MAX NEWYORK LIFE Channel Development at Max New York Life

7/28/2019 MAX NEWYORK LIFE Channel Development at Max New York Life

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Preface

Indian insurance industry is emerging rapidly after year 2000. To survive in these highly

competitive scenario managers will bring pressure to improve quality recruit quality andskilled people. Collective efforts of the employer manager and other relative peopleassume relevance in this context and this their marketing management and human

resources play an important role.

Recruitment is very important in todays scenario but still it is ignored and considered asa secondary aspect incase insurance industry recruitment only decides success or failure

of the company

I have made an attempt to study this aspect of insurance industry in my project. In thisproject recruitment for developing channel at Max New York Life is considered. I have

tried to find out how exactly recruitment is very important for this firm as well as this

industry, which are the different strategies this firm uses to recruit quality people and so

on. It is most qualitative rather than quantitative data. The above information wasobtained during my intern period which was of 2 months at Max New York life and I

have also gained some information from the companies website. On the basis of my

study I have included the following topic as the important aspect of channeldevelopment at Max New York Life.

Insurance Sector

Channel Development Process

Eligibility Criteria

In this project I have tried to give attention to all the above topics and study them in

depth but I would still like to receive all sorts of feedback to enhance my knowledge on

these topics as far as this industry is concerned.


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Table of Contents

Acknowledgement 5

Preface 6

Table of Contents 7

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SECTION A: INTRODUCTION 10

A.1 ABOUT INSURANCE INDUSTRY 11

A.2 ABOUT MAX NEW YORK LIFE 19

A.3 ABOUT PROJECT 27

SECTION B: CHANNEL DEVELOPMENT STRATEGIES 33

B.1 ELIGIBILITY MODEL 34

B.2 DEVELOPMENT STRATEGIES 37

B.3 SCRIPTS AND OBJECTION HANDLING 43

SECTION C: CHANNEL DEVELOPMENT PROCESS 44

C.1 NAME GATHERING IN-P200 46

C.2 SHORTLISTING 46C.3 CONTACTING 47

C.4 INITIAL SCREENING 47

C.5 NAT 48

C.6 CAREER SEMINAR 48

C.7 CAREER INTERVIEW 48

C.8 FCS 48

C.9 IC 33/CONTRACT 48

SECTION D: STATUS REPORT 50

D.1 ACTIVITY CHART 50

D.2 FINDINGS 55

SECTION E: CONCLUSTION 62

63

E.1 EXPERIENCE 63

E.2 SUMMARY 64E.3 RECOMMENDATION 65

E.4 BIBLIOGRAPHY 67

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List of Abbreviations

MNYL Max New York Life

AA Agent Advisor

PO Personal Observation

NAT Numerical Ability Test

FCS Fundamental Career Seminar

IRDA Insurance Regulatory & Development Authority

CoI Centre of Influence

ATP Annual Target Premium

IRDP Integrated Rural Development Programme

PAB Personal Accident Benefit

ATP Annual Target Premium

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SECTION A

INTRODUCTION

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A.1 INTRODUCTION TO INSURANCE

WHAT IS INSURANCE?

The business of insurance is elated to the protection of the economic values of assets.

Every asset has a value. The asset would have been created through the efforts of the

owner. The asset is valuable to the owner, because he expects to get some benefits fromit. The benefit may be an income or some thing else. It is a benefit because it meets

some of his needs. In the case of a factory or a cow, the product generated by it sold and

income generated. In the case of motor car, it provides comfort and convenience intransportation. There is no direct income.

Every asset is expected to last for a certain period of time during which it will perform.

After that, the benefit may not be available. There is a life-time for a machine in afactory or a cow or a motor car. None of them will last for ever. The owner is aware ofthis and he can so manage his affairs that by the end of that period or life-time, a value

or income is not lost. However, the asset may get lost earlier. An accident or some other

unfortunate event may destroy it or make it non-functional. In that case, the owner andthose deriving benefits therefrom, would be deprived of the benefit and the planned

substitute would not have been ready. There is an adverse or unpleasant situation.

Insurance is a mechanism that helps to reduce the effect of such adverse situations.

BRIEF HISTORY OF INSURANCE

The business of insurance started with marine business. Traders, who used to gather inthe Lloyds coffee house in London agreed to share the losses to their goods while being

carried by ships. The losses used to occur because of pirates who robbed on the high

seas or because of bad weather spoiling the goods or sinking the ship. The first

insurance policy was issued in 1583 in England. In India insurance began in 1870 withlife insurance being transacted by an English company, the European and the Albert.

The first Indian insurance company was the Bombay Mutual Assurance Society Ltd,

formed in 1870. This was followed by the Oriental Life Assurance co. in 1874, theBharat in 1896 and the Empire of India in 1897.

Later, the Hindustan Cooperative was formed in Calcutta, the United India in Madras,

the Bombay Life in Bombay, the National in Calcutta, the New India in Bombay, theJupiter in Bombay and the Lakshmi in New Delhi. These were all Indian companies,

started as a result of the swadeshi movement in the early 1900s. by the year 1956, when

the life insurance business was nationalized and the Life Insurance corporation of India

(LIC) was formed on 1st September 1956, there were 170 companies and 75 providentfund societies transacting life insurance business in India. After the amendments to the

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relevant laws in 1999, the L.I.C. did not have the exclusive privilege of doing lifeinsurance business in India. By 31.3.2002, eleven new insurers had been registered and

had begun to transact life insurance business in India.

IMPORTANT MILESTONES IN THE LIFE INSURANCE BUSINESS IN INDIA

Insurance Sector Reforms

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor

R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its

future direction. The Malhotra committee was aimed at creating a more efficient and

competitive financial system suitable for the requirements of the economy keeping inmind the structural changes currently underway and recognizing that insurance is an

important part of the overall financial system where it was necessary to address the need

for similar reforms. In 1994, the committee submitted the report and some of the keyrecommendations included:

i) Structure: Government stake in the insurance Companies to be brought down to

50%. Government should take over the holdings of GIC and its subsidiaries so that these

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subsidiaries can act as independent corporations. All the insurance companies should begiven greater freedom to operate.

ii) Competition: Private Companies with a minimum paid up capital of Rs.1bn should

be allowed to enter the sector. No Company should deal in both Life and GeneralInsurance through a single entity. Foreign companies may be allowed to enter theindustry in collaboration with the domestic companies. Postal Life Insurance should be

allowed to operate in the rural market. Only one State Level Life Insurance Company

should be allowed to operate in each state.

iii) Regulatory Body: The Insurance Act should be changed. An Insurance Regulatorybody should be set up. Controller of Insurance- a part of the Finance Ministry- should be

made independent

iv) Investments: Mandatory Investments of LIC Life Fund in government securities tobe reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in

any company (there current holdings to be brought down to this level over a period of

time)

v) Customer Service: LIC should pay interest on delays in payments beyond 30 days.Insurance companies must be encouraged to set up unit linked pension plans.

Computerization of operations and updating of technology to be carried out in the

insurance industry.

The committee felt the need to provide greater autonomy to insurance companies inorder to improve their performance and enable them to act as independent companies

with economic motives. For this purpose, it had proposed setting up an independent

regulatory body- The Insurance Regulatory and Development Authority.

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill inParliament in December 1999. The IRDA since its incorporation as a statutory body in

April 2000 has fastidiously stuck to its schedule of framing regulations and registering

the private sector insurance companies. Since being set up as an independent statutorybody the IRDA has put in a framework of globally compatible regulations. The other

decision taken simultaneously to provide the supporting systems to the insurance sector

and in particular the life insurance companies was the launch of the IRDA online service

for issue and renewal of licenses to agents. The approval of institutions for impartingtraining to agents has also ensured that the insurance companies would have a trained

workforce of insurance agents in place to sell their products.

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PRESENT SCENARIO OF AN INSURANCE INDUSTRY

The Government of India liberalised the insurance sector in March 2000 with thepassage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting allentry restrictions for private players and allowing foreign players to enter the market

with some limits on direct foreign ownership. Under the current guidelines, there is a 26

percent equity cap for foreign partners in an insurance company. There is a proposal toincrease this limit to 49 percent.

The opening up of the sector is likely to lead to greater spread and deepening of

insurance in India and this may also include restructuring and revitalizing of the public

sector companies. In the private sector 12 life insurance and 8 general insurancecompanies have been registered. A host of private Insurance companies operating in

both life and non-life segments have started selling their insurance policies since 2001.

Table shows the current market players in the life Insurance Industry (Source IRDA).

Sr. No. Name of the Company

1 Bajaj Allianz Life Insurance Co. Limited

2 Birla Sun Life Insurance Co. Ltd

3 HDFC Standard Life Insurance Co. Ltd

4 ICICI Prudential Life Insurance Co. Ltd

5 ING Vysya Life Insurance Co. Ltd.

6 Life Insurance Corporation of India

7 Max New York Life Insurance Co. Ltd

8 Met Life India Insurance Co. Pvt. Ltd.9 Kotak Mahindra Old Mutual Life Insurance Ltd.

10 SBI Life Insurance Co. Ltd.

11 Tata AIG Life Insurance Co. Ltd.

12 Reliance Life Insurance Co. Ltd.

13 Aviva Life Insurance Co. India Pvt. Ltd.

14 Sahara India Life Insurance Co. Ltd.

15 Shriram Life Insurance Co. Ltd.

16 Bharti AXA Life Insurance Co. Ltd.

Life Insurance Market Growth

The Life Insurance market in India is an underdeveloped market that was only tapped by

the state owned LIC till the entry of private insurers. The penetration of life insuranceproducts was 22 percent of the total 400 million of the insurable population. Most

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http://www.irdaindia.org/lifeproducts/bajaj080607.htmhttp://www.irdaindia.org/lifeproducts/birlasunlife200407.htmhttp://www.irdaindia.org/lifeproducts/hdfc160607.htmhttp://www.irdaindia.org/lifeproducts/ingvysya200407.htmhttp://www.irdaindia.org/lifeproducts/max080607.htmhttp://www.irdaindia.org/lifeproducts/sbi-life-190407.htmhttp://www.irdaindia.org/lifeproducts/reliance170407.htmhttp://www.irdaindia.org/lifeproducts/aviva080507.htmhttp://www.irdaindia.org/lifeproducts/sahara080507.htmhttp://www.irdaindia.org/lifeproducts/shriram080507.htmhttp://www.irdaindia.org/lifeproducts/bhartiAXA030407.htmhttp://www.irdaindia.org/lifeproducts/birlasunlife200407.htmhttp://www.irdaindia.org/lifeproducts/hdfc160607.htmhttp://www.irdaindia.org/lifeproducts/ingvysya200407.htmhttp://www.irdaindia.org/lifeproducts/max080607.htmhttp://www.irdaindia.org/lifeproducts/sbi-life-190407.htmhttp://www.irdaindia.org/lifeproducts/reliance170407.htmhttp://www.irdaindia.org/lifeproducts/aviva080507.htmhttp://www.irdaindia.org/lifeproducts/sahara080507.htmhttp://www.irdaindia.org/lifeproducts/shriram080507.htmhttp://www.irdaindia.org/lifeproducts/bhartiAXA030407.htmhttp://www.irdaindia.org/lifeproducts/bajaj080607.htm


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customers were under- insured with no flexibility or transparency in the products. Withthe entry of the private insurers the rules of the game have changed.

Life insurance business in terms of first year premium has shown a growth of more than

95% over the previous year and non life, or general insurance, is not far behind either,growing at 22% during 2006-07.The 15 private insurers in the life insurance markethave already grabbed nearly 24 percent of the market in terms of premium income. The

new business premium of the 15 private players has tripled over last year. Meanwhile,

state owned LIC's new premium business has fallen. Figure shows comparison betweenpremiums being collected by private and public limited players in year 2006 and 2007.

Innovative products, smart marketing and aggressive distribution. That's the triple

whammy combination that has enabled fledgling private insurance companies to sign up

Indian customers faster than anyone ever expected. Indians, who have always seen lifeinsurance as a tax saving device, are now suddenly turning to the private sector and

snapping up the new innovative products on offer.

The growing popularity of the private insurers shows in other ways. They are coining

money in new niches that they have introduced. The state owned companies stilldominate segments like endowments and money back policies. But in the annuity or

pension products business, the private insurers have already wrested over 33 percent of

the market. And in the popular unit-linked insurance schemes they have a virtualmonopoly, with over 90 percent of the customers.

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The private insurers also seem to be scoring big in other ways- they are persuadingpeople to take out bigger policies. For instance, the average size of a life insurance

policy before privatization was around Rs 50,000. That has risen to about Rs 80,000.

But a rejuvenated LIC is also trying to fight back to persuade new customers.

THE BUSINESS OF INSURANCE

Insurance companies are called insurers. The business of insurance is to

Bring together persons with common insurance interests (sharing the samerisks),

Collect the share of contribution (called premium) from all of them,

Pay out compensations (called claims) to those who suffer.

In India, insurance business is classified primarily as life and non-life or general. Life

insurance includes all risks related to the lives of human beings and general insurancecovers the rest. General insurance has three classifications viz., Fire (dealing with all

fire related risks), Marine (dealing with all transport related risks and ships) and

Miscellaneous (dealing with all others like liability, fidelity, motor, crop, personal

accident, etc). Personal accident and sickness insurance, which are related to humanbeings, is classified as non-life in India, but is classified as life, in many other

countries, what is Non-Life in India is termed Property and Casualty in some other

countries.

The business of insurance is nothing but one of sharing. It spreads losses of anindividual over the group f individuals who are exposed to similar risks. People who

suffer loss get relief because their loss is made good. People who do not suffer loss are

relieved because they were spared the loss.

The insurer is in the position of a trustee as it is managing the common fund, for and on

behalf of the community of policyholders. It has to ensure that nobody is allowed to takeundue advantage of the arrangement. That means that the management of the insurance

business requires care to prevent entry (into the group) of people whose risks are not ofthe same kind as well as paying claims on losses that are not accidental. The decision to

allow entry is process of underwriting of risk. Underwriting includes assessing the risk,

which means, making an evaluation of how much is the exposure to risk. The premium

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to be charged depends on this assessment of the risk. Both underwriting and claimsettlements have to be done with great care.

INSURANCE IN SOCIAL SECTOR

The benefits of life insurance are needed most by people in this sector, as they are

relatively poor and have very little savings, if at all. Any loss of income through earlydeath would make the surviving family poorer than before. The condition would be

worse if the deceased had not repaid loans, taken for the purpose of his work or for

personal requirements.Soon after nationalization of life insurance, this need was recognized and efforts were

made to introduce what was called mass insurances. The concept was to cover very

large numbers of poor people in one scheme. The difference between such plans under

the social sector and group insurance policies is that the former are not policies takenvoluntarily by any employer or organization or association, but are part of the schemes

of the government being implemented through the business of life insurance.Till early 2000, there were Social Security Group Insurance Schemes (SSGIS)separately for recognized occupations. 24 occupations had been approved and as at the

end of 1999, these schemes covered nearly 50 lakhs persons for a total sum assured of

nearly Rs. 1750 crores. This averaged out to nearly Rs. 3500 per head. In fact, the S.A.differed from scheme to scheme. The benefit on death by accident was Rs. 25,000. The

premium for the cover was paid by the State or from the social security fund set up by

the L.I.C in 1988-89, for this purpose.There was also the Rural Group Life Insurance Scheme (RGLIS), whereunder persons

aged between 20 and 50 years were covered for sums for Rs.5000 payable on death

before the age of 60. he scheme was administered through elected panchayats.

Following are a few schemes that were launched in this sector

Janashree Bima Yojana, July 2000

It was meant to cover all the rural and urban poor who are aged between 18 and60 years and are bread winners of the family. The persons to be covered are

recommended by a nodal agency, which is a statutory body or voluntary

organization recognized for this purpose. It acts are the sole point of contact forthe insurer, giving data about its members, collecting premia and making the

claims as and when they arise. The sum assured under this scheme is Rs. 20,000

(Rs.50,000 in the case of death by accident). The minimum number in the group

has to be 250. half the premium is paid by the social security fund and the other

half by the members or the nodal agency or the State Government.

Swarnajayanti Gram Swarojgar Yojana

The beneficiaries of the Integrated Rural Development Programme, are covered

by the Swarnajayanti Gram Swarojgar Yojana. A separate fund has been set up

by the Government of India for funding the scheme. The scheme is administeredthrough district rural and development agency coming under zilla parishad. All

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the persons between 18 and 60 years and receiving subsidy/ financial assistance/loan under IRDP after 1.4.1988are eligible to join the scheme. The premium is

fully borne by the Government of India. The insurance cover is provided for a

period of 5 years from the date of disbursement of subsidy/ financial assistance/

loan. In the event of death before age 60 a sum assured of Rs.5,000/- becomespayable to the nominee. In case of death due to accident, an amount of Rs.10,000

becomes payable.

Landless Agricultural Laborers Group Insurance Scheme

L.I.C. has introduced the LALGI on behalf of the Government. It provides term

insurance protection to the extent of Rs.2000 each to families of landlessagricultural labourers, who do not own land and do not have any in heritable

rights to agricultural land. The entire cost (premium) is borne by the

Government.

Krishi Shramik Samajik Suraksha Yojana, 2001Provides periodical lump sum survival benefits and pension to agricultural

workers. The member has to pay Rs. 90 at the beginning of every quarter anddouble the amount is contributed from the social security fund. Agricultural

workers between 18 and 50 years of age are covered. On death before age 60,

the S.A. of Rs. 20,000, along with accumulated amount with interest, is payableto the nominee. In case of death by accident, the insurance cover is for Rs.

50,000. PDB benefits are provided. On the life assured surviving 60 years, if the

period of contribution is 10 years or more, a lump sum will be paid, depending

on his contribution. A minimum pension of Rs. 100 per month will be paidduring his lifetime.

Shiksha Sahayog Yojana, 2001.

Is designed to provide, at no additional cost, an educational allowance of Rs, 300

per quarter to students studying in classes 9 to 12, whose parents are below the

poverty line and are members of the Janashree Bima Yojana. The payments willbe made out of the social security fund of the Government through the

educational institutions concerned.

INSURANCE AS A SOCIAL SECURTY TOOL

The United Nations Declaration of Human Rights 1948 provides that everyone has a

right to a standard of living adequate for the health of wellbeing of himself and his

family, including food, clothing, housing and medical care and necessary social services

and the right to security in the event of unemployment, sickness, disability, widowhoodor other lack of livelihood in circumstances beyond his control.

When the bread winner dies, to that extent, the familys income dies. The economic

condition of the family is affected, unless other arrangements come into being to restore

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the situation. Life insurance provides such an alternate arrangement. If this did nothappen, another family would be pushed into the lower strata of society. The lower

strata create a cost on society. Poor people cost the nation by way of subsidies and doles

and so on. Poor people also cost by way of larger growth in population, poor education

and vagaries in behavior of children. Life insurance tends to reduce such costs. In thissense, the life insurance business is complimentary to the States efforts in social

management.Under a socialistic system the responsibility of full security would be placed upon the

State to find resources for providing social security. In the capitalistic society,

provisions of security are largely left to the individuals. The society provides

instruments, which can be used in securing this aim. Insurance is one of them. In acapitalistic society too, there is a tendency to provide some social security by the State

under some schemes where members are required to contribute e.g. Social security

scheme in UK.In India, social security finds a place in our Constitution Article 41 requires the State,

within the limits of its economic capacity and development, to make effective provision

for securing the right to work, to education and to provide public assistance incase ofunemployment, old age, sickness and disablement and in other cases of undeserved

want. Parts of the States obligations to the poorer sections are met through the

mechanism of life insurance.

As per the law and the directions of the regulatory authorities, insurance companies inIndia are obliged to extend insurance benefits to economically weaker sections of the

society in the unorganized sector.

ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT

For economic development, investments are necessary. Investments are made out of

savings. A life insurance company is a major instrument for the mobilization of savings

of people, particularly from the middle and lower income groups. These savings arechanneled into investments fro economic growth.

all good life insurance companies have huge funds, accumulated through the payments

of small amounts of premia of individuals. These funds are invested in ways thatcontribute substantially for the economic development of the countries in which they do

business. The private insurers in India are new and had not built up funds in 2002. but,

in course of time, they also would be directly and indirectly contributing to thecountrys economic development.

A life insurance company will have large funds. These amounts are collected by way of

premiums. Every premium represents a risk that is covered by that premium. In effect,

therefore, these vast amounts represent pooling of risks. The funds are collected andheld in trust for the benefit of the policy holders. The management of life insurance

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companies are required to keep this aspect in mind and make all its decisions in waysthat benefit the community. This applies also to its investments. That is why successful

insurance companies would not be found investing in speculative ventures. Their

investments, as in the case of L.I.C., benefit the society at large.

Apart from investments, business and trade benefit through insurance. Withoutinsurance, trade and commerce will find it difficult to face the impact of major perils

like fire, earthquake, floods, etc. Financiers, like banks, would collapse if the factory,financed by it, is reduced to ashes by a terrible fire. Insurers cover also the loss to

financiers, if their debtors default.

A.2 ABOUT MAX NEW YORK LIFE

Max New York Life Insurance Company Ltd. is a joint venture between New York Life,

a Fortune 100 company and Max India Limited, one of India's leading multi-businesscorporations. The company has positioned itself on the quality platform. In line with its

vision to be the most admired life insurance company in India, it has developed a strongcorporate governance model based on the core values of excellence, honesty,knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted

life insurance specialist through a quality approach to business.

In line with its values of financial responsibility, Max New York Life has adopted

prudent financial practices to ensure safety of policyholder's funds. The Company's paidup capital is Rs. 657 crore, which is more than the norm laid down by IRDA.

Max New York Life has identified individual agents as its primary channel of

distribution. The Company places a lot of emphasis on its selection process, 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.

Max New York Life invests significantly in its training programme and each agent is

trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDAbefore 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 500 hours in two years. This focus on continuous

quality training has resulted in the company having amongst the highest agent pass ratein IRDA examinations and the agents have the highest productivity among private life

insurers.

201 agent advisors have qualified for the Million Dollar Round Table (MDRT)

membership in 2005. MDRT is an exclusive congregation of the worlds top sellinginsurance agents and is internationally recognized as the standard of excellence in the

life insurance business.

Having set a best in class agency distribution model in place, the company isspearheading a major thrust into additional distribution channels to further grow its

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business. The company is using a five-pronged strategy to pursue alternative channels ofdistribution. These include the franchisee model, rural business, direct sales force

involving group insurance and telemarketing opportunities and corporate alliances.

Max New York Life offers a suite of flexible products. It now has 26 life insuranceproducts and 8 riders that can be customized to have more than 400 products.

VisionTo become the most admired life Insurance Company in India.

MissionTo become one of the top quartile life Insurance companies in India.

Be a national player.Be the brand of the first Choice.

Be the Employer of the Choice.

Become principal of choice for agents.

ValuesThis vision to become India's most admired life insurance company will be

realized through our unique set of values, which are as follows:

Achievements First life insurance Company in India to have IS0 9001:2000 certifications.

Top five most respected private life insurance in India according to Business

World survey.

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Continuous presence in Top 50 MDRT global list.

CSRMax New York Life has been instrumental in changing the paradigm of life insurance in

India. It is the first life insurance company in India to introduce cause related marketing.

Children are at the very heart of Max New York Life's strategy. SOS Children's Villagesof India is internationally recognized for its work in giving underprivileged children a

wholesome life. The mission of SOS is "to help orphaned and abandoned children, by

providing them with a family, a permanent home, education and strong foundation for

an independent life." It's mission ties in with Max New York Life's philosophy ofhelping people secure the future of their near and dear ones.

The company donates a part of the total money collected on all policies sold, to SOS

Children's Villages of India at the end of the year.

Leadership Team

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REWARD AND RECOGNITION

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CE

MDRT

Ex. Council

Paul Colgan

Trophy

Centurion

Agent of the Year

Paid Cases, FYC, Persistency,

Rider, Referral and CEIP Leader

Career Foundation Club

Career Producer Award

Career Success Award

Hi-Flier

Ten-A-Monther

Premium Leader

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1) Premium Leader

Qualifying Criteria- Rs. 1 Lakh AFYP in a month

Reward and Recognition- Mention in leaders Report, Lunch

2) Ten-A-Monther

Qualifying Criteria- 10 applications in a month and Rs. 30,000 AFYP

Reward and Recognition- MNYL Crystal Glass, mention in Leaders Report,Lunch.

3) Hi-Flier

Qualifying Criteria- 20 applications in a month

Reward and Recognition- MNYL Silver Medal, MNYL Crystal Glass, Mention

in

Leaders Report, Lunch

4) Career Success Award

Qualifying Criteria- 15 paid cases & Rs. 40,000 FYC at the end of month 3

Reward and Recognition- Recognition Award

5) Career Producer Award

Qualifying Criteria- 25 paid cases & Rs. 80,000 FYC at the end of month 6


6) Career Foundation Club

Qualifying Criteria- 50 paid cases & Rs. 1.8 lakhs FYC in July- June for

Recruits during this period.

Reward and Recognition- Attend CFC meeting to be held at Zone level

7) Paid Case, FYC, Persistency, rider, Referral and CEIP Leader

Qualifying Criteria- Top Agent in each category in each GO

Reward and Recognition- Recognition Plaque

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8) Agent of the Year

Qualifying Criteria- Highest Points in each GO


9) Centurion

Qualifying Criteria- 100 net paid cases in a year

Reward and Recognition- Centurion Trophy

10) Paul Colgan Trophy

Qualifying Criteria- Highest FYC with 100 or more paid cases and 95%

Or more 13th month persistency

Reward and Recognition- Recognition Trophy

11) Executive Council

Qualifying Criteria- July 2006 to June 2007: 4,30,000 Council Credits

January 07 to June 07: 1,60,000 Council Credits40 paid cases in the Council

Period.

Reward and Recognition- Trip to Malaysia to attend the Executive Council

Meeting.

12) MDRT (Million Dollar Round Table)

Qualifying Criteria- MDRT FYC Rs. 7,19,800 Premium Rs.14,39,600

Reward and Recognition- MDRT dues for all qualifiers. Top 35 by FYC will

Bear domestic travel and visa costs. Next 15 will

bearRegistration fees, domestic travel and visa costs. Rest

All will bear international airfare, domestic travel

andVisa costs.

13) CEOS Council

Qualifying Criteria- July 2006 to June 2007: 8,00,000 Council Credits

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Jan 2007 to June 2007: 3,20,000 Council Credits

Reward and Recognition- Trip to Amsterdam to attend the CEO Council

meeting.

PRODUCTS OF MNYL

Whole Life Plans

Unit Linked Insurance Plans

Endowment Plans

Children Plan

Money Back Plans

Pension Plans

Health & Accident Related Riders

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A.3 ABOUT PROJECT

DEFINITION OF AN AGENT

According to section 182 of the Indian Contracts Act, an agent is a person employed todo any act for another or to represent another in dealing with a third person. The personfor whom such act is done or who is so represented is called the principal. In the

insurance industry, the term agent is ordinarily applied to a person engaged by the

insurer o procure new business.The Insurance Act defines an insurance agent as one who is licensed under Section 42

of that Act and is paid by way of commission or otherwise, in consideration of his

soliciting or procuring insurance business, including business relating to the

continuance, renewal or revival of policies of insurance. He is, for all purposes, anauthorized salesman for insurance.

There is a legal maxim qui facit alium, facit perse, which means that he who acts

through others, acts to himself. The principal is bound by what the agent does.Therefore, contracts entered into through an agent, and obligations arising from acts

done by an agent, may be enforced in the same manner and will have the same legal

consequences, as if the contracts have been entered into, and the acts done, by theprincipal himself.

Under Section 183 of the Contracts Act, any person who is a major, according to the law

to which he is subject, and who is of sound mind, can employ an agent. Section 184provides that as between the principal and third persons, any person may become an

agent. Thus though a minor may be employed as an agent an the principal would be

bound by his actions, the minor himself will not be liable to his principal. Unlike other

contracts, no consideration is necessary to create an agency contract.

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AUTHORITY OF AN AGENT

While the maxim cited above makes the principal liable for all the acts done by the

agent, he can restrict his liability by specifying the extent of authority granted to theagent. This authority may be expressed or implied. An authority is said to be expressed

when it is stated by words, spoken or written. It is implied when it is to be inferred from

the circumstances of the case.The L.I.C. does not authorize its agents to collect premia (except first premium alongwith the proposal) or other amounts from the policyholders. But if the agent collects

such amounts, remits them to be insurer and gets receipts to be handed over back to the

policyholder, implied authority can be inferred or construed. The LICs stand has beenthat its agents are not authorized to collect renewal premiums and that if they do so, they

are acting as agents of the policyholders and not of the LIC. The implication is that if an

agent collects premium from a policyholder and does not remit the same in the office,the L.I.C. would not be liable for that amount. The courts have upheld this stand. Other

insurance companies in India may not follow L.I.C.s practice. They may grant more or

less authority this is what Max New York Life follows that is it does at times allow its

agent advisors to collect renewal premium.

AGENTS REGULATIONS

The Insurance Regulatory and Development Authority (IRDA), constituted by the

IRDA Act of 1999 issued the following regulations:

IRDA (Licensing of Insurance Agents) Regulations, 2000

These Regulations deal with the issue of licenses under Section 42 of theInsurance Act, 1938 and other matters relating to agents.

IRDA (Licensing of Corporate Agents) Regulations, 2002

By another notification in October 2002, these Regulations were made

ineffective for corporate agents and the new IRDA Regulations, 2002 were

issued. These regulations deal with the issue of licenses and other matter relatingto corporate agents.

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In terms of these Regulations, a license will not be given if the person is- a minor

- found to be of unsound mind

- found guilty of criminal misappropriation or criminal breach of trust or

cheating or forgery or an abetment of or attempt to commit any such offence- found guilty of or knowingly participating in or conniving at any fraud,

dishonesty or misrepresentation against an insurer or an insured- not possessing the requisite qualifications and specified training

- not passed such examinations as are specified by the Regulations

- found violating the code of conduct as specified by the Regulations

It is not only an individual who can become an agent. Collectives like companies, firms,banks, cooperative societies, etc., can also become agents. These collectives will

designate one or more persons as Corporate Insurance Executives, who will be

required to obtain licenses. Others who may also work for the corporate agent, will becalled Specified Persons and they will be required to obtain certificates.

The fee for grant of a license is Rs.250 for individual as well as corporate agents. A

license is granted for 3 ears. It may be renewed after 3 years. It can be cancelled, it theagent acquires any of the disqualifications. The fees for the certification of the specified

person is Rs.500. this is also valid for 3 years.

Different kinds of agents are recognized under the Contract Act. In the airline industry,

for example, there is the system of the General Agent, who has authority to act on behalf

of the principal on all matters within a specified sphere. Such general agents mayrepresent more than one principal at the same time. Similar systems of general agents

exist also in the shipping industry. They represent foreign shipping companies and are

authorized to deal with shippers and local authorities like the ports or the stevedores, toensure that the ships visit to the port is profitable and without problems.

Brokers arrange to place the business of their clients with insurers on terms that are

standard or negotiated. This becomes necessary when the needs of the proposers areunique and not met by the benefits under the standard plans of insurance. Brokers

understand the nuances of the business well and also know the policies of the insurers.

A broker usually does business with more than one insurance company. He collectscommission from the insurer with whom the business is placed and does not charge the

prospect

In India, till October 2002, only insurance agents licensed by the IRDA were permitted

to procure and solicit life insurance business. Brokers dealt only with reinsurance

business. The law was amended in September 2002, and the IRDA has issued

(Insurance Brokers) Regulations, 2002 providing for the licensing of direct brokers,

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reinsurance brokers and composite brokers, the last being authorized to deal withdirect business as well as reinsurance business.

BENEFITS OF AN AGENT ADVISOR

Independent professional

An agent is an independent professional because he doesnt have to work atfixed hours, in prescribed ways and under close supervision, thus when he is

licensed and appointed an agent becomes an independent professional

No prevention from pursuing any other interest

An agency as a profession does not restrict an agent from pursuing his otherinterest or vocation. Agency could also be made supplementary to his/her

genuine or current work or business.

Means to earn a living

Its a mean to earn his/her living wherein they may spend only part of the time

on insurance, being busy on other work the rest of the time.

Helps in improving skillsAgency as a profession helps the agents to improve their skills especially those

agents who try to study and understand the business in great details. And whohave the vision of becoming the best in the profession.

NEED AND REQUIREMENTS FOR AN AGENT

ADVISOR

Becomes an agent of the prospect

An agent should be capable enough to understand the needs of his prospectiveclient and hence put forth the right options before his client. In other words an

agent, while dealing with the prospect, should be thinking of his interests and

requirements and the best financial arrangements that would be appropriate in

his situation.

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Agent of the insurer

As an agent of the insurer he is expected to obtain the insurance business and

contribute to the revenues of the insurer.

Primary underwriterAn agent is called a primary underwriter because he is in touch with the person

to be insured. Having met him at his place of work or residence and observed his

life style and habits, he would be aware of the nature and characteristics of therisk, beyond what is contained in the proposal form, he is therefore, called the

primary underwriter.

Dual responsibility

As an agent of the prospect, he is expected to look after the interests of the

prospect. Even people who are generally experts in financial matter, may not be

aware of the implications of insurance, in relation to terms and conditions,

warranties, exclusions, tax provisions, rights of parties, etc. agents have the dualresponsibility of being true to the interest of both the parties in transaction. He is

obliged to reveal to the prospect all the important terms and conditions of thepolicy, even if they are restrictive and unpleasant. He is also obliged to report to

the insurer all the true facts about the prospect and the subject of insurance, he

should therefore not mislead any of the parties to the contract.

A good financial planner

To be able to advise the prospect on the best financial arrangements appropriate

to

his situation, the agent needs to be familiar with the alternatives available in themarket. He is also expected to know in full the benefits and limitations of the

various plan being offered by his insurer. A good agent is a good financialplanner, taking into account not merely the plans offered by insurers, but by the

innumerable schemes on offer in the market. This needs study on ones own.

Conviction

He also needs conviction in what he does because of a simple fact that life

insurance do not meet all the needs of all the people because other instrumentshave their own advantages.

MAX NEW YORK LIFES EPECTATION FROM ITS

AGENTS

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Prospect on a daily basis

Meet new people everyday

Follow the sales process

Achieve sales targets

Attend weekly training programmes

Participate in weekly reviews

Follow the MNYL ethics and business standards policy

ROLE OF AN AGENT ADVISOR

Identify future customers

Make appointments

Conduct meetings and review their financial situation

Provide customized solutions

Close sales

Provide the deliverables coupled with excellent service

Get references

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SECTION B

CHANNEL DEVELOPMENT STRATEGIES

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B.1 ELIGIBILITY MODEL

The company follows unique eligibility criteria for AA selection by which company is

able is to always justify its mission. The basic objective of having an eligibility modelfor recruitment is to have good retention and greater effectiveness in the delivery of

service.

Four criterias for Agent Advisor Selection

Following listed are four major criterias which are to be looked into while selecting an

agent advisor for the company:

1) 25 + years of age:

This signifies attainment of maturity and responsibility

2) Married:

A married person is said to be more responsible and a prospective customer wouldprefer a responsible agent advisor for him

3) Residing in the city for more than 5 years:

Since man is a social animal and he cant live in isolation. This criterion signifies

the contacts and the huge market of prospective customers / Centre of Influence /nominators that the agent advisor has earned in the due course of his living.

4) Graduate:

A graduate is said to have all the basic competency namely communication skills,

Numerical ability, I.P relation, convincing abilities etc.

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Other criteria for AA selection:

1) Having an upper middle class or a upper class social circle:

Having an rich social circle reduces the chance of a policy to lapse and assures

higher case rates and case sizes and thus renewals can be more.

2) Morale:

An person wanting to be an agent advisor should have high morale because a

customer would buy because he trusts the agent and his promises. This impliesthat the behavior of the agent has to be one that exudes confidence and positive

thoughts about the insurance company and its offerings. This is possible only if

the agent feels good about his profession and his business.

3) Greed for money:

Since this field can offer a lot of money one who has the greed for money cantouch the sky in this field and reach the tops provided the agent has greed to earn

more and more money and his greed never dies.

4) A want to be ones self boss:

An agent advisor wishing that he is his own boss will succeed because this is

such a field where a person can boss over himself and not others because itoffers flexible hours to work and ones own space.

5) Hardworking and high energy levels:

An agent advisor should be hardworking should have high energy levels becauseits up to him how many prospective customers he can meet or wants to meet.

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6) Determined:

An agent advisor should be determined because he will have to handle as many

objections and rejections so he has to be focused.

7) Excellent interpersonal skills:

An AA should have excellent interpersonal skills in order to maintain good longlasting relations with the customers which can get the AA more policies.

Secondly since most of the insurance companies provide a plethora of similar

products, sales depend on the convincing ability of the AA and the rapport the

AA is able to build. Also results in C of Is.

8) Excellent communication skills:

An AA should be able to converse with the client in whichever language theclient is suitable or feels comfortable in talking this will help the AA to build a

good rapport with the prospective client and AA needs to communicate about the

organization, products, career as AA, about why insurance is important, which

product will suit his requirement etc.

An agents main tool at work is his communication skills. He has to explain andPersuade. At first the written matter is explained during the sales interview. A

further explanation will take place when the policy is delivered to the policy

holder. At this time the agent will make the policy holder go through theimportant clauses and conditions of the policy, highlighting the implications of

the same.

9) Persuasive Skills

Persuasion is important in all selling. It is more difficult in insurance selling.

What is being sold is a concept, an idea. There is nothing tangible which couldbe shown as a sample. The idea has to be examined by the prospect in his mind.

On the basis of words, figures, stories and mental pictures created by the

insurance agent. Thus a person wanting to become an agent advisor should be

persuasive enough.

DESIRABLE CANDIDATES

House WivesHouse Wives

BrokersBrokers

Chartered AccountantsChartered Accountants

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BusinessmenBusinessmen

ProfessorsProfessors

Fashion DesignersFashion Designers

Interior DesignersInterior Designers

PoliticiansPoliticians

Employees having VRSEmployees having VRS

Mutual fund brokersMutual fund brokers

People involved in Social ServicePeople involved in Social Service

Real Estate Brokers et.Real Estate Brokers et.

B.2 DEVELOPMENT STRATEGIES

In order to expand their agency channel Max New York Life has incorporated a fewintellectual strategies that their Sales Managers adopt in order to succeed in what

they do. These strategies are widely in every branch of Max New York Life in the

country. Principles and Models are some of the strategies that Max New York Life

adopts, they are as follows:

K KnowledgeA AttitudeS SkillsH Habits

Habits are 2 rules that an agent advisor of Max New York Life must follow, andthey are:

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Rule 5/3

This rule means that everyday and agent advisor of Max New York Life should

strive to get 5 new names and 3 new appointments in order to become a

successful agent advisor of the company.

Rule 10/10

This rule that has been advised to every agent advisor of Max New York Lifemeans that everyday he/she will strive to have 10 new names ready before 10:00

am daily.

The sales cycle that an agent advisor of Max New York Life follows is,

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Whereas a few principles that a Sales Manager at Max New York Life follows are,

Rule of 31

Names(prospect)

References

Pre approach

(Appointment

selling)

First meeting

(Problem

Selling)

Sell Solution

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Rule 31is associated with the daily activities of a sales manager which he shouldfollow to recruit quality advisors. It says that everyday collect at least 3 names of

the prospective AA and do 1 screening every day.

Ways of Name Gathering

There are several ways for gathering names in order to follow rule of 31 which

the management trainee as well as every employee at Max New York Life follows,

Natural Market:

The most admired way for recruitment in MNYL .A natural market is your

market, the people whom you know, from your family, friend circle, relative can

be a good prospect. Natural market person are easily approachable and most ofthe successful recruitment in MNYL is from natural market.

Personal Observation:

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Personal Observation can be defined as: a face to face contact made on an

important basis in order to secure an appointment for recruitment interview.

Identify the right person through observation. For e.g. a person residing in your

locality and very famous in taking initiative in social activities can be a good

prospect.

Nominator Call:

Nominators can be defined as: people with whom you have no previous

business relationship. A nominator is a person who is very much influential inthe market as well as in societies. Name gathering and identification is easy in

this case but these people are highly unapproachable. These people can be very

productive in giving references of the prospect. They are not prospect by default.

Centre of Influence (CoI) Call:

Centers of influence can be defined as: people with whom you already have an

established relationship for referrals as an agent.

A centre of influence person is people who are influential and you know them in

person. They are approached for giving references of the client.

Prospect Call:

Prospects itself are approached. They can be anyone from natural market,

Nominators reference, CoIs reference or by other means.

Activities:

Doing activities such as brand awareness in Public places such as mall,

multiplexes can be a good strategy for name gathering. We can have a

questionnaire format to fill by applicant for the lucky draw.

COLD/ WARM/ HOT

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This is another method that helps the management trainee and the sales managers keep a

track of the names he has from his natural market as well as through name gathering,

COLD

WARM

HOT

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Cold

The employees as well as the management trainees at Max New York Life

prepare a cold/ warm/ hot list in which they are supposed to write all the names

they have in the cold column be it natural market, references, or obtained from

name gathering.

Warm

Once the names mentioned in the cold column are contacted and if any

appointments scheduled at the office wherein initial screening is then conducted

the candidate is then entered in the warm list.

Hot

After being entered in the warm list if any candidate has attended any of theseminars held at Max New York Life after the initial screening done and if the

candidate has been given P200 (project 200) then the prospective agent is then

said to be entered in the hot list.

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B.3 SCRIPTS AND HANDLING OBJECTIONS

MNYL has its own scientifically handled script they use worldwide for approaching the

future AA for the Company. The company periodically modifies the versions of the

scripts if needed as per requirement. All the mangers are required to follow the scripts.There are several kinds of scripts. The classification of scripts is follows:

1) Nominator Script:

Nominator is a person who would suggest names or nominate people who would

According to him/her be interested in becoming agents. A nominator is a personwhom

You dont know therefore the main objective of the nominator script used by

managers

Fix an appointment with the nominator.

2) CoI Script:Centre of Influence is the person from ones known circle could be friends, relatives,family friends etc basically whom you know and are familiar with hence the main

objective of this script is to fix an appointment with the CoI or to collect the

references from them.

3) Prospective Agent Advisor Script:

A prospective is someone who would and is capable of becoming and agent for theFor the company the script used helps to convince the prospective agent advisor to

Come to the office for an initial screening.

4) In person Nominator Script:This script is used when u are meeting the nominator face to face in order to entertain

Nominators and influence them to collect references from them.

5) CoI in person Nominator Script:

This script is used to collect references from CoIs. All the scripts are also contained

with expected objections from the prospects/CoI/nominators. These objections arebased on the rich experiences and have adequate strategy to avoid objection. In any

Case, an objection is found to be unlisted it is responsibility of SM to bring back in

the spirit of original script provided them.

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SECTION C

CHANNEL DEVELOPMENT PROCESS

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Flow Based approach to Channel Development Process

43

N

YE

N

YE

Start

Name Gathering in P200

Short listing

Contacting

Intereste

d? End

Initial Screening

NAT

Career Seminar & P200

Interested?

End

Career interview

FCS

Contract with MNYL

IC-33?Reappear

NOTCLEARED

CLEARED

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C.1 Name Gathering in P200Name gathering in P200 is the first step taken towards contracting, its basically a

list of all the names of people who are C of Is like previously said centre ofinfluence are people from your known circle that could be friends, relatives,

family friends etc. basically they are people you know. They are also known asNatural Market. As a management trainee I was given this P200 to fill in the

names from my natural market and the references they give from their sources it

works as a database for our sales managers in future. Following are the headings

that appear in the P200 that needs to be filled up,

Name of the Prospective agent

Age

Marital Status

Location or Proximity

Contact Number

Profession

Annual Income

How well u know the person (i.e. well known, acquainted or casual)

Comments

C.2 Short listingShort listing is done as per the requirements laid down by IRDA (InsuranceRegulatory and Development Authority). The four eligible criterias are taken

into account on basis of which the candidates listed in the P200 are short listed.

After being short listed the candidates eligible are then moved onto to the nextstep.

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C.3 Contacting

The candidates that are short listed from the P200 (project 200) are thencontacted via telephone using the nominator script, or the Prospective agent

script depending on the sales managers views regarding it to fix an appointmentin the office premises.

C.4 Initial ScreeningOnly if the person is interested and an appointment is scheduled then the

candidate is preceded onto the next stage of the process that is the screening

stage wherein the management trainee is accompanied by their sales manager toconduct the screening of the prospective agent.

Wherein the background of the prospective agent is understood even better andhis natural market can be known in much depth.In the initial screening phase a screening form is filled which contains details

about the prospective agent advisor such as:

His Name

Address

Age

Marital status

No. of years lived in the same city

Educational Qualification

Previous job and its date of joining and leaving

Current job

Nature of both the jobs that is the previous and the current job

Reasons why the candidate left his pervious job

Reasons behind resigning the previous job

What the person likes in his current job

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The 3 qualities according to him that he feels is utmost important in order for

a person to succeed

References based on those 3 qualities

Once the screening form is filled then the sales manager puts forward the

Different managerial roles that are offered by Max New York Life for itsCandidates.

C.5 Numerical Ability Test (NAT)This test is conducted after the initial screening it basically meant to test the

prospective agents IQ (Intellectual Quotient). Passing score of which is 50%.

C.6 Career Seminar and P200All the prospects are required to attend career seminar at MNYL

Which is held twice in a week mostly Tuesdays and Thursdays which providesbroader aspects of growth as an Agent Advisor.

P200 is a worksheet which is given to each prospect to judge his natural market.

The prospects are required to mention at least 100 contacts from their naturalmarket. Which will in future if they chose to become an agent advisor for the

company help them contact their natural market its like a guide book to them

which reminds them whom they have to or need to contact in order to getbusiness for the company.

C.7 Career InterviewCareer interview or career path is done only if the candidate seems interestedand career path is done by the managing partners that is Mr. Dinesh Mohan or

Mrs. Rinkuu Kakkar. They are the two managing partners of Max New York

Life Go (General Office) Mumbai 1. Since the Prabhadevi branch is the Headoffice in Mumbai that is the reason why its GO 1.

C.8 FCS (Fundamental Career School)After the candidate has been approved by the managing partners only then he is

permitted to sit for the FCS which is a in house training that Max New York Life

organizes for this prospective agent advisors which is a full day training for 21

days from morning 9:30am till evening 6pm because of the rules laid down byIRDA that the prospective agent needs to be trained and has to complete 100

hours of his training. This FCS teaches its prospective agents how to deal with

people, talk to them, handle objections, improves their communication skills andhelps them boost their morale.

C.9 IC 33

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This is an exam held by the IRDA after the completion of FCS which ismandatory and its passing is 50% clearing on which the prospective agent

advisor is issued a license under IRDA and can start with his/her business

officially and would be called as an Agent Advisor for the company thus termed

as contracted.

SECTION D

STATUS REPORT

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D.1 ACTIVITY CHART

Particulars Status

1) Initial Screening 10

2) NAT 01

3) Career Seminar 01

4) P200 01

5) Career Interview 1

6) FCS 0

7) Total Recruitment 0

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8) Contracted 0

There were several activities undertaken for name gathering in many places such as:

Pheonix Mall

Atria Mall

Nakshatra Mall, Dadar.

Nirmal Life Style, Mulund.

Forever Living Products, Bandra

Bombay Stock Exchange, Dalal Street.

Name Gathering was done in numerous ways such as either directly prospecting orusing a Questionnaire.

The questionnaire was guided by our Sales Managers in a way they find suitable and

most convenient in name gathering, the sample of a questionnaire is as follows:

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QUESTIONNAIRE

Hello. This is Heena Khan from Max New York Life working there in as a managementtrainee. I would appreciate it if you could lend me just 2 minutes of your time for myproject on Insurance Industry. I would like to assess if you are interested in taking a

business opportunity available in the insurance sector which requires no investment of

yours.

1. Where do you invest your Money?

a. Stock Markets

b. Mutual Funds

c. Life Insurance

d. Property

2. Name any 3 Insurance Companies you are aware of?

a. _____________________________________

b. _____________________________________

c. _____________________________________

3. In a year how much money do you invest? (approx)_________________________________________

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4. Are you aware of any Insurance products?

a. ____________________________________

b. ____________________________________

c. ____________________________________

5. Are you covered by Insurance?

a. Yes

b. No

6. Is the cover sufficient?

a. Yes

b. No

7. Which among the following products do you own?

a. Whole Life/ Endowment

b. Money Back

c. Unit Linked Insurance Plan

d. Term Plan

e. Education/ Child Plan

8. What is the reason of having the above cover?

a. Security

b. Investment

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c. Tax Benefits

9. Are you aware of the earning potential in insurance sector?

a. Rs.20,000 to 30,000

b. Rs.30,000 to 50,000

c. Rs.50,000 to 75,000

d. Rs.75000 to 1,00,000

10. Would you like to add a business to your current profile?

a. Yes

b. No

11. Which is the quality according to you that would be required for

Being successful in business?

a. Communication

b. Networking

c. Both

NAME: ______________________________________

ADDRESS: ______________________________________

______________________________________

CONTACT NO.: ______________________________________

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ANNUAL SALARY: ______________________________________

Thank You for your valuable time and for your information the agency business ininsurance sector is successfully pursued by businessman, housewife, freelancers, IT

Consultants/CA, professionals like Doctors, Architects, Trader Segments, Auto, RealEstate, etc.

D.2 FINDINGS

Where do you invest you Money?

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10%

Stock

Market15%

Mutual

Funds

10%

Property

65%

Life

Insurance

Aware ness of Insurance Companies

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Products owned

10%

Bajaj50%

LIC

10%

Birla

29%

ICICI

1%

MNYL

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10%

Education/chil

d plan5% Term

Plan

10% ULIP

25% Whole

Life

50% Money Back

Insurance Coverage

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15% Not

covered

85% Covered

Reasons for having the cover

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40% Tax

Benefits

10%Investment

50% Security

Interest of having an additional business to a current

profile

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49%

Interested

51% Not

Interested

Quality required for being successful in Business

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70% Both

10%

Networking

20%

Communication

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SECTION E

CONCLUSION

E.1 EXPERIENCE

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The Insurance sector has given me one of the best experiences I have ever had. It hastaught me a lot, I could say it has made me street smart. It has helped me brush up my

communication skills to a great extent; it has brought an immense confidence in me and

in my speech. Because if you want to sell someone a career one needs to be really

confident and has to put in a lot of conviction, basically one has to put across themessage in such a way that it makes the prospect feel in favor of the career that means

one has to make the prospect in favor of one own. And thats the most challenging taskto do that is to convince someone that what Im saying or the career I am selling to you

is the best and it has no competitors. Initially I faced a lot of rejections but then I was

helped by my Heads in the office who made me realize how I need to talk differently

with different people because no one is the same everyones different and thereforeeveryone thinks differently.

The scripts helped me a lot in building my conversation with the candidate. This was

one of the good and memorable experiences I have ever had which has taught me a lotthat I could implement further on in my career.

E.2 SUMMARY

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This project has given me a very good insight into the insurance sector. And I believe itsjust in its infancy it still has to grow and this is one sector I believe that will never die of

because a person insured is never fully insured and the person un insured is always a

market to explore and as the population increases there are new markets arising and

everyone needs some kind of protection or the other or a tax benefit.

It helped me to understand important responsibilities and skills required for any good

recruitment manager. It will definitely help me in future in corporate world.

Strategic approach for calling Nominators/CoI/prospect has several advantages through

which company maintains integration of system. MNYLs working model totally fits in

7-S model i.e. Mckinseys value creation model.

E.3 RECOMMENDATIONS

Max New York Life as an insurance firm has a very strong presence in India and israpidly expanding its operations in India. After working on this project I feel that

following are some of the ways in which the company can improve the current market

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base and selection procedure for AAs, the key revenue generating resource for thecompany:

Increase the awareness among the public

Since the diagrams above states that brand awareness among the general peoplewas high in case of LIC and was the least in case of Max New York Life and

although most of the people are covered by insurance and most of them do investin insurance for security being the main reason the company should in a way try

to increase its awareness among the people that would help them capture a place

in their minds and would help the company in recruiting agent advisors This

could be done in various ways may be through advertisements, promotions etc.

Highlighting core strengths

As per the findings we know that many people to invest in insurance sector for

their own reasons whereas the most common reason was due to Security andsince most of the people are covered by Insurance thus Max New York Life

should try highlighting its core points of its products that would make a need befelt to general people even if they are covered by insurance. In order to do this

they should the core strengths of the company and its products that would help

them getting more Deals as well as Agent advisors.

Creating products for mass class

Since Majority of people in India belong to the lower lower and lower-middle

class therefore Max New York Life should design a few such products thatwould secure their future as well.

E.4 BIBLIOGRAPHY.

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IC 33 book.

www.maxnewyorklife.com

www.google.com

www.hdfc.com
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Date post:	03-Apr-2018
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MAX NEWYORK LIFE Channel Development at Max New York Life

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