Hdfc Standard Life Insurance Company Ltd

A REP OR T ON I NTE RN SH IP TAK EN IN HDF C LIFE ST AN DARD LIFE INS UR ANCE COM PANY LTD . Submitted in par

tial fulfillment of

r equir ement of MASTER OF B USINESS ADMINISTRA

TIO N

(M.B .A) I.I.P .M., Bangalor

e

Subm itted by : Pri thwir aj D eb SS -08- 10 I.D No : B 0810SS10032

Ackno wledgement Fir st of all I would Standar d

Lif e

lik e to thank

Insur ance

the mana gement

Company

for

giving

in HDFC me

the

oppor tuni ty to do my 45 day s inter nship and pr oject tr aining in their

esteemed

Manish Dihingia

or ganiza tion.

I am highl y obliged

to Mr.

(Sales De velopmen t Mana ger) f or all owing me

to w or k under him. My hear tf elt thanks gain kno wledge

go to all the executiv es who helped

about the actual

me

wor king and the pr ocesse s

in volv ed in mar ket a tmospher e. I also

expr es s my g ratitude

to the

SMG depar tment at II PM for giving a fir sthand e xperience of

administr ation

and

me the oppor tunity

the mar ket.

Conte nt

the

to get

1.INTRODUCTION TO THE COMPANY • HDFC Standard Life Insurance Company Ltd • HDFC Standard Life Insurance Parentage ➢ HDFC LTD ➢ STANDARD LIFE GROUP

• Corporate Objective ➢ Vision ➢ Mission

• Key Strengths of HDFC Life Insurance ➢ Financial Expertise ➢ Range of solutions ➢ Track record so far

2. PR ODUCTS OF HDFC LIFE INSURANCE

3.JOB PROFILE 4.

S.W.O.T ANALYSIS

5.

CONCL US IO N

6. LE AR NI NG 7. BIBI LOGRAPH Y

COMPAN Y PROFILE OF H DFC STAN DARD LIFE INSU RAN CE ABOUT

HDFC

Standar d

Lif e

Insur ance

Company Ltd HDFC Standar d Lif e Insur ance Company leading

priva te insur ance companies,

individual

whic h of fer s a range of

and g roup insur ance solutions.

betw een Housing (HDFC Ltd.), Gr oup

Ltd. is one of India's

De velopment

India's

Company

December

of

leading the

Finance

housing

Standar d

It is a joint ventur e Cor por ation

finance Li fe,

Limited

institution

UK.

and a

HDFC

as

on

31, 2007 holds 72.38 per cent of equity in the joint

ventur e.

HDFC Standar

d Lif e Insur ance P ar enta ge

HDF C Lim ite d HDFC

Ltd.

was

incor por ated

objectiv e of meeting owner ship

a social

by pr oviding

their housing

in

1977

with

the

primar y

need - tha t of pr omoting

long-ter m finance

home

to households

needs. HDF C was pr omoted with an initial

for

shar e

ca pital o f R s. 100 million. T he

primar y objectiv e of

HDFC

is

to

enhance

residen tial

housing

stoc k in the countr y thr ough the pr ovi sion of housing

finance

in

pr omote

a systema tic

home

and

pr of essional

manner , and

to

owner ship . Anothe r objectiv e is to incr ease

the flo w of r esou rces to the housing sec tor by inte g rating the housing mar ket s.

finance

secto r with

the

over all

domestic

financial

T he Standa r d Lif e Gr oup C ompany Standar d Lif e is a major asset man a ging g roup with ar ound 7 million

custome r s. Standar d Li fe plc has ar ound 1.5 million

shar eholde r s in over 50 countries. as at 31 December

2008,

Standar d Li fe Inves tments,

mana ges £123.8

billion

of asset s

(figur e unaudited). Inspir ed

by

li fe,

they

solution s, fle xibility

ar e

and

confidence in their futur

kno wn

to

pr ovide

suppor t to build

their

meaningful customer s'

e w ealth and w ellbeing .

Co r por ate Objec ti ve V isio n: “T he most

successful

whic h mean

and admir ed li fe insur ance

tha t we ar e the

most

tr usted

easies t to deal with, of fer the best value the standar ds in the industr

company ,

company , the

of money , and set

y.”

Missi on: To be the top new lif e insur ance company in the mar ket. T his does not just mean being the lar gest or the most pr oductiv e company in the mar ket, rathe r it is a combina tion of se veral things lik e•

Cus tomer se r vice of the highest

or der

•

Value f or money

f or cus tomer s

•

Pr of essionalism

in car r ying out business

•

Inno va tiv e pr oducts to ca ter to di f fer ent needs dif fer ent customer s

•

Use o f tec hnolog y to impr ove se r vice standa r ds

of

•

Incr easing mar ket shar e

Key Str engths of Financial Exper

HDFC Lif e Insur ance

tise

As a joint ventur e of leading

financial

Standar d Lif e has the financial

ser vices g roup s, HDFC

e xper tise requir ed to mana ge

the customer’ s long-ter m in vestmen ts saf el y and e f ficientl y.

Range o f Solutions HDFC Standar d Lif e Insu rance has a range of individual

and

g roup solution s, whic h can be easil y customi sed to specific needs.

T he various

of fer the customer

g roup solutions complete

ha ve been

fle xibility

combined

designed

to

with a lo w

char ging s tr uctur e.

Trac k R ecor d so f ar Gros s pr emium

income,

for the year ending

Mar ch 31, 2008

stood at Rs. 4,859 cr or es and new busines s pr emium income stood a t Rs. 2,685 cr or es. T he company

has co ver ed over 9, 59,000

liv es year ending

Mar ch 31, 2008. T he company

was also aw ar ded the Cor por ate Citiz en of the

year Aw ar d for its long-standing de velopment .

commitment

to community

PR ODUCTS OF HDFC LIFE INSURANCE T he variou s of ferings of HDFC SL Insur ance can be classified into f iv e major pr oducts: •

Individual P

roducts

•

Gr oup P roduct s

•

Rur al P roducts

•

Social P roducts

•

Tax Benefits

In the se, I, as a tr ainee was dealing

with Individual

T he variou s pr oducts and plans under thi 1. Pr otection

s ca te gor y ar e:

P lans

➢ Ter m assu rance Plan ➢ Loan Co ver T er m Assu rance Plan ➢ Home Loan Pr

otection

P lan

2. In vestment P lans ➢ Sing le Pr emium W hole Of Li fe Plan ➢ Unit Lin ked W ealth Maximi zer P lan 3. Pension Plans ➢ Per sonal P ension Plan ➢ Unit Lin ked P ension II ➢ Unit Lin ked P ension Maximiz 4. Health P lans ➢ Cri tical Car e P lan ➢ Sur giCar e P la n

Pr oducts .

er II

5. Sa vings P lans ➢ Endo wment As sur ance P lan ➢ As sur ance P lan ➢ Sa vings Assur ance Plan ➢ Childr en ’s Plan ➢ Money Bac k Plan ➢ Unit Lin ked Endo wment Plus II ➢ Unit Lin ked Y oung Star ➢ Unit Lin ked Y oung Star I I ➢ Unit Lin ked y oung Star Champion ➢ Unit Lin ked Enhanced Lif

e Pr otection II

➢ SimpliLi fe

In the abo ve mentioned

plans,

I, in par ticula r l y, was dealing

with : 1. Unit Lin ked P ension II 2. Endo wment As sur ance P lan 3. Money Bac k Plan 4. Unit Lin ked Y oung Star I I 5. Childr en ’s Plan 6. Home Loan Pr

otection

P lan

JO B PR OFILE T he

job

pr ofile

Financial

tha t I was

Consultant

needs

financial

solutions

to

Financial

Consultant,

A

Financial behalf

remuner ated under

component

tha t of

a

anal yz e

customiz ed

individuall y.

As

a

reviews on a

s on tr ac k.

accor ding

by way of of

with pr oviding

customer

k eep customer

a par ticular

policies

was

I was requir ed to conduct

Consultant, of

along

eac h

Re gula to r y And De velopment the

with

(F.C .). I was requir ed to help

custome r s’ financial

re gular basis to

as signed

to

IRD A

(I nsu rance

Authorit y), is one who acts on insur ance

company

commission s on the

and

who is

pr emium

paid

pr ocur ed thr ough his ef for ts. He is the main the

distribu tion

channel

for

the

insur ance

busines s. As a Financial Consultan •

t, I w as r equir ed to do the f ollo wing:

Contac t pr ospect s for lif e insur ance , stud y their and per suade company

them to buy . (Leads

needs

usuall y giv en by the

and mostl y I was requir ed to go on calls along

with my SDM). •

Complete pr oposal

all

for malitie s,

for ms, collecting

examina tion, repor ts

rela ted

and

collecting other

pr emium, pr oo fs

of

inf or ma tion

inc luding

up

ar ranging

medical

a ge

income,

and

requir ed

underw riter . (T his was wha t I mostl y used tr ainee).

filling

by

the

to do as a

S.W .O.T AN ALYSIS O F HDF C SL INS UR ANCE STRE NGT H 1. Domes tic

ima ge of HDFC

suppo r ted by Standar d Lif e’s

inter na tional ima ge is str eng th of the company . 2. Str ong

and

well

spr ead

inter media ries and sale

netw or k

of

qualified

s per son.

3. Str ong ca pital and r eser ve base. 4. T he company

pr ovides

customer

ser vice of the highes t

or der . 5. Huge bask et of pr oduct a ge and income g

range whic h ar e suita ble to all

roups.

6. Lar ge pool of tec hnicall y skilled kno wledge and under 7. T he company

standing of

manp ower with in depth the mar ket.

also pr ovide s inno va tiv e pr oducts

to di f fer ent needs

to ca ter

o f dif fer ent customer s.

WE AK NESS 1. Hea vy mana gement e xpenses and administr 2. Lo w custome r confidence on the priva 3. Ver tical

hier ar chical

designa tion s

te play er s.

str uctu re

and cadr es leading

all le vels without 4. Poor r etention

repor ting

ativ e costs. with

many

to power politics

any e xception.

per centa ge of tied up a gents.

at

OPP OR TUN ITIES 1. Insur able popula tion : Accor ding to IRD A onl y 10% of the

popula tion

is insur ed whic h repr esent s ar ound

30% of

the insur able popula tion. T his sug gest s mor e than 300m people,

with

the

potential

to

buy

insur ance,

remain

uninsur ed. 2. T her e

will

be

in flo w

of

mana gerial

exper ti se from the wor ld’ s leading

and

financial

insur ance

mar kets.

Fur the r the bur den of educa ting consumer s will also be shar ed among many play

er s.

3. Inter na tional companies

will help in building

exper ti se in local mar ket by intr oducing

wor ld class

the best global

pr actice s.

TH REA TS 1. Other

priva te insur ance

companies

also

vying

for the

same uninsur ed popula tion. 2. Big

public

sector

insur ance

companies

Insur ance Cor por ation (L IC) of India, Company

Limited,

Oriental

As sur ance Company Company Limited.

National

Insur ance Limited,

Limited

and United

People tr ust and go to

3. Poac hing o f cus tomer base

lik e

Lif e

Insu rance New India

India Insur ance

them mor e.

by other companies.

4. Mos t people don ’t under stand the need or ar e not willing to tak e insur ance policies

in gener al.

CONCL USI ON T he India Insur ance Mar ket despite histo r y spanning

ha ving a highl y ela bor ate

almost tw o centuries,

has come of a ge onl y

in the last 50 year s after the for ma tion of the Lif e Insur ance Cor po ration companies

(L IC) of India

into the mar

in 1956

and the entr y of priv ate

ket f rom the l ate 90’ s and ear l y 2000.

T he fact tha t onl y 10% of the 30% insur able popula tion insur ed i.e., mor e than 300m people, insur ance,

remain

with the potential

uninsur ed speaks

of the volume

is

to buy

of scope

this field has for young g radua tes and pr of essional s who can tak e up car eer s in the insu As

people

get

mor e

rance sector .

educa ted

insur ance especiall y during

about

times

the

need

lik e this,

of

ha ving

a car eer in the

insur ance sector is both r ew ar ding as w ell as c hallenging. With a huge population base and large untapped market, insurance industry is a big opportunity area in India for national as well as foreign investors. India is the fifth largest life insurance market in the emerging insurance economies globally and is growing at 32-34% annually. This impressive growth in the market has been driven by liberalization,

with

new

players

significantly

enhancing

product

awareness and promoting consumer education and information. The strong growth potential of the country has also made international players to look at the Indian insurance market. Moreover, saturation of insurance markets in many developed economies has made the Indian market more attractive for international insurance players, according to 'Booming Insurance Market in India (2008-2011)”.

LEA RN ING Well the main lear ning tha t I took from my shor t stint

as a

tr ainee at HDFC Standar d Li fe Insur ance can be divided

into

tw o par ts. T he fir st par t contains salesman

my stint

as a sale sman (an F.C . is a

in most way s) wher ein I came to lear n about the

tough na tur e of the job pr ofile (any sales job in gener al), ho w muc h per sua siv e we ha ve to be if we ar e to be successful any sales pr oces s and ho w muc h one has to br oaden

his social

contacts

edge o ver his competitor T he second

aspect

in

do f ollo w-ups and

in or der to ha ve a competitiv e

s.

of lear ning tha t I had was mor e on soft

skills.

I came to lear n the value of pa tience

when things

get

tough,

a brie f idea on ho w to open and close- in a call and

also h ow to gener ate a need f or my pr oduct. Apar t fr om tha t, thi s shor t tenur e also helped

me to get an

idea of the pr esent mar ket conditions.

BI BIL OGR AP HY 1. www .hdfcinsu rance.com 2. www .wikipedia.com

3. Text

book

for

pr e-r ecr ui tment

insur ance a gents pr esc ribed by

examina tion

IRD A.

for

li fe