A SUMMER TRAINING REPORT ON Development of Distribution Channel for HDFC Life Insurance Company AT

HDFC LIFE INSURANCE COMPANY LIMITED SUBMITTED BY SABHYA KUMARI UNDER THE GUIDANCE OF INTERNAL GUIDE:MRS. SHAMPA CHAKRABERTY PROFESSOR NSHM KOLKATA EXTERNAL GUIDE:MR. ANURAG KUMAR CIRCLE MANAGER HDFC LIFE

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION FROM

NSHM KNOWLEDGE CAMPUS

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STUDENT DECLARATION

I hereby declare that this Project Report titled Development of distribution channel on HDFC Life Insurance Company conducted at HDFC Life Insurance Company, Kolkata during the academic year 2010-2012, has been submitted in partial fulfillment of the requirement of the degree of Masters in Business Administration from NSHM Knowledge Campus, Kolkata. It is an original work carried out by me under the guidance of Prof. Shampa Chakraberty from NSHM, Kolkata and Mr. Anurag Kumar, Center Manager from HDFC Life Insurance Company, Kolkata. I also declare that this Project work has not been previously submitted to any other university or institution for the award of any degree.

Place: Kolkata Date: SABHYA KUMARI

CERTIFICATE

The work presented in this report is solely the effort of SABHYA KUMARI and that any work of others that was used during the execution of the project or is included in the report has been suitably acknowledged through the stand practice of citing references and stating appropriate acknowledgments. I hereby forward the project entitled Development of Distribution Channel for HDFC Life Insurance Company, presented by SABHYA KUMARI, Registration No.: - 102770710070 and Roll No.: - 27700910081 of 2010-2012 Third Semester, Master in Business Administration, this has been carried out as Summer Internship from June 10, 2011 to August 10, 2011 under the internal guidance of - Prof. Shampa Chakraberty and external guidance of Mr. Anurag Kumar.

INTERNAL GUIDE:PROF. SHAMPA CHAKRABERTY DEPT of MBA NSHM Knowledge Campus

EXTERNAL GUIDE:MR. ANURAG KUMAR CIRCLE MANAGER HDFC LIFE

ACKNOWLEDGEMENT

I wish to express my sincere gratitude to Mr. Anurag Kumar, Circle Manager of HDFC Life, Kolkata, for giving me the opportunity to do my summer training at their highly esteemed organization. Im very much thankful to him for his attention and encouragement to complete my training session. His guidance, advice, suggestion, information and constant encouragement rendered to me at every stage. During the training period he had helped me a lot to understand my project work properly and look necessary steps so that I can do my project properly. I express my sincere gratitude to Ms. Shampa Chakraberty who helped me and guided me to complete my summer training. I would also like to thank the overwhelming support of my friends and all other people including my teammates in HDFC Life who gave me an opportunity to learn and gain knowledge about the various aspects of the company which helped me either directly or indirectly towards completion of my training.

A SUMMER TRAINING REPORT ON

DEVELOPMENT OF DISTRIBUTION CHANNEL FOR HDFC LIFE INSURANCE COMPANY

AT
HDFC LIFE INSURANCE COMPANY LIMITED

SAR UTHA KAR JIYO

CONTENTS

Title of the Project Organizational Information o About HDFC Life o Company Profile o What is Insurance? o Vision & Mission of the Organization o Board Members o Awards & Accolades o Milestones o Distribution Reach-Offices and Financial Consultant Objective of the Study

Channel Development Team of HDFC Life Research Methodology

o o o o o Working Procedure Sample Area Data Collection Procedure of recruitment of Financial Consultant Competitor of HDFC Life

Findings and Analysis Recommendations Conclusions Limitations Bibliography Questionnaire

PREFACE

A project is a scientific and systematic study of real issues on a problem with the application of management concept and skills. The study can deal with small and big issues in any division of an organization. The essential equipment of a project is that it should contain scientific collection of data, analysis and interpretation of data leading to valid conclusion. Project is an essential part in MBA curriculum. It enables the student to share the real experience in industry and market. Internship provides an opportunity to deepen our knowledge about the corporate world, enhance our technical skills and thereby helps us to properly utilize them both within and outside the organization. The topic of my project is Development of distribution channel for HDFC LIFE Insurance Company

EXECUTIVE SUMMARY
The following project was undertaken at HDFC LIFE INSURANCE- Kolkata in pursuance of the Summer Internship Project forming a part of the curriculum in MBA Program at NSHM KNOWLEDGE CAMPUS, Kolkata. Summer Project is a Pedagogic approach that gives the MBA participants an opportunity to apply their Managerial Skills and Classroom Learning in real life projects in an Industry. The report covers the details that about the DEVELOPMENT OF DISTRIBUTION CHANNEL FOR HDFC LIFE INSURANCE COMPANY. This report describes about my training. I had done this project in a group of three. Our work was to make people aware about the products of the company, to get their feedback and to sell the product of the company and also to recruit financial consultant. We had visited many institutes, hospitals, schools and many other places in order to meet a large number of people and to educate them about the company products and to increase the sales of the company. The data hereby collected is mainly secondary data. Sources of the data are the company records and the references for the literature are mainly based on internet, books, and journals. A list of the references is given at the end of the report.

TITLE OF THE PROJECT- Performance Appraisal of Development of Distribution Channel for HDFC Life
During my summer internship training in the Housing Development Finance Corporation Life Insurance Company Limited. I have gotten the work to recruitment of financial advisor or financial consultant or Insurance agent or development of distribution channel of HDFC Life who becomes the base of an Insurance company. In this company my department was Channel Development Department whose work is to recruit financial consultant. The main focus area of the company is to recruit more financial consultant who brings business for the company. Indeed the work of financial consultant is very significant and gives more and more distribution of the policy of the insurance to the company through selling the policies. First of all, Distribution Channel is a method of getting a product to its consumer and Distribution Channels are part of a Companys marketing mix where marketing mix refers to each business unique combination of product, price, promotion and place. Distribution Channel effects the place or path through which consumer can buy and receive the product. It is a distribution network through which producer puts his product in the market and passes it to the actual users. This channel mainly consists of producers, users and various middlemen like selling agents, advisors and dealers who intervene between producers and consumers. But the distribution channel for HDFC Life Insurance Company is mainly a channel of distribution of the organizational product and policies in the market and the structure of a distribution channel for HDFC Life is determined by the marketing function because marketing function performs specifically to develop the channel. Development of Distribution Channel for HDFC Life is really depends on the nature of the product or policy and the organizations target market. So management is the only which develop the channel within the framework of organizations and management may have to develop multiple channels for the development. HDFC Life is one of the Indias leading private Insurance Company which offers a range of individual and group insurance solution and it is also a joint venture between housing
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development Corporation limited and a group of company of standard life. So, It is the endeavor of the organization to attract talent in a competitive landscape and retain them through effective people processes and we believe that people can build the blocks in which the companys performance and productivity is based i.e. Develop the distribution channel for HDFC Life.

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ORGANIZATIONAL INFORMATION
ABOUT HDFC LIFE
HDFC Life, one of India's leading private life insurance company, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC) and Standard Life, the leading provider of financial services in the United Kingdom. For the joint venture between HDFC and SLIC, the discussion commenced in January 1995 and the agreement signed in October 1995. Further joint venture agreement renewed in October 1998. In January 2000 the life insurance project team established in Mumbai. At last the company officially incorporated in 14th august 2000. It is the matter of great happiness for HDFC life is that it is the first private sector life insurance company to be granted a certificate of registration in 23rd October, 2000. Now we can say that 72.37% in the hand of HDFC life and 26% equity in the joint venture, while the rest is held by others. HDFC Life's product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 28 retail and 9 group products in its portfolio, along with ten optional rider benefits catering to the savings, investment, protection and retirement needs of customers. HDFC Life continues to have one of the widest reaches among new insurance companies with more than 500 branches servicing customer needs in over 700 cities and towns. The company has a strong base of Financial Consultants. HDFC life stands for housing development finance corporation life insurance Company. It is an incorporated in 1977 as a public limited company with the specialization in provision of housing
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finance to individual cooperative societies and the corporate sector. One significant matter about the HDFC is that it is the first private sector retail housing finance company and it is listed on both BSE and NSE. HDFC Life has fully implemented a risk control framework to ensure that all types of risks are identified and measured. These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated.

COMPANY PROFILE
If we are talking about HDFCs profile then it is targeting Insurance Sector and not only this, HDFC launching various type of plans and products in which customer can buy different kind of product or policy. As an Insurance company, it focuses mainly in the recruitment of Financial Consultant and we know very well the whole company is based on it because the main aim of company is to get business and sell product or policies to the customers and this work is only done by the Financial Consultant. And HDFC Life is a joint venture between financial corporation and standard life. This company came into the life Insurance business in 2000. Since then HDFC has maintained a strong hold in this market and serving the best quality services to customers.

WHAT IS INSURANCE?
First of all, An Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms are required by law, while others are optional and an Insurance policy creates a contract between the Insured and the Insurer. In exchange for payments from the Insured, the Insurer agrees to pay the policy holder a sum of money upon the occurrence of the specific event. And Life Insurance is the key to good financial planning. On one hand, it safeguards customer money and on the other hand, ensures its growth, thus providing with complete well being. Life insurance plans unlike mutual funds, are beneficial when you look at them as a long term avenue of investment which also offers protection through life cover.

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Insurance may be described as a social device to ensure protection of economic value of life and other assets. Under the plan of Insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance. Insurance is a pool in which a large number of people exposed to a similar risk make contribution to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. The sharing of risk among large group of people is the basis of insurance. The losses of an individual are distributed over a group of individuals. The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefit may be an income or in some other form. It is a benefit because it meets some of his needs. The benefit may be an income or in some other form. Suppose a case of a car, it provides comfort and convenience in transportation but there is no direct income apart from these both are assets and provide benefits. Every asset is expected to last for a certain period of time during which it will provide the benefits. After that, the benefit may not be available. There is a life-time for a machine in a factory or a car. None of them will last forever. The owner is aware of this and he can so manage his affairs that by the end of that period or life time, a substitute is made available. Thus he makes sure that the benefit is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it incapable of giving the benefits. So we can classify insurance in these terms: It is a system by which the losses suffered by a few are spread over many exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event.

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VISION AND MISSION OF THE ORGANIZTION

Vision of HDFC Life The most successful and admired life insurance company, which mean that HDFC is the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry. For retention in the market and highest market share, we need trust of our customer. The customers should trust on our policies, services, employs and they should be friendly with us. It wants to give them the easiest deal so that they can be understood the terms and policies. Apart from that, the value will be observed while we work with the HDFC Life. a. Integrity:-HDFC Life believes in honest and truthfulness in every action. Transparency in dealing with customers. It is stick to principles irrespective of outcome. Integrity is the bedrock on which the company and the expectations of the customers and employees are built. Integrity gives inner feeling to both customer and the employee to work with it. It establishes the credibility of the person, defines the character and the empowers one to do justice to the job. It enables confidence and trust, achieving transparency and laying a strong foundation for a binding relationship.

b. Innovation:-Innovation is essential to exceed customer expectation and maximize customer relation because it is the sector of investment so need to fulfill the customer expectation which help to retain customer. Innovation helps to achieve competitive advantage. It promotes growth and upgrade standards in the industry.

c. Customer centric:-Customer becomes the main properties of any organization. Whatever work done by the organization runs around the expectations of the customer. Customer becomes centre point of the organization and the main focus of the organization becomes to understand his expectations by keeping him as the centre point. It gives more focus on customer activity and saying. It tries to understand customer needs and deliver solutions.

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d. People care:-It guides the development through training and support. It helps them to develop their requisite their skills so that they can reach true potential. It tries to know them on a personal front because it works as a performance appraisal. It try to create an environment of trust and openness so that all people who are working here be have friendly and helps to each other because team work is most important for getting success and give respect for the time of others.

e. Team work:-Team work helps everyone to achieve more, it adds joy at workplace which add interest in the work and new stamina in the work. It generates synergy and provides a focused approach. When an idea or activity performed in a group, it has greater acceptability means Team work proves one for all and all for one.

f. Joy and simplicity:-It believes inn joy and simplicity so that people in the organization will be more dedicated towards work and they will give more business to the organization. Work with joy and simplicity brings creativity and new imagination which also brings new innovative ideas that promote competitive advantage to the organization. But apart from that, we can say that: 1. To enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner and to promote home ownership. 2. To increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets. Mission of HDFC Life 1. Develop close relationships with individual households. 2. Maintain its position as the premier housing finance institution in the country. 3. Transform ideas into viable and creative solutions. 4. Provide consistently high returns to shareholders. 5. To grow through diversification by leveraging off the existing client base.

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BOARD MEMBERS
Mr. Keki M. Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants. Mr. David Nish joined HDFC Life on 1st November 2006 as Group Finance Director and remained in that position until December 2009. He is the Chief Executive at Standard Life Plc. In 2000 he was awarded the Scottish Business Awards Finance Director of the Year and from 2004 to 2005 he served on the Government Employers Pension Task Force. He is a member of the Institute of Chartered Accountants of Scotland. He joined the Board of Directors in February 2010. Mr. Norman K. Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005. Mr. Skeoch is a Fellow of the Securities Institute, Fellow of the Royal Institute for the Encouragement of the Arts, Manufacture and Commerce, BA, MA. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, 2002 was a Partner & VicePresident at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from the
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Wharton School and BE from Birla Institute of Technology and Sciences. Mr. A. K.T. Chari has joined HDFC Life as a Director on March 10, 2010. Mr. Chari has completed his Electrical Engineering from Madras University in 1962. He is associated with Infrastructure Development Finance Company Ltd. (IDFC) for last 11 years. Currently he is handling project finance for infrastructure projects at IDFC. Prior to this he was associated with Infrastructure Development Bank of India (IDBI) from 1975 to 1999. Mr. Michael G Connarty is responsible for Life's investments in life assurance Joint Ventures in India and China. He holds a degree in Law and MBA. He has worked with Standard Life for 33 years in managerial positions covering a number of fields such as Pensions law, International Marketing, Operational Management, Strategy, Risk, Compliance, Company Secretarial and Banking. He has acted as Project Manager for the start-up project of the Company in 2000. He is the Alternate Director to Mr. Norman K. Skeoch. Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of the company. A fellow of the Institute of Chartered Accountants of India, he has been associated with the HDFC Group since 1984. During his 16-year tenure at HDFC Limited, he was responsible for driving and spearheading several key initiatives. As one of the founding members of HDFC Standard life, Mr. Parasnis has been responsible for setting up branches, driving sales and servicing strategy, leading recruitment, contributing to product launches and performance management system, overseeing new business and claims settlement, customer interactions etc.

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ASSOCIATE COMPANIES OF HDFC LIFE

Other Companies HDFC Trustee Company Ltd. GRUH Finance Ltd. HDFC Developers Ltd. HDFC Property Ventures Ltd. HDFC Ventures Trustee Company Ltd. HDFC Investments Ltd. HDFC Holdings Ltd. Credit Information Bureau (India) Ltd

AWARDS AND ACCOLADES

February, 2008

Deepak M Satwalekar Awarded QIMPRO Gold Standard Award 2007 Mr. Deepak M Satwalekar, Managing Director and CEO, HDFC Life, received the QIMPRO Gold Standard Award 2007 in the business category at the 18th annual QIMPRO award function.

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The award celebrates excellence in individual performance and highlights the quality achievements of extraordinary individuals in an era of global competition and expectations. May, 2008

Received PC Quest Best IT Implementation Award 2008 HDFC Life received the PC Quest Best IT Implementation Award 2008 for consultant corner, the application for its financial consultants, providing centralized control over a vast geographical spread for key business units such as inventory, training, licensing, etc. HDFC Standard Life has won the PC Quest Best IT Implementation Award for two years consequently. Last year, the company received the award for Wonders, its path-breaking implementation of an enterprise-wide workflow system. September, 2008

Received 2008 CIO Bold and CIO Security Awards HDFC Life has received the 2008 CIO Bold 100 Award. This annual award recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. This years award theme, The Bold 100, recognized those executives and organizations that embraced great risk for the sake of great reward. HDFC Life has also been one of the five recipient of the special 2008 CIO Security Award aimed at CIOs, whose pioneering implementations have taken their enterprise security to the next level. This award category identifies innovative and groundbreaking deployment of technologies aimed at creating a secure business infrastructure. The company received the 2008 CIO Bold Award for its mobile workforce portal and the CIO Security Award for its initiatives for a secure computing environment, including identity management.

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Received Diamond EDGE Award 2009 HDFC Life has received the Diamond EDGE Award 2009 for its mobile workforce portal - Consultant Corner. EDGE - Enterprises Driving Growth and Excellence (using IT) is an initiative by the Network Computing magazine to identify, recognize, and honor end-user companies in India that have demonstrated the best use of technology to solve a business problem, improve business competitiveness, and deliver quantifiable ROI to stakeholders. Network Computing magazine is part of CMP Technology, which brings more than 100 IT media brands to more than 18 million technology and business decision makers worldwide. Received CIO The Ingenious 100 2009 Award HDFC Life has received the CIO The Ingenious 100-2009 Award, for ATLAS(Agency Training Licensing and Servicing System). Additionally, the company has received the CIO 100 Security Award 2009 for pioneering LANDesk management and security suite, security implementation and taking its security to a higher level of technological excellence. HDFC Life has received the CIO 100 Award for the third consecutive year. It had received the 2008 CIO Bold Award for consultant corner and CIO Security Award for our initiatives for a secure computing environment, including Sesame- Identity and Access Management. In 2007, the company received CIO 100 Award for wonders and a special award in storage category. CIO magazine has a long tradition of honoring leading companies for business and technology leadership and innovations through its flagship award program-CIO 100. Its a celebration of 100 organizations that are using IT in innovative ways to deliver business value, whether by creating competitive advantage, optimizing business processes, enabling growth or improving relationships with customers.

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'Young Star Super' Voted 'Product of the Year 2010' HDFC Lifes Young Star Super has been voted a Product of the Year 2010 in the 'Insurance' category by more than 30,000 consumers nationwide across 36 markets. Young Star Super is an unit linked Children Plan with unique benefits such as bumper additions, double and triple benefits, attractive allocations rates, and seven different funds. The consumer study on product innovation in India was conducted by A C Nielsen, the leading global research firm. Entries were accepted from products that demonstrate innovation in their product function, design, packaging or process or any other specified form. Entries were then filtered by a jury of distinguished industry professionals to ensure that the products meet the innovation criteria before they were passed on to the consumer votes/survey round. Product of the Year is an Internationally Recognized Standard that celebrates and rewards the best innovations in consumer products and services. The Product of the Year is selected through an independent consumer survey across the country in 26 countries for the past 20 years. Best Companies to work for in India in 2010 HDFC Life has been adjudged one of the best companies to work for in India in 2010. The company has participated in the great places to work study for the first time and ranked first in the Insurance category. It ranked 34th on the top and 50 best company to work in India 2010 list. The company was also awarded for its unique employee initiative- Mission in genius national quiz. The study has shown that HDFC Life conscientiously develops employee talent program to keep engaging and motivating its employees. The company provides some unique platform such as mission in genius

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national quiz. The management is accessible to all at all time and sincerely seeks feedback from its employees through program such as Sparsh. The best company to work in India is a study conducted by the great place to work Institute, India in partnership with The Economic Times. The 2010 edition is the seventh study in India, which received overwhelming response from more than 400 companies, making it the largest such study in India, and only 50 companies made it to the best companies to work list.

MILESTONES
Year 2000 2000 2000 2000 Event The Insurance Regulatory and Development Authority flags off the first private sector life insurance company - HDFCSL on 23rd October 2000. First investment of Rs168 Crore funded by HDFC Limited and Standard Life Assurance Company in the 1st week of November, 2000. First branch opened in churchgate on 1st November 2000. Launch of website - www.hdfcinsurance.com - an endeavor to offer value added services to our Financial Consultants and educating customers about insurance and company products. 100th life covered on 12th February 2001. First Customer Helpdesk for internal customer was set up in January 2001. Second branch opened in NEW DELHI ON 16th March 2001. Building the HUMAN CAPITAL by engaging the 100th employee on 3rd May 2001. First bonus declared along with Founder's bonus and also the First Company in the private sector to do so in October 2001. First claim settled 23rd September 2001 marked the beginning of the larger purpose for which we had launched the company. We paid the first claim amount of Rs 25,000/Outlook Money magazine awards "HDFC SL" as one of the top 3 new Life Insurance Companies 2002 2002 Launch of HUB at Malad in December 2002 to create a centralized processing Unit. Union Bank of India- the 1st public sector bank to sign up as a Corporate Agent in December 2002.
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2001 2001 2001 2001 2001 2001

2002

2003 2003

The first exclusive product for policyholder in helping him to plan his child's future - Children's plan launched in February 2003. First Unit Linked plan - Group Unit Linked Plan approved in May 2003 - A plan designed to offer employers an efficient way of investing the funds set aside to meet various employee liabilities. Unit Linked funds launched in July 2003. Introduction of a structured Management Trainee Scheme, Branding HDFCSL as the preferred employer in management institutes. First Individual Unit Linked product - UL Endowment in December 2003. 1st Group Superannuation policy issued in November 2004. First policy sold by Tele-Marketing team on 9th November 2004. Inauguration of the Corporate office at Trade Star Andheri - more than twice the size of BKC Office. HDFCSL was rated as "The Most Respected Private Insurance Company" by a survey conducted by the Business World. Launch of HDFC Standard Life - 'Sar Utha Ke Jiyo', first TV Advertising Campaign on 17thJanuary 2005. Received the CIO award for achieving excellence in strategic enterprise IT deployment, and been admitted as "CIO 100 Honoree 2005". The Employee Stock Option Scheme was launched for long-term employee benefits on 1st September 2005. Launched DRISTHI - a dedicated service helpline for customers. New products like HLPP, SAP, HAP and Suvidha Range of products were brought in to match suitability and convenience needs of channel partners. HDFCSL expanded its reach in the Bancassurance channel by arrangements with co-operative banks in the rural areas. Continued to increase its focus on quality service, by putting in place a robust mechanism to capture 'Voice of the Customer' through service audits across its offices. This was complemented by use of technology that enabled capture of all interactions with customers across all touch points. HDFC selected as the '4Ps Power Brand 2006', for being one of India's Top 25 'Most Innovative Companies' in an exclusive survey conducted by ICMR (Indian Council of Market Research) and 4Ps - Business and Marketing (a Business and Marketing magazine published by Plan man Media). Biggest NGO covered on 28th March 2006 with 14000 lives.

2003 2003 2003 2004 2004 2004 2004 2005 2005 2005 2005 2005 2006 2006

2006

2006

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2006

Ranked 29th most trusted Indian Brands amongst the Top 50 Service Brands of 2006 according to a study conducted by the Brand Equity Economic Times, the leading business publication of India. The company had been awarded the "Intelligent Enterprise" Award by the Express Computer Magazine Part of the Indian Express Group, for investing in workflow and imaging technology which helped in increasing volumes without affecting service standards. As against a regulatory requirement of writing 18% of all policies in rural areas, the company issued over 1, 21,000 policies accounting for more than 23% of all policies issued during the year. Sar Utha Ke Jiyo was honoured as 'Among India's 60 Glorious Advertising Moments. The advertisements of the company were ranked 6th amongst 'The 10 most effective Advertisements' in September 2007. Received the PCQuest Best IT Implementation Award 2007 for Wonders, its path-breaking implementation of an enterprise-wide workflow system. In addition the company also bagged the EMC storage award for being the most innovative users of storage and storage management. HDFC Standard Life's advertising created high awareness for the brand and bagged 2 silver and 1 bronze awards at the ADFEST 2007 National Awards organized by the Advertising Agencies Association of India (AAAI). The 3 awards are the highest won by any single brand in the financial services business (including banking, mutual fund, insurance and other financial services). Received the 2008 CIO Bold 100 Award for its mobile workforce portal and the Special 2008 CIO Security Award for a secure computing environment, including identity management respectively. Received the PCQuest Best IT Implementation Award 2008 for Consultant Corner, the applications for its financial consultants, providing centralized control over a vast geographical spread for key business units such as inventory, training, licensing, etc. Mr. Deepak M Satwalekar Awarded QIMPRO Gold Standard Award. HDFCSL expanded its reach in the Bancassurance channel by arrangements with co-operative banks in the rural areas.

2006

2006

2007

2007

2007

2008

2008

2008 2008

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DISTRIBUTION REACH- OFFICES AND FINANCIAL CONSULTANT

offices in thousands
600 500 400 300 200 100 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 offices

2.5

1.5 financial consultant in lakhs

0.5

0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

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OBJECTIVE OF THE STUDY

It is largely understood that in Insurance Sector, we can divide it into three categories which are: Broad: Increased coverage of the population Specific: Customer has a wider choice & range of products and Service standards to customer. Economic: Savings mobilization

In this objective part, the first part deals with its market share because it deals with all people who live in India and it has a broad market potential. So the main motto is to increase more and more people for insurance and for more insurance there is need of more and more financial consultant. In the second part, it deals with innovative plans and schemes for the wider choice of people and different range of products of its competitors. It tries to serve its customer with significant way. HDFC life invest the investment in the share market through the unit link plan and get & give significant return from the markets and satisfy their customer. The main objective of this project is Current Scenario and scope of development in recruiting distribution channel in East for HDFC Life. Because after recruiting financial consultant, it can be easily possible in Insurance Sector. So, we have 1: To study the recruitment procedure followed in HDFC LIFE INSURANCE 2: To study the various sources of recruitment followed in HDFC Life. 3: To learn what is the process of recruitment and selection that should be followed. 4: To search people whose skill fits into the companys value.

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CHANNEL DEVELOPMENT TEAM OF HDFC LIFE

Head Agency- AS Jayasinha

AVP- Suvendu Panda

HO Backend-2+1 Off roll

TMPradeep SharmaDelhi

TMAnkit AgarwalDelhi

TMParikshit SharmaChandiga rh

TM-Vijay K.Sharm a-Jaipur

TM-Ajay Tekchan daniMumbai

TM-Vijay GargPune

TM-Yaraf Husaini

6 AMCD

4 AMCD

3 AMCD

3 AMCD

5 AMCD

2 AMCD

6 AMCD

29 CDMs

19 CDM/E

13 CDM

19 CDM

26 CDM

14 CDM

40 CDM

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RESEARCH METHODOLOGY

Research can be defined as the search for knowledge or as any systematic investigation to establish facts. The primary purpose for research is discovering, interpreting and development of methods and systems for the advancement of human knowledge on a wide variety of facts of our concern. Research relies on the application of methods; the research provides information and theories for explanation of the problem and analysis for the problem. It makes practical applications possible. Research is funded by public authorities by charitable organization and by private groups, including many companies. Research can be sub divided into different classifications according to their academic application disciplines. Research also seen as practice-based research, can take form when creative works are considered. It is the debatable body of thought which offers an alternative to practical problems in search for knowledge, accuracy and truth. Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying the research problem along with the logic behind them. Research methodology has many dimensions and research methods do constitute a part of the research methodology. There are 2 main types of research methodology1) Quantitative methodology 2) Qualitative methodology Quantitative methodology is the type by which one can test the significance of hypothesis. Qualitative methodology is the by which one depends on its observations and descriptions. In this project series of steps has been followed to do the research effectively. Those steps are:28

 Research objective Research design Sample design (sampling and sample size) Questionnaire Collection of data Statistical analysis used to analyze the data QUESTIONNAIRE: Questionnaire is the tool by which we collect the requisite information. Questionnaires can be classified into 4 types: Structured non-disguised. Structured disguised. Non-structured non-disguised Non-structured disguised In this study through communication method, using a structured-non-disguised questionnaire, primary data were collected. A structured non- disguised questionnaire is one where the listing of the questions is in prearranged order and where the object at the purpose of enquiry is revealed to the respondent.

WORKING PROCEDURE
In my summer training I have targeted EAST side of KOLKATA. I have collected data from some parts of KOLKATA. I had to approach various people for the recruitment of financial consultant in HDFC Life. As a part of that insurance company, I had to also convince the people to join HDFC Life insurance company because this is the only one insurance company which is booming rapidly and it is the joint venture between financial corporation and standard life. During this period I was in constant touch with my senior and area sales manager and I had to submit daily report of my work and full information about phone calls and questionnaires. Questionnaires basically consist of open-ended questions was used for the collection of information.

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SAMPLE AREA
Sampling is that part of statistical practice concerned with the selection of a subset of individuals from within a population to yield some knowledge about the whole population, especially for the purposes of making predictions based on statistical inference. My working area was EAST zone of KOLKATA. So I had collected data from this area only and I targeted those people who are atleast graduate because we know an educated people can make understand only the situation of insurance sector or for the development of an insurance sector. SAMPLE UNIT: 100 Tiljala Road 40 Darga Road 30 Park Street 30

And got only 60 people contact number and gave them call Tiljala Road 25 Darga Road 15 Park Street 20

contacted people

20

25

15

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DATA COLLECTION
Data is the significant part of any kind of research. As we know that all research depends upon the data. Whatever data is collected by me during the internship in the HDFC Life, I can divide those into two parts which are thus: Primary Data:- Primary data are those which are collected fresh and for the first time and thus happen to be original in chapters. I have collected my data through phone calling and through direct communication with respondents in one form or another or through personal interviews. Through observation method I was able to record the natural behavior of the group. Sometimes I verify the truth of statements made by informants in the context of a questionnaire or a schedule.

Secondary Data:- Secondary data are those data which are being already collected by someone else and which have already been passed through the statistical process. I have collected my published date form Internet and the books, magazines and newspaper.

My project is being undertaken in HDFC Life in which Financial Consultant recruitment program and current scenario and scope of development in recruiting distribution channel in East for HDFC Life. HDFC Life tied up with world class insurance product. First of all, Research provides information that assists and organization to define opportunities for product development and market strategy. And for the development of recruiting distribution channel in EAST for HDFC Life, It works by assessing whether marketing strategies are accurately targeted, and by identifying market opportunities or changes that are required by customers. Market research tends to confirm issues that are well-known in a market initially, but if planned well and effectively it will also identify new opportunities, market riches, or ways by which to improve sales, marketing and communications activities. The role of market research, therefore, is to reduce uncertainty indecision making, to monitor the effects of decisions taken, and identify the performance of a company or a product in the market. During internship in development in recruiting distribution channel was related with the distribution enhancement of the insurance policies of HDFC Life. To be more specific, we
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can list five key uses for market research, to recruit Financial Consultant and development in recruiting distribution channel in EAST for HDFC Life, namely to: a. Identify the size, shape, and nature of a market, so as to understand the market and marketing opportunities. b. Investigate the strengths and weaknesses of competitive products and the level of trade support a company enjoy. c. Test out strategic and product ideas which help to define the most effective customer-led strategies. d. Monitor the effectiveness of strategies. e. It will define when marketing expenditure, promotions and targeting need to be adjusted or improved. The variety of purposes listed above makes it clear that market research is not simply a first check. And we know very well marketing strategy is the basic root of finding the Financial Consultant and to recruit them. So, we can say that marketing research plays an important role in Insurance Company. It is useful ahead of any action, but it also provides a means of checking and refining views as operations proceed. Companies, especially those for which budgets always seem tight, who have selected one of these uses for market research are always concerned to make the research a worthwhile investment. Best results come when their marketing and sales planning is influenced by the results of research.

PROCEDURE OF RECRUITMENT OF FINANCIAL CONSULTANT

During summer training I had to recruit financial consultant. For the recruitment of Financial Consultant, I took the help of phone calls and my network. During that period for the recruitment of financial consultant when I talked to people about it firstly they did not want to talk with the name of insurance because they think it is a very challenging job and because of business of the life insurance they dont want to come in the profession. But I convinced so many people to join Financial Consultant in HDFC Life.

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When we think of recruiting financial consultant for HDFC Life Insurance Company there is a definite question that strikes in our mind that who can be an advisor for the company? The question is very simple as, anyone i.e. from housewives to entrepreneurs, teachers to part time workers, having qualities like enterprising, well networked, flexible and outgoing can become financial consultant of HDFC Life Insurance Company. Criteria for being financial consultant in HDFC Life: Minimum age should be 18 years. Minimum qualification should be 10+2.

ENTERPRENUERSHIP Proactive attitude Self starter and self motivated Be your own boss Drive to make money for self and HDFC Life

SELLING AND INFLUENCING Ask intelligent and meaningful questions Listen actively, responds and summarizes for understanding Active prospecting to attract and acquire customers Close the deal Handling rejection Bouncing back after rejection Consistently working towards the goal Positive attitude

RELATIONSHIP BUILDING CUSTOMER SERVICE Interest in meeting people and keeping in touch

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Puts the relationship with the customer before the sale in order to build goodwill and credibility Warm and outgoing personality Sense of integrity

COMMUNICATION Create understanding Listening and observing carefully Inspiring trust and confidence Engaging the client in a meaningful conversation

COMPETITOR OF HDFC LIFE

No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Name of the company Life Insurance Company ICICI Prudential State Bank of India Life Insurance Tata AIG Life Insurance Bajaj Allianz Reliance retail Limited Met Life Insurance Aviva Life Insurance Sahara Life Insurance

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10. 11. 12. 13. 14.

Birla Sunlife Insurance Oriental Life Insurance ING Vyasa MAX New York Life Insurance Kotak Mahindra Life Insurance Company

Market Share of top five Insurance Companies are:

60

50

40

30

20

10

0 LIC ICICI HDFC LIFE BIRLA SUN LIFE TATA AIG

In private insurance company HDFC Life has the highest market share. In terms of group insurance schemes, LICs market share was at 72.2% after it covered 4.9 lakh lives. Private insurance company had 27.9% of the market covering 1.9 lakh lives. Till today LIC is covering more market share than the other private insurance companies.

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The 12 private company in the country together mopped up Rs 385crore in premium in the first two months selling over 2 lakh policies. ICICI Prudential Life leads with market share of 5.9% It is followed by BIRLA SUNLIFE with a market share of 2.6%, BAJAJ ALLIANZ (1.6%), TATA AIG (1.5%), HDFC Standard Life (1.4%) and SBI Life (1.2%).Each of the other private players like AVIVA, Max New York Life, KOTAK Life, ING VYSYA and MetLife had less than 1% market share but posted high growth in business.

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FINDINGS AND ANALYSIS

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different business, science, and social science domains. After collection the data the most important part comes which is data analysis. It is the most significant part of the research. Whole work regarding data depends upon the data collection. During the period of summer training I have collected my data in the area of EAST KOLKATA. For the collection of data I had gone to the market, various places like malls, fun places, Cinema halls, and the other places and through phone calls and my personal network helped me a lot where I can get the potential financial consultant. As the plans of HDFC LIFE, I targeted graduate people or educated people who can easily understand about the insurance and who can convince other people to join HDFC Life as a financial consultant. For the collection of data various questionnaire is prepared by me and I have gotten certain result from it. These question and results are thus:QUESTION 1: How many people have targeted for financial consultant at the time of training? RESPONSE RESPONDENTS SHARE(%)

YES

60

60%

NO

40

40%

TOTAL

100

100%

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yes no

INFERENCE:Of the sample size of 100 surveyed respondents 60% of the respondents listened and paid interest for Financial Consultant 40% of the respondents didnt listen.

QUESTION 2: How many respondents give preference to join as a financial consultant in different insurance companies? COMPANYS NAME NO. OF RESPONDENTS SHARE%

LIC

25

41.7%

HDFC LIFE

15

25%

ICICI

10

16.6%

BIRLA SUN LIFE

10%

TATA AIG

6.6%

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respondents for financial consultant

lic hdfc life icici birla sun life tata aig

INFERENCE:Till now maximum people want to join financial consultant of LIC. Because, It is governmental insurance company thats why people firstly prefer to join LIC. QUESTION 3: What age-groups person want to join insurance company as a financial consultant? AGE GROUP Below 18 19-25 26-35 36-45 46-60 Above 60 PERCENTAGE 0% 20% 40% 20% 14% 6%

39

percentage
below 18 19-25 26-35 36-45 46-60 above 60

INFERENCE:I have seen that, 26-35 age groups person want to join more insurance company as a financial consultant. QUESTION 4: Male or Female, which one more prefer to do job as financial adviser in HDFC Life? GENDER MALE FEMALE PERCENTAGE 60% 40%

percentage
male female

40

INFERENCE:On the basis of survey, we find out male want to join as a financial consultant more than female. QUESTION 5: How many married people join as a financial consultant in insurance company? MARITAL STATUS MARRIED UNMARRIED PERCENTAGE 80% 20%

percentage

married unmarried

INFERENCE:According to survey, 80% married people join and 20% unmarried people join insurance company as a financial consultant. QUESTION 6: What should be the qualification required for financial consultant? EDUCATIONAL QUALIFICATION 12th Graduation PERCENTAGE 37% 42%

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Post graduation Others

18% 3%

percentage

12th graduation post graduation others

INFERENCE:Minimum educational qualification required is 12th but Graduate people basically join more as a financial consultant in insurance company. QUESTION 7: What are the sources for recruitment and selection of financial consultant?

sources

internal external both

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INFERENCE:Most of the people, they prefer both internal and external sources for recruitment and selection of financial consultant whereas only 9% go for internal sources and 18% go for external sources. QUESTION 8: Which method do you mostly prefer for recruitment and selection preferred way of recruitment?

way of recruitment

indirect direct third party

INFERENCE:About 65% of people go for direct recruitment whereas 32% go for indirect recruitment and 3% people go through the third party. QUESTION 9: How many people aware about the slogan of HDFC Life SIR UTHA KAR JIYO? When I talked to the people in this regard like they have ever heard about HDFCs slogan Sir Utha Kar Jiyo then they replied that they are aware about this and I am talking about HDFC Life Insurance Company. It shows companys advertisement is making place in the mind of the customer. They are aware of HDFC Life Insurance company. It will develop faith on the industry
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and help to the financial consultant of the HDFC Life to convince the customer because advertisement have made their work to tell them it is a renowned company and they will not cheated by this company. RESPONSE YES NO RSPONDENTS 60 0 In % 100% 0%

percentage

yes no

INFERENCE:Most of the people, they are aware about HDFC Life Insurance company thats why it cannot be so much difficult to make understand them and it become easy to recruit financial consultant. QUESTION 10: Why the people cannot invest money in insurance company without consulting financial consultant? In this survey I have analyzed that most of the people dependent upon financial consultant for the investment of their money in the insurance sector. Financial Consultant plays main role in the insurance sector regarding sales of policies. For the distribution enhancement of the policy of
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HDFC Life, it is most important that it should give more preference to its financial consultant. It should offer attractive commission to the financial consultant so that they work for the organization by heart. It is financial consultant who consults with the people and convinces them for investing their money in the respective insurance company. In the market, there is certainly ICICI prudential have more financial consultant than HDFC Life insurance. There are 17 insurance companies in the market and they are trying to increase their market share and for this purpose they will definitely give more benefit to public so that they may agree to become financial consultant. QUESTION 11: How many people interested to join as a financial consultant of HDFC Life? RESPONSE INTERESTED NOT INTERESTED TOTAL RESPONDENTS 32 28 60 SHARE 53.5% 46.5% 100%

percentage

interested not interested

INFERENCE:53.5% people are interested to join HDFC Life on the other hand 46.5% people are not interested.

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RECOMMENDATIONS
In this analysis, I find that 26-35 age groups person are more conscious to work as financial consultant. Men are more conscious to work as financial consultants compare to female. Married people join insurance company more than unmarried people. Still people focus to join LICs financial consultant rather than private insurance companys financial consultant. Minimum qualification must be 12th. Graduate people want to do job as a financial consultant in insurance company. Because of the high registration fee for financial consultant, people think that he/she should join it or not. The main competitor of HDFC Life is ICICI PRUDENCIAL and LIC. Today HDFC Life is no. one position in insurance. It has also gotten most trusted company award of 2010. Still today people give more priority to LIC than the other insurance company but they dont know HDFC Life gives 40% commission to this Financial Consultant on the first premium but LIC gives only 15 % premium to their Financial Consultant. HDFC Life gives priority to quality only. Quantity doesnt matter for it, but other company like ICICI gives priority to quantity then quality. I can say that the criteria, view, vision, mission of HDFC Life is not comparable to the other company and because of these it gives more reliability, and benefits to their employee and their customer. In EAST Kolkata region is spreading their branch for more and more market share and help in getting business.

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CONCLUSION
My experience with HDFC Life will always grateful for me. I learned many things in HDFC Life. The very first thing I learned to handle different kind of objections from different kind of persons. Working on deadline for achieving target is most crucial process in this sector and I am thankful to all who were always behind me to support and helps me to complete my project. Overall Development of distribution channel was a fair attempt from me and I was able to understand that HDFC Life is the renowned industry in the insurance sector. It believes in quality not in quantity. HDFC Life has total 12 group companies. It is the first insurance company which has gotten the license of insurance firstly by IRDA. In the insurance sector main work is done by the financial consultant who brings business to the industry. It gives more priority for the recruitment of financial consultant. It gives more priority to professional like MBA, CA, Engineers, Doctors, Lawyers and other professionals for joining as a Financial Consultant in Insurance Sector. It gives more facilities to their employ and provides better opportunity to their employ for promotion because it has minimum target for fulfillment. Financial Consultant has to give 36 policy or 3.6 lakhs premium within six months which less in comparison to the other insurance industry and for EAST KOLKATA region where the transaction of money is too high. Financial Consultant has chance to become sales development manager within six month when he fulfills the target. The post of Sales Development Manager is based on payroll. He will get package of 2.75 lakh per year. The insurance market is dominated by the public sector insurance company LIC with a market share of around 71.4%. With the private sectors leading the growth story, this sector is witnessing more marketing actions than even the FMCG sector. Now-a-days we are seeing a lot of media action from this company. Although a slow starter HDFC Life was having a small share of the pie. It was eclipsed by ICICI prudential with its media and sales blitz making it second largest player in the Insurance market. 2006 saw a shakeup in this market with Bajaj Allianz edging out ICICI from the second spot.

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Bajaj have a market share of around 8% and HDFC Life and ICICI fighting at 3 rd place with around 7.5%. So, Overall I learned various things as well as I shared a lot of activities with my colleagues and telephonic conversation as well as meeting different kind of person gave me a positive direction to build my confidence and ever in bad phase of response I learnt the art of making calmness.

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SUGGESTION
When we talk about suggestion I got small experience after completion of my summer internship that whatever I have pointed out which are thus: In the recruitment of financial consultant I found that most of the people dont want to pay Rs.750. I have faced some difficulties when they dont agree to pay this much amount. If the company will less this charge then it will get more Financial Consultant. It should organize weekly meeting with Financial Consultant for the business and give appraisal training to them. It works as a performance appraisal of the Financial Consultant. It should give monthly party to the Financial Consultant for the attachment with the industry. It should give facility to CDM or RC for the recruitment of Financial Consultant and if it will give facility to Financial Consultant then they can give more facility. Generally we buy thing whatever we see. It means that HDFC Life should do more advertisement like other insurance industry The role of recruitment is not easy so it should increase commission or give salary instead of commission so that RC will take more interest in the recruitment on financial consultant. Regular canopy should be established such areas like metro Stations, college campus, and malls, supermarket, and hypermarket for the purpose of recruitment Financial Consultant and getting business form them.. It should launch new innovative insurance policy which will entice people for insurance in HDFC Life.
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LIMITATIONS
The information given in the above part is based on market survey and for the Current scenario and scope of development in recruiting distribution channel in East for HDFC Life, meeting with the people, and phone calls, and the other medium like internet and browser of HDFC Life. My project is based upon the interaction with the people for the purpose of recruitment of Financial Consultant. My study is totally based on the perception of the people that what they think about the insurance when someone offer him to work in the insurance sector. I analyze that the person who is needy for money, greedy about fast life and believes in speed join insurance because this sector gives a platform for unlimited earning and life time earning like life time validity.

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BIBLIOGRAPHY
Megazines Browser given by HDFC Life Megazine related with HDFC Life Internet www.hdfclife.com www.irdaindia.com www.wikipedia.com www.google.com Books related to human resources

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QUESTIONNAIRE:1. Name: 2. Address: 3. Phone. No.: 4. Age group: (please tick whichever is applicable) I. Below 18 years II. 19-25 years III. 26-35 years IV. 36-45 years V. 45-60 years VI. Above 60 years 5. Gender: I. Male II. Female 6. Occupation: I. Student II. Serviceman III. Unemployed IV. Businessman 7. Level of Income in yearly basis: I. 100000-150000 II. 150001-200000 III. 200001-250000 IV. 250001 & Above V. Less than 100000 8. Marital Status: I. Married II. Unmarried 9. Educational Qualification: I. 12th II. Graduation III. Post graduation
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IV. Others 10. What do you know about availability of present job market? I. Not available II. Moderately available III. Easily available 11. Would you like to work in Insurance Company? I. Yes II. No 12. What do you understand by insurance in a 100% rating scale? I. Protection from uncertainties II. Savings III. Investments IV. Wastage of money 13. According to you in 100% rating scale which of the following is a leading insurance company? I. LIC II. HDFC Life III. ICICI IV. Tata AIG 14. If you are getting a job in insurance company, would you like to join? I. Yes II. No

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