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BACHELOR OF BUSINESS ADMINISTRATION

(MARKETING)

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS


FOR AWARD OF BACHELOR OF BUSINESS ADMINISTRATION
OF TILAK MAHARASHTRA UNIVERSITY,
PUNE

SUBMITTED BY

P.R.NO:

OF

LN COLLEGE OF MANAGEMENT & TECHNOLOGY

GUIDED BY

PROF.

TILAK MAHARASHTRA UNIVERSITY


GULTEKDI, PUNE 411037

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TILAK MAHARASHTRA UNIVERSITY, PUNE

(DEEMED UNDER SECTION 3 OF UGC ACT 1956 VIDE


NOTIFICATION NO.F.9-19/85-U3 DATED 24TH APRIL 1987 BY
GOVERNMENT OF INDIA)
VIDYAPEETH BHAVAN, GULTEKDI, PUNE-411037

CERTIFICATE

This is to certify that the project titled Marketing Strategy Of Different


Insurance Companies is bonafide work carried out by Mr. …………a
student of Bachelor of Business Administration Semester 6th Specialisation
Marketing PR.No……………. under Tilak Maharashtra University, in the
year 2011.

Head of the Department Examiner Examiner


Date Internal External
Place

University Seal

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ACKNOWLEDGEMENTS

I take immense pleasure in thanking Miss. ………….. for having


permitted me to carry out this project work.

I wish to express my deep sense of gratitude to my Internal Guide,


Prof. ………………, for her able guidance and useful suggestions, which
helped me in completing the project work, in time.

Needless to mention that Mr.Mahesh Kamble, who had been a


source of inspiration and for his timely guidance in the conduct of our
project work. I would also like to thank Mr…………………. From Metlife
for all his valuable assistance in the project work.

Words are inadequate in offering my thanks to all the people for


directly or indirectly, for their encouragement and cooperation in carrying
out the project work.

Finally, yet importantly, I would like to express my heartfelt thanks to


my beloved parents for their blessings, my friends/classmates for their help
and wishes for the successful completion of this project. The guidance and
support received from my Classmates & friends including …………….,
…………………., who contributed and are contributing to this project, was
vital for the success of the project. I am grateful for their constant support
and help.

Avadhesh Vishvakarma

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INDEX

CONTENT PG.NO

INTRODUCTION TO THE PROBLEM 6


1) TITLE OF THE PROJECT 6
2) STATEMENT OF THE PROJECT 6
3) OBJECTIVE OF THE PROJECT 7
HISTORY OF INSURANCE INDUSTRY. 8
IRDA & ROLE OF IRDA 10
HISTORY OF METLIFE 11
COMPANY PROFILE 14
MANAGEMENT TEAM OF METLIFE 16
METLIFE FUTURE PLANS 18
TRADITIONAL PRODUCTS OF METLIFE 19
INDIVIDUAL PLANS OF METLIFE 20
THEORETICAL PERSPECTIVE 26
1) FUNCTIONS OF INSURANCE 27
2) LIFE INSURANCE & ITS ROLES 29
3) IMPORTANCE OF LIFE INSURANCE 30
4) FUNCTIONS OF AGENCY MANAGER 31
5) VARIOUS TYPES OF LIFE INSURANCE 32
6) DISTRIBUTION CHANNEL OF LIFE INSURANCE
INDIA 34
EFFECTIVE MARKETING STRATEGIES 36
FOUR IMPORTANT FUNCTIONS 39
ATTRIBUTES TO DEVELOP MARKETING 41
STRATEGY
EFFECTIVE STRATEGIES FOR 41

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INSURANCE AGENTS
SEVEN P’S OF INSURANCE COMPANIES 42
COMPETITORS OF METLIFE 50
MARKET SHARE OF DIFFERENT 59
INSURANCE COMPANIES
METHODOLOGY 60
SAMPLING PLAN 60
DATA ANALYSIS & INTERPRETATION 61
FINDINGS 62
LIMITATIONS 77
CONCLUSIONS 78
RECOMMENDATIONS 79
APPENDIX 80

INTRODUCTION TO PROBLEM

1) TITLE OF THE PROJECT

“TO STUDY THE MARKETING STRATEGIES OF DIFFERENT


INSURANCE COMPANIES.”

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2) STATEMENT OF THE PROJECT

a. STILL NOT A “MOST TRUSTED BRAND IN INDIA”.

b. NOT CONCENTRATING ON RURAL SECTOR.

OBJECTIVE OF THE PROJECT

Main objective of the project is to find out the strategies of different


insurance agencies and evaluate them. Project is about to penetrate the
competitors of METLIFE. Conclusion of this project can give an idea of
strategies of different companies which may be helpful to the company.
Now days all the insurance companies in India are trying to establish
themselves in the competitive market. They are introducing innovative
marketing strategies to survive in the market. Many other private companies
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are looking to enter in the Indian insurance market .so it is very essential to a
company to innovate their marketing strategies in terms of

• Recruiting their advisors


• To make their advisors active
• Well educated and capable employee in the agency
• Marketing of their products
• Deployment of their products
• Targeting the right and potential customers
• Differentiating from other companies
• Future plan of the company

This study consists of to find out the marketing strategies of


different insurance companies which are the competitors of MetLife
insurance.

INDIAN INSURANCE INDUSTRY

HISTORY:
Life insurance came to India from England in 1818 when
oriental life insurance company started in Calcutta by Europeans. After this
many insurance companies had been started in India. But these companies
were looking after only the needs of European community established in

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India. Indian people were not being insured by these companies. First Indian
life insurance company came as Bombay mutual life insurance assurance.
Second company was Bharat insurance company came in 1896. After this
the united India in madras, national Indian and national insurance in Calcutta
and the co-operative assurance in Lahore were established in 1906.
To regulate Indian insurance business first insurance act came
in 1912 as life insurance company act and provident fund act. These acts
consist of premium rates tables and periodical valuations of companies. In
the first two decade of 20th century many life insurance companies were
started. So the insurance act came in 1938 to governing life and non life
insurance companies and to provide strict state control. In 1956 the life
insurance business in India was nationalized. In 1956 life insurance
corporation of India (LIC) was created to spreading life insurance much
more widely particularly in rural areas. In that year LIC had 5 zonal offices,
33 divisional offices and 212 branch offices. In 1957 the business of LIC of
sum assured of 200crores, 1000crores in 1970, and 7000crores in 1986.

The story of insurance is probably as old as the story of mankind. Tendency


of a human being to secure themselves against loss and disaster has been
from the starting of world. They sought to avert the evil consequences of fire
and flood and loss of life and were willing to make some sort of sacrifice in
order to achieve security. Though the concept of insurance is largely a
development of the recent past, particularly after the industrial era – past few
centuries – yet its beginnings date back almost 6000 years as per records.

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Insurance business is divided into four classes:
• Life Insurance
• Fire
• Marine
• Miscellaneous Insurance.

Insurance provides:
• Protection to investor.
• Accumulation of savings.
• Channeling these savings into sectors needing huge long term
investment.

INDIAN REGULATORY DEVELOPMENT AUTHORITY


(IRDA)
In 1999, the Insurance Regulatory and Development Authority (IRDA) was
constituted as an autonomous body to regulate and develop the insurance
industry. The IRDA was incorporated as a statutory body in April, 2000. The
key objectives of the IRDA include promotion of competition so as to
enhance customer satisfaction through increased consumer choice and lower
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premiums, while ensuring the financial security of the insurance market. The
IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed ownership of
up to 26%. The Authority has the power to frame regulations under Section
114A of the Insurance Act, 1938 and has from 2000 onwards framed various
regulations ranging from registration of companies for carrying on insurance
business to protection of policyholders’ interests.
ROLE OF IRDA
• Protecting the interests of policyholders.
• Establishing guidelines for the operations of insurers, and brokers.
• Specifying the code of conduct, qualifications, and training for
insurance intermediaries and agents.
• Promoting efficiency in the conduct of insurance business.
• Regulating the investment of funds by insurance companies.
• Specifying the percentage of business to be written by insurers in rural
sectors.
• Handling disputes between insurers and insurance intermediatries.

HISTORY OF METLIFE INSURANCE CO. LTD

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The origins of Metropolitan Life Insurance Company (MetLife) go back to
1863, when a group of New York City businessmen raised $100,000 to
found the National Union Life and Limb Insurance Company.

The new company insured Civil War sailors and soldiers against disabilities
due to wartime wounds, accidents, and sickness. In 1868, after several
reorganizations and five difficult years, the company decided to focus on the
life insurance business.

A new company was chartered to sell "ordinary" insurance to the middle


class. The founders chose the name because they had been most successful
in New York City, or the "Metropolitan" District.

This new venture also faced difficulties. A severe business depression that
began in the early 1870s rapidly put half of the 70 life insurance companies
operating in New York State out of business.

In 1879, MetLife President Joseph F. Knapp turned his attention to England,


where "industrial" or "workingmen's" insurance programs were widely
successful.

By importing English agents to train an American agency force, MetLife


quickly transferred successful British methods for use in the United States.

By 1880, the company was signing up 700 new industrial policies a day.
Rapidly increasing volume quickly drove down distribution costs, and the
new program proved immediately successful.

So successful was this approach that by 1909, MetLife became the nation's
largest life insurer in terms of insurance in force, a leadership position we
continue to hold today in North America.

For 140 years, MetLife has been insuring the lives of the people who depend
on us. Our success is based on our long history of social responsibility,
strong leadership, sound investments, and innovative products and services.

TODAY

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MetLife’s corporate vision – to build financial freedom for everyone –
guides the company’s response to people’s growing need for first-rate
financial products and services through various life stages and economic
cycles. MetLife’s trusted brand, capital strength, and existing relationships
with millions of individual and institutional customers around the globe
uniquely position MetLife among its competitors.

The year 2001 was a true test of the qualities that define MetLife. The
company’s core values, brought to life in what MetLife does every day, were
no more evident than in MetLife’s response to the tragic events that shook
our nation on September 11. MetLife responded quickly. The company
served its customers, communities and employees during this difficult time.
At the same time, MetLife invested $1 billion in a broad array of publicly-
traded common stocks.

In 2001, MetLife was the first insurance company to establish a financial


holding company with a nationally chartered bank. Leveraging its
unparalleled distribution channels, MetLife entered the retail-banking arena
with the launch of MetLife Bank, making it an easy and convenient way for
MetLife’s customers to realize their financial goals.

The sale of State Street Research & Management Company to Black Rock,
Inc. was announced in 2004. In line with MetLife’s strategy to focus on core
business growth, the sale benefited many of the company’s Individual and
Institutional Business clients who held investments through State Street
Research, as it became part of one of the largest publicly traded investment
management firms in the U.S.

The company’s stated long-term goal is to become the recognized leader


throughout the world for relationship building, connectedness and caring in
financial services – in the "giant league" with over 100 million people as
MetLife customers by the year 2010.

MetLife took a major step toward realizing this goal in 2005, when it
acquired Travelers Life & Annuity and substantially all of Citigroup’s
international insurance businesses for $12 billion. Completed on July 1,
2005, the Travelers acquisition made MetLife the largest individual life

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insurer in North America based on sales, the second largest provider of retail
annuities and the largest provider of institutional annuities.

Working Mother magazine honored MetLife in 2005 by naming the


company one of the "100 Best Companies for Working Mothers," for the
seventh consecutive year. In 2005, the company was named to Diversity
Inc.’s list of the Top 50 Companies for Diversity. In early 2006, MetLife
was also named to the National Association for Female Executives’ annual
list of Top 30 Companies for Executive Women.

In 2006, MetLife appointed C. Robert (Rob) Henrikson chairman of the


board of directors, president and chief executive officer of MetLife, Inc.
Henrikson was appointed CEO on March 1, 2006 and chairman of the board
on April 25, 2006.

Today, a time when consumers are feeling a greater financial burden than
ever before, MetLife is helping millions of customers create their own
personal safety net. At no time in the company’s history has MetLife been as
well positioned to capitalize on its history, its reputation for security and
stability, and its innovative products and services as it is today.

In the future, MetLife will continue to grow its business with focus,
innovation and profitability. This will be accomplished by drawing on the
reservoir of history that has produced an enduring set of corporate values
based on more than 138 years of integrity, social responsibility, strong
leadership and financial strength.

COMPANY PROFILE

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The Metropolitan Life Insurance Company (MetLife ®), established in
1868, is one of the largest insurers in the US, with over US$ 2.4 trillion of
life insurance. MetLife serves approximately 10million individual
households in the US as well as 88 of the Fortune 100 companies. MetLife’s
institutional clients have approximately 33 million employees and members.
MetLife India Life Insurance Co. Ltd was
incorporated in India on April 11th, 2001 as a joint venture between
MetLife International Holdings Inc., The Jammu and Kashmir Bank, M.
Pallonji and Co. Pvt. Ltd. and other private investors.
MetLife India has developed and distributes a range of life insurance
products in India.

MetLife in India is headquartered in Bangalore and has 15 offices in 9 cities


and an additional1000-out reach points through its channel partners. The
company has 600 employees, 3,000commission agents and 300-400 other
distributors. MetLife India has a capital base of US$ 35million. Working
towards a goal of 5 million customers by 2010, MetLife India currently has
more than 100,000 customers

MetLife is one of the fastest growing life insurance companies in the


country. It serves its customers by offering a range of innovative products to
individuals and group customers at more than 600 locations through its bank
partners and company-owned offices.

MetLife has more than 50,000 Financial Advisors, who help customers
achieve peace of mind across the length and breadth of the country.

MetLife, Inc., through its affiliates, reaches more than


70 million customers in the Americas, Asia Pacific and Europe. Affiliated
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companies, outside of India, include the number one life insurer in the
United States (based on life insurance inforce), with over 140 years of
experience and relationships with more than 90 of the top one hundred
FORTUNE 500® companies.

The MetLife companies offer life insurance, annuities, automobile and


home insurance, retail banking and other financial services to individuals, as
well as group insurance, reinsurance and retirement and savings products
and services to corporations and other institutions.

FROM THE DIRECTORS DESK


MD Speak
MR. RAJESH RELAN

With a 140-year-old parentage, MetLife today is one of


the fastest growing life insurance companies in the
country.

Positioned as a long term player, the company has


developed a strong corporate governance model based on
the core values of personal responsibility, people count, partnership,
integrity and honesty, innovation and financial strength.

The last 8 years of its presence in India, have seen MetLife evolve into a
strong brand, serving its customers through a diversified distribution
approach.

The company offers a range of innovative products ranging from


individuals to group customers across the length and breadth of the country
through its various bank partners and company-owned offices.

In line with its vision to be the most formidable player in the Indian life
insurance industry, MetLife aims to grow faster than the industry.

MANAGEMENT TEAM

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(1) Mr. Rajesh Relan

Managing Director

(2) Mr. MSVS Phanesh Murthy

Appointed Actuary

(3) Mr. Sameer Bansal

Director- Agency
(4) Mr. Nitish Asthana

Director- Bancassurance & Business Partnerships

(5) Mr. Joydeep Mukherji


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Chief Financial Officer
(6) Mr. KR Anil Kumar

Director - Legal & Risk and Company Secretary

(7) Mr. P. S. Sankaran

Director – Compliance & Internal Controls

(8) Mr. KS Raghavan

Chief Administrative Officer

(9) Mr. Gaurav Sharma

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Director - Customer Service and Operations

(10) Miss. Shilpa Vaidya

Deputy Director- Human Resources

FUTURE PLANS

 MetLife India has a goal of 5 million customers by2010, and has


aggressive growth plans of 100 percent year-on-year growth for the
next 2-3 years.

 The company plans to expand its agency and office networks to


enable the growth in India. It also plans to expand by setting up bases
in not only metropolitan cities, but also Class B and Class C cities and
parts of rural India.

 MetLife International plans to increase its stake in the Indian


subsidiary MetLife India, by infusing capital to the tune of US$ 100
million over the next 5
years, as it sees huge potential for growth in India.

 It also plans to capture a market share of 5 percent in the Indian


insurance sector.

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TRADITIONAL METLIFE PRODUCTS

 LIFE INSURANCE PROUCTS

TRADITIONAL

PRODUCTS

MONEY BACK
TERM ENDOWMENT CHILD PENSION
PLAN PLAN PLAN PLAN
PLAN

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INDIVIDUAL PLANS

 CHILD PLANS :

1) MET BHAVISHYA
2) MET JUNIOR ENDOWMENT
3) MET JUNIOR MONEYBACK
4) MET MAGIC PLUS

CHILD
PLANS

MET
MET MET
MET JUNIOR
ENDOWMEN JUNIOR
BHAVISHYA MAGIC PLUS
T MONEYBAK

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 RETIREMENT PLANS :

1) MET GROWTH SUPER


2) MET PENSION – PAR
3) MET PENSION PLUS

RETIREMENT
PLANS

MET MET MET

GROWTH SUPER PENSION - PAR PENSION PLUS

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 SAVING PLAN

1) MET SUKH
2) MET SUVIDHA
3) MET SARAL
4) MET 100

SAVING
PLANS

MET
MET MET MET

SUKH SARAL 100


SUVIDHA

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 PROTECTION PLANS:

1) MET SURAKSHA
2) MET SURAKSHA TROP
3) MET SURAKSHA PLUS

PROTECTION
PLANS

MET MET MET

SURAKSHA SURAKSHA TROP SURAKSHA PLUS

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 INVESTMENT:

1) MET EASY PLUS


2) MET WEALTH PLUS
3) MET GOLD PLUS
4) MET FORTUNE
5) MET SMARTLIFE

INVESTMENT
PLANS

MET
MET MET
GOLD PLUS
EASY PLUS WEALTH PLUS

MET MET

FORTUNE SMARTLIFE

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 RURAL PLANS:

1) METLIFE VISHWAS
2) MET SUVIDHA – RURAL

RURAL

PLANS

MET
METLIFE
SUVIDHA
VISHWAS RURAL

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THEORETICAL PERSPECTIVE

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FUNCTIONS OF INSURANCE

• Provide protection: The primary function of insurance is to provide


protection against future risk, accidents and uncertainty. Insurance
cannot check the happening of the risk, but can certainly provide for
the losses of risk. Insurance is actually a protection against economic
loss, by sharing the risk with others.

• Collective bearing of risk: Insurance is an instrument to share the


financial loss of few among many others. Insurance is a mean by
which few losses are shared among larger number of people. All the
insured contribute the premiums towards a fund and out of which the
persons exposed to a particular risk is paid.

• Assessment of risk: Insurance determines the probable volume of


risk by evaluating various factors that give rise to risk. Risk is the
basis for determining the premium rate also.

• Provide certainty: Insurance is a device, which helps to change from


uncertainty to certainty. Insurance is device whereby the uncertain
risks may be made more certain.

• Small capital to cover larger risk: Insurance relieves the


businessmen from security investments, by paying small amount of
premium against larger risks and uncertainty.

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• Contributes towards the development of industries: Insurance
provides development opportunity to those larger industries having
more risks in their setting up. Even the financial institutions may be
prepared to give credit to sick industrial units which have insured their
assets including plant and machinery.

• Means of savings and investment: Insurance serves as savings and


investment, insurance is a compulsory way of savings and it restricts
the unnecessary expenses by the insured's For the purpose of availing
income-tax exemptions also, people invest in insurance.

• Source of earning foreign exchange: Insurance is an international


business. The country can earn foreign exchange by way of issue of
marine insurance policies and various other ways.

• Risk free trade: Insurance promotes exports insurance, which makes


the foreign trade risk free with the help of different types of policies
under marine insurance cover.

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LIFE INSURANCE

Life insurance is a contract under which the insurer (Insurance Company) in


Consideration of a premium paid undertakes to pay a fixed sum of money on
The death of the insured or on the expiry of a specified period of time
Whichever is earlier. In case of life insurance, the payment for life insurance
policy is certain. The Event insured against is sure to happen only the time
of its happening is not known. So life insurance is known as ‘Life
Assurance’. The subject matter of insurance is life of human being. Life
insurance provides risk coverage to the life of a person. On death of the
person insurance offers protection against loss of income and compensate
the titleholders of the policy.

ROLES OF LIFE INSURANCE

• Life insurance as an investment: - Insurance products yield more


than any other investment instruments and it also provides added
incentives or bonus offered by insurance companies.

• Life insurance as risk cover: - Insurance is all about risk cover and
protection of life. Insurance provides a unique sense of security that
no other form of invest can provide.

• Life insurance as tax planning: - Insurance serves as an excellent


tax saving mechanism too.
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IMPORTANCE OF LIFE INSURANCE

• Protection against untimely death: - Life insurance provides


protection to the dependents of the life insured and the family of the
assured in case of his untimely death. The dependents or family
members get a fixed sum of money in case of death of the assured.
• Saving for old age: - After retirement the earning capacity of a
person reduces. Life insurance enables a person to enjoy peace of
mind and a sense of security in his/her old age.
• Promotion of savings: - Life insurance encourages people to save
money compulsorily. When life policy is taken, the assured is to pay
premiums regularly to keep the policy in force and he cannot get back
the premiums, only surrender value can be returned to him.
• Initiates investments: - Life Insurance Corporation encourages and
mobilizes the public savings and canalizes the same in various
investments for the economic development of the country. Life
insurance is an important tool for the mobilization and investment of
small savings.
• Credit worthiness: - Life insurance policy can be used as a security
to raise loans. It improves the credit worthiness of business.
• Social Security: - Life insurance is important for the society as a
whole also. Life insurance enables a person to provide for education
and marriage of children and for construction of house. It helps a
person to make financial base for future.
• Tax Benefit: - Under the Income Tax Act, premium paid is allowed
as a deduction from the total income under section 80C.

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FUNCTIONS OF AGENCY MANAGER

A person who governs a group of insurance advisors is known as agency


manager. Success of an agency manager depends on the success of their
advisors. Work of agency manager is to control the advisors in an efficient
way. Agency manager is like a creature of two wings. He has to recruit
advisors as well as to give sales to the insurance company.

• To recruit advisors.

• Make them aware of different insurance products.

• To give them training session.

• To motivate them for efficient work.

• To get maximum and efficient work from their advisors.

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VARIOUS TYPES OF LIFE INSURANCE POLICIES

• Endowment policies: This type of policy covers risk for a


specified period, and at the end of the maturity sum assured is paid
back to policyholder with the bonuses during the term of the policy.

• Money back policies: This type of policy is for periodic


payments of partial survival benefits during the term of the policy as
long as the policy holder is alive.

• Group insurance: This type of insurance offers life insurance


protection under group policies to various groups such as employers-
employees, professionals, co-operatives etc it also provides insurance
coverage for people in certain approved occupations at the lowest
possible premium cost.

• Term life insurance policies: This type of insurance covers risk


only during the selected term period. If the policy holder survives the
term, risk cover comes to an end. These types of policies are for those
people who are unable to pay larger premium required for endowment
and whole life policies. No surrender, loan or paid up values are in
such policies.

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• Whole life insurance policies: This type of policy runs as long
as the policyholder is alive and is covered for the entire life of the
policyholder. In this policy the insured amount and the bonus is
payable only to nominee on the death of policy holder.

• Joint life insurance policies: These policies are similar to


endowment policies in maturity benefits and risk cover, but joint life
policies cover two lives simultaneously such as married couples. Sum
assured is payable on the first death and again on the death of survival
during the term of the policy.

• Pension plan: a pension plan or annuity is an investment over a


certain number of years but does not provide any life insurance cover.
It offers a guaranteed income either for a life or certain period.

• Unit linked insurance plan: ULIP is a kind of insurance plan


which provides life cover as well as return on premium paid over a
certain period of time. The investment is denoted as units and
represented by the value called as net asset value (NAV).

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DIFFERENT DISTRIBUTION CHANNELS OF
INSURANCE IN INDIA

A multi-channel strategy is better suited for the Indian market. Indian


insurance market is a combination of multiple markets. Each of the
markets requires a different approach. Apart from geographical spread
the socio-cultural and economic segmentation of the market is very wide,
exhibiting different traits and needs. Different multi-distribution channels
in India are as follows

• Agents: Agents are the primary channel for distribution of


insurance. The public and private sector insurance companies have
their branches in almost all parts of the country and have attracted
local people to become their agents. Today's insurance agent has to
know which product will appeal to the customer, and also know his
competitor's products to be an effective salesman who can sell his
company, the product, and himself to the customer. To the average
customer, every new company is the same. Perceptions about the
public sector companies are also cemented in his mind. So an
insurance agent can play an important role to create a good image of
company.
• Banks: Banks in India are all pervasive, especially the public sector
banks. Many insurance companies are selling their products through
banks. Companies which are bank owned, they are selling their
products through their parent bank. The public sector banks, with their

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vast branch networks, are helpful to insurance companies. This
channel of selling insurance is known as Banc assurance.

INSURANCE COMPANY ASSOCIATE BANKS


Metlife Insurance Co.Ltd. Karnataka Bank, J&K bank,
Dhanalakshmi Bank
SBI life State bank of India
Birla sun life Deutsche bank, Citibank, bank of
Rajasthan, Andhra bank
ING Vysya bank Vysya bank
Aviva life insurance ABN amro bank, canara bank
HDFC standard life Union bank, Indian bank
ICICI prudential ICICI bank, bank of India, Citibank,
Allahabad bank, Federal bank, south
Indian bank, Punjab and Maharashtra
cooperative bank

• Brokers: Now a day’s different financial institution are selling


insurance. These financial institutions are known as brokers. They are
taking some underwriting charges from the insurance companies to
sell their insurance products.
• Corporate agents: Corporate agency is a cross selling type of
channel. Insurance companies’ tie-up with business houses in other
industries to sell insurance either to their employees or their
customers. Insurance industry, during the past 2 years has witnessed a
number of such strategic tie-ups and alliances. Corporate agents have

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become a major force to reckon with in distributing insurance
products. Such as- Bajaj Allianz tied up with Maruti Udyog and Ford
for auto insurance and Tata AIG life has tied up with Tata tea,
khaitan’s Williamson major and bridge foundation for selling rural
policies.

• Internet: In this technological world internet is also a channel of


selling insurance. This can be as direct marketing.

EFFECTIVE MARKETING STRATEGIES

Now the Indian consumer is knowledgeable and sensitive. Consumers are


increasingly more aware and are actively managing their financial affairs.
People are increasingly looking not just at products, but at integrated
financial solutions that can offer stability of returns along with total
protection. In view of this, the insurance managers need to understand more
about the details that go into the introduction of insurance products to make
it attractive in this competitive market. So now days an insurance manager
requires leadership, commitment, creativity, and flexibility. "Every family
in every village in the country should feel safe and secure". This vision alone
will help to bring the new ideas to the insurance manager.

Financial, marketing and human resource polices of the


corporations influence the unit mangers to make decisions. Performance of
insurance company depends on the effectiveness of such policies. Insurance
corporations formulate and revise these policies from time to time to ensure
that the performance of the managers is best for the organization.

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In the competitive market, insurance companies are being forced to adopt a
strictly professional approach in marketing. The insurance companies face
the challenge of changing the uninspiring public image of the industry.
Some of the important marketing elements are-
• Marketing mix.
• The importance of relationship.
• Positioning.
• Value addition.
• Segmentation.
• Branding.
• Insuring service quality.
• Effective pricing.
• Customer satisfaction research.

The growth of insurance sector is governed largely by factors external to it.


The following factors influence the market and demand of product-
• Government policies.
• Growth in population.
• Changing age profile.
• Income wise distribution of the population.
• Level of insurance awareness.
• The pricing of the policies.
• The economic climate of the country.
• The aversion to risk.
• Social and political features of the country.

37
• Growth scenario in the world.

Different companies adopt different approaches in their marketing strategies.


One approach is focus upon product quality which can give confidence in
the mind of customers that they are offered by best featured products. And
other approach is focusing on customer’s needs, which involve a heavy
investment in developing relationships with policyholders. Under this
approach customer can expect a range of products and service offered to
him. Third approach is market segmentation under which the population can
be divided into several homogeneous products and groups, the effort should
be tie clients to the company by customized combination of coverage, easy
payment plans, risk management advice, and convenient and quick claim
handling.

An insurance product can be classified in three phases:


Core product: In insurance industry the core product is the policy that
provides protection to the customers.

Expected product: Because of competition customers start to expect


more from an insurance product. Then insurance companies provide some
tangible attributes in their product to differentiate from competitors, such as-
• Brand
• Some additional features in existing product
• By providing instruction manual with the policy.

38
Augmented product: An insurance company can provide different
types of services to differentiate their products-
• Post sales services.
• Branches in different places for customers.
• Customer complaint management.
• Payment option convenient to customers.

The entry of private players and their foreign


partners has given domestic players a tough time, because the opening up
of the sector has not brought in only foreign players, but also professional
techniques and technologies. The present scene in India is such that
everyone is trying to put in the best efforts. There are marketing
strategies more for survival than growth. But the most important gift of
privatization is the introduction of customer-oriented services. Utmost
care is being taken to maximize customer satisfaction.

SUCCESS OF AN INSURANCE COMPANY DEPENDS ON


FOUR IMPORTANT FUNCTIONS

• Identification of markets: Identification of markets means need to


understand the trends in culture and businesses constantly, through
conducting research and analysis. Insurance companies can take this
job on their own or assign it to an external agency. Relying on an
external agency can be risky due to the questionable loyalty of the
agents.

39
• Assessment of risks (of the insured and the insurance corporation)
and estimation of losses: Efficiency of actuaries and assessors of the
insurance policies in fixing premiums and settling claims is foremost
an important area for achieving overall efficiency in operations. The
quality of assessing the risk and estimation of losses has the largest
claim on the performance of an insurance company. Well trained,
experienced and expert hands are needed for the operations.
• Penetration into and exploitation of markets: Market penetration
or exploitation of a company can be identified with the growth in
number of policies in each type of insurance, growth rate in earnings
or turnover, company’s market share, increase in number of branches
and divisions etc. Efforts of the company as a whole and that of the
divisions and branches are assessed to measure the effectiveness.
• Control over investment and operating costs: Control over
resources such as men, machines, and materials at each level of the
organization provides measures of efficiency of a unit as well as the
organization. Investment control and expense control are dealt
separately and the effectiveness of management’s’ decisions at
various levels is to be assessed separately

TO FIND BEST PROSPECTS


• Allocating marketing strategies against market potential.
• Estimating potential for specific products within local markets.
• Identifying high opportunity areas.
• Measuring agency performance relative to market potential.
• Optimizing your agency network against market potential.
40
ATTRIBUTES TO DEVELOP MARKETING
STRATEGIES
• Channel data: - Useful to know future buying preferences, learning
about products and purchase channels.
• Consumer attitudes.
• Consumption data: - Useful to evaluate annual premiums, number of
annuities owned, value of annuities, and with which company the
current policy is held.

EFFECTIVE STRATEGIES FOR INSURANCE AGENTS

• Learn how to construct a mental image for success.


• Learn how to find a proper perspective and how to turn off all the
signals that cause people not to buy from you.
• Learn how to get and set more appointments.
• Learn how to convert a new lead into sales.
• Learn how to act when you meet a client for the first time.
• Learn how the order in which you explain the types of policies can
double your income.
• Take Easy steps to avoid delays in issuing policies.

41
SEVEN P’S OF INSURANCE SECTOR

Wherever there is uncertainty there is risk. We do not have any control


over uncertainties which involves financial losses. The risks may be
certain events like death, pension, retirement or uncertain events like
theft, fire , accident , etc.
While marketing the services, it is also pertinent that they think about the
innovative promotional measures. The creativity in the promotional
measures is the need of the hour. The advertisement, public relations,
word of mouth communication needs due care and personal selling
requires intensive care.

INSURANCE MARKETING: The term Insurance Marketing refers to


Produc
the marketing of Insurance services with the aim to create customer and
42
generate profit through customer satisfaction. The Insurance Marketing
focuses on the formulation of an ideal mix for Insurance business so that
the Insurance organisation survives and thrives in the right perspective.

MARKETING MIX OF INSURANCE COMPANIES


The marketing mix is the combination of marketing activities that an
organisation engages in so as to best meet the needs of its targeted market.
The Insurance business deals in selling services and therefore due weight-
age in the formation of marketing mix for the Insurance business is
needed. The marketing mix includes sub-mixes of the 7 P's of marketing
i.e. the product, its price, place, promotion, people, process & physical
attraction. The above mentioned 7 P's can be used for marketing of
Insurance products, in the following manner:

1.Product:

A product means what we produce. If we produce goods, it means


tangible product and when we produce or generate services, it means
intangible service product. A product is both what a seller has to sell and
a buyer has to buy. Thus, an Insurance company sells services and
therefore services are their product.
In India, the Metlife Insurance Co. Ltd is one of the fastest growing
insurance company.Apart from offering various insurance policies, they
also offer underwriting and consulting services. When a person or an
organization buys an Insurance policy from this insurance company, he
not only buys a policy, but along with it the assistance and advice of the

43
agent, the prestige of the insurance company and the facilities of claims
and compensation. It is natural that the users expect a reasonable return
for their investment and the insurance companies want to maximize their
profitability. Hence, while deciding the product portfolio or the product-
mix, the services or the schemes should be motivational. The Metlife’s
Group Insurance scheme is required to be promoted, the Crop Insurance is
required to be expanded and the new schemes and policies for the
villagers or the rural population are to be included. The Life Insurance
Corporation has intensified efforts to promote urban savings, but as far as
rural savings are concerned, it is not that impressive. The policy makers
are required to activate the efforts. It would be prudent that the METLIFE
is allowed to pursue a policy of direct investment for rural
development. Investment in Government securities should be stopped and
the investment should be channelized in private sector for maximizing
profits. In short, the formulation of product-mix should be in the face of
innovative product strategy.

2.Pricing:

In the insurance business the pricing decisions are concerned with:

i) The premium charged against the policies,

ii) Interest charged for defaulting the payment of premium and credit
facility,and

iii) Commission, charged for underwriting and consultancy


activities. With a view of influencing the target market or prospects the
44
formulation of pricing strategy becomes significant. In a developing
country like India where the disposable income in the hands of prospects
is low, the pricing decision also governs the transformation of potential
policyholders into actual policyholders. The strategies may be high or
low pricing keeping in view the level or standard of customers or
the policyholders. The pricing in insurance is in the form of premium
rates.

The three main factors used for determining the premium rates under a
life insurance plan are mortality, expense and interest. The premium rates
are revised if there are any significant changes in any of these factors.
• Mortality: (deaths in a particular area): When deciding upon the pricing
strategy the average rate of mortality is one of the main considerations. In
a country like South Africa the threat to life is very important as it is
played by host of diseases.
• Expenses: The cost of processing, commission to agents, reinsurance
companies as well as registration are all incorporated into the cost of
installments and premium sum and forms the integral part of the pricing
strategy

• Interest: The rate of interest is one of the major factors which


determines people's willingness to invest in insurance. People would not
be willing to put their funds to invest in insurance business if the interest
rates provided by the banks or other financial instruments are much
greater than the perceived returns from the insurance premiums.

3.Place:

45
This component of the marketing mix is related to two important facets --
i) Managing the insurance personnel, and

ii) Locating a branch.

The management of agents and insurance personnel is found significant


with the viewpoint of maintaining the norms for offering the services.
This is also to process the services to the end user in such a way that a gap
between the services- promised and services -- offered is bridged over. In
a majority of the service generating organizations, such a gap is found
existent which has been instrumental in making worse the image
problem. The transformation of potential policyholders to the actual
policyholders is a difficult task that depends upon the professional
excellence of the personnel. The agents and the rural career agents acting
as a link, lack professionalism. The front-line staff and the branch
managers also are found not assigning due weight-age to the degeneration
process. The insurance personnel if not managed properly would make all
efforts insensitive. Even if the policy makers make provision for the
quality upgrading the promised services hardly, reach to the end
consumer.
It is also essential that they have rural orientation and are well aware of
the lifestyles of the prospects or users. They are required to be given
adequate incentives to show their excellence. While recruiting agents, the
branch managers need to prefer local persons and provide them training
and conduct seminars. In addition to the agents, the front-line staff also
needs an intensive training program to focus mainly on behavioral
management. Another important dimension to the Place Mix is related to
the location of the insurance branches. While locating branches, the
46
branch manager needs to consider a number of factors, such as smooth
accessibility, availability of infrastructural facilities and the management
of branch offices and premises. In addition it is also significant to provide
safety measures and also factors like office furnishing, civic amenities
and facilities, parking facilities and interior office decoration should be
given proper attention. Thus the place management of insurance branch
offices needs a new vision, distinct approach and an innovative style. This
is essential to make the work place conducive, attractive and proactive
for the generation of efficiency among employees..

4. Promotion:

The insurance services depend on effective promotional measures. In a


country like India, the rate of illiteracy is very high and the rural economy
has dominance in the national economy. In promoting insurance business,
the agents and the rural career agents play an important role. Due
attention should be given in selecting the promotional tools for agents and
rural career agents and even for the branch managers and front line staff.
They also have to be given proper training in order to
create,impulse buying.
Advertising and Publicity, organisation of conferences and seminars,
incentive to policyholders are impersonal communication. Arranging
Kirtans, exhibitions, participation in fairs and festivals, rural wall
paintings and publicity drive through the mobile publicity van units would
be effective in creating the impulse buying and the rural prospects would
be easily transformed into actual policyholders.

5. People:
47
Understanding the customer better allows to design appropriate products.
Being a service industry which involves a high level of people interaction,
it is very important to use this resource efficiently in order to satisfy
customers. Training, development and strong relationships with
intermediaries are the key areas to be kept under consideration. Training
the employees, use of IT for efficiency, both at the staff and agent level, is
one of the important areas to look into.

6. Process:

The process should be customer friendly in insurance industry. The speed


and accuracy of payment is of great importance. The processing method
should be easy and convenient to the customers. Installment schemes
should be streamlined to cater to the ever growing demands of the
customers. IT & Data Warehousing will smoothen the process flow. IT
will help in servicing large no. of customers efficiently and bring down
overheads. Technology can either complement or supplement the
channels of distribution cost effectively. It can also help to improve
customer service levels. The use of data warehousing management and
mining will help to find out the profitability and potential of various
customers product segments.

48
7. Physical Distribution:

Distribution is a key determinant of success for all insurance companies.


Today, the nationalized insurers have a large reach and presence in India.
Building a distribution network is very expensive and time consuming. If
the insurers are willing to take advantage of India's large population
and reach a profitable mass of customers, then new distribution avenues
and alliances will be necessary. Initially insurance was looked upon as a
complex product with a high advice and service component.
Buyers prefer a face-to-face interaction and they place a high premium on
brand names and reliability. As the awareness increases, the product
becomes simpler and they become off-the-shelf commodity products.
Today, various intermediaries, not necessarily insurance companies, are
selling insurance. For example, in UK, retailer like Marks & Spencer sells
insurance products. The financial services industries have successfully
used remote distribution channels such as telephone or internet so as to
reach more customers, avoid intermediaries, bring down overheads and
increase profitability. A good example is UK insurer Direct Line. It relied
on telephone sales and low pricing. Today, it is one of the largest motor
insurance,operator.
Technology will not replace a distribution network though it will offer
advantages like better customer service. Finance companies and banks
can emerge as an attractive distribution channel for insurance in India. In
Netherlands, financial services firms provide an entire range of
products including bank accounts, motor, home and life insurance and
pensions. In France, half of the life insurance sales are made through
banks. In India also, banks hope to maximize expensive existing networks

49
by selling a range of products. It is anticipated that rather than formal
ownership arrangements, a loose network of alliance between insurers and
banks will emerge, popularly known as bancassurance.
Another innovative distribution channel that could be used are the non-
financial organisations. For an example, insurance for consumer items
like fridge and TV can be offered at the point of sale. This increases the
likelihood of insurance sales. Alliances with manufacturers or retailers
of consumer goods will be possible and insurance can be one of the
various incentives offered.

COMPETITORS OF METLIFE INSURANCE

 ICICI prudential: ICICI prudential insurance is a joint venture of


ICICI bank and prudential plc a leading financial service group in the
UK. Total capital stands for Rs. 37.72 billion, with ICICI Bank
holding a stake of 74% and Prudential plc holding 26%. ICICI begin
their operations in December 2000 after receiving approval from
IRDA. Now ICICI prudential is having over 1000 offices, over
270000 advisors and 21bancassurance partners. ICICI Prudential was
the first life insurer in India to receive a National Insurer Financial
Strength rating of AAA from Fitch ratings.

 ICICI prudential is working on the base of five core values-

50
• Integrity
• Customer first
• Boundary less
• Ownership
• Passion

Key features:

• Understanding the needs of customers and offering them superior


products and service.
• Leveraging technology to service customers quickly, efficiently
and conveniently.
• Developing and implementing superior risk management and
investment strategies to offer sustainable and stable returns to
policyholders.
• Providing an enabling environment to foster growth and learning
for employees.

 HDFC standard life insurance: HDFC Standard Life Insurance


Company Ltd. is one of India's leading private insurance companies.
It is a joint venture of Housing Development Finance Corporation
Limited, India's leading housing finance institution and a Group
Company of the Standard Life in UK. HDFC as on March 31, 2007
holds 81.9 per cent of equity venture. Gross premium income of the

51
HDFC for the year ending March 31, 2007 was Rs. 2, 856 crores and
new business premium income was Rs. 1,624 crores. The company
has covered over 8, 77,000 lives year ending March 31, 2007. HDFC
standard is having 1000 advisors in 11 towns.

Key features:

• Creating corporate agents through HDFC bank in India.


• Creating agents to provide total financial consultancy.
• Introducing low cost group schemes for companies and NGOs.

 Reliance life insurance: Reliance Life Insurance Company


Limited is a part of Reliance Capital Ltd. of the Reliance - Anil
Dhirubhai Ambani Group. Reliance Capital is one of India’s leading
private sector financial services companies, and ranks among the top 3
private sector financial services and banking companies, in terms of
net worth. Reliance Capital has interests in asset management and
mutual funds, stock broking, life and general insurance, proprietary
investments, private equity and other activities in financial services.
Reliance Capital Limited (RCL) is a Non-Banking Financial
Company (NBFC) registered with the Reserve Bank of India under
section 45-IA of the Reserve Bank of India Act, 1934.

52
 Aviva life insurance: Aviva is UK’s largest and the world’s fifth
largest insurance Group. It is one of the leading providers of life and
pensions products to Europe and has substantial businesses elsewhere
around the world. Aviva has a joint venture of Dabur, one of India's
oldest, and largest Group of companies. And country's leading
producer of traditional healthcare products. In accordance with the
government regulations Aviva holds a 26 per cent stake in the joint
venture and the Dabur group holds the balance 74 per cent share.
Aviva has 193 Branches in India (including rural branches) supporting
its distribution network. Through its Banc assurance partner locations,
Aviva products are available in more than 2,795 locations across
India. Aviva has a sales force of over 30000 financial planning
advisors.

Key features:

• Through the “Financial Health Check” (FHC) Aviva’s sales force has
been able to establish its credibility in the market. The FHC is a free
service administered by the FPAs for a need-based analysis of the
customer’s long-term savings and insurance needs. Depending on the
life stage and earnings of the customer, the FHC assesses and
recommends the right insurance product for them.
• Introduced the concept of Banc assurance in India.
• Products to provide customers flexibility, transparency and value for
money.
• Differentiation in fund management operations.

53
 Max New York life insurance: Max New York Life Insurance
Company Ltd. is a joint venture between New York Life, a Fortune
100 company and Max India Limited, one of India's leading multi-
business corporations The Company's paid up capital is Rs. 907.4
crore. Max New York life is working on the base of six core values-

• Excellence,
• Honesty,
• Knowledge,
• Caring,
• Integrity

The Company practices a lot of importance on its selection process of


insurance advisors which comprises four stages - screening, psychometric
test, career seminar and final interview. 337 agent advisors have qualified
for the Million Dollar Round Table (MDRT) membership in 2007 and Max
New York Life has moved up to 21st rank in MDRT global list.

Key features:

• Max New York Life has adopted prudent financial practices to ensure
safety of policyholder's funds.
• Investing significantly in its training programme 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.

54
 Bharti Axa life insurance: Bharti Axa life insurance is a joint
venture between Bharti, one of India’s leading business groups with
interests in telecom, agri business and retail, and Axa world leader in
financial protection and wealth management. The joint venture
company has a 74% stake from Bharti and 26% stake of Axa. The
company started its operations in December 2006. Now company is
having over 5200 employees across over 12 states in the country.
Company is working on the base of five core values-

• Professionalism
• Innovation
• Team Spirit
• Pragmatism
• Integrity

Key features:

• Using multi-distribution, multi product platform techniques.


• Adapting AXA's best practices as a sound platform for profitable
growth.
• Leveraging Bharti's local knowledge, infrastructure and customer
base.
• Delivering high levels of shareholder return.
• Building long term value with business partners by enhancing the
proposition to their customers.
• Retaining the best talent in India.

55
 Tata AIG life insurance: Tata AIG Life Insurance Company
Limited (Tata AIG Life) is a joint venture company of the Tata Group
and American International Group, Inc. (AIG). The Tata Group holds
74 per cent stake in the insurance venture with AIG holding the
balance 26 percent. Tata AIG Life provides insurance solutions to
individuals and corporate. Tata AIG Life Insurance Company started
to operate its business in India on April 1, 2001. Tata AIG is having
3000 advisors all over India.

Key features:

• Establishing direct mailers; call-centers in 60 centers.


• Creating awareness workshops in housing societies.
• 15-day trial period with refund, premium payment through credit card.

 Bajaj Allianz life insurance: Bajaj Allianz life insurance


company ltd. Is a joint venture of Allianz AG, one of the world’s
largest insurance companies and Bajaj auto, one of the biggest two
and three wheeler manufacturing companies in the world. Company is
having over 440000 satisfied customers in India. Company is having
550 branches across the country and over 60000 advisors.

56
Key features:

• Tying up with seven regional rural banks sponsored by Syndicate


Bank to tap the rural market.
• Introducing micro-insurance products and coming out with a new
capital guarantee product.
• Expanding its agency force from 1.60 lakh to 2 lakh and the branch
network will also be increased from 900 to 1400.

 ING Vysya life insurance: ING Vysya Life Insurance Company


Limited a part of the ING group the world’s largest financial services
provider entered in the private life insurance industry in India in
September 2001.ING Vysya Life is currently present in 246 cities and
has a network of over 300 branches, staffed by 7,000 employees and
over 51,000 advisors, serving over 5.5 lakh customers. ING Vysya
Life has a diversified distribution channels,. While Tied Agency
remains the strongest channel, the Alternate Channels business within
ING Vysya Life is one of the fastest growing distribution channels.
ING Vysya Life has strengthened its position as the unparallel leader
in the life insurance industry in cooperative banks tie ups. The
company currently has tie ups with 130 cooperative banks across the
country. The Alternate Channels division has Banc assurance, ING
Vysya Bank, Corporate Agents and SMINCE.

57
 ING Vysya is working on the base of five core values-

• Professionalism
• Entrepreneurial
• Trustworthy
• Approachable
• Caring

 Birla sun life insurance: Birla Sun Life Insurance Company


Limited (BSLI) is a joint venture between the Aditya Birla Group and
the Sun Life Financial Services of Canada. It started operations in
March 2001 after receiving its registration license from IRDA in
January 2001. Company is having more than 45 branches across India.

Key features:

• Focus on unit linked insurance products supported with protection


products to maintain leadership in product innovation.
• Use of multi distribution channels- Direct Sales Force, Alternate
Channels and offering convenient channels of purchase to customers.
• Web-enabled IT systems for superior customer services and issuing
policies on the internet.
• High degree of transparency in all business practices and procedures.
• Working on operational Business Continuity Plan.

58
MARKET SHARE OF DIFFERENT INSURANCE
COMPANIES IN INDIA

ICICI Prudential 9.1%


HDFC Standard 2.4%
SBI Life 3.0%
Bajaj Allianz 4.2%
Aviva life insurance 1.3%
MetLife insurance 1.6%
Reliance life insurance 1.1%
Birla sun life insurance 1.0%
Max new York life insurance 2.3%
Bharti AXA life insurance 0.1%
Tata AIG 1.6%
ING Vysya 0.7%
Kotak Mahindra 0.9%

METHODOLOGY

59
Research is totally based on primary data. Secondary data can be used only
for the reference. Research has been done by primary data collection, and
primary data has been collected by meeting with the branch and agency
manager of different insurance agencies and branches in Mumbai.

Data collection has been done through by giving structured questioner.


Research has been done after 10 branch managers or agency manager. This
study will be based on judgment sampling and this research is skewed to
organization level. This is an exploratory type of research. And this research
needs further study also Research is a kind of pilot study.

SAMPLING PLAN

Sample size has been taken by judgment sampling. Judgment sampling is a


process in which the selection of a unit, from the population is based on the
pre - judgment.
This research requires the survey of different insurance agencies in Mumbai
city. So research concentrates on the branch or agency manager of different
insurance companies. Sample size for this research is 10.

60
DATA ANALYSIS & INTERPRETATION

FINDINGS

Primary data has been collected by the survey of branch and agency
manager of different insurance companies in Mumbai. sample size for this
research is 10.

61
 Recruitment of advisors:- In insurance industry advisors play
most important role, and these advisors are recruited through different
ways. Mainly four ways for recruiting the advisors are-
1. Through personal references.
2. Through advertisements.
3. Through walk in interviews.
4. Through placement agencies.

Recruitment via Personal reference

Response Frequency Percent


yes 7 70
no 3 30
Total 10 100

Recruitment via Advertisement

Response Frequency Percent


yes 2 37
no 8 63
Total 10 100

Recruitment via Interviews

Response Frequency Percent


yes 5 50
no 5 50
Total 10 100

Recruitment via Placement agencies

Response Frequency Percent


no 10 100.0

62
So most of the companies are recruiting their advisors through personal
reference and through advertisement, some companies are recruiting
their advisors through walk in interviews also, but none company is
recruiting their advisors through placement agencies.

 Making advisors active: To get efficient work from their


advisors companies do some practices to make them active. some
practices are-
1. By increasing incentives.
2. By offering higher channel position.
3. By awarding them non cash prizes.
4. By giving them training session.

Active Incentives

Response Frequency Percent

63
yes 4 40
no 6 60
Total 10 100

Active Higher channel position

Response Frequency Percent


yes 2 20
no 8 80
Total 10 100

Active Noncash prizes

Response Frequency Percent


yes 4 40
no 6 60
Total 10 100

Active Training session

Response Frequency Percent


yes 7 70
no 3 30
Total 10 100
MAKING ADVISORS ACTIVE

64
So most of the companies are giving training session and awarding non
cash prizes to make their advisors active, some of the companies are
increasing incentives and offering higher channel position to make their
advisors active.

 Type of products: Different insurance companies are having


different categories of insurance products. Some product categories
are-
1. Term insurance products.
2. Unit linked products.
3. Money back products.
4. Endowment products.

Products Term insurance


65
Response Frequency Percent
yes 1 10
no 9 90
Total 10 100

Products Unit linked

Response Frequency Percent


yes 9 90
no 1 10
Total 10 100

Products Money back

Response Frequency Percent


yes 1 10
no 9 90
Total 10 100

Products Endowment

Response Frequency Percent


yes 2 20
no 8 80
Total 10 100

TYPE OF PRODUCTS
66
So all the companies are promoting their unit linked products and some
companies are promoting rest of the products including unit linked
products.

 Basis of product deployment: - All insurance companies are


deploying their products in various categories. Some of the tactics are-
1. Profit oriented.
2. On customers need and demand.
3. On channel feedback from market.
4. By adding some additional benefits in current products.

Product Deployment Profit Oriented


67
Response Frequency Percent
Yes 2 20
No 8 80
Total 10 100

Product Deployment Customers Need

Response Frequency Percent


yes 6 60
no 4 40
Total 10 100

Product Deployment Market Feedback

Response Frequency Percent


yes 1 10
no 9 90
Total 10 100

Product Deployment Additional Benefits

Response Frequency Percent


yes
2 20
no
8 80

Total 10 100
BASIS OF PRODUCT DEPLOYMENT

68
So most of the companies are deploying their products based on the
customers need and demand.

 Differentiation in strategies: To make their products different


from their competitors companies are using some strategies which
are-
1. By advertisement and promotional activities.
2. By pricing of the product.
3. Based on the deployment of the funds.
4. By providing better service quality.

Differentiation in Promotional Activities


69
Response Frequency Percent
yes 2 20
no 8 80
Total 10 100

Differentiation in Pricing

Response Frequency Percent


yes 5 50
no 5 50
Total 10 100

Differentiation in Deployment Of Funds

Response Frequency Percent


yes 3 30
no 7 70
Total 10 100

Differentiation in Service

Response Frequency Percent


yes 6 60
no 4 40
Total 10 100

DIFFERENTIATION IN STRATEGIES
70
So most of the companies are giving better service quality and better
pricing to differentiate their products from their competitors.

 Mode of interaction: There are different types of way to interact


with customers. Some of the important ways are-
1. Direct marketing.
2. By creating database (telephonic contact).
3. Through advertisement.
4. Through on line contacts.

Mode of Direct Interaction

71
Response Frequency Percent
yes 6 60
no 4 40
Total 10 100

Mode of Telephone Interaction

Response Frequency Percent


yes 5 50
no 5 50
Total 10 100

Mode of Advertisement Interaction

Response Frequency Percent


yes 0 0
no 10 100
Total 10 100

Mode of Online Interaction

Response Frequency Percent


yes 0 0
no 10 100
Total 10 100

MODE OF INTERACTION

72
So almost all the companies are interacting with customers through
direct marketing and by telephonic contacts (creating database).

 Strategy to compete in market: Most common strategies to


compete in the market for insurance companies are-
1. Better service quality.
2. Change in pricing of products.
3. By increasing periodicity of interaction with advisors and customers.
4. By providing extra benefits to advisors and customers.

Strategy for Service

73
Response Frequency Percent
yes 8 80
no 2 20
Total 10 100

Strategy for Pricing

Response Frequency Percent


Yes 9 90
No 1 10
Total 10 100

Strategy for Interaction

Response Frequency Percent


yes 3 30
no 7 70
Total 10 100

Strategy for Extra benefits

Response Frequency Percent


yes 2 20
no 8 80
Total 10 100

STRATEGIES TO COMPETE IN MARKET

74
So most of the insurance companies think that providing better service
quality is most suitable strategy to compete in the market.

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 Premium collection:-

Premium Collection

Premium Frequency Percent


less than 2 cr. 6 60
2 to 4 cr. 2 20
4 to 5 cr. 1 10
more than 5 cr. 1 10
total 10 100

So most of the companies are collecting premium less than 2 crores, at


any agency or branch level in a month.

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LIMITATIONS

• Time limitation

• Research has been done only in Mumbai.

• Companies did not disclose their secrets data and strategies.

• Possibility of Error in data collection.

• Possibility of Error in analysis of data due to small sample size.

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CONCLUSION

• Insurance companies are recruiting their advisors mainly through


personal reference, through advertisement, and through walk in
interviews. None of the company is recruiting their advisors through
placement agencies. But some companies have started recruiting their
advisors through placement agencies as a trial basis.

• Those advisors who are recruited through personal references need


more training session and company has to put effort to make them
active. Most of the companies are giving training session to advisors
to make them active. Only one or two companies are providing higher
channel position and increasing incentives to make them active.

• Most of the insurance companies have started recruiting agency


manager and high posted people from professional colleges to
improve efficiency of the insurance company.

• Insurance companies have forgotten their traditional products.


Companies are totally concentrating on selling ULIP products. Now
insurance companies are selling their products as an investment
product not as life insurance products.

• Insurance companies are deploying their products mostly based on


customer needs and demands. Insurance companies are not doing
enough market researches to know the potential of the market.

• Most of the insurance companies are differentiating themselves from


the competitors by providing better service quality. Some companies
are differentiating themselves providing better pricing of the product.

• Branch managers of most of the companies think that providing better


service quality is the best tool to compete in the market. Better service
quality may be in the form-
1. Issuing policy in time.
2. Providing claims in time.
3. Making customers aware about their status of policy.

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RECOMMENDATIONS

• MetLife should start recruiting advisors through placement agencies.


By practicing this MetLife will get more capable advisors who can
work efficiently. Inactive advisors kind of thing would not happen.

• MetLife should also promote the term and endowment insurance


products including ULIP products. Because these are basic insurance
products. Promote products as life insurance products not an as
investment products.

• MetLife should promote their product features rather than promoting


their brand name.

• To increase awareness in rural market MetLife should do some


activities in villages and small towns. This can be done by putting
kiosk in fairs and festival mela’s organizing in villages.

• MetLife can sell their products through charitable institutions.

• MetLife should sell their products through head of the villages or


through panchayat in villages. People in villages believe on the head
and panchayat so selling insurance will be easier in villages.

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APPENDIX

80
QUESTIONAIRE

Name-

Company-

Designation-

Contact no.-

The following questionnaire is for the purpose of my research project as a part of


our BBA curriculum on ‘Marketing Strategy of different Insurance companies’. It is
assured from me that any information given by the company will not be disclosed by
any means. With this assurance I expect accurate data from your company to help
me for my project.
________________________________________________________________

1.How long you have been in insurance industry?

(a) < 2 years (b) 2-5 years (c) 5-8 years (d) >8 years

2. When did you join your present company?

(a) < 2 years (b) 2-5 years (c) 5-8 years (d) >8 years

3. Your designation while joining this company………………………..


……………………………………………………………………………….

4. How many financial advisors do you have?

(a) <250 (b) 250-400 (c) 400-550 (d) >550

5. On what basis do you recruit your advisor?

(a) Through personal reference


(b) Through advertisement
(c) Through walk in interviews
(d) Through placements agencies
81
6. How do you make them active?

(a)By increasing incentives


(b)By offering higher channel position
(c)By awarding non-cash prizes
(d)By giving training session

7. On what products you are stressing more?

(a) Term insurance


(b) Unit linked products
(c) Money back products
(d) Endowment products

8. What is the basis of your product deployment?

(a) Profit oriented


(b) On customers need and demand
(c) On channel feedback from market
(d) By adding some additional benefits in current product

9. How do you differentiate your product from your competitors?

(a) By advertising and promotional activities


(b) By pricing of the product
(c) Based on the deployment of funds
(c) By providing better service quality

10. Your mode of interaction with customers?

(a) Direct marketing


(b) By telephonic contacts (creating database)
(c) Through advertisement
(d) Through online contacts

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11. Which kind of strategies should an insurance company use to
compete in the market (in your view)?

(a) Better service quality


(b) Accordingly change in the pricing of product
(c) By increasing periodicity of interaction with advisors and customers
(d) By providing extra benefits to advisors and customer

12. What is average total premium collection in your branch (in a


month)

(a) <2 Cr. (b) 2-4 Cr. (c) 4-5 Cr. (d) >5 Cr.

13. Other useful activities which you do in agency (if any, please
mention)……………………………………………………………………...
………………………………………………………………………………...
………………………………………………………………………………...

14. What are your future plans (please define)………………………….


………………………………………………………………………………..
………………………………………………………………………………..

83
BIBLIOGRAPHY

 BOOKS

1) Compliance & Sales Training Workbook (METLIFE).

2) Marketing Strategy ( SYBBA).

 INTERNET

1) www.google.com

2 ) www.metlife.com

3) www.irda.com

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