BUSINESS PROJECTION REPORT

FOR RELIANCE LIFE INSURANCE

DIRECT MARKETING CHANNEL
BY
ATANU MAZUMDAR

Introduction to Insurance Industry

Brief Market View Of North Bengal

About Reliance Life Insurance

Projected Business Projection

Marketing Strategy For Capturing The Market

Plan A

Plan B

Introduction

The insurance sector is a Nursing Home which aids to recover the ailments of financial sector.
Life Insurance is the fastest growing sector in India since 2000 as Government allowed Private players
and FDI up to 26%. Life Insurance in India was nationalised by incorporating Life Insurance
Corporation (LIC) in 1956.. LIC got the sole monopoly for transacting the life insurance business in
our country. In 1993 the Government of India appointed RN Malhotra Committee to lay down a road
map for privatization of the life insurance sector.
While the committee submitted its report in 1994, it took another six years before the enabling
legislation was passed in the year 2000 This legislation amended the Insurance Act of 1938 and also
legislating the Insurance Regulatory and Development Authority Act of 2000. In the same year the
newly appointed insurance regulator, Insurance Regulatory and Development Authority (IRDA),
started issuing licenses to private life insurers.
With the opening up of the market, foreign and private Indian players were keen to convert
untapped market potential into opportunities by providing tailor-made products. The insurance market
started to fill up with new players which had led to the introduction of several innovative insurance
based products, value add-ons, and services. Many foreign companies have also entered the arena. The
competition among the companies has led to aggressive marketing , and distribution techniques. The
active part of the Insurance Regulatory and Development Authority (IRDA) as a regulatory body has
provided to the development of the sector. The insurance industry is the latest which was thrown open
to competition from the private sector including foreign players. Foreign companies can only enter
joint ventures with Indian companies, with participation restricted to 26 per cent of equity. It is too
early to conclude whether the erstwhile public sector monopolies will successfully be able to face up
to the competition posed by the new players, but it can be expected that the customer will gain from
improved service. The new players will need to bring in innovative products as well as fresh ideas on
marketing and distribution, in order to improve the low per capita insurance coverage.
The last ten years have seen major improvements in the working of various financial market
participants. The government and the regulatory authorities have followed a step-by-step approach,
not a big bang one.
India's ranking in the world insurance market has dropped four places from number 11 in 2010
to number 15 in 2011 because of a sharp drop in life insurance business in 2011-12., India's share of
the world insurance market has declined to 1.58% in 2011 from 1.8% in 2010 as a result of a drop in
life insurance premium. India has been displaced by countries like Brazil, Spain and Taiwan which
now rank higher than India. India's best performance was in 2009 when a surge in premium generated
by life insurance companies through unit-linked insurance plans resulted in India's ranking rising to
number 9 position, displacing Taiwan.
When life insurance industry was opened for competition in 2000, India ranked number 20
among life insurance markets and accounted for a mere 0.5% of the world premium. By 2009, the
share has improved to 2.45%, overtaking developed markets in the West such as Spain, the
Netherlands, Switzerland, Sweden Belgium, Ireland and Finland, South Africa, Australia and Canada.
However, now some industry persons say that the surge in premium in 2009 cannot be taken as
an increase in life insurance penetration as it was investment driven with ULIPs being marketed as a
channel to invest in stock markets. In the last two years the Insurance Regulatory and Development
Authority ( IRDA) came out with guidelines that required life companies to reduce charges and
provide a minimum level of insurance cover with every policy. This has resulted in a sharp drop in
premium collections even though sum insured has jumped because of the change in focus to term
insurance. The drop in life insurance business in 2011-12 in India has been partly responsible for
dragging down growth According to a report by Swiss Re, in 2011 total insurance premiums in
emerging markets grew only 1.3% in 2011 to $700bn largely due to the poor performance of the two
biggest emerging markets China and India. Premiums in China and India, which account for over
42% of total emerging market premium volume, declined 6.4% and 5.5% respectively. However, in the
other two BRIC countries (Brazil and Russia), growth remained solid, keeping the share of emerging

markets' share of global premium at 15%.Together the BRIC countries continue to dominate insurance
growth in the emerging markets accounting for about 60% of total emerging market premium, up from
37% in 2000. In India the shrinkage in premium was because of tighter regulation on distribution of
unit linked insurance plans while in China life premiums fell after the authorities set in stringent rules
regarding bancassurance. This resulted in life insurance premium falling 15% in China and 8.5% in
India. Global insurance premiums contracted 0.8% in 2011. However, because the US dollar
depreciated against other major currencies in 2011, premiums increased 6% in nominal terms to
$4597bn. Life insurance accounted for 57% of total premiums.
As Siliguri (in North Bengal ) is the second largest city in West Bengal. Siliguri is described as the gateway to the
North East of India, Bhutan, Nepal & Bangladesh and has gradually developed as a profitable centre for a variety of
businesses and for some its importance comes from its strategic placement near international and state borders. The city is an
important transportation, trading and educational center and it is the main commercial city of North Bengal. So, Life Insurance
companies see a major opportunity in Siliguri not only to expand business through different opportunities but also to harness
the alliances opportunities in the region. As a Manager , I see a vast opportunity for a company with one of the fastest growing
life insurance (RLIC) in the country, will also create employment as well as self-employment opportunities for staff and
distributors respectively.
The eastern region is a priority market for insurance market as a result of its vast population of salaried employees
which can be cater through individual and corporate based product offerings.
About Reliance Life Insurance Co Ltd :Reliance Life Insurance is amongst the top 5 private sector life insurance companies in terms of individual WRP
(weighted received premium) and new business WRP. The company is by far the largest non-bank promoted private life insurer
with over 10 million policy holders, a strong distribution network of over 900 branches and over 1,00,000 advisor as on March
31, 2014.
Rated amongst the Top 2 Most Trusted Private Life Insurance Service Brands by Brand Equity-Nielsen Most Trusted Brands
Survey 2014, the companys vision is To be a company people are proud of, trust in and grow with; providing financial
independence to every life we touch. With this in mind, Reliance Life caters to five distinct segments, namely Protection,
Child, Retirement, Saving & investment and Health; for individuals as well as Groups/corporate entities.
Reliance Life Insurance is a part of Reliance Capital of the Reliance Group. Reliance Capital is one of India's leading private
sector financial services
Nippon Life Insurance Company acquired 26% interest in equity share capital of the Company effective October 7, 2011
subsequent to receipt of all regulatory approval.
Its a joint venture between Reliance Capital & Nippon Life Insurance .

Please find below the Business Projection Report :-

No Of Branches

No Of Branch Manager

7 with a CTC of Rs 550000 P.A

Branch Cost

7 Branches with an average costing of Rs 360000 P.A ( 30000 P.M )

Branch Operation cost

7 Branches with an average cost of Rs 200000 P.A each Branch

No of Executives

42 with a CTC of Rs 150000 P.A

Total Cost of the the Area would be

Rs 550000* 7 = Rs 38,50000 (B M Cost )
Rs 150000*42 = Rs 63,00000 ( Executives Cost )
Branch Cost = Rs 360000 * 7 Branches = Rs 2520000
Operation Cost = Rs 200000 * 7 = Rs 1400000
Total Cost Rs 3850000+6300000+2520000+1400000 = Rs 14070000 P.A
Therefore in every Branch 1 BM & 6 Executives will be posted + Rs 360000 Branch Cost + Rs 200000
operation Cost
Therefore cost is Rs 550000 + (6*150000) Rs 900000+Rs 360000+Rs200000 = Rs 2010000 staff costing +
operation Costing per Annum
In one month costing will Rs 2010000 / 12 = Rs 167500 PM
Expected business from each branch should be done atleast 5 times of total cost
Therefore Rs 167500 * 5 times = Rs 837500 Minimum business should be done
Each Executive will do Rs 837500 / 6 = Rs 139584 P.M
Therefore each executive will do business of atleast Rs 139584 * 42 Executives = Rs 5862528 P.M
Therefore Each Branch will do Rs 139584* 6 executives = Rs 837500
Therefore 7 branch will do Rs 837500 * 7 Branches = Rs 5862500 P.M
Therefore in one financial year the Area with 7 branches will do 5862500 *12 = Rs 70350000 P.A

The total expected business with 7 branches would be Rs 7 Crore 5 Lac Approx .

PLANA:
PlanToCaptureThePresentMarket:

1. DoortodoorRelationshipBuildingItsnoteasy,butitmightbeoneofthecheapestandmost

effectiveinsurancemarketingstrategies.Tobesuccessfulwithfacetofaceinsurancemarketing
orientallconversationsaroundhowyoucanhelptheorganization(withreferralsandpromotion,
notjustinsurance).Haveanonsalesconversationprepared,likealocalcommunityeventyouare
organizingandrecruitinghelpfor.Berespectfulandmakeanimpressionwithoutinterferingor
comingacrossasatypicalsalesperson.Getxdatesandfollowupwiththedecisionmakersbefore
renewals.Itwillbesurprisedhowmanynoncommercialinsuranceleadswillbegenerated.

2. EverythingWeSellSheetOneofthereasonsourclientsdon'tbuymorelinesofinsurancewith
usandreferusmoreisbecausetheydon'tknowwhatwesell!Itmightseemobvioustousbutif
wedon'tmakeitcleartoclientswealsoprovidefinancialplanning,annuities,bonds,otherfinancial
productsintermsofInsurancethey'llneverknow!Createaneasytoreadonepagerthatshowsall
theproductsweofferandrequireourproducerstotalkthroughthatformduringournewcustomer
onboardingprocess.Wecanalsosendittoexistingclientswithothercommunications.

3. Reach Out to Contacts Every Day Reach out to our professional contacts and ask them
questionsasmuchaspossibleinordertostrengthenrelationships andboostreferralswithout
looking like a salesperson. Strong relationships within the community are perhaps the most
powerfulmarketingtoolanfinancialplannercanpossess.Wecanaskthingswealreadyknow!
Overtimerelationshipswilldevelopandtheywillsendusreferrals.

4. HireCommissionOnlySalespeopleNotmanyagentshavethesparecashtobringonanother
fulltime (or even parttime) producer in today's market but we may be able to bring on a
commissiononlysalesperson.Evenifwegivethem100%ofthesalescommissiontherenewals,
referrals,andcrosssalesarethemtoearn.AdsonCraigslistarefreeandthere'splentyofpeople
inthemarketforajobrightnow.Andmakesureallournewproducersreadthis.

5. PostClientLettersIfsomeonewritesaletter,sendsanemail,orpostsapositivecommentonline
about our company, print it out and post it in a visible location. Shoppers look to others for
guidance.Readingmanylettersfromothersabouttheknowledge,care,andprotectionourprovide
willonlyimprovetheirimpressionofyourbusiness.

6. Send Marketing Messaging With Every Customer Communication Whether it is a payment

reminder, policy endorsement, renewal notification, etc, always it should include some sort of
insuranceproductmarketingmaterial.Thisholdstrueformail,email,phonecalls,textmessages,
whatever.

7. CustomerAppreciationPartyLetourbestpolicyholdersknowhowimportanttheyarebyinviting
them to a nice dinner. We should use this time to market new financial products, encourage

referrals,andstrengthenrelationships.Inviteourlargestpremiumprovidersandthepeoplewho
helpmostwithreferralmarketing.

8. HandwrittenLettersForBestCustomersWespendtoomuchtimewithcustomersthatpaythe
leastmoney.Takealookatyourcommissionstatementsandmakesurewearegoingtheextra
mile forthe peoplethatsupport usthe most.Guesswho our bestcustomershangout with...
peoplejustlikethemwho'dbegreatreferralsforus

PLANB:

Salesofanyproductorservicecomefromtwoways.Oneisthroughexistingcustomers(repeatsales)and
anotheristhroughnewcustomers(freshsales).Retainingexistingcustomersneedsatotallydifferentset
ofstrategiesthanattractingnewcustomerseverytime.Nowadays,itisverydifficulttoretainacustomer
owing to reasons like competition in the market place, customer education and awareness about the
productsandbrands,deficienciesincustomercare,everchangingcustomerpreferencesforproducts,
accessibilityofproductsinthemarket,etc.Hence,itis equallyneededforfocusingonattractingnew
customerstofold,whichisrelativelyeasierone.Asaresult,salesaremostlythroughfirsttimepurchases
also.Now,thequestionbeforeus ishowtodrivecustomerstowardstheirproducts.Advertising,Sales
promotion,Personalsellingaresomeoftheimportantstrategiesbeingusedforthispurpose.Insome
cases,theybringdesiredsalestothefirm.Bythiswaythecompanymightbereachinghistargetswith
enoughfrequencytocreateboredomandstillnotmovethemerchandise.WithPR,wegiveuptheluxury
ofreachingeverybodyinfavourofreachingsomebodywhocounts.
Consumerbuyingdecisionisacomplexphenomenon.Selectionoftheproductorservicesinvolvesmany
processes.Fortheselectionofinsuranceproducts,thecustomerhastospendmuchtimetoevaluateand
choosethebestbasedontheireconomicconditionsandrequirements.Beforetwodecades,peoplehad
muchleisuretime,theyusedtospendtheirtimeastheyliked.Butaftertheopeningupoftheeconomy,
peoplearesobusy,theyarenotabletospendenoughtimetochoosetherightproductorservicesas
theywish.Withthekeyissues,weshoulddevelopedaninteresttotesttheimpactofbrandpreference
dimensiononcustomersatisfaction.Thisstudyrevealsthefactorsthatwillinfluencethebrandpreference
of insurance and addresses the impact of brand preference dimensions on customer satisfaction.
Moreover,this willbemorerelevantandusefulforgeneralpublicaswellastheinsurancepurchaser,
manufacturers of insurance product can understand the dimensions reflecting brand preference of
insuranceandimpactofallthesefactorsoncustomersatisfaction.
Astheeconomyisdeveloping,themindsetofthepeopleisalsochangingataveryfastpace.Some
decadesback,thebestplaceforwomenwasconsideredtobetheirhome.Itwasthoughtthatwomenare
borntolookafterthefamilyandchildren.Theywerenotallowedtoworkoutsidebecauseitruinedthe
reputationofthefamilyandatthesametime,itwasnotacceptedbysociety.Butnow,thescenehas
changedandsohasthepositionofwomeninsociety.Womenareworkingineveryfield.Theirearningis
atparwiththatoftheirmalecounterpartsandtheyenjoybothpersonalandprofessionallife,butinterms

ofinsurance,theyareeitherunderinsuredoruninsured.Despiteallofthechanges,manymarriedwomen
still rely on their husbands' insurance policy to protect them. Studies have shown that while women
indicatetheyunderstandlifeinsuranceasaproduct,fewhavequantifieditseconomicvalue.

There are four basic parts of a sales plan:

1.

New business acquisition strategies

2.

New business acquisition tactics

3.

Existing business growth strategies

4.

Existing business growth tactics

ExistingCustomerBusinessStrategiesandTactics
Weshouldincludethefollowingtwostrategiesinoursalesplan.Itshouldberemember,thesestrategies
aredesignedtocapturehighmargin,addonbusinessfromourexistingcustomers.Importantnote:Here
again,thestrategiesarenumberedandthetacticsareitalicized.
1.Createatouchpointprogram.
Contacteachofmyexistingcustomersnolessthanoncepermonthwithanewideatheycannotgetfrom
anyoneelse.
Createanoteworthymonthlynewsletter.
Createausergroupwithinmyexistingcustomerbase.
CreatesomesortofWebbasedseminarseriesformyexistingcustomers.
Takeatleastthreeexistingcustomerstoluncheachmonthandinviteanewprospecttojoinus.
2.Prospectwithinmyexistingcustomerbase.
Knockonnolessthanthreenewdoors,departmentsanddivisionswithineachofmyexistingcustomers'
businesses.
Askeachofmyexistingcustomercontactstointroducemetooneotherpersonwithintheirorganization.
Personallymeetthetoppolicyholderateachofmyexistingcustomers'businesses.

Marketing Strategies can be adopted by Insurance companies for Boosting up Business :In order to facilitate their consumers expediently RLI should adopt wide-ranging marketing
strategies to acquire reach, frequency and impact onto the panorama of life insurance coverage. This
section of the research study will focus on the diverse marketing strategies of insurance s companys
of India to reduce the competitive pressure and uphold their first position in the life insurance market.
I.
Facilities to their existing employees
II.
The number of NOP should be increase
III.
Number of Calls per day should be increase
IV.
Realizing the economical demand and supply of the customer so to provide the best
product to them.
V. More awareness we will require to encourage the consumer
VI.
It is a challenge for any insurance business organization to attract qualified and capable
persons to join and work with them to sell insurance in the competitive environment. Junior
Employees/Front Line Sales Personnel should enhance the possibility of success by
understanding the needs of the customer and then sell insurance policy to potential
customers. It requires capable people who could analyse the financial status and generate
confidence among potential customers to accept the advice. However, the turnover of
insurance junior Employees/Front Line Sales Personnel has traditionally been high in this
business. It is posing challenges to the insurance companies. The above rule shows that it is
an extremely time consuming and intensive process to sell one policy. The selling process
requires a certain level of analytical skill and knowledge of the different financial tools.
Further, junior Employees/Front Line Sales Personnel are required to be backed by strong
information base by the office. Absence of such a back-up of the office makes it difficult to

answer different questions that the customers ask the junior Employees/Front Line Sales
Personnel who directly sales the product to the consumer .