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INSURANCE INDUSTRY
With an annual growth rate of 15-20% and the largest number of life
(LIC) for investments are 8% of GDP. Till date, only 20% of the
sector.
The year 1999 saw a revolution in the Indian insurance sector, as
private players and allowing foreign players to enter the market with
Though, the existing rule says that a foreign partner can hold 26%
poured into the Indian market and 21 private companies have been
granted licenses.
seen life insurance as a tax saving device, are now suddenly turning
to the private sector and snapping up the new innovative products on
offer.
premium income from new business at Rs. 253.43 billion during the
for Growth 2012”, finds that the market share of the state behemoth,
selling 2.4 billion new policies in 2004-05. But this was still not
enough to arrest the fall in its market share, as private players grew
billion in 2003-04.
Though the total volume of LIC's business increased in the last fiscal
their market share from about 13% to about 22% in a year's time.
The figures for the first two months of the fiscal year 2005-06 also
speak of the growing share of the private insurers. The share of LIC
for this period has further come down to 75 percent, while the
growth on the Indian Insurance Sector, it also talks about the market
Report Highlights:
(crore)
Insurance Market
With such a large population and the untapped market area of this
the country’s GDP .In spite of all this growth the statistics of the
Health insurance.
the industry the insurance industry has never looked back and today
India. The entry of the private players and the increased use of the
A Brief History
The origin of insurance is very old .The time when we were not even
born; man has sought some sort of protection from the unpredictable
The Indian life insurance company act 1912 was the first statutory
1956 about 154 Indian, 16 foreign and 75 provident firms were been
companies and as a result the LIC was formed. Since then LIC has
network across the length and the breath of the country. After the
The General insurance business in India, on the other hand, can trace
its roots to the Triton Insurance Company Ltd., the first general
1973.
It was after this that 107 insurers amalgamated and grouped into four
companies viz. the National Insurance Company Ltd., the New India
company.
Present Scenario
payments are treated as part of the fixed costs. Consequently they are
sets the premium rates, for projects between 1 billion and 15 billion,
the rates are set in keeping with committee’s guidelines; and projects
New York Life is a Fortune 100 company that has over 160 years of
experience in the life insurance business. Max India Limited is a multi-
business corporate dealing in Clinical Research, IT and Telecom Services,
and Specialty Plastic Products businesses.
Max New York Life Insurance started its operations in India in 2000. It is
the first life insurance company in India to be awarded the IS0 9001:2000
certification. Max New York offers customized products tailored to suit
individual's needs. With its various Products and Riders, there are more than
400 product combinations to choose from. Today, Max New York Life
Insurance has a network of 57 offices spread over 37 cities all over India.
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. The Company places a lot of emphasis on its
selection process, which comprises four stages - screening, psychometric
test, career seminar and final interview. The agent advisors are trained in-
house to ensure optimal control on quality of training.
Max New York Life invests significantly in its training program and
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. Training
is a continuous process for agents at Max New York Life and ensures
development of skills and knowledge through a structured program spread
over 500 hours in two years. This focus on continuous quality training has
resulted in the company having amongst the highest agent pass rate in IRDA
examinations and the agents have the highest productivity among private life
insurers.
Max New York Life, one of India’s leading life insurance companies,
expanded its presence in the southern region by opening its first general
office in the city of Mysore. Max New York Life now has established a
countrywide network of 172 offices and representatives across 120 cities in
India.
Max New York Life, which has till date sold over 1.53 million
policies and recorded a sum assured of over Rs. 46,000 crore, has positioned
itself on the quality platform. The company has developed a strong corporate
governance model based on defined core values of caring, knowledge,
excellence and honesty. Its strategy is to establish itself as a trusted life
insurance specialist on the bedrock of quality of advice. The company has
over 25,300 agent advisors, who are widely considered the best in the
business.
Max New York Life aspires to be the "life insurance brand of first
choice" amongst Indian consumers. To achieve this the company will draw
on New York Life's demonstrated competence in developing and managing
a superior personal sales network. For the last 46 years consecutively, the
largest number of agents qualifying for membership to the Million Dollar
Round Table (MDRT) have been from New York Life. The MDRT is the
industry's most prestigious organization comprising the world's most
successful insurance agents. Max New York Life, a merit oriented and equal
opportunities employer, is looking for a few good men and women who will
spearhead the effort to realize this vision.
“An ever expanding presence of Max New York Life offices across
India reinforces our commitment to serving the nation. We are extremely
pleased with our progress in the region and feel that opening an office in
Mysore would help us educate people about the true potential and benefits of
life insurance. As life insurance specialists, Max New York Life will
continue to help consumers make the right choices to meet their financial
goals, both for the short and long-term, through sound quality advice offered
by our agent advisors and a right mix of product offerings.” he added.
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.
Vision:
Vision statement is "Most Admired Life Insurance Company in India".
Mission:
• Become one of the top quartile life insurance companies in India
• Be a national player
• Be the brand of first choice
• Be the employer of choice
• Become principal of choice for agents
Max New York Life Values and Beliefs
Excellence
"In every aspect of work. Ranging from the in-house training institute to the
detailed Personal Insurance Plan. Max New York Life is focused on
achieving the highest standards of quality in every aspect of their business".
Honesty
"Is the heart of the Life Insurance business. Max New York believes that
above all, Life Insurance is based on trust. Transparency, Dependability and
Integrity will form the cornerstones of the Max New York Life experience."
Knowledge
"Is what makes experts. Max New York Life is focused on the Life
Insurance business. Perfectly combining global expertise with local
knowledge, Max New York Life is the Indian Life Insurance specialist."
Caring
"For the customer. Max New York Life is redefining the Life Insurance
paradigm to focus on the needs of the customers. The Max New York
service process is responsive, personalized, humane and empathetic."
Culture:
Our "in house culture recipe" has some of the finest ingredients going into
its making. Some of the more prominent aspects of our culture are stated
below:
• Customer comes first
• Do it right the first time
• Bias for result oriented action
• Financial strength and discipline
• Clarity of purpose
• International quality standards
• Inclusive Meritocracy
• Learning opportunities
• Fun at work
• Commitment to published value system
Employees 12,531
Number of Offices Dedicated To Rural Business 137 (21 hub offices, 116 spoke offices)
Trainers 824
Whatever you need, Max New York Life has a plan for you. Because we
understand everyone has different needs. Our plans are designed towards
meeting your long term financial goals & aspirations & helping you fulfill
• Life Plans: To ensure that your family will be taken care of in case of
any eventuality. To find peace of mind was never so easy.
• Pension Plans: To ensure that your retirement years are the most
precious of your life.
[SMART Invest]
• Child Plans: Plans perfect for the ever growing needs of children.
After all, you would want to give the best to your child.
Planning does not necessarily mean about what you wish your
obligations to fulfill that would help him to grow better in this world.
The most often repeated statement, ‘Assume that a two year MBA
Your child is five years old now and will pursue the management degree
Assuming that the inflation rate is 10% per annum, the education would
The dynamics of planning for the child's future have changed radically
over the years. The conventional method of providing for the child was
to just set aside some amount of money in a savings bank account.
These funds would then be utilized for the child's life stages. A few
parents would also make investments in fixed deposits with the intention
present scenario.
their own life stages as well as provide for their child's future. It also
secures the child’s future in case of any unfortunate event. Various types
planning their children so that they can best utilize the alternatives
Parents must consider at the outset that they would have to build as
• Education
• Marriage
Child plans come in two broad variants –Traditional child plans and unit
linked insurance plans (ULIPs). The primary difference between the two
lies in the way they invest their premium. Traditional plans invest a major
portion of their money in debt instruments like corporate bonds and
Parents have plenty of choice; they can either opt for a regular ‘
bonuses are stable and give the parent considerable comfort knowing
can expect. Regular endowment plans are suited for parents with a low
risk appetite.
Parents with some risk appetite can opt for a ULIP child plan that invests
The reason why ULIP child plans can prove to be significant is because
over the long-term (15-20
years), equities can add considerably to the corpus you plan to build
are best placed to beat inflation over the long term. However, to achieve
on the other hand brings stability to a portfolio. While the returns for debt
(ULIP) cannot be
understated.
reason the cost of everything right from your child's education to his
15-20 year time frame, if wisely selected, a ULIP even with moderate
are several plans offering enough flexibility to help parents with the same.
expectations.
Child plan
Plan overview
and it is one such stage, when you experience various emotions you
never thought you had. But parenthood also brings its own set of
and secure? So, planning ahead for your child’s future needs such as
provide for higher education of your child and take care of your child’s
Plan overview
Parenthood is wonderful. However, this is a phase in life when you
child gets older. It’s important that you plan in advance to meet your
financially prepared.
time). This policy enables you to provide for various events in your
child’s life such as a grand wedding of your child. This excellent plan
New York Life may declare these bonuses from time to time and from
the third policy year. An important feature of this plan is that the entire
sum assured is paid out on maturity and the plan automatically vests
Smart step
Plan overview
As a responsible parent, it is your responsibility to ensure that your \
child has a safe and a bright future. Higher education, marriage, and
financial security for your child are just some of the most important
things that you would want to save your money for. However, with
quality education and has a secured future, you need a plan, which
would provide you the helping hand and the desired financial support
at times of unavoidable crisis in the future.
Introducing Max New York Life’s regular premium unit linked life
insurance children’s plan – SMART Steps™, which will help you plan
for your child's future in a SMART way and takes your worries away.
This plan offers the required financial protection for your loved ones if
the future.
Plan overview
It is your responsibility to ensure that your child has a safe and a
your child are just some of the most important things that you would
want to save your money for. However, with ever-rising cost of living
hard to ensure that your child receives quality education and has a
secured future, you need a plan, which would provide you the helping
A regular premium unit linked life insurance plan, Max New York
Life’s SMART Steps™ Plus will help you plan for your child's higher
future.
Plan overview
Higher education, marriage, and financial security for your child are
some of the most important things that you would want to save your
money for. It is your responsibility to ensure that your child has a safe
needs. Your support and financial security for your child is of utmost
importance and that’s the reason you need a plan, which would
provide you the helping hand and the desired financial support at
Max New York Life’s SMART Steps™ Single Premium policy will help
you plan for your child's future in a SMART and organized manner.
Apart from offering 360 degree protection to your child if you are not
way of well managed investment funds. This policy also entitles you
future.
•
• Consolidated Revenue CAGR of 57% in 3 years, marking
•
• impressive performance.
•
• The total investment in various businesses of Rs. 1,800 Crore
•
• triples to Market Valuation of Rs. 5,000 Crore.
•
• The Group has over 581 offices across more than 382
•
• locations in the Country and with people strength of 100,000+
•
• persons.
•
• The total consumer base increased from 2.5 million in 2007-08
•
• to 3.5 million in 2008-09.
the objective of research process where the data is collected via two
and so on.
inferences and findings for the purpose of achieving the objective as well
which is essential in the project report of the summer training being done
under an organization.
Helpful Arms of Research Methodology: -
There are two types questionnaire bing carried necessary for the
market survey of the summer training being undertaken and put for
the by the trainee to the sample people taken as a base for entire
population:
quick and fast means of responses be derived out without wasting much
Systematic sampling.
made about the selection of respondents for the market survey and
adopted by me.
that only those respondents can be asked for the purpose of filing
questionnaire.
MARKET SURVEY
LIFE INSURANCE IS:
60 51
50
RESPONSES 38
40
30
20 16
10
0
Prote ction of Tax be ne fit de vice B oth
human as s e t value
agains t unce rtainty CATEGORY
From the survey it was drawn that life insurance is more a protection
Both 16
IS LIFE IN S UR AN CE ES S EN TIAL?
78
80
70
60
RESPONDENTS
50 27
NO. OF
40
30
20
10
0
Ye s No
R ES P O N S ES
10 %
57%
found that 57% of the respondents were graduates, 33% were post
representation : -
Post graduate 35
Graduate 59
Senior secondary 11
AGE QUALIFICAITON:
6%
20%
39% 18-25 age group
25 – 35 age group
35 – 45 age group
Above 45 age group
35%
25 – 35 age group 37
35 – 45 age group 21
10%
23%
Low employment
16%
Low earning / income
Low status
17%
34% Huge capital investment
Low earning 3
70
59
60
46
RESPONDENTS 50
40
NO. OF
30
20
10
0
Yes RESPON SES No
When asked about whether they would like to know about a glorified
career in life insurance agency where they can fulfill any and every
No and will see later sometime in future. It has been depicted that
100 86
80
RESPONDENTS
NO. OF 60
40 19
20
0
Ye s No
R ESPON SES
deprived by the fact to live in future and sustains their living. When
30 18
NO. OF
20
10
0
Ye s No
R ES PO N S ES
life insurance for agency and come to the company fore more
some future date. People are highly dissatisfied from the earning,
status and living standard they are sustaining at present and would
definitely like to make some additional source of earning and for this
60
40 13
20
0
Ye s No
R ES PO N S ES
could secure their future, needs and living despite some fatal
50
40 31
30
20
10
0
Ye s No
R ESPON SES
life insurance than that in the past 50 years with the working of LIC.
prevail even though people have become more advanced and they
can invest their hard earned money after undertaking their pros nad
STRENGTHS
industry.
WEAKNESSES
population.
2. Low number of offices and network and number of life
insurance agents.
OPPORTUNTIIES
2. Still the number of companies are few and company has every
THREATS
1. People are hesitant to invest and put their hard earned money
to the private life insurance company with the fear of getting lost.
2. Belief towards LIC as it is a government corporation phobia is
services, share and securities also pose problems and threats to the
6. CONCLUSION
which is very important for every citizen to learn and realize its
importance because this is the only source which can remain the status
where one is with the family bread earner and ever when he is not.
10. BIBLIOGRAPHY
training:
12.BOOKS:
,2002
17.India Today
18.Business World
19.REFERENCES
20. Websites: -
22. www.irdaindia.org
23. www.liccouncil.org
24. www.businessconnect.com
QUESTIONNAIRE
Name: - ……………………………………………………………
Age:- ……………………………………………………………
Location: - ……………………………………………………………
Occupation: -……………………………………………………………
Q.1. What do you mean by life insurance?
c) Both
a) Yes
b) No
Q.3. What is your qualification?
a) Post graduate
b) Graduate
c) Senior secondary
b) 25 – 35 age group
c) 35 – 45 age group
a) Low employment
c) Low status
advisor ship where you can fulfill every desire of your life?
a) Yes
b) No
a) Yes
b) No
Q.8. Would you like to become or opt for life insurance advisor
life insurance?
a) Yes
b) No
Q.9. Do you agree that the life insurance business is a growing
a) Yes
b) No
the market for life insurance to the customers with the alliance
of multinationals?
a) Yes
b) No
Suggestions: -
1. ……………………………………………………………
2. ……………………………………………………………
3. ……………………………………………………………
4. ……………………………………………………………
5. ……………………………………………………………