Pdf Yesu Project

A Report of

A Study on PRODUCTIVITY OF INSURANCE CONSULTANT AND THE REASONS THERE OFF

for

Bajaj Allianz Life Insurance Co.Ltd

Submitted to the

Department of Management Studies

in partial fulfillment of the Post Graduate Diploma In Management

Under the Guidance of Tilly chacko by yesubabu.vanaparthy BATCH - 17

S S C

FN - 27

M S S

SCMS – COCHIN SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN 06. September 2009 1

SCMS – COCHIN SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHINS S C

M S S

06.

DECLARATION

I, the undersigned, hereby declare that this project report entitled “study on productivity of insurance consultant and the reasons there off” has been written and submitted under the guidance of Ms.Tilly chacko and is my original work.

I understand that detection of any copying is liable to be punished in any way the school deems fit.

DATE:

yesubabu.v

2

SCMS – COCHIN SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHINS S C

06.

M S S

CERTIFICATE

This is to certify that the project work entitled 'productivity of insurance consultant and the reasons there off ' has been carried out under my guidance by yesubabu.v in partial fulfillment of his/her Post Graduate Diploma in Management during the academic year 2008 - 2010.

Date:

Ms.Tilly chacko

3

SCMS – COCHIN SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHINS S C

06.

M S S

This is to certify that the project work entitled ''productivity of insurance consultant and the reasons there off’

has been

carried out by yesubabu.v in partial fulfillment of his/her Post Graduate Diploma in Management.

DATE :

Dr. Raman Nair

4

ACKNOWLEDGEMENT

I wish to express my indebtedness and gratitude to the management and staff of the School of Communication and Management Studies for providing me an opportunity to gain practical knowledge by including this project as part of my PGDM curriculum. I would like to thank the Dean, Prof KJ PAULOSE, for always giving in the maximum effort to guide the students of the college, without whom this wouldn’t have a fruitful effort. I am very happy to express my gratefulness to Tilly chacko the faculty guide of School of Communication and Management Studies, Cochin for her valuable suggestions and constructive reviews on the topic of this study. I express my gratitude to my company guide Mr.Ramakrishna, senior divisional manager, Bajaj Allianz Life Insurance Co. Ltd, chennai,Mrs. Lakshmi the trainer of the Bajaj allianz ,chaitanya kumar and Ms. satya for their sincere support and encouragement given to me during the project period in the organization. I am grateful to The Lord Almighty, for the abundance of grace of his, which enabled me to complete the assigned work in time, and with maximum perfection.

Yesubabu.v

5

Table of Contents Sl. No

Title

Page no

Executive summary

1

Chapter 1 1

Introduction and Theoretical Background

2 -8

1.1 Introduction 1.2 Literature review Chapter 2 Objective and Research Methodology 2.1 Objectives:2.2 Procedure:-

2

2.3 Sampling plan

9 - 14

2.4 Data collection tools 2.5 Data collection 2.6 Data collection methods 2.7Analysis plan 2.8 .limitations of the study Chapter 3 Industry Profile, Company Profile and

3

product profile

15 -20

3.1 Industry profile 3.2 Company profile 3.3 Product profile

4

5

21 -46

Chapter 4 Analysis and interpretation

47 - 51

Chapter 5 Finding and conclusions

6

6

7

8

52 -54

Chapter 6 Suggestions and Recommendations Chapter 7

55-56

Bibliography Chapter 8

57 – 63

Appendix

7

LIST OF TABLES TAB

TOPIC

PAGE

LE

NO:

NO: 1

importance of basic characteristics

29

2

variable which affecting negatively

31

3

cross tabulation between qualification and salary of 32 consultant

4

The level of capacities achieved by consultant for each 33 characteristic.

5

Significance of gender on salary.

36

6

significance of qualification on salary

37

7

significance of experience with size of the consultant family

38

8

significance of experience on salary

40

9

significance of customer satisfaction on good package

43

10

significance customer satisfaction with training

44

11

significance of customer satisfaction with flexible working 45 hours.

12

Relation between wealth maximization and flexible working 46 hours

13

what insurance consultants earned and their intension to earn 47

14

Different clusters of insurance consultants in Bajaj Allianz

49

15

important factors which are affecting productivity

51

8

EXECUTIVE SUMMARY The study on productivity of insurance consultant and the reasons there off was basically done to know various reasons which affect the performance of the insurance consultant and to find the solutions to overcome those problems. In the first half, the study started with introduction and review of literature could contribute to a better sales performance. Salesmanship is not inherent, it is a skill, which acquire with the help of training means it can be learned and taught. In insurance field, salesmen require mastering in sales. The basic characteristics identified in the literature as common to successful salespersons are:

empathy,

enthusiasm,

desire

to

grow,

persistency,

patience,

trustworthiness, and self confidence. Skills identified include interpersonal skills, communication, organizational, product, and service knowledge. Motivation plays a critical role in the success of a salesperson. The other half of the report tells about the interrelation between variables which are affecting the performance of consultants. This survey was conducted with the help of well structured questionnaire. The methodology which was adopted was a direct interview. After collecting the data it was analyzed using statistical tool called factor analysis. By knowing the client’s perception one will be able to improve their productivity.

Further this study helped me to know the drawback of insurance consultant and solutions to overcome and also this study focused on finding important factors for giving optimal training to the insurance consultant by the company. Because insurance penetration and density in India is very low comparing to other developed and developing countries and positively Indian insurance making 20% growth this is much more than developed countries. So this study will help insurance consultants to improve their productivity and also helpful for company to provide lead training 9

Chapter -1 INTRODUCTION AND THEORETICAL BACKGROUND

10

1.1 Introduction The strategic goal of sustaining a market share or gaining competitive advantage depends on effective selling skills. This skill is continuous development in process. Companies adopt different type of effective selling techniques according to environmental change and needs. It includes the need of continuous improvement as consumers are more informed today than in the past. Insurance products are different from other products. It is intangible, so sales people face a lot of difficulties for selling insurance products. Here effective selling skills are needed to be successful. Today Insurance Industry faces a big problem of active insurance consultants. Company either terminates the relationship or the consultants leave voluntarily because of insufficient income. This separation occurs in life industry after six month (due to licentiate examination and training process). Company and consultants magnify the implication of this separation in wasted resources in opportunity cost during the engagement period. Insurance consultant is front liner, who is only a person who directly contacts with customers. Consultants do this work as a mediator between customer and company. It means “The agent is located at the place in the organization at which the company financial security policy and plan are distributed to customers and also at the place at which services are directly provided to the customer”. Agent provides such types of service in term of consultancy i.e. to make help in financial planning strategies. Insurance is relationship business. Relationship and emotion is the key of success in selling. People purchase insurance because they love their family. It is human tendency that people agree/purchase from such type of person who is trustworthy. Like and trust is the key in insurance business. Due to this reason brand and price are insignificant when client make a buying decision. It is seem that often people do not know much

11

more about insurance, when they compare with other products, so here consultant’s role becomes very important due to following reason: Consultants have had to choose particular product according to client need so Insurance consultant should know about financial planning. Product knowledge is of prime value for every consultant. It gives them confidence and trustworthiness before client. Consultant should know product’s merits and demerits because different client have different needs. Insurance is long-term financial product so consultant should know about customer relationship management. It helps him/her time to time fulfill specific need and query of client. People are less aware and interested towards insurance product, so such types of responsibility (to increase awareness and popularity amongst people) are fulfilled by insurance consultant. This study provides an understanding of effective skills and explores the facts based on certain variables, how those skills can be integrated in the organization structure to enable successful career in insurance sector. This study began with reviewing relevant literature on effective selling skill needed for good sales performances. In this literature review consisting of productivity of insurance consultant, various reasons which are affecting their performance and its solution with the help of effective selling techniques in the field of insurance”. In this process seller side has been only covered. The following procedures were adopted to find out the various reasons which are affecting their performance and techniques to improve their performance as well as giving suggestions to the company to train them well: To conduct interview with insurance company consultants and sales person to know their view

12

To find where was problem or identify problem/challenges faced by consultant. Set questionnaire according to problem. In this project, two type of data were used: a) Primary Data b) Secondary Data. With the help of interview and questionnaire primary data were collected for finding actual and realistic problems and their solutions. Secondary data were collected from books and Internet to go in depth of topic.

13

1.2 Literature

review

In this process one can understood, how insurance is different from other products, why sales persons fail to sell insurance. And also realized during this process that motivation, behavior, characteristics and training factors affect man power and its ability, how to generate lead and convert into sales, how sales performance can be increased. Mostly people think that seller skill is inherent, but it is not correct. It can be achieved with the help of training and practices. When a person does more practice and gets mastered in such skill, it seems easy and natural. Professional salesmanship is a learned skill. Insurance sales are more complicated to general sales. Insurance consultant cannot show insurance product, he can only describe benefit with the help of verbal and non-verbal language. In this process he plays with another emotion and sentiment. If he wins in this game then he will be successful in selling and vice-versa. Insurance is not purchased it is sold. Here consultant faces difficulty. Consultant has had to do a lot of work for successful selling, such as to whom he is to sell (prospective client), turn prospective client to customer. Only insurable person can take insurance, so he has had to do segmentation and targeting type of work also. With the help of lead generation advisor can find prospective customer. There are several methods to lead generation such as cold calling. Cold calling can be a successful way to lead generation. If it is done with planning: for example how to cold call, when to cold call, and how much cold call to make every day in order to get appointment Public relation is also great way to expose in market. Consultant can do it with the help of trade show or he can make public relation with the help of promotional activity. The real key of public relationship is to be friendly and focus on meeting, not selling product. “Many of the most difficult sales jobs are easy to obtain (i.e. selling specialty product such as house hold, hardware, life insurance or encyclopedias). They have also 14

been graveyard of thousand of co-worker” (Baker 1994). It means after a minimum qualification and passing IRDA Licentiate examination, any one are eligible to sale insurance policy. Due to this reason alteration rate is very high in insurance industry. But now insurance companies are concentrating on other distribution channels such as, bancassurance, Internet, NGO’s, micro insurance. Now insurance companies are concentrating on training program and they recruit eligible candidate for executive trainee or other post (i.e. PGPMI). Selling skill can be developed such type of skill with the help of practice, practical training and experience. Behavior style and interpersonal effectiveness is also important in selling. People fit into four categories. Insurance products can be sold to them in different ways. Interpersonal effectiveness helps to understand in what way an individual’s mind works and his level of interest in a particular product /policy which may act as guideline for the best way to approach sell for each category developed in two ways: formal training and sales experience gained through exercising the selling job over time. In formal training people know about product and services, which help him to explain, “what he has for other”. Secondly formal training is base of advisor carriers. In formal training people know which type of skill is required for effective selling and they approach each category in effective way. Life insurance products are inherently more difficult to sell compared to other kinds of products. Agents who are deficient in required characteristics and skills are unable to sell successfully and consequently they are forced to leave the company. Although some of these characteristics may be developed through lifetime, the skills could be taught and learned by insurance consultant can improve their productivity.

15

Unique Attributes of Successful Salespeople  Characteristics and Traits  Trustworthiness  Self-confidence  Enthusiasm  Empathy  Desire to grow and improve self  Patience Motivation for Sales Career  Unlimited income  Time autonomy  Recognition and power  Personal satisfaction Selling Skills  Interpersonal skill  Communication  Organization  Profiling clients and prospecting  Planning meetings in advance  Presentation  Product and service knowledge  Information about company’s products and services 16

Chapter -2 OBJECTIVE AND RESEARCH METHEDOLOGY

17

Research Methodology 2.1 Objectives:Main objective:Find out the reasons which are affecting the performance of the insurance consultant and the solutions to overcome those problems in order to boost their performance. Specific objectives:1) Find out the level of relationship between different variables and exploring the reasons for such a relation. 2) Identifying the different set of insurance consultants in Bajaj Allianz based on their characteristics and performance. 3) Find out the important factors among all variables which are affecting the productivity of consultant 2.2 Procedure:The procedure followed, is enlisted below: Studying the topic Decision on objective needed to be work on i.e. conduct interview with insurance consultant and sales manager. Developing Survey instruments Getting questionnaire filled through interacting with different branches of bajaj Allianz consultants in Chennai. Finally analyzing the data of various areas and trying to study about various influence factors such as behavior, which is important in sells.

18

Process adopted: Gaining knowledge about the topic: Reading about the topic was the first step undertaken. This gave me not only in depth knowledge about what is market trend in insurance but also proved useful while developing the questionnaire. Steps in the Development of the Survey Instruments The main instruments required for survey was a well-developed questionnaire. The questionnaire development took place in a series of steps as described below: 2.3 Sampling plan Population:- all insurance consultants and sales managers who engaged with customers directly of bajaj Allianz in Chennai. Sample composition:-This sample comprises the insurance consultants and sales managers of bajaj Allianz in Chennai branch. Sample size: 50 {60% insurance consultants (30) +40% sales managers (20)} Sampling technique:- convenience sampling but all the respondents are representatives of target population. 2.4 Data collection tools:Developing Survey instruments Getting questionnaire filled through interacting with different branches of bajaj Allianz consultants in Chennai. Finally analyzing the data of various areas and trying to study about various influence factors such as behavior, which is important in sells. Descriptive research (cross- sectional design):-This research consider various variables and also not affected by the movement of the sample because this 19

research will cover many variables even one of the variable affected by respondent bias or other factors it will substituted by the other variables at finally on an average this will give effective output. 2.5 Data collection Awareness/Knowledge: They are used in marketing research refers to what respondents do or do not know about the effective selling style. Motivation: Through questionnaire have tried to find the hidden need or want of an individual and have tried to find out that which factor increases satisfaction and productivity of insurance consultant. Behavior: Behavior concerns what subjects have done or are doing. Through made questionnaire we have tried to find out the behavior of the individuals regarding Do you keep attention on client non-verbal response during sells meeting? Do you update yourself? Thus, it helps to draw a comparison between the selling style and the observed behavior of the advisor. Obtaining the Primary Data: The data collection was primarily through communication. Communication involves questioning respondents to secure the desired information, using a data collection instrument called questionnaire. The questions were in writing and so were the responses. Secondary data search 20

The first of Research consisted of secondary data search from the following sources: Books Websites For the conclusive research, questionnaires been developed on basis of secondary data and interview from insurance personal to gather information on the research The final draft of the questionnaire (see Appendix) was then prepared on the basis of extensive study on insurance sector and discussions with consultants and sales manager. These then finally filled by 50 consumers, for the conclusive study. 2.6 Data collection methods:Survey: - conducting survey for data collection by using closed and open ended questionnaire from the sample or primary sources (insurance consultants and sales managers) Interview method:- using open ended questions for conducting unstructured face-to-face interview with the sample. Field work plan Some of the respondents are identified with in the office and other respondents are identified by taking address of them from the company, sales managers will help to find out consultants who are working under them.

21

2.7Analysis plan:Analysis based on answers given to the questions, by using various suitable statistical techniques data will be analyzed with SPSS software and ms-excel. Chi-square and ANOVAs for test the confidence level of the variables Correlation is to find out the type of the relation like positive, negative or zero relation Factor analysis for Identifying most appropriate factors which are affecting mostly the performance of the consultant Cluster analysis is used to grouping the respondents based on common variables among them 2.8 .limitations of the study:1) The sample population statistics may vary from the total population. 2) Even though it was explained that the survey was purely for academic purposes many of them are afraid to reveal their actual performance.

22

Chapter -3 INDUSTRY PROFILE, COMPANY PROFILE AND PRODUCT PROFILE

23

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

Insurance penetration = premium/GDP*100

The value for India is 4.10, the value for Asia is 5, and the value for World is 4.5. II.

2. Insurance density = premium holder/total population*100

The value for India is 33.2, the value for Asia is 154.6, and the value for World is 330.6 These figures show that insurance in India still in infant stage there is great headroom to insurance sector in India. Compared to developed and industrialized countries, India is at the lower end of the spectrum when it comes to penetration of the market. However has a young demographic profile; nearly two thirds of the population is under 30. Yet about 10 percent of the population is above 60. This portion is expected to rise sharply. By 2030, the Indian population is expected to rise sharply. By 2030, the Indian population is expected to stabilize at 1.1 billion, about 20 percent of which will be over 60. Therefore, a great potential for the insurance industry lies in providing support for this segment of the populace i.e. over 220 million senior citizens. While LIC is the is the sole operator in the public sector, the following is the list of private companies in the Life Insurance Sector in India 24

LIFE INSURERS COMPANIES IN INDIA:ICICI Prudential Life Insurance, HDFC Standard Life, SBI Life Insurance, Birla Sun life, Bajaj Allianz Life, Aviva Life Insurance, Kotak Mahindra Life Insurance, Tata AIG Life, Reliance Life Insurance Company Limited (formerly known as AMP Sanmar LIC), ING Vyasya Life Insurance, MetLife India Life Insurance, Max New York Life Insurance, Shriram Life Insurance, Bharti AXA Life Insurance Company Limited Life insurance sector in the red in 2007-08 Profits (losses) of life insurance cos 2007-08 cr Birla sun life -445 ICICI prudential -1395 ING vysya -191 HDFC standard -244 Max new York life -257 Reliance life -768 Bajaj Allianz -297 SBI life -34 Kotak Mahindra -72 Tata AIG -339 Metlife 21 AVIVA -202 Sahara 3 Shriram life 5 Bharti AXA -242 LIC 845 Future generali -30 IDBI fortis -26 Total -3600

2006-07 cr -140 -694 -178 -126 -60 -315 -72 4 -110 -72 -12 -132 -1 10 -80 774 -3 _ -1162

The life insurance sector in the country is in the red, going by the figures released by the Insurance Regulatory and Development Authority in it annual report for 2007-08.The largest losses were posted by ICICI-Prudential Life Insurance at Rs 1,395 crore and Reliance Life at Rs 768 crore during 200708.The public sector giant, LIC managed to post a modest growth in profits at Rs 845 crore in 2007-08 compared with Rs 774 crore in 2006-07.

25

The general insurance sector fared better than the life sector, although profits were down by 80 per cent for the private sector players. Profits of 10 private players were down to Rs 44 crore in 2007-08 compared with 228 crore in 200607. The biggest loss among private players as well as the industry was posted by Reliance General Insurance at Rs 165 crore. The four public sector insurance companies saw their combined profits come down by about 24 per cent to Rs 2,205 crore. While three of them saw their profits declining, United India Insurance managed to buck the trend and post a 19 per cent growth in profits during 2007-08 Even though 2007-08 is bad experience to many private insurance companies, 2008-09 is giving good results for many companies noted profits and running in good progress.

3.2 Company profile Bajaj Allianz Life Insurance Company Limited is a Union commit Between Bajaj Auto Limited, an of the largest 2 - & - 3 wheeler manufacturers in the world and Allianz AG, world largest life insurance (formerly Allianz Bajaj Life Insurance Company Limited). Allianz SE is a prominent world-wide conglomerate insurance and one of the largest asset managers in the world, the management of active to value of more than a Trillion Euro (more than R. 55,00000 cores). Allianz SE has more than 115 year of the financial experience in more than 70 countries. Bajaj Car is one of the most familiar name is Indian car for more than 55 year. On Bajaj Allianz customer joy is our guide. See to world-class solutions through the offering of adapted products with transparent advantages, supported by the best technology is the philosophy of Bajaj Allianz.

26

Bajaj Allianz Life Insurance Co. Ltd was incorporated on March 12, 2001. The company received the IRDA certificate of registration on august 3,2001 to conduct life insurance business in India. Bajaj Allianz Life Insurance Co. Ltd posted a profit of Rs 45 corers in FY 2008-09 against a loss of Rs 16 cr in the previous year. Gross written premium = 10,624 corers Asset under management = 17,157 corers, which is an increase of 26%. Bajaj Allianz Life Insurance Co. Ltd grew by 9% garnering a premium of Rs 10,624 corers with new business premium at Rs 4491 corers and renewal premium Rs 6133 corers in FY 2008-09 as against GWP of Rs 9725 corers in FY 2007-08.The life insurance has 7.4 million policies in force, as on 31 st march 2009, the company had a solvency margin of 250%. Bajaj Allianz Life Insurance Co. Ltd balancing growth and profitability, it has under taken several initiatives and launched several need based products.

3.3 Product profile Bajaj Allianz offers 32 products under two categories are individual products and group products. The main products on which my project concentrates mainly are Baiai Allianz new unit gain plus Flexible investment plans with an option of withdrawing money whenever needed.  Guaranteed life cover.  Choice of 5 investment funds.  3 free switches allowed every year.  Partial and full withdrawals after 3 years.

27

 Unmatched flexibility to meet changing lifestyle and insurance requirements. Bajaj Allianz new unit gain super Insure fully and get MAX allocation along with a host of additional benefits to choose from a flexible unit linked plan that allows partial & full withdrawal after 3 years. Additional benefits:  UL Accidental Death Benefit and UL Disability Benefit.  UL Critical Illness Benefit and UL Hospital Cash Benefit.  4 funds to choose from & flexibility to pay top-up any time New unit gain/ fortune plus Fortune plus have formulated as a unique combination of protection and prospective of attractive returns with investment in various mix of securities to make a perfect plan. Some of the key features of this plan  Guaranteed life cover, with a flexibility to insurance cover according to client needs  More than 100% allocation after first 10 years of company association  Flexibility of with drawls (partial or full)  Get maturity value equal to the fund value at the time of maturity or in periodic installment spread over a maximum period of 5 years  Option to increase or decrease customer regular premium to get a portfolio that suits to their needs  A host of optional additional benefits, which ensures enhanced assurance to customer family.  Opportunity to make additional investments  Flexibility to switch money from one fund to other to manage investment better.

28

Chapter -4 DATA ANALYSIS AND INTERPRETATION

29

Frequency analysis:- Table 1:- importance of basic characteristics most important important

neutral

communication skill 42

8

Network

27

20

3

soft skills

28

17

4

Confidence

37

13

Hardworking

29

19

2

Experience

21

20

7

unimportant

1

2

Above table shows that importance of each characteristic using likert scale given by insurance consultants of the Bajaj Allianz. This is just their psychological importance which may not give same importance in real life practice. Even though they are not having those skills this likert scale presenting their mental importance to acquire each. From the above table it is obvious to find that communication skill is most important among all and next is confidence of the consultant. Ranking of the each characteristic was given by using data from table 1. Communication skill 2. Confidence 3. Hardworking 4. Network 5. Soft skills 6. Experience

30

Insurance consultants who have good communication skills and doing hard work would have successful career than other because communicational skill can bring confidence and can increases the net work so those will succeed irrespective of experience that’s way experienced ranked least even though it is important in insurance sector. 4.2. Percentage of the different Factors which keeping away from success

Table 2:-Factors which keeping away from success keeping away from success

Frequency Valid

lack of communication skills lack of network lack of confidance lack of efforts lack of knoledge not applicable more than one Total

Total

Percent

Valid Percent

Cumulative Percent

9

18.0

18.0

18.0

16

32.0

32.0

50.0

4

8.0

8.0

58.0

5 4 10 2 50 50

10.0 8.0 20.0 4.0 100.0 100.0

10.0 8.0 20.0 4.0 100.0

68.0 76.0 96.0 100.0

This table explains the frequency and percent of each variable which affecting negatively the performance of the insurance consultant. From the table it found that nearly 60 percent of the insurance consultant performance badly affected by two variables is lack of communication skills and lack of network. There are only 20% people don’t have any drawback and remaining 80% people have at least one drawback so it is better to continue training classes on developing communication skill along with product knowledge this ultimately leads to increase their network.

31

Cross tabulation:4.3. Comparision between salary of consultant with his/her qualification. Table 3:-cross tabulation between qualification and salary of consultant highest qualification * salary or commission for last year Crosstabulation Count salary or commission for last year less than 1 lac 1 to 2 2 to 3 3 to 4 highest qualification

Total

btech or BE bcom or BBA Bsc BA PG +2

1

1 1 2

Total 1

6

7

1 3 8 3 21

1 5 9

1

23

4

2 13

2

3 9 19 4 50

The above table represents the range of salary with respect to the qualification of the insurance consultant. Most of the consultants has completed their graduation in BA, BBA, Bcom AND Mcom. People from science and technology back ground are not preferring to work as a consultant or sales manager they have other opportunities so from this we can deduct that people who don’t has better other opportunities are only preferring to work as consultant, this field still suffering to attract other higher educated people.

32

Frequencies 4.4 Measuring the achieved skills of consultants in Bajaj Allianz Table 4 :- the level of capacities achieved by consultant for each characteristic.

Percentage

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

learning capacity

0

0

0

2

4

4

4

15

13

8

intelligence 0

1

3

0

2

7

8

13

9

7

0

0

1

3

5

9

9

8

7

8

1

0

1

6

2

3

6

6

14

11

satisfaction 0

0

0

0

4

1

3

14

10

18

total

1

1

5

11

17

24

30

56

53

52

average

0.2

0.2

1

2.2

3.4

4.8

6

11.2 10.6 10.4

emotional

intelligent quotient convincing power degree

of

Interpretation of the table This table explains the level of capacities of characteristic like learning capacity, emotional intelligence, intelligent quotient, convincing power and degree of satisfaction in terms of percentages.100 is the complete achievement of the characteristic, and through this we can measure the level of their achievement hope to improve. In the first row there are values with an interval of 10 up to 100, complete achievement of any characteristic showed as 100 percent 10 percent shows 33

1/10th of their actual capacity there is a scope to improve nine times accordingly remaining values. In last row representing the average number of the sample falling under its respective percentages, by observing it last three columns there are 32 people achieved up to 80 to 100 percent of each characteristic Degree of satisfaction has more number of consultants than other this shows most of the employees of bajaj Allianz are satisfied very well and next big value is convincing power this shows people who have more convincing power also have more satisfaction levels. Average of the last column is 10 is approximately 20 percent of the sample and also equal number people achieved completeness in learning capacity and intelligent quotient because generally people who have more learning capacity also have good intelligent quotient. Among all most of all little bit suffering to achieve completeness in emotional intelligence if company concentrating on to improve it this definitely helpful to consultants to increase their performance. The scope of improvement in capacities of the insurance consultant less than expected through training because more than 75 percent people are already agreed they achieved more 70 percent of their actual capacity so there is only 1/4th people only have scope to improve nearly double of their present performance.

34

4.5 Correlation: relationship among variables Correlations market update number of flexible emotional and calls per working highest wealth convincingintelligentstatistical day net work hours qualification maximisation power quotient analysisconfidenceexperience background Pearson number of 1.000 -.014 .244 -.156 .226 .041 .303* .065 -.028 .088 -.128 Correlationcalls per day net work -.014 1.000 .017 .026 -.075 .128 -.137 .165 .093 .247 .093 flexible .244 .017 1.000 .016 .476** .235 .400** .018 -.195 -.290* .245 working hours highest -.156 .026 .016 1.000 -.004 -.104 .063 .048 -.029 -.093 .003 qualification wealth .226 -.075 .476** -.004 1.000 .222 .394** .015 -.222 .051 .262 maximisation convincing .041 .128 .235 -.104 .222 1.000 .756** -.097 -.311* -.037 -.162 power emotional intelligent .303* quotient market update and statistical .065 analysis confidence -.028 experience .088 background -.128 Sig. number of . (2-tailed) calls per day net work .920 flexible .087 working hours highest .278 qualification wealth .115 maximisation convincing .778 power emotional intelligent .033 quotient market update and statistical .653 analysis confidence .847 experience .545 background .374 N number of 50 calls per day net work 50 flexible 50 working hours highest 50 qualification wealth 50 maximisation convincing power emotional intelligent quotient market update and statistical analysis confidence experience background

-.137

.400**

.063

.394**

.756** 1.000

.037

-.209

-.107

-.013

.165

.018

.048

.015

-.097

.037

1.000

-.010

.106

.100

.093 .247 .093

-.195 -.290* .245

-.029 -.093 .003

-.222 .051 .262

-.311* -.037 -.162

-.209 -.107 -.013

-.010 .106 .100

1.000 .088 -.030

.088 1.000 -.030

-.030 -.030 1.000

.920

.087

.278

.115

.778

.033

.653

.847

.545

.374

.

.907

.857

.603

.374

.343

.252

.521

.083

.520

.907

.

.911

.000

.100

.004

.900

.174

.041

.087

.857

.911

.

.980

.472

.665

.742

.843

.521

.981

.603

.000

.980

.

.122

.005

.920

.121

.727

.066

.374

.100

.472

.122

.

.000

.503

.028

.800

.260

.343

.004

.665

.005

.000

.

.797

.145

.458

.928

.252

.900

.742

.920

.503

.797

.

.945

.464

.490

.521 .083 .520

.174 .041 .087

.843 .521 .981

.121 .727 .066

.028 .800 .260

.145 .458 .928

.945 .464 .490

. .541 .834

.541 . .834

.834 .834 .

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50

50 50 50

50 50 50

50 50 50

50 50 50

50 50 50

50 50 50

50 50 50

50 50 50

50 50 50

50 50 50

50 50 50

*.Correlation is significant at the 0.05 level (2-tailed). **.Correlation is significant at the 0.01 level (2-tailed).

35

Table of correlation was placed in annexure due to its big size. The values in the correlation table are standardized and ranging from 0 to 1. Variables ranging from 0.73 to 0.95 are highly correlated. Number of calls per day 0.92 correlated with building network. Flexible working hours 0.9 correlated with network. Educational qualification 0.85 correlated with building network. So from the above correlation values building network is directly related to number calls dialed by consultant, flexible working hours provided by company and educational qualification of insurance consultant. Educational qualification is 0.91 directly related with flexible working hours Educational qualification is 0.98 directly related with wealth maximization of the company. This shows that people who have higher qualification are preferred work in insurance sector when there is a flexible working system and also they try to work on long term wealth maximization not on short term profits. Statistical analysis and market update have 0.946 correlations with confidence Statistical analysis and market update have 0.92 correlations with wealth maximization Statistical analysis and market update have 0.968 correlations with mode of communication with client. From the above relations one can deduct that people who are doing regular update and market analysis are more confident than others and they can create more wealth to the company. Back ground of consultant means he/she from rural or urban can determine the some of the aspects like emotional quotient 0.93, availability to the client in the time of need have 0.92 correlation with back ground of the consultant.

36

Convincing power and communication skill have a good positive correlation 0.938 this shows that obviously people who have good communication skills can easily convince the clients than others. One way- ANOVA analysis 4.6 Gender can decide the salary range of the insurance consultant Table 5 :-significance of gender on salary. ANOVA Sum of Squares salary or commission for last year

Between Groups Within Groups Total

Mean Square

df

2.738

1

2.738

21.442

48

.447

24.180

49

F 6.130

Sig. .017

Input Independent variable: gender (nominal) Dependent variable: salary (interval) Null Hypothesis Gender can’t decide the salary range of the insurance consultant The null hypothesis for this problem can be expressed as H0 D1=D2; Where D1,D2 are the gender 1 for male,2 for female Our group tested at 95% confidence level whether any of the above mentioned nominal variable is being decides the salary range of the insurance consultant Analysis of out put From the out table of one-way ANOVA, in the last column the significance of the F-test is found to be 0.017. This indicates that at a confidence level of 95 percent. The F-test proves the model is significant. In other words the gender 37

can decide the salary range of the insurance consultant. So our null hypothesis is rejected. 4.7 Qualification can also decide the salary range of the insurance consultant Table 6:-significance of qualification on salary ANOVA Sum of Squares salary or commission for last year

Between Groups Within Groups Total

Mean Square

df

5.372

5

1.074

18.808

44

.427

24.180

49

F 2.513

Sig. .044

Input Independent variable: qualification (nominal) Dependent variable: salary (interval) Null Hypothesis Qualification can’t decide the salary range of the insurance consultant. The null hypothesis for this problem can be expressed as H0 D1=D2; Where D1,D2 are the scale of the qualification. Our group tested at 95% confidence level whether any of the above mentioned nominal variable is being decides the salary range of the insurance consultant Analysis of out put From the out table of one-way ANOVA, in the last column the significance of the F-test is found to be 0.044. This indicates that at a confidence level of 95.6 percent. The F-test proves the model is significant. In other words qualification can also decide the salary range of the insurance consultant. So the null hypothesis is rejected. 38

4.8 Family size of the consultant is trouble to quit the job or exchange to other job Table 7:-significance of experience with size of the consultant family. Experience as insurance consultant or sales manager * size of the family Crosstab size of the family

1

more than 7 1

50.0%

50.0%

100.0%

1 to 3 experience as ic or sm

below one year

1 to 3 years

3 to 5 years

5 to 10 years

more than 10 years

Total

Count % within experience as ic or sm Count % within experience as ic or sm Count % within experience as ic or sm Count % within experience as ic or sm Count % within experience as ic or sm Count % within experience as ic or sm

4 to 6

2

4

10

2

16

25.0%

62.5%

12.5%

100.0%

1

13

14

7.1%

92.9%

100.0%

6

5

1

12

50.0%

41.7%

8.3%

100.0%

2

4

6

33.3%

66.7%

100.0%

14

32

4

50

28.0%

64.0%

8.0%

100.0%

Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Total

15.173

Asymp. Sig. (2-sided)

df a

8

.056

15.945

8

.043

1.973

1

.160

50

a. 12 cells (80.0%) have expected count less than 5. The minimum expected count is .16.

39

This test can link what insurance consultants’ size of the family with his /her experience in field Input data:This test is attempting to find out the relationship between independent variable (size of the family) and dependent variable (experience) Null hypothesis Family size of the consultant is never trouble to quit the job or exchange to other job. Explanation of output:The value of the pearson chi-square test clearly states that there is a significant relationship between dependent and independent variable. The chi-square test is carried out at a 90 percent confidence level (equivalent to 100-90 divided by 100 or 0.1 significant level which is more than obtained significance 0.056). There is 94.4 percent significance between the variables Family size of the consultant is causing trouble to his/her profession to quit the job or exchange to other job so the null hypothesis is rejected. That means consultants from big family have lower experience than people from medium size families if company want to recruit a employees for longer use seeing their family size also will be a clue to estimate their adaptability. From the table we can see that people have a family size 4 to 6 will have on average of 3 to 5 years experience in this field in particular company. people from smaller families are also have more experience than all.

40

4.9 Salary of the insurance consultant depending on the their experience Table 8 :-significance of experience on salary experience as ic or sm * salary or commission for last year Crosstabulation

experience as ic or sm

below one year

1 to 3 years

3 to 5 years

5 to 10 years

more than 10 years

Total

Count % within experience as ic or sm Count % within experience as ic or sm Count % within experience as ic or sm Count % within experience as ic or sm Count % within experience as ic or sm Count % within experience as ic or sm

salary or commission for last year less than 1 lac 1 to 2 2 to 3 3 to 4 2

Total 2

100.0%

100.0%

2

10

4

16

12.5%

62.5%

25.0%

100.0%

4

9

1

14

28.6%

64.3%

7.1%

100.0%

5

6

1

12

41.7%

50.0%

8.3%

100.0%

4

2

6

66.7%

33.3%

100.0%

2

21

23

4

50

4.0%

42.0%

46.0%

8.0%

100.0%

This test can link insurance consultants’ salary with his /her experience in the field Null hypothesis Salary of the insurance consultant doesn’t depending on the their experience Input data:This test is attempting to find out the relationship between independent variable (experience) and dependent variable (salary)

41

Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

20.913

Asymp. Sig. (2-sided)

df a

12

.052

23.495

12

.024

13.151

1

.000

50

a. 14 cells (70.0%) have expected count less than 5. The minimum expected count is .08.

Explanation of output:The value of the pearson chi-square test clearly states that there is a significant relationship between dependent and independent variable. The chi-square test is carried out at a 90 percent confidence level (equivalent to 100-90 divided by 100 or 0.1 significant level which is more than obtained significance 0.052). There is 94.8 percent significance between the variables, by the experience insurance consultants are earning more that means Salary of the insurance consultant depending on the their experience so the null hypothesis is rejected.

42

Chi-square test:4.10 Null hypothesis There is no significant relationship between salary of consultant and their perception on customer satisfaction Input data:This test is attempting to find out the relationship between independent variable (customer satisfaction) and dependent variable (salary or commission) Customer satisfaction * good package Table 9 :-significance of customer satisfaction on good package Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

20.311

Asymp. Sig. (2-sided)

df a

12

.061

16.955

12

.151

4.279

1

.039

50

a. 18 cells (90.0%) have expected count less than 5. The minimum expected count is .10.

Explanation of output:The value of the pearson chi-square test clearly states that there is a significant relation ship between dependent and independent variable. The chi-square test is carried out at a 90 percent confidence level (equivalent to 100-90 divided by 100 or 0.1 significant level which is more than obtained significance 0.061) so the null hypothesis is rejected.

43

From this explanation it can be deducted that insurance consultants who are much concern about customer satisfaction could earn more than other consultants. 4.11 Training given by the Bajaj Allianz Company motivating the employees Null hypothesis Training given by Bajaj Allianz company shouldn’t motivating the employees to improve customer satisfaction approach Input data:This test is attempting to find out the relationship between independent variable (customer satisfaction) and dependent variable (training) Table 10:- significance customer satisfaction with training Customer satisfaction * number of hours attending for training per month Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

21.099

Asymp. Sig. (2-sided)

df a

12

.049

17.900

12

.119

.719

1

.397

50

a. 18 cells (90.0%) have expected count less than 5. The minimum expected count is .20.

Explanation of output:The value of the pearson chi-square test clearly states that there is a significant relationship between dependent and independent variable.

44

The chi-square test is carried out at a 90 percent confidence level (equivalent to 100-90 divided by 100 or 0.1 significant level which is more than obtained significance 0.049). There is a 95.1 percent significance between the variables so the null hypothesis is rejected. From this explanation it can be deducted that insurance consultants who undergone through more Training given by the Bajaj Allianz Company motivating the employees to improve their customer satisfaction approach. 4.12 Find out the relationship between customer satisfaction and flexible working hours. Null hypothesis Flexible working hours provided by the Bajaj Allianz Company to the insurance consultants and sales managers shouldn’t motivating them to improve their customer satisfaction approach Input data:This test is attempting to find out the relationship between independent variable (customer satisfaction) and dependent variable (flexible working hours)

45

Table 11:-significance of customer satisfaction with flexible working hours. Customer satisfaction * flexible working hours Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

26.921

Asymp. Sig. (2-sided)

df a

15

.029

27.607

15

.024

4.044

1

.044

50

a. 22 cells (91.7%) have expected count less than 5. The minimum expected count is .10.

Explanation of output:The value of the pearson chi-square test clearly states that there is a significant relationship between dependent and independent variable. The chi-square test is carried out at a 90 percent confidence level (equivalent to 100-90 divided by 100 or 0.1 significant level which is more than obtained significance 0.029). There is a 97.1 percent significance between the variables so the null hypothesis is rejected. From this explanation it can be deducted that flexible working hours provided by the Bajaj Allianz Company to the insurance consultants and sales managers should motivating them to improve their customer satisfaction approach.

46

4.13 flexible working system to insurance consultants was boosting its wealth maximization. Null hypothesis An insurance company like Bajaj Allianz’s flexible working system to insurance consultants was not boosting its wealth maximization Input data:This test is attempting to find out the relationship between independent variable (wealth maximization) and dependent variable (flexible working hours) Table 12:- Relation between wealth maximization and flexible working hours Wealth maximization * flexible working hours Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Asymp. Sig. (2-sided)

df a

50.252

25

.002

43.577

25

.012

11.084

1

.001

50

a. 34 cells (94.4%) have expected count less than 5. The minimum expected count is .02.

Explanation of output:The value of the pearson chi-square test clearly states that there is a significant relationship between dependent and independent variable. The chi-square test is carried out at a 90 percent confidence level (equivalent to 100-90 divided by 100 or 0.1 significant level which is more than obtained significance 0.002).

47

There is 99.8 percent significance between the variables so the null hypothesis is rejected. From this explanation it can be deducted that An insurance company like Bajaj Allianz’s flexible working system to insurance consultants was boosting its wealth maximization. 4.14 Consultant intension to earn commission affecting their performance (earned commission) Null hypothesis Consultant intension to earn commission doesn’t affect their performance (earned commission) Input data:This test is attempting to find out the relationship between independent variable (intension to earn commission) and dependent variable (earned commission) Table 13:- what insurance consultants earned and their intension to earn. getting more commission * salary or commission for last year Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

21.484

Asymp. Sig. (2-sided)

df a

12

.044

17.327

12

.138

2.449

1

.118

50

a. 18 cells (90.0%) have expected count less than 5. The minimum expected count is .08.

This test can link what insurance consultants earned and their intension levels to get more commission.

48

Explanation of output:The value of the pearson chi-square test clearly states that there is a significant relationship between dependent and independent variable. The chi-square test is carried out at a 90 percent confidence level (equivalent to 100-90 divided by 100 or 0.1 significant level which is more than obtained significance 0.044). There is 95.6 percent significance between the variables. Consultant intension to earn commission affecting their performance (earned commission) so the null hypothesis is rejected.

49

Cluster analysis:4.15 Identification of the different set of insurance consultants in Bajaj Allianz based on their characteristics and performance Table 14:-Different clusters of insurance consultants in Bajaj Allianz

Clusters

1

2

3

4

find out the clients

2

1

2

2

getting more commission

4

7

4

7

customer satisfaction

7

6

6

6

good package

7

6

1

6

Number of hrs attending for 1

1

2

4

training in a month network

2

2

2

1

hard working

1

1

3

2

experience

1

1

4

2

performance

1

1

2

1

By observing the table there is no much difference in values of each cluster this shows that most of the insurance clusters are roughly with same attitude, but when we look into data there are four clusters that means based their response we can divide them into four different categories. Cluster 1 The person belong to this cluster are highly concern for their clients and giving more importance to their satisfaction and also getting commission is less important than customer satisfaction. This cluster people are hard workers and believing that experience is most important to succeed in insurance field, may be because these people believe in practical experience they tempted to have less attendance in company training classes. 50

Cluster 2 This cluster of individuals use mostly cold calling strategy, they will give more preference to get more commission than customer satisfaction even though they are not bad at that. Performance of this cluster is satisfactory but not up to the mark. Cluster 3 The performance of this group not up to the mark even though they are giving less importance to get more commission than customer satisfaction because they are not hard workers. These groups of people are mostly using direct contacts and references to find out the clients. For them this is not an core business activity, it is a partime earning activity for them. Cluster 4 People belong to this cluster are moderately hard workers .they are much importance to improve their customer base through direct contacts. They give preference to commission as well as customer satisfaction. This people will all attend all the training programs conducted by company. This group of people have good track record.

51

Factor Analysis 4.16 Find out the important factors among all variables which are affecting the productivity of consultant Table 15:-important factors which are affecting productivity of consultant Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Rotation Loadings Sums of Squared Loadings % of Cumulative % of Cumulative % of Cumulative Component Total Variance % Total Variance % Total Variance % 1 2.015 25.187 25.187 2.015 25.187 25.187 1.786 22.326 22.326 2 1.459 18.240 43.427 1.459 18.240 43.427 1.598 19.972 42.298 3 1.283 16.038 59.465 1.283 16.038 59.465 1.373 17.168 59.465 4 .933 11.658 71.124 5 .776 9.694 80.818 6 .579 7.241 88.058 7 .513 6.409 94.467 8 .443 5.533 100.000 Extraction Method: Principal Component Analysis.

52

a

Rotated Component Matrix Component 2

1 companys marketing strategies and employees performance getting more commission customer satisfaction incentives and commission good package number of hours attending for traing per month flexible working hours wealth maximisation

3

2.536E-03

.696

-.130

-.135

-.373

.772

.549

.507

.242

.127

.213

.774

.209

.557

.315

.234

-.594

5.842E-02

.800

-8.98E-02

-6.01E-03

.844

-1.87E-02

-3.11E-03

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations.

The output factor analysis is obtained by requesting principal component analysis and specifying the rotation. As evident from the above table, we find that the three factors extracted together account for 59.46 % of the total variance hence we have reduced number of variables from 8 to 3 underlying factors. The variables; flexible working hours and wealth maximization have loading of 0.80 and 0.844 on factor 1. This suggest that the factor is combination of these two variables therefore this factor can be interpreted as ‘freedom to work’ The variables; company marketing strategies and customer satisfaction on factor 2. This suggest that the factor is combination of these two variables therefore this factor can be interpreted as ‘customer focused services’

53

The variables; commission and incentives on factor 3. This suggest that the factor is combination of these two variables therefore this factor can be interpreted as ‘good payments to consultants’ Total eight variables are reduced to three variables named as freedom to work, customer focused services and good payments to consultants. If company concentrates mainly on innovative customer oriented products along with better payments through commission or incentives to the insurance consultants and also giving flexible working hours to work these three together can improve the nearly 60% of company performance

54

Chapter- 5 FINDING AND CONCLUSIONS

55

Findings 1) Building network is directly related to number of calls dialed by consultant, flexible working hours provided by company and educational qualification of insurance consultant 2) People who have higher qualification are preferred to work in insurance sector when there is a flexible working system and also they try to work for wealth maximization not on profits. 3) People who are doing regular update and market analysis are more confident than others and they can create more wealth to the company. 4) Consultants who have good communication skills are also have great convincing power than others clients. 5) Gender and qualification can decide the salary range of the insurance consultant 6) Most of the consultants have completed their graduation in BA, BBA, Bcom AND Mcom. People from science and technology back ground are not preferring to work as a consultant or sales manager, people who don’t has better other opportunities are only preferring to work as consultant, this field still suffering to attract other higher educated people. 7) Insurance consultants who are much concern about customer satisfaction could earn more than other consultants. 8) Insurance consultants who undergone through more Training given by the Bajaj Allianz Company motivating the employees to improve their customer satisfaction approaches.

56

9) Flexible working hours provided by the Bajaj Allianz Company to the insurance consultants and sales managers should motivating them to improve their customer satisfaction approach. 10) An insurance company like Bajaj Allianz’s flexible working system to insurance consultants will boost its wealth maximization. 11) Consultant intension to earn commission affecting their performance (earned commission) 12) Nearly 60 percent of the insurance consultant performance badly affected by two variables is lack of communication skills and lack of network. There are only 20% people without having any drawback and remaining 80% people have at least one drawback. 13) By getting experience insurance consultants are earning more that means Salary of the insurance consultant depending on the their experience 14) Most of the employees of Bajaj Allianz are satisfied very well and their convincing power also well this shows people who have more convincing power also have more satisfaction levels. 15) Approximately 20 percent of the sample and also equal number people achieved completeness in learning capacity and intelligent quotient because generally people who have more learning capacity also have good intelligent quotient. 16) Among all most of all little bit suffering to achieve completeness in emotional intelligence if company concentrating on to improve it this definitely helpful to consultants to increase their performance. 17) The scope of improvement in capacities of the insurance consultant less than expected through training because more than 75 percent people are already agreed they achieved more 70 percent of their actual capacity so 57

there is only 1/4th people only have scope to improve nearly double of their present performance. 18) Communication skill is most important among all and next is confidence of the consultant these can create the trust worthy to the client. 19) Importance of the each characteristic was ranked as follows by the insurance consultant. 1. Communication skill 2. Confidence 3. Hardworking 4. Network 5. Soft skills 6. Experience 20) Insurance consultants who have good communication skills and doing hard work would have successful career than other because communicational skill can bring confidence and can increases the net work so those will succeed irrespective of experience that’s way experienced ranked least even though it is important in insurance sector. 21) Mainly three factors are influencing the 60 percent productivity of both company and insurance consultant a) flexible working hours and wealth maximization are comes under factor 1 named as ‘freedom to work’ b) company marketing strategies and customer satisfaction are comes under factor 2 named as ‘customer focused services’ c) commission and incentives are comes under factor 3 named as good payments to consultants’

58

CONCLUSION ‘A study on productivity of insurance consultant and the reasons there off’ had given an insight on the employees of insurance company and the training given to them. My basic objective was to make the insurance consultants productivity analysis and find out the ways to develop their productivity. . I could come to know that there are around 21 life insurance companies till date. These insurance companies have several plans which fulfill the needs of the customers. So there is a lot of competition between companies and the consultants in this competitive world innovative approach is must and should this research can suggest the company as well as consultant where to concentrate more to increase productivity levels.  Nature of work existing in the insurance industry, the kind of deadlines for sales managers under whom insurance consultants are working have to meet, the kind of pressure and levels of stress which they work under and the kind of recognitions given to them after they meet or exceed their targets.  There is a greater scope to improve insurance consultant productivity through training and motivation.  Work life satisfaction is very important both financially and nonfinancially to sustain in the field for long time.  Interactions with consultants during surveys helped me enhance my marketing skills and communication skills.

59

Chapter- 6 SUGGESTIONS AND RECOMMENDATION

60

Suggestions/recommendations  People who were finding the clients through direct contacts have good positive relation between company advertising and their performance and also it is one of the strategies to create pull marketing, people agree/purchase from such type of person who is trustworthy. Like and trust is the key in insurance business hence it is better to continue the advertising strategy.  Some of the consultants who preferring cold calling has no relationship between company advertising and their performance so for such people company need to give training how to utilize the advertisement to create trustworthy on him/her.  Training given by Bajaj Allianz mostly concentrating on product knowledge including that how to find the prospect, customer approach and need based selling are some of the techniques can help them to improve their productivity.  If company practical way of learning can reduce the importance of experience, case study methods can develop how to tackle the difficult situation without having selling pressure. Including product knowledge this practical learning can bring self confidence.  Employee turnover of the company is more so it better to keep maximum consultants for long time this can reduce other variable costs incurred by the company and also experienced consultants can earn more than newly recruited.  Most of the consultants are demanding not only commission also other financial assistance like travelling expenses, incentives and regular payment for senior consultants, so in order to attract more consultants and keeping them for long time it is recommended that company have to fulfill those. 61

 Bajaj Allianz nearly showing optimal performance at its best, it has good computerized network and quick performance feedback to improve the competitiveness among the consultants. Including direct selling it has to adopting new strategies like bancassurance, shopassurance and telemarketing..etc also can fit well. it is recommended that company must have innovative customized products and marketing channel to increase its capacity as it now always.

62

Chapter- 7 BIBLIOGRAPHY

63

Books:H.Narayanan. Indian insurance a profile. jaico publishing house, 2006. A .M. pandy. Risk management and insurance. himalaya publications, 2007. B .D. Bhargava. insurance theory and practice. pearl book publications, 2001. Journals:“score board-08-09.” Insurance post, volume 9, issue 10, may 2009:57-60 “Various marketing channels in insurance.” Insurance post, volume 9, issue 6, January 2009:35-42. Web site: www.irda.org www.balic.co.in http://www.insureme.com/content/images/Hybe/contentContainer-bkgTile.gif, Saturday, june 23, 2009 12:01:36 AM http://www.economywatch.com/images-new/logo_EconomyWatch.png, Friday , july 10, 2009 7:09:02 PM http://www.thehindubusinessline.com, Monday july 27,2009 http://www.ditchingdebt.com/favicon.ico, Thursday, august 13, 2009 6:57:08 PM http://ezinearticles.com/, Thursday , august 27,2009 10:11 PM 64

Chapter- 8 APPENDICES

65

Correlations market update number of flexible emotional and calls per working highest wealth convincingintelligentstatistical day net work hours qualification maximisation power quotient analysisconfidenceexperience background Pearson number of 1.000 -.014 .244 -.156 .226 .041 .303* .065 -.028 .088 -.128 Correlationcalls per day net work -.014 1.000 .017 .026 -.075 .128 -.137 .165 .093 .247 .093 flexible .244 .017 1.000 .016 .476** .235 .400** .018 -.195 -.290* .245 working hours highest -.156 .026 .016 1.000 -.004 -.104 .063 .048 -.029 -.093 .003 qualification wealth .226 maximisation convincing .041 power emotional intelligent .303* quotient market update and statistical .065 analysis confidence -.028 experience .088 background -.128 Sig. number of . (2-tailed) calls per day net work .920 flexible .087 working hours highest .278 qualification wealth .115 maximisation convincing .778 power emotional intelligent .033 quotient market update and statistical .653 analysis confidence .847 experience .545 background .374 N number of 50 calls per day net work 50 flexible 50 working hours highest qualification wealth maximisation convincing power emotional intelligent quotient market update and statistical analysis confidence experience background

-.075 .128 -.137

.476**

-.004

1.000

.222

.235

-.104

.222

1.000

.394**

.015

-.222

.051

.262

-.311*

-.037

-.162

.037

-.209

-.107

-.013

.756** -.097

.400**

.063

.394**

.165

.018

.048

.015

-.097

.037

1.000

-.010

.106

.100

.093 .247 .093

-.195 -.290* .245

-.029 -.093 .003

-.222 .051 .262

-.311* -.037 -.162

-.209 -.107 -.013

-.010 .106 .100

1.000 .088 -.030

.088 1.000 -.030

-.030 -.030 1.000

.920

.087

.278

.115

.778

.033

.653

.847

.545

.374

.

.907

.857

.603

.374

.343

.252

.521

.083

.520

.907

.

.911

.000

.100

.004

.900

.174

.041

.087

.857

.911

.

.980

.472

.665

.742

.843

.521

.981

.603

.000

.980

.

.122

.005

.920

.121

.727

.066

.374

.100

.472

.122

.

.000

.503

.028

.800

.260

.343

.004

.665

.005

.000

.

.797

.145

.458

.928

.252

.900

.742

.920

.503

.797

.

.945

.464

.490

.521 .083 .520

.174 .041 .087

.843 .521 .981

.121 .727 .066

.028 .800 .260

.145 .458 .928

.945 .464 .490

. .541 .834

.541 . .834

.834 .834 .

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*.Correlation is significant at the 0.05 level (2-tailed). **.Correlation is significant at the 0.01 level (2-tailed).

Appendix-1 table of correlation

66

.756** 1.000

Appendix-2 questionnaire used to Bajaj Allianz insurance consultants. Semi structured questionnaire for conducting survey:Objective of the study:-To find out the reasons which are affecting the performance of the insurance consultant and the solutions to overcome those problems in order to boost their performance. 1. How could you check your performance? Through external feedback Through internal feedback 2. What mode of communication you are using mostly to find out the clients? Telephone

direct contact

Email

others…………

3. How often should you be mailing to prospects? .................... 4. How often should you be calling to prospects? ........................... 5. How can you find out more number of the clients? Cold calling (push) Advertising, creating awareness, network, public image, brand, initiated by the customer (pull) 6. In your opinion what relation between advertizing and your performance? Positive relation [high ( )

medium ( )

Zero relation 67

low ( )]

7. Please rate how exact the productivity of insurance consultant means? True

false

Getting more commission

7 6 5 4 3 2 1

Customer satisfaction

7 6 5 4 3 2 1

Wealth maximization

7 6 5 4 3 2 1

Getting more polices

7 6 5 4 3 2 1

8. Please rate how important or unimportant the different types of motivations in the organization? Important Incentives and commission

unimportant

7 6 5 4 3 2 1

Good package

7 6 5 4 3 2 1

Training and motivating classes’

7 6 5 4 3 2 1

Flexible working hours

7 6 5 4 3 2 1

9. What is keeping you away from being successful? Lack of communication skills

Lack of network

of confidence Lack of affords

Lack of knowledge

68

lack

10. Tick the corresponding block Are you visiting company Branch on regular & Weekly basis as scheduled?[yes]

[no ]

Are you Creating Prospecting List, their birthday List and Marriage Anniversary List? [yes]

[ no ]

Are you doing Market updates & statistical analysis

[yes

]

Are you involving yourself in some social activities for welfare of People around you? [yes]

[ no]

Are you available to prospects & policyholders in times of need [yes]

[no ]

Do you Updating Policyholders new products available [yes ]

[no]

11. (100 marks are perfect score, out of 100 where you are):1. Learning capacity

[

/100 ]

2. Convincing power

[

/100 ]

3. Intelligent quotient

[

/100 ]

4. Emotional intelligence

[

/100 ]

5. Degree of satisfaction

[

/100

69

]

[no ]

12. (Please rate how important or unimportant each characteristic is):Most

Important

important [1]

Neither imp

Unimporta Most

Nor unimp

nt

unimportan

[4]

t

[2]

[3]

[5] Communication skills Net work Soft skills confidence Hardworking Experience

13 .General information about the insurance consultant

Name gender Area qualification Experience Commission No of policies you have Family size No of earners In family Rural or urban (background) Duration Of training Are you Satisfied With This job

70

Open ended questionnaire for unstructured interview:-

1. Please explain what type of training this company given to you?

2. What is the structure of your company training?

3. What kind of development did you noticed after training?

4. Where you are poor and why?

5. What you need most for your productivity?

6. Are you ready to expertise?

7. In your point of view what is innovative way of convincing the clients?

8. How can you convince the clients?

9. What kind of external support you need for good productivity?

10. What skills do you have that will help you be successful?

11. What are your plans for the next 5, 10, 15, and 20 years?

71