group Single

Premium

Group Non-Single

Premium


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Max Vijay Revolutionized the way insurance is procured, sold and serviced

It not only fulfils the customers primary need of protection, but also facilitates long-term savings

designed specifically for the underserved segment of the society to meet the uniquechallenges of unpredictability in life and their income flow

Easy to acquire plan. No Medical Tests. No age proof required.

Twin Benefits. Savings and Insurance too.

Invest as low as Rs 10. Convert loose change into savings.

Lapse Free policy for 10 years.*

Qualit ies

Affordable

Lapse-Free

Flexible


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Brand Ambassador: Mr. Amithabh Bachchan

Golden Peacock Award

Affordable

Three premium paying options of Rajat, Swarna and Heera enables the customer

to enter the plan at a minimal initial premium amount of Rs. 1000, Rs. 1500 and Rs.2500 respectively

Sum Assured is guaranteed Investment returns once credited to the policyholders account value

In cas e of natural death,

the claimant receives the guaranteed sum assured and the account value

In cas e of an accidental d eath,

the claimant receives the account value and double the amount of Sum Assured

Flexible

Choice to invest any amount, anytime, anywhere.


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Accessib le Insu rance at the consumers doorstep Distribution approach adopted for this product is designed to make insurance

available in the remotest areas of the country.

This product requires any financial and medical underwriting nor any supportingdocuments for age, etc

Customer is required to fill a simple one-page form and submit only an ID proof toown the policy

Lapse-free

The policy will not lapse as long as there is sufficient value in the policy account tomeet the charges

Criteria Eligibility


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Criteria EligibilityMax Vijay Rajat Max Vijay Swarna Max Vijay Heera

Death Benefit incase of NaturalDeath*

5 times the premiumreceived subject to amaximum of Rs50,000 plus thepolicyholders

account value.

5 times the premiumreceived subject to amaximum of Rs 75,000plus the policyholdersaccount value.

5 times the premiumreceived subject to amaximum of Rs 100,000plus the policyholdersaccount value.

Death Benefit incase of

Accidental

Death

An additionalamount (over &above DB payablein case of naturaldeath) equal to 5

times the premiumreceived subject to amaximum of Rs50,000

An additional amount (overand above death benefitpayable in case of naturaldeath) equal to 5 times the

premium received subjectto a maximum of Rs75,000.

An additional amount(over and above deathbenefit payable in caseof natural death) equal

to 5 times the premiumreceived subject to amaximum of Rs100,000.

First Premium

Payment Rs 1,000 Rs 1,500 Rs 2,500


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Adopted SAS technology to transform its efforts to strengthen customer retention andcross-selling to a tightly segmented customer base.

Not just retention expansion Key advantages that SAS : It provides improved speed and precision.

Demographics and previous transaction behaviors of Existing customers areanalysed.

Results into tailor specific cross-sell offers and script different contact scenariosbased on their value, their propensity to buy, their propensity to pay, and their

propensity to lapse. It pumps the right information to the right people at the right time so that they can

make the right decisions. Because of these predictions and forecasts, SAS isremoving a lot of the guesswork

Measure of Success:

MNYL has achieved remarkable improvements in retention and cross-selling.

Earlier, only 7 percent of revenue came from existing customers


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One Stop Shop for all MNYL Life Claims Status

To enable faster and smoother claims settlement,

Encourage and educate Customers to submit all the required claim documentstogether..

Details of claim documents requirement for different claim types along with all the

Claim Forms is available on our website

One can view the status of the claims.


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Launched the Interactive Voice response to help Advisors and Customers to knowabout their Commission & policy Details.

Launched a ACTIVIZOR software to be used by the front end sales team to help

them track their customer base

Various Portals to track the flow of Proposals from one queue to another.For eg.Omniflow, My Money

Intranet site to speed up the updation of premiums paid by the customers inorder toavoid lapsation.

A newly launched portal CLAIMS CONNECT to view the status of claims payables.

A start to end MIS implementation to conserve customer data, provide update onfuture premiums and commission calculation


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0

200000

400000

600000

800000

1000000

1200000

Bajaj Allianz ING Vysya Reliance Life ICICI

Prudential

HDFC

Standard

Max New

York

No. of Policies / Schemes

No. of Policies / Schemes


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0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

Bajaj Allianz ING Vysya Reliance Life ICICI Prudential HDFC Standard Max New York

Premium

Premium


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Concentrate on the life insurance business only & exit the health insurancesector

Special schemes for Government employees with lower premiums

Group Insurance & key man insurance for Pvt. Ltd Companies

Innovations products with bonus to be paid with compounding effect

Introduction of pension schemes with Guaranteed bonus

Insurance can be made compulsory to ensure a social security

Re-branding: Projecting the brand with an Indian ideology and name forbetter resonance


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Customer Education program where in customer would be educated about claims,policy enforcement process etc.

Product Innovation : Pictorial explanation of the product opted for by the customer

Follow up with the policy holder for ensuring cross selling & customer retention

Early re action to market challenges

SAS implementation - details to be captured

Training & development for agents with a cost on the Insurer for it.

Emphasis on the young couple marriage & Women policy


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New York life insurance company was the no 1 seller of fixed immediate annuities for women

in 2009 - 64% of its record $1.9 billion in sales we to women purchaser.

Thus new target groups can be identified in india and products be modified and launched bycustomizing the same.

Chennai based financial services company polaris is come out with a new technology which

allows insurers to sell their products and collect renewal premiums through ATM's . Change the communication i.e advertising strategy of Max it should try to project not only

insurance but also assurance . As most people do not understand the product its better to have a sound marketing done to

instill faith in consumers . 2008-2009 saw an increased nos of millionaires in india many of whom invest in fixed income

investments seeking predictable returns and cash flows modify and customise products

accordingly. Liquidity is incredibly important and people need cash flows to preserve their lifestyle but

they want to replace that cash flow in a way that does not increase their risk profile.


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Group 2 - New York

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