Beruflich Dokumente
Kultur Dokumente
A Study on
PRODUCTIVITY OF INSURANCE CONSULTANT AND THE REASONS
THERE OFF
for
Submitted to the
S
S C M S
S
SCMS – COCHIN
SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN
06.
September 2009
1
SCMS – COCHIN
SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-
S
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.
DATE: yesubabu.v
2
SCMS – COCHIN
SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-
S
S C M S
S
06.
CERTIFICATE
3
SCMS – COCHIN
SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA, COCHIN-
S
S C M S
S
06.
4
ACKNOWLEDGEMENT
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 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.
Title Page no
No
Executive summary 1
Chapter 1
Introduction and Theoretical Background 2 -8
1
1.1 Introduction
1.2 Literature review
Chapter 2
Objective and Research Methodology
2.1 Objectives:-
2.2 Procedure:-
2.3 Sampling plan 9 - 14
2
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
15 -20
product profile
3
3.1 Industry profile
3.2 Company profile
3.3 Product profile
Chapter 4 21 -46
4
Analysis and interpretation
Chapter 5 47 - 51
5
Finding and conclusions
6
Chapter 6 52 -54
6
Suggestions and Recommendations
Chapter 7
7 55-56
Bibliography
Chapter 8
8 57 – 63
Appendix
7
LIST OF TABLES
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
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.
11
more about insurance, when they compare with other products, so here
consultant’s role becomes very important due to following reason: -
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: -
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.
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.
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.
15
Unique Attributes of Successful Salespeople
Trustworthiness
Self-confidence
Enthusiasm
Empathy
Patience
Unlimited income
Time autonomy
Personal satisfaction
Selling Skills
Interpersonal skill
Communication
Organization
Presentation
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:-
3) Find out the important factors among all variables which are affecting
the productivity of consultant
2.2 Procedure:-
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:
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.
Population:- all insurance consultants and sales managers who engaged with
customers directly of bajaj Allianz in Chennai.
Sample size: 50 {60% insurance consultants (30) +40% sales managers (20)}
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.
Awareness/Knowledge:
Motivation:
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
Thus, it helps to draw a comparison between the selling style and the observed
behavior of the advisor.
20
The first of Research consisted of secondary data search from the following
sources:
Books
Websites
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.
Survey: - conducting survey for data collection by using closed and open
ended questionnaire from the sample or primary sources (insurance consultants
and sales managers)
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:-
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
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.
The value for India is 4.10, the value for Asia is 5, and the value for World is
4.5.
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.
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
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 2007-
08.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 2006-
07. 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
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 balancing growth and profitability, it has
under taken several initiatives and launched several need based products.
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
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
Valid Cumulative
Frequency Percent Percent Percent
Valid lack of
communication 9 18.0 18.0 18.0
skills
lack of network 16 32.0 32.0 50.0
lack of
4 8.0 8.0 58.0
confidance
lack of efforts 5 10.0 10.0 68.0
lack of knoledge 4 8.0 8.0 76.0
not applicable 10 20.0 20.0 96.0
more than one 2 4.0 4.0 100.0
Total 50 100.0 100.0
Total 50 100.0
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:-
Count
salary or commission for last year
less than
1 lac 1 to 2 2 to 3 3 to 4 Total
highest btech or
1 1 2
qualification BE
bcom or
6 7 13
BBA
Bsc 1 1 1 3
BA 1 3 5 9
PG 8 9 2 19
+2 1 3 4
Total 2 21 23 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
Percentage 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
learning
capacity 0 0 0 2 4 4 4 15 13 8
emotional
intelligence 0 1 3 0 2 7 8 13 9 7
intelligent
quotient 0 0 1 3 5 9 9 8 7 8
convincing
power 1 0 1 6 2 3 6 6 14 11
degree of
satisfaction 0 0 0 0 4 1 3 14 10 18
total 1 1 5 11 17 24 30 56 53 52
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.
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.
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 analysisconfidenceexperiencebackground
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* -.137 .400** .063 .394** .756** 1.000 .037 -.209 -.107 -.013
quotient
market update
and statistical .065 .165 .018 .048 .015 -.097 .037 1.000 -.010 .106 .100
analysis
confidence -.028 .093 -.195 -.029 -.222 -.311* -.209 -.010 1.000 .088 -.030
experience .088 .247 -.290* -.093 .051 -.037 -.107 .106 .088 1.000 -.030
background -.128 .093 .245 .003 .262 -.162 -.013 .100 -.030 -.030 1.000
Sig. number of
. .920 .087 .278 .115 .778 .033 .653 .847 .545 .374
(2-tailed) calls per day
net work .920 . .907 .857 .603 .374 .343 .252 .521 .083 .520
flexible
.087 .907 . .911 .000 .100 .004 .900 .174 .041 .087
working hours
highest
.278 .857 .911 . .980 .472 .665 .742 .843 .521 .981
qualification
wealth
.115 .603 .000 .980 . .122 .005 .920 .121 .727 .066
maximisation
convincing
.778 .374 .100 .472 .122 . .000 .503 .028 .800 .260
power
emotional
intelligent .033 .343 .004 .665 .005 .000 . .797 .145 .458 .928
quotient
market update
and statistical .653 .252 .900 .742 .920 .503 .797 . .945 .464 .490
analysis
confidence .847 .521 .174 .843 .121 .028 .145 .945 . .541 .834
experience .545 .083 .041 .521 .727 .800 .458 .464 .541 . .834
background .374 .520 .087 .981 .066 .260 .928 .490 .834 .834 .
N number of
50 50 50 50 50 50 50 50 50 50 50
calls per day
net work 50 50 50 50 50 50 50 50 50 50 50
flexible
50 50 50 50 50 50 50 50 50 50 50
working hours
highest
50 50 50 50 50 50 50 50 50 50 50
qualification
wealth
50 50 50 50 50 50 50 50 50 50 50
maximisation
convincing
50 50 50 50 50 50 50 50 50 50 50
power
emotional
intelligent 50 50 50 50 50 50 50 50 50 50 50
quotient
market update
and statistical 50 50 50 50 50 50 50 50 50 50 50
analysis
confidence 50 50 50 50 50 50 50 50 50 50 50
experience 50 50 50 50 50 50 50 50 50 50 50
background 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.
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.
4.6 Gender can decide the salary range of the insurance consultant
ANOVA
Sum of Mean
Squares df Square F Sig.
salary or Between
2.738 1 2.738 6.130 .017
commission Groups
for last year Within
21.442 48 .447
Groups
Total 24.180 49
Input
Null Hypothesis
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
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
ANOVA
Sum of Mean
Squares df Square F Sig.
salary or Between
5.372 5 1.074 2.513 .044
commission Groups
for last year Within
18.808 44 .427
Groups
Total 24.180 49
Input
Null Hypothesis
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
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
Crosstab
Chi-Square Tests
Asymp.
Sig.
Value df (2-sided)
Pearson a
15.173 8 .056
Chi-Square
Likelihood Ratio 15.945 8 .043
Linear-by-Linear
1.973 1 .160
Association
N of Valid Cases 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.
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
This test can link insurance consultants’ salary with his /her experience in the
field
Null hypothesis
Input data:-
This test is attempting to find out the relationship between independent variable
(experience) and dependent variable (salary)
41
Chi-Square Tests
Asymp.
Sig.
Value df (2-sided)
Pearson a
20.913 12 .052
Chi-Square
Likelihood Ratio 23.495 12 .024
Linear-by-Linear
13.151 1 .000
Association
N of Valid Cases 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.
42
Chi-square test:-
Input data:-
This test is attempting to find out the relationship between independent variable
(customer satisfaction) and dependent variable (salary or commission)
Chi-Square Tests
Asymp.
Sig.
Value df (2-sided)
Pearson a
20.311 12 .061
Chi-Square
Likelihood Ratio 16.955 12 .151
Linear-by-Linear
4.279 1 .039
Association
N of Valid Cases 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.
43
From this explanation it can be deducted that insurance consultants who are
much concern about customer satisfaction could earn more than other
consultants.
Null hypothesis
Input data:-
This test is attempting to find out the relationship between independent variable
(customer satisfaction) and dependent variable (training)
Chi-Square Tests
Asymp.
Sig.
Value df (2-sided)
Pearson a
21.099 12 .049
Chi-Square
Likelihood Ratio 17.900 12 .119
Linear-by-Linear
.719 1 .397
Association
N of Valid Cases 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).
4.12 Find out the relationship between customer satisfaction and flexible
working hours.
Null hypothesis
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.
Chi-Square Tests
Asymp.
Sig.
Value df (2-sided)
Pearson a
26.921 15 .029
Chi-Square
Likelihood Ratio 27.607 15 .024
Linear-by-Linear
4.044 1 .044
Association
N of Valid Cases 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.
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
Input data:-
This test is attempting to find out the relationship between independent variable
(wealth maximization) and dependent variable (flexible working hours)
Chi-Square Tests
Asymp.
Sig.
Value df (2-sided)
Pearson a
50.252 25 .002
Chi-Square
Likelihood Ratio 43.577 25 .012
Linear-by-Linear
11.084 1 .001
Association
N of Valid Cases 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.
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.
Null hypothesis
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.
Chi-Square Tests
Asymp.
Sig.
Value df (2-sided)
Pearson a
21.484 12 .044
Chi-Square
Likelihood Ratio 17.327 12 .138
Linear-by-Linear
2.449 1 .118
Association
N of Valid Cases 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.
49
Cluster analysis:-
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.
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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.
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Factor Analysis
4.16 Find out the important factors among all variables which are
affecting the productivity of consultant
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.
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Rotated Component Matrix a
Component
1 2 3
companys
marketing
strategies and 2.536E-03 .696 -.130
employees
performance
getting more
-.135 -.373 .772
commission
customer
.549 .507 .242
satisfaction
incentives and
.127 .213 .774
commission
good package .209 .557 .315
number of
hours
attending for .234 -.594 5.842E-02
traing per
month
flexible
.800 -8.98E-02 -6.01E-03
working hours
wealth
.844 -1.87E-02 -3.11E-03
maximisation
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
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’
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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.
54
Chapter- 5
FINDING AND CONCLUSIONS
55
Findings
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
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.
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.
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.
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
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.
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.
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.
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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:-
B .D. Bhargava. insurance theory and practice. pearl book publications, 2001.
Journals:-
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
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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 analysisconfidenceexperiencebackground
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* -.137 .400** .063 .394** .756** 1.000 .037 -.209 -.107 -.013
quotient
market update
and statistical .065 .165 .018 .048 .015 -.097 .037 1.000 -.010 .106 .100
analysis
confidence -.028 .093 -.195 -.029 -.222 -.311* -.209 -.010 1.000 .088 -.030
experience .088 .247 -.290* -.093 .051 -.037 -.107 .106 .088 1.000 -.030
background -.128 .093 .245 .003 .262 -.162 -.013 .100 -.030 -.030 1.000
Sig. number of
. .920 .087 .278 .115 .778 .033 .653 .847 .545 .374
(2-tailed) calls per day
net work .920 . .907 .857 .603 .374 .343 .252 .521 .083 .520
flexible
.087 .907 . .911 .000 .100 .004 .900 .174 .041 .087
working hours
highest
.278 .857 .911 . .980 .472 .665 .742 .843 .521 .981
qualification
wealth
.115 .603 .000 .980 . .122 .005 .920 .121 .727 .066
maximisation
convincing
.778 .374 .100 .472 .122 . .000 .503 .028 .800 .260
power
emotional
intelligent .033 .343 .004 .665 .005 .000 . .797 .145 .458 .928
quotient
market update
and statistical .653 .252 .900 .742 .920 .503 .797 . .945 .464 .490
analysis
confidence .847 .521 .174 .843 .121 .028 .145 .945 . .541 .834
experience .545 .083 .041 .521 .727 .800 .458 .464 .541 . .834
background .374 .520 .087 .981 .066 .260 .928 .490 .834 .834 .
N number of
50 50 50 50 50 50 50 50 50 50 50
calls per day
net work 50 50 50 50 50 50 50 50 50 50 50
flexible
50 50 50 50 50 50 50 50 50 50 50
working hours
highest
50 50 50 50 50 50 50 50 50 50 50
qualification
wealth
50 50 50 50 50 50 50 50 50 50 50
maximisation
convincing
50 50 50 50 50 50 50 50 50 50 50
power
emotional
intelligent 50 50 50 50 50 50 50 50 50 50 50
quotient
market update
and statistical 50 50 50 50 50 50 50 50 50 50 50
analysis
confidence 50 50 50 50 50 50 50 50 50 50 50
experience 50 50 50 50 50 50 50 50 50 50 50
background 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).
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Appendix-2 questionnaire used to Bajaj Allianz insurance consultants.
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.
2. What mode of communication you are using mostly to find out the
clients?
Email others…………
Zero relation
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7. Please rate how exact the productivity of insurance consultant
means?
True false
Customer satisfaction 7 6 5 4 3 2 1
Wealth maximization 7 6 5 4 3 2 1
Important unimportant
Good package 7 6 5 4 3 2 1
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10. Tick the corresponding block
Are you Creating Prospecting List, their birthday List and Marriage
Anniversary List? [yes] [ no ]
Are you doing Market updates & statistical analysis [yes ] [no ]
Are you involving yourself in some social activities for welfare of People
around you? [yes] [ no]
11. (100 marks are perfect score, out of 100 where you are):-
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12. (Please rate how important or unimportant each characteristic is):-
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:-
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