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Project on
CHANNEL DEVELOPMENT
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INDEX OF CONTENTS
Chapter 7- FINDINGS
Chapter 8- LIMITATIONS
APPENDIX
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Chapter-1 : RATIONALE OF THE STUDY
Indian insurance industry is emerging rapidly after year 2000. To survive in this
recruit quality and skilled people and eliminate inefficiency. The collective efforts
of the employer, managers and other relative people assume relevance in this
context. And this is where marketing management and human resources play
important role.
this project, 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 firm use to
recruit quality people and so on. It is more qualitative rather than a quantitative
data.
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To get knowledge of above question and to fulfill the requirements for my project
on “Channel Development At Max New York Life”, I have worked in MNYL and
On the basis of my study, I have included following topics as the important aspect
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 feedback to enhance my
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Chapter-2: OBJECTIVES OF STUDY
advisors (AA) for the company for providing life Insurance solutions to the
company’s earnings as well as they create value for the organization after
achieving some milestones. AA are integral part of the team and sales manager
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New York Life is a Fortune 100 company and Max India Limited is one of
India's leading multi-business corporations.
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 paid up 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.
Screening,
Psychometric test,
Career seminar
Final interview.
The agent advisors are trained in-house to ensure optimal control on quality
of training.
Each agent is trained for 152 hours as opposed to the mandatory 100 hours
stipulated by the IRDA before beginning to sell in the marketplace.
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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.
201 agent advisors have qualified for the Million Dollar Round Table
(MDRT) membership in 2005.
Having set a best in class agency distribution model in place, the company is
spearheading a major thrust into additional distribution channels to further
grow its business.
These include the franchisee model, rural business, direct sales force
involving group insurance and telemarketing opportunities and corporate
alliances.
It now has 26 life insurance products and 8 riders that can be customized to
have more than 400 products.
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1) Premium Leader
2) Ten-A-Monther
Lunch.
3) Hi-Flier
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Qualifying Criteria- 15 paid cases & Rs. 40,000 FYC at the end of
month 3
Qualifying Criteria- 25 paid cases & Rs. 80,000 FYC at the end of
month 6
Qualifying Criteria- 50 paid cases & Rs. 1.8 lakhs FYC in July- June
for
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Reward and Recognition- Recognition Plaque
9) Centurion
Qualifying Criteria- Highest FYC with 100 or more paid cases and
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11)Executive Council
Council Meeting.
Reward and Recognition- MDRT dues for all qualifiers. Top 35 by FYC
will
13)CEO’S Council
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Qualifying Criteria- July 2006 to June 2007: 8,00,000 Council
Credits
meeting.
PRODUCTS OF MNYL
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• Endowment Plans
• Children Plan
• Pension Plans
Vision
Mission
Be a national player.
Values
This vision to become India's most admired life insurance company will be
realized through our unique set of values, which are as follows:
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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.
CSR
Max 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
Villages of 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 of helping 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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Chapter-4: REVIEW OF LITERATURE
immense.
It is estimated that over the next ten years India would require investments
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There are two legislations that govern the sector-
Historical Perspective
The Bombay Mutual Life Insurance Society started its business in 1870.
It was the first company to charge same premium for both Indian and non-
Indian lives.
Till the end of nineteenth century insurance business was almost entirely in
Insurance regulation formally began in India with the passing of the Life
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Insurance Companies Act of 1912 and the provident fund Act of 1912.
Several frauds during 20's and 30's sullied insurance business in India.
The first comprehensive legislation was introduced with the Insurance Act
The Government of India in 1956, brought together over 240 private life
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Insurance Sector Reforms
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
where it was necessary to address the need for similar reforms. In 1994, the
committee submitted the report and some of the key recommendations included:
50%. Government should take over the holdings of GIC and its subsidiaries so that
these subsidiaries can act as independent corporations. All the insurance companies
should be allowed to enter the sector. No Company should deal in both Life and
enter the industry in collaboration with the domestic companies. Postal Life
Insurance should be allowed to operate in the rural market. Only one State Level
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iii) Regulatory Body: The Insurance Act should be changed. An Insurance
Regulatory body should be set up. Controller of Insurance- a part of the Finance
securities to be 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
days. Insurance companies must be encouraged to set up unit linked pension plans.
insurance industry.
The committee felt the need to provide greater autonomy to insurance companies
companies with economic motives. For this purpose, it had proposed setting up an
Authority.
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
body in April 2000 has fastidiously stuck to its schedule of framing regulations and
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independent statutory body the IRDA has put in a framework of globally
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 imparting training to agents has
also ensured that the insurance companies would have a trained workforce of
Present Scenario
The Government of India liberalised the insurance sector in March 2000 with the
lifting all entry restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership. Under the current
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 15 life insurance companies have
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have started selling their insurance policies since 2001. Table shows the current
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 insurance products was 22 percent of the total 400 million of the insurable
in the products. With the entry of the private insurers the rules of the game have
changed.
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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 market have 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 between premiums being collected by private and public
Innovative products, smart marketing and aggressive distribution. That's the triple
sign up Indian customers faster than anyone ever expected. Indians, who have
always seen life insurance as a tax saving device, are now suddenly turning to the
From this eligibility model company judge prospective person. The company
always justify its mission. The basic objective of having an eligibility model for
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recruitment is to have good retention and greater effectiveness in the delivery of
service.
This age shows attainment of maturity and responsibility. People are more
2. Married:
Married people have more eager to earn money. Family pressures increase
married AA.
Person who stays more than 5 year has huge natural market which helps him
4. Graduate:
Graduate people have basic skills like communication skills, numerical ability, I.P
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1. Financial stability:
MNYL is focuses on classes and not on masses thus they select strong agent
advisors.
it helps to get higher case rate and case size. Also the chances of policy lapsing can
Firm selects advisors who understand the language of commission. Because people
who want fix amount as their earnings are not suitable for this business.
4. Independent:
want flexible hours for work are prospective person for this business.
5. Persuasion:
basis with prospective and new clients without being a nuisance value.
Because developing and maintaining good relations can get policies. Secondly
since most of the insurance companies provide a plethora of similar products, sales
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depend on the convincing ability of the AA and the rapport the AA is bale to build.
about why insurance is important, which product will suit his requirement etc.
Desirable Candidates
1) Housewives.
2) Employees having VRS.
3) CA’s.
4) Mutual Fund Brokers.
5) NSC brokers.
6) Tax Consultants.
7) Businessman.
8) Doctors.
9) Travel agents.
10) Lawyers
11) Diamond merchants.
12) Social workers.
distribution network. These model are followed across the country uniformly and
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top management feels that these rules are the building block of MNYL’s success in
India as well as across the world. There are 2 basic principles that are required in
1) Prospecting: Identify the right person who fits in the eligibility model.
RULE OF 31
Rule of 31 is associated with the daily activities which is follow to recruit quality
advisors. It says that everyday collect at least 3 names of the prospective AA and
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There are several ways for gathering names in order to follow rule of 31.
Natural Market:
A natural market consist of people to whom you know well from your
family, friend circle, relative can be a good prospect. The most admired way
Personal Observation:
It means identify the right person through observation. For e.g. a person
Nominator Call:
default.
A centre of influence person is people who are influential and you know
them personally. They are approached for giving references of the client.
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Prospect Call:
Prospects itself are approached. They can be anyone from natural market,
Activities:
• Phoenix mill.
• Nakshatra mall.
• Hirra panna.
• Siddhivinayak temple.
• BSE.
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COLD/ WARM/ HOT
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,
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WARM
COLD
HOT
➢ Cold
Cold is like what u are having. In this column we include all the names
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nominators, PO names and so on. It is a list of all the names that we wish to
contact in future.
➢ Warm
Once the names mentioned in the cold column are contacted and if any
➢ Hot
After being entered in the warm list if any candidate has attended any of the
seminars 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
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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 still dominate segments like endowments and money back policies. But
in the annuity or pension products business, the private insurers have already
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wrested over 33 percent of the market. And in the popular unit-linked insurance
schemes they have a virtual monopoly, with over 90 percent of the customers.
The private insurers also seem to be scoring big in other ways- they are persuading
people to take out bigger policies. For instance, the average size of a life insurance
policy before privatisation 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.
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Chapter-5: RESEARCH METHODOLOGY
For achieving the objectives of study, survey was conducted. For survey, personal
interviews were selected as the mode of survey to make the study more meaningful
& so that maximum information could be collected. For conducting the personal
From this eligibility model company judge prospective person. The company
always justify its mission. The basic objective of having an eligibility model for
service.
This age shows attainment of maturity and responsibility. People are more
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2. Married:
Married people have more eager to earn money. Family pressures increase
married AA.
Person who stays more than 5 year has huge natural market which helps him
4. Graduate:
Graduate people have basic skills like communication skills, numerical ability, I.P
Sample Size:
I have covered 100 employees.
Types of Data:
I have used primary as well as secondary data.
Some data is been taken from internet,
And some is gathered through questionnaire
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c. Life Insurance
d. Property
_________________________________________
a. ____________________________________
b. ____________________________________
c. ____________________________________
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a. Whole Life/ Endowment
b. Money Back
d. Term Plan
Chapter-7: FINDINGS
Max New York Life as an insurance firm has a very strong presence in India and is
rapidly 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 base and selection procedure for AAs, the key revenue generating resource
for the company:
• Increase awareness among the general public
• Highlight the core strengths of the company like oldest firm in insurance
sector, highest paid up capital, etc.
• Have a re-look at the existing product range and design products which can
attract masses rather than just serving only classes.
Chapter-8: LIMITATIONS
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QUESTIONNAIRE
Hello. This is MRUNAL D. SAMANT from Max New York Life, working here as
a management trainee. I would appreciate it if you could lend me just 2 minutes of
your time for my project 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?
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a. Stock Markets
b. Mutual Funds
c. Life Insurance
d. Property
a. _____________________________________
b. _____________________________________
c. _____________________________________
_________________________________________
a. ____________________________________
b. ____________________________________
c. ____________________________________
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5.Which among the following products do you own?
i. Security
j. Investment
k. Tax Benefits
l. Rs.20,000 to 30,000
m. Rs.30,000 to 50,000
n. Rs.50,000 to 75,000
o. Rs.75000 to 1,00,000
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8. Would you like to add a business to your current profile?
p. Yes
q. No
NAME: ______________________________________
ADDRESS: ______________________________________
______________________________________
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Thank You for your valuable time and for your information the agency business in
insurance sector is successfully pursued by businessman, housewife, freelancers,
IT Consultants/CA, professionals like Doctors, Architects, Trader Segments, Auto,
Real Estate, etc.
BIBILOGRAPHY
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www.maxnewyorklife.com
www.google.com
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