Report

A REPORT ON

“ To understand the challenges for customer
prospecting with reference to Life
insurance ’’

Submitted By :-

Sachin B. Bone

SEM – II

Enroll No. – 10AM63613

(AEGON RELIGARE LIFE INSURANCE)

Date of submission : 14/07/2011

1

CERTIFICATE

This is certify that Mr. Sachin B. Bone has
successfully completed his final report of
Management Thesis which entitled is “To
understand the challenges for customer prospecting
with reference to Life insurance’’ in fulfillment of
MBA (2010-2012) curriculum. The work has been
carried out at Amravati.

Date :

Mr. Sameer Khan Mr. Bhushan Pathe

Campus Head Faculty Guide
IIPS Amravati IIPS Amravati

ACKNOWLEDGMENT
2

I express my sincere thanks toward Mr. Bhushan
Pathe (Faculty guide IIPS Amravati) who gave me
an opportunity to do project on “ To understand
the challenges for customer prospecting with
reference to Life insurance” in Amravati city and
provide valued guidance for completing Final
Report on this.

EXECUTIVE SUMMARY/ABSTRACT
3

This report about the “ To understand the challenges
for customer prospecting with reference to Life
insurance ’’ prepared by Sachin Bone student of IIPS
College of Management. In today’s cut throat
competition we all are aware that every organization is
trying to increase their customer base through selling
their product and for this selling we want customer
and for this every organization undertaking one
activity that is called Customer Prospecting.

TABLE OF CONTENT
4

Cover Page ………………… 1
Title Page ………………… 2
Authorization ………………… 3
Acknowledgment ………………... 4
Executive Summary/Abstract ……………….. 5
Table of content ………………. . 6

1.Introduction ……………….. 7-13

• Objectives

• Methodology

• Limitation

2. Industry Details ……………… 14-32

3. Data Analysis ……………… 33-45

4. Secondary data ……………….46-53

• Company

• Customer

• Competitor

5. Conclusion and
5

Recommendation …………… 54-55

6

INTRODUCTION

In today’s cut throat competition we all are aware that
every organization is trying to increase their customer base
through selling their product and for this selling we want
customer and for this selling we want customer and for this
every organization undertaking one activity that is called
Customer Prospecting. Simply, customer prospecting
means to search or find out any individual or group for
buying our products, which should be fulfill his needs and
wants. Effective prospecting is a critical component of
sustainable sales success. However, prospecting is not
selling. You may be a well-trained and/or experienced
salesperson. But your training may not have included
prospecting. Or perhaps you never prospected at all.
The output of prospecting is a list of qualified leads that
may buy your product or service. Selling begins only after
a lead is categorized as qualified. If you start selling too
early, you run the risk of pigeonholing your products and
services before you have the opportunity to understand
7

your prospect's requirements. That generally leads to
commoditization--where price becomes the most important
buying criteria.
Winners understand that, as with effective selling,
prospecting should not be done by the seat of one's pants.
You need a plan. That means an objective assessment of
your situation, a goal, and resulting strategies and tactics to
achieve that goal. So if you aren't comfortable with
prospecting or haven't had to do it, I would like to share
with you my plan that has worked for many of those
winners.This is a simple one: Prospecting is the process by
which we turn "suspects" - those with a potential need for
our product into "prospects" - those who express a need
for our product. If we are selling dishwashers, suspects
could be home-owners living in their homes long enough
for a dishwasher to wear out - a "prospect" has told you
on a cold call that he is remodeling his kitchen. Suspects fit
a demographic. Prospecting is the process of weeding
through those suspects.

OBJECTIVES
8

1)To study the Life Insurance Industry.

2)To study about different techniques of customer
prospecting.

3)To study what are the impact of customer prospecting on
employee.

4)To study about customer prospecting techniques in different
insurance companies.

5) To study what are the challenges face by insurance player in
today’s scenario regarding customer prospecting.

METHODOLOGY

9

1) Selection of title – Title of this report is influenced by the
problem facing by the insurance industry regarding customer
prospecting.

2) Interpret the data by using the tool like Microsoft excel sheet,
and on the basis of requirement use statistical tool like
correlation – whatever primary data we collect it will be tabulate
in excel sheet.

3) Collect the primary data and secondary data.

4) As per analysis some observation will be made and to
accomplish the objectives of the study.

5) As per analysis and interpretation of collected data
conclusions will be dra

WHAT IS METHODOLOGY

10

Methodology, unlike method (which systematically details a
given procedure or process), does not describe specific methods
despite the attention given to the nature and kinds of processes
to be followed in a given procedure or in attaining an objective.
When proper to a study of methodology, such processes
constitute a constructive generic framework; thus they may be
broken down in sub-processes, combined, or their sequence
changed. As such, methodology may entail a description of
generic process or, metaphorically, may be extended to
explications of philosophically coherent concepts or theories as
they relate to a particular discipline or field of inquiry. By
similar reasoning methodology refers to the rationale and/or the
philosophical assumptions that underlie a particular study or a
particular methodology (for example, the scientific method). In
scholarly literature a section on the methodology of the
researchers is typically de rigueur.
Research Methodology refers to a back philosophy of research.
As an example of methodology in theoretical work, the
development of paradigms satisfies most or all of the criteria for
methodology. A paradigm, like an algorithm, is a ‘constructive’
framework, meaning that the so-called construction is a logical,
rather than a physical, array of connected or intercalated
elements.

SAMPLING
11

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.
Researchers rarely survey the entire population for two reasons
(Adèr, Mellenbergh, & Hand, 2008): the cost is too high, and the
population is dynamic in that the individuals making up the
population may change over time. The three main advantages of
sampling are that the cost is lower, data collection is faster, and
since the data set is smaller it is possible to ensure homogeneity
and to improve the accuracy and quality of the data.
Each observation measures one or more properties (such as
weight, location, color) of observable bodies distinguished as
independent objects or individuals. In survey sampling, survey
weights can be applied to the data to adjust for the sample
design. Results from probability theory and statistical theory are
employed to guide practice. In business and medical research,
sampling is widely used for gathering information about a
population.

In statistics, a sampling distribution or finite-sample distribution
is the distribution of a given statistic based on a random sample
of size n. It may be considered as the distribution of the statistic
for all possible samples from the same population of a given
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size. The sampling distribution depends on the underlying
distribution of the population, the statistic being considered, and
the sample size used. The sampling distribution is frequently
opposed to the asymptotic distribution, which corresponds to the
limit case n → ∞.
For example, consider a normal population with mean μ and
variance σ². Assume we repeatedly take samples of a given size
from this population and calculate the arithmetic mean for
each sample — this statistic is called the sample mean. Each
sample has its own average value, and the distribution of these
averages is called the “sampling distribution of the sample
mean”. This distribution is normal since the underlying
population is normal, although sampling distributions will also
often be normal when the population distribution is not.
This is an example of a simple statistic taken from one of the
simplest statistical populations. For other statistics and other
populations the formulas are frequently more complicated, and
oftentimes they don’t even exist in closed-form. In such cases
the sampling distributions may be approximated through Monte-
Carlo simulations, bootstrap method, or asymptotic distribution
theory

13

LIMITATION

1) Study is limited to Amravati city.
2) In today’s recessional scenario it is might be possibility that
employee refuses to us for giving appointment.

14

INDUSTRY DETAILS

What is Life Insurance?
Life insurance is a contract between the policy holder and the
insurer, where the insurer promises to pay a designated
beneficiary a sum of money (the "benefits") upon the death of
the insured person. Depending on the contract, other events such
as terminal illness or critical illness may also trigger payment. In
return, the policy holder agrees to pay a stipulated amount (the
"premium") at regular intervals or in lump sums. In some
countries, death expenses such as funerals are included in the
premium; however, in the United States the predominant form
simply specifies a lump sum to be paid on the insured's
demise.The value for the policy owner is the 'peace of mind' in
knowing that the death of the insured person will not result in
financial hardship.
Life policies are legal contracts and the terms of the contract
describe the limitations of the insured events. Specific
exclusions are often written into the contract to limit the liability
of the insurer; common examples are claims relating to suicide,
fraud, war, riot and civil commotion.

HISTORY
15

In India, insurance has a deep-rooted history. It finds mention in
the writings of Manu (Manusmrithi), Yagnavalkya
(Dharmasastra) and Kautilya (Arthasastra). The writings talk
in terms of pooling of resources that could be re-distributed in
times of calamities such as fire, floods, epidemics and famine.
This was probably a pre-cursor to modern day insurance.
Ancient Indian history has preserved the earliest traces of
insurance in the form of marine trade loans and carriers’
contracts. Insurance in India has evolved over time heavily
drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with
the establishment of the Oriental Life Insurance Company in
Calcutta. This Company however failed in 1834. In 1829, the
Madras Equitable had begun transacting life insurance business
in the Madras Presidency. 1870 saw the enactment of the British
Insurance Act and in the last three decades of the nineteenth
century, the Bombay Mutual (1871), Oriental (1874) and Empire
of India (1897) were started in the Bombay Residency. This era,
however, was dominated by foreign insurance offices which did
good business in India, namely Albert Life Assurance, Royal
Insurance, Liverpool and London Globe Insurance and the
Indian offices were up for hard competition from the foreign
companies.

In 1914, the Government of India started publishing returns
of Insurance Companies in India. The Indian Life Assurance
Companies Act, 1912 was the first statutory measure to regulate
life business. In 1928, the Indian Insurance Companies Act was
16

enacted to enable the Government to collect statistical
information about both life and non-life business transacted in
India by Indian and foreign insurers including provident
insurance societies. In 1938, with a view to protecting the
interest of the Insurance public, the earlier legislation was
consolidated and amended by the Insurance Act, 1938 with
comprehensive provisions for effective control over the
activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal
Agencies. However, there were a large number of insurance
companies and the level of competition was high. There were
also allegations of unfair trade practices. The Government of
India, therefore, decided to nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalising
the Life Insurance sector and Life Insurance Corporation came
into existence in the same year. The LIC absorbed 154 Indian,
16 non-Indian insurers as also 75 provident societies—245
Indian and foreign insurers in all. The LIC had monopoly till the
late 90s when the Insurance sector was reopened to the private
sector.

The history of general insurance dates back to the Industrial
Revolution in the west and the consequent growth of sea-faring
trade and commerce in the 17th century. It came to India as a
legacy of British occupation. General Insurance in India has its
roots in the establishment of Triton Insurance Company Ltd., in
the year 1850 in Calcutta by the British. In 1907, the Indian
Mercantile Insurance Ltd, was set up. This was the first
company to transact all classes of general insurance business.
17

1957 saw the formation of the General Insurance Council, a
wing of the Insurance Associaton of India. The General
Insurance Council framed a code of conduct for ensuring fair
conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate
investments and set minimum solvency margins. The Tariff
Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business
(Nationalisation) Act, general insurance business was
nationalized with effect from 1st January, 1973. 107 insurers
were amalgamated and grouped into four companies, namely
National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd and the
United India Insurance Company Ltd. The General Insurance
Corporation of India was incorporated as a company in 1971 and
it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a
journey extending to nearly 200 years. The process of re-
opening of the sector had begun in the early 1990s and the last
decade and more has seen it been opened up substantially. In
1993, the Government set up a committee under the
chairmanship of RN Malhotra, former Governor of RBI, to
propose recommendations for reforms in the insurance
sector.The objective was to complement the reforms initiated in
the financial sector. The committee submitted its report in 1994
wherein , among other things, it recommended that the private
sector be permitted to enter the insurance industry. They stated
that foreign companies be allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.
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Present Scenario

The most important aspect for any financial services institution
dealing with today’s regulatory framework is the need to build
an integration, risk, compliance and regulatory environment.
The globalization of business, the proliferation of, and
dependency on, technology, and the preservation of a trusted
and secure environment to facilitate financial institutions, all
require financial services organizations to have in place the
mechanisms to ensure sound and reliable security and privacy.
The industry's landscape is continuously changing and
increasing in complexity across financial services, causing firms
to face a diverse array of challenges and concerns. Role of
Private sector has grown rapidly in the service industry,
especially with reference to Insurance management.
The insurance industry, as an integral part of the financial
services industry does not stand apart from the profound
changes in the financial sector. Recently we are witnessing an
enhanced competition in the insurance industry probably due to
the opening up of this sector to private participants. There is a
close inter-action between insurance and economic growth. As
economy grows, the living standards of people increase. As a
consequence, demand for insurance increases. As the assets of
people and of business enterprises increase in the growth
process, the demand for general insurance also increases. In fact,
with the widening of the economy, the demand for new types of
insurance products emerges. Insurance now extends not only to
product market but also to service industries including finance.
19

It is equally true that growth itself is facilitated by insurance.
The global consolidation of the financial services sector is in
large part driven by acquisition activity. Companies competing
for a greater share of consumer funds are seeking quick access
to new markets, new products and new channels of distribution,
both domestically and economically.
Grounded in a deep understanding of the issue, we have tried to
deal with today’s life insurance and financial services
environment in a very lucid manner covering all the aspects such
as productivity, management of processes, growth drivers,
critical factors for success and policy implications.

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Advantage of Life Insurance

It is a general belief that life insurance is meant only for those
with families. It is true that Life Insurance Policies like whole-
life insurance, joint-life-insurance, pension-life-insurance etc are
essential for family's financial security, but they are equally
important for individuals. Term Insurance policies protect your
financial resources against the uncertainties of life so you can
protect your family's future.

Some of the life insurance advantages are:

• If an estate owner has not accumulated enough assets for
his family.
• Insurance quote helps create an instant estate for the sake
of the Family’s security.
• Life Insurance provides the option to pass equal assets to
the children who are not active in the Family business at
the time the family business is passed on.
• Life Insurance policies can help secure the future of
children for college/educational purposes as the amount of
life Insurance Policy increases on a minor’s or parent’s
life.
• The growth of a cash-value policy is tax-deferred - you do
not pay taxes on the cash value accumulation until you
withdraw funds from the policy.
21

• Life Insurance can be useful in paying estate taxes, along
with other estate settlement amounts. Federal Estate Taxes
are due nine months after death.
• If there’s a Business Transfer, life insurance can provide
ready cash to finance a transaction between business
owners who are ready to buy the deceased owner’s share
from his or her estate after death.
• If there’s a home mortgage, one can pass the family
residence to their spouse/children to free them of any
mortgage if one has a Life Insurance Policy for the same.
It is preferred to have a decreasing term policy that
decreases in face amount as the mortgage balance is paid
down.
• Life Insurance helps retain your Business from the loss of
a key employee. Untimely death of a key employee can
pose severe financial loss to the business.
• The right insurance proceeds can provide liquidity to pay
off personal loans or business loans.
• Charitable Remainder Trusts provide tax benefits. Life
Insurance helps replace a charitable gift.
• A lot of Insurance products presently provide good returns,
which could be a beneficial way for saving necessary
funds for retirement years.
• Benefits are available immediately and may be used to
help pay expenses such as final illness and funeral costs,

22

eliminating the need to sell estate assets to cover these
costs.

• Death Benefit: Firstly the life insurance provides benefit
against the risks of your life & provides your family or
nominee the insured amount or coverage in case of your
unfortunate demise.
• Survival/Maturity benefit : Apart from the simple death
benefit you also get the maturity benefits or survival
benefits wherein you get the sum assured plus the returns
at the time of maturity, there is also an option of periodic
withdrawals of your invested amount.

• Investment & savings : Apart from the life cover, the life
insurance also has prospects of providing a vehicle for
investments & saving for your future needs. With different
insurance plans like simple endowment plans, wholelife
plans, ULIPs, you have the option of saving for your
retirements through pension plans or saving for your
children future needs by investing in Insurance child plans
wherein you can invest your money depending on your
risk profile.

• Tax benefit :You can save tax upto Rs. 1 lakh on
Premiums paid for Life Insurance Plans under Section
80C.
23

• Riders :The riders are special benefits given to the policy
holders in addition to the life insurance cover wherein you
are charged with some extra premium e.g. Accelerated
death benefit rider, waiver of premium rider, disability
income rider, accidental death rider etc.

•

• Premium payment option :You have the option of paying
premium yearly, quarterly, monthly & you also have the
option of single time premium payments where you have
to pay one time.

• Plans as per needs :You can avail Insurance plans as per
your needs & requirements, if you want to save for your
child you can go for children insurance plans providing
you with returns at certain important milestones of your
children’s life like their education, wedding etc. If you
want to save for your retirement you can invest in Pension
plans either in ULIPS or in simple Endowment plans
depending upon your risk appetite.

• Loan option : In some life insurance polices you can also
take loan against the life insurance polices, your eligibility
for the loan amount depends on the type of policy, the
premium amount, the term of the policy and the number of
years you have paid premium for

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Life Insurance related act

The Insurance Act, 1938
The Insurance Act, 1938 was the first legislation governing all
forms of insurance to provide strict state control over insurance
business.

Life Insurance Corporation Act, 1956
Even though the first legislation was enacted in 1938, it was
enacted in 1938, it was only in 19 January 1956, that Life
insurance in India was completely nationalized, through a
Government ordinance; the Life Insurance Corporation Act,
1956 effective from 1.9.1956 was enacted in the same year to,
inter-alia, from LIFE INSURANCE CORPORATION after
nationalization of the 245 companies into one entity. There were
245 insurance companies of both Indian and foreign origin in
1956.

25

Insurance Regulatory and Development Authority (IRDA)
Act, 1999

Till 1999, there were not any private insurance companies in
Indian insurance sector. The Govt. of India then introduced the
Insurance Regulatory and Development Authority Act in 1999,
thereby De-regulating the the insurance sector and allowing
private companies into the insurance. Further, foreign
investment was also allowed and capped at 26% holding in the
Indian insurance companies. In recent years many private
players entered in the Insurance sector of India. Companies with
equal strength competing in the Indian insurance market.

26

INTRODUCTION TO CUSTOMER
PROSPECTING

Defination of customer prospecting -
Customer Prospecting is a type of marketing analysis that helps
identify areas of interest for targeting new customers. Areas are
determined by analyzing the demographic variables in the area
that contain your current target customers.

Approach for prospecting –
1.Generating sales lead – A sales lead can be in the form of an
individual or an organization that might need or buy company’s
product.
2. Identifying prospect – Prospect is the individual or an
organization that indicate need for the product. A sales person
can identify a prospect by using various prospecting techniques.
3. Qualifying prospect – After identifying a potential lead, the
sales person qualifies weather the prospect can afford to make a
purchase or not.

27

Various method of Customer prospecting :

1.Business Networking Events
This is real world business networking event such as power
lunch, breakfast meeting, or leisure gathering.

2. Roadshows
Setting up sales booth on roadshows not only increase the
exposure of your business but also increase the numbers of your
prospects that could become your customers in the future.

3. Product Launching Parties

Doing a product launching party may be one of a good
prospecting methods as this not only increase the exposure but
also the image of your business and branding.

4. Mail Order (Snail Mail) System

This is one of the very popular conventional method in doing
prospecting. This prospecting methods have evolved into email
marketing as it is more targetable and more cost effective.

28

5. eMail Marketing

e-mail marketing as one of the recent uprising prospecting
methods has become so popular due to its efficiency, time and
cost savings nature. Besides, the overall prospecting plan not
only can be measured upon the effectiveness (mostly ROI), it
could also provides a better prospecting ideas for future
prospecting plan.

6. Social Networking Sites

People are not just horsing around with social media. It’s how
your prospects and customers interact with your business now.
Take this ‘Play’ seriously.

7. Asking for referrals
Remember to always ask clients, colleagues, even prospects if
they know anyone who could benefit from your services.
8. Executive Networking
Let your work speak for itself. Get your client CEO’s to call or
email others in their industry on your behalf. Executive-to-
executive sales will always outperform seller-to-executive sales.

29

9. Cold Calling
Contrary to popular belief, the reason this method keeps re-
occurring in sales is that it works. No other method can increase
your prospecting efforts like cold calling can.
No matter which prospecting methods
you prefer or used, remember that each prospecting methods has
its own target prospect groups.When you run a roadshows, you
may be expecting your prospects from a very wide source of
industries as these people may be just happened to drop by the
shopping mall or convention center that happened to be one of
your roadshow locations.
However, when you are doing prospecting via business
networking events, you may already know that the prospects that
turn out are somehow business people, either a business owner
or self-employed person, in most cases.There is no such thing as
the best prospecting methods as it pretty much depends on your
prospecting ideas and your prospecting plan.If you have smaller
budget and want a more targeted group and more accurate
effectiveness reporting, eMail Marketing and Social Netowrking
Sites may be more a better prospecting methods for this
objective.
Effective prospecting is a critical component of sustainable sales
success. However, prospecting is not selling. You may be a
well-trained and/or experienced salesperson. But your training
may not have included prospecting. Or perhaps you never
prospected at all. In either case, read on.

The output of prospecting is a list of qualified leads that may
30

buy your product or service. Selling begins only after a lead is
categorized as qualified. If you start selling too early, you run
the risk of pigeonholing your products and services before you
have the opportunity to understand your prospect's requirements.
That generally leads to commoditization--where price becomes
the most important buying criteria.

Winners understand that, as with effective selling, prospecting
should not be done by the seat of one's pants. You need a plan.
That means an objective assessment of your situation, a goal,
and resulting strategies and tactics to achieve that goal. So if you
aren't comfortable with prospecting or haven't had to do it, I
would like to share with you my plan that has worked for many
of those winners.
This is a simple one: Prospecting is the process by which we
turn "suspects" - those with a potential need for our product into
"prospects" - those who express a need for our product. If we are
selling dishwashers, suspects could be home-owners living in
their homes long enough for a dishwasher to wear out - a
"prospect" has told you on a cold call that he is remodeling his
kitchen. Suspects fit a demographic. Prospecting is the process
of weeding through those suspects
Sales Prospecting is the hunt. In other words it is finding and
qualifying new potential customers. The prospective customer
needs to fit into the needs / capabilites match to qualify as a
prospect. Why call on someone who for any number of reasons
cannot buy from you? Prospecting at one time was called
panning for gold and that is what sales people should be doing
all day. Once you achieve some traction and are making money,
31

it is a matter of finding new customers. You will be both adding
and replacing to your customer base. That's when prospecting
becomes a sport and is fun.

DATA ANALYSIS FOR EMPLOYEE

32

Data analysis was done using Microsoft Excel. Data was
analyzed by using percentage. Appropriate graph have been
aligned along with the data collected more understandable and
for the purpose of making report is more presentable.

Observation (On Primary data)
By analyzing the primary data following observation can be
done
Graph 1:
In total sample size of 40. The 100% of the sample are agree for
insurance is contact base business.

Graph 2:
33

In the total sample size, according to 83% sample customer
prospecting is reason and according to 17% sample employee
limitation.

34

Graph 3:
In the total sample size, according to 100% sample they were
use customer prospecting method through advisor.

Graph 4:
35

In the total sample size, according to 35% sampleuse customer
prospecting method through cold call and remaining 65% not
use it.

Graph 5:

In the total sample size, according to 100% sample use customer
prospecting method through reference calling.
36

Graph 6:

In the total sample size, according to 22% sample use customer
prospecting method through media calling and remaining 78%
not use media calling.

38

Graph 7:

In the total sample size, according to 100% sample peoples are
avoid to invest in insurance.

39

Graph 8:

In the total sample size, according to 100% sample attrition rate
is high in insurance.

40

Graph 9:

In the total sample size, according to 8% sample, employee were
switch their job due to good package and remaining 92% sample
say they were unable to prospecting that’s why switch the job.

41

DATA ANALYSIS FOR ADVISOR

Graph 1:

In total sample size of 80 advisor. The 100% of the sample are
using referral calling for customer prospecting.

42

Facts Observation in employee data
• In our total sample 100% sample are agree that Insurance is
contact base business, that’s why they were recruited their
advisor.
• In our total sample according to 83% sample customer
prospecting is the reason and 17% sample say employee
limitation is the reason.
• In our total sample size 100% sample are prospecting
through advisor through reference, 35% through cold call,
95% through repeat call, 17% through catalog call, 67%
through tele call and 22% through media.

• According to all 100% sample, peoples are avoid insurance.

• They given ranking top most lower one to constrain what
they are facing like, 1th to short term interest of investment
2 th lack of awareness regarding insurance 3 th Intense
competition 4th public company and private company, 5 th
high insurance charges, 6 th is product intangibility.
• According to all employee attrition rate is high in
insurance industry, according to 92% sample unable to
prospect and 8% sample say good package is the reason.
• According to 85%sample insurance industry offer high
package for prospecting 10% say attract new employee and
5% say to reain existing one.

43

Facts Observation in data
• All advisor in our sample size are using reference calling
method to prospecting that is 100%
• Advisor also given the same ranking as employee to their
constrain except one like 1th to short term interest, 2 th is
lack of insurance awareness, 3th is public company and
private company, 4th is intense competition, 5 th is high
charges, 6 th is product intangibility.

Trend observation in the sample

We observe the trend by using our data tabulated excel
sheet, findings are as follow

• In our total sample observation we never find any trend in
our employee data and advisor data.
• We observe same general trend in all sample.

44

SEONDARY DATA

COMPANY :-
The primary purpose of life insurance is to provide financial
stability to families in the event the breadwinner dies. In
addition, owning life insurance has many other benefits in terms
of cash value, tax and estate planning. However, regardless of
these benefits, purchasing life insurance can pose several
challenges to the insured or policy owner.

AEGON RELIGARE LIFE INSURANCE COMPANY

Religare Enterprises Ltd. is an India based financial services
company with operations around the globe. Commonly referred
45

to as Religare, the company offers a range of financial services
through its group companies. The services offered include
broking, insurance, asset management, lending solutions,
investment banking and wealth management. Serving over a
million clients, Religare has around 15 billion dollars of assets
under management.The Religare group of companies include
Religare Capital Markets, Religare Securities, Religare Broking,
Religare Online, Religare Finvest, Religare Finmart, Religare
Insurance, Religare Health Insurance, Aegon Religare, Religare
Mutual Funds, Religare Macquire, Milestone Religare, Religare
Art. There are basically two types of life insurance: term
insurance and cash value. Term insurance is pure life insurance.
It has no savings account or cash value. As a result, it's much
cheaper than cash value. Term insurance is purchased one "term
period" at a time. Although the pure cost to insure you goes up
each year due to age, the price you pay will remain the same
throughout the chosen term period. At the end of the specified
term period, you must renew for another term period.
Religare is an emerging markets financial services group with a
presence across Asia, Africa, Middle East, Europe, and the
Americas. In India, Religare’s largest market, the group offers a
wide array of products and services including broking,
insurance, asset management, lending solutions, investment
banking and wealth management. With 10,000-plus employees
across multiple geographies, Religare serves over a million
clients, including corporate and institutions, high net worth
families and individuals, and retail investors.
AEGON, an international life insurance, pension and
investment company, Religare, a global financial services group
46

and Bennett, Coleman & company, India’s largest media
house, have come together to launch AEGON Religare Life
Insurance Company Limited (ARLI). This venture is
dedicated to build a profitable customer-centric business with
scale, providing a work environment that fosters excellence and
innovation. This joint venture will balance a local approach with
the power of an expanding global operation.

ARLI launched its pan-India operations in July, 2008 following
a multi-channel distribution strategy with a vision to help people
plan their life better. The fulfillment of this vision is based upon
having a complete product suite, providing customised advice
and enhancing the overall customer experience through superior
service.

ARLI has launched a suite of products that are focused on
providing the customer with the means to meeting their long-
term financial goals. At the same time product development has
been founded on the tenet of providing the customer with great
value. ARLI products such as AEGON Religare iTerm Plan and
AEGON Religare Future Protect Plan have been ranked among
the best in terms of value and have attracted many external
accolades.

About AEGON
As an international life insurance, pension and investment
company, AEGON has businesses in over twenty markets in the
Americas, Europe and Asia. With headquarters in The Hague,
the Netherlands, AEGON companies employ approximately
47

28,000 people and serve some 40 million customers across the
globe. The company’s common shares are listed on three stock
exchanges: Amsterdam, New York and London. AEGON has
more than 160 years of experience with its roots going back to
1844. AEGON holds 26% equity in ARLI.

About Religare Enterprises Limited
Religare Enterprises Limited (REL) is a global financial services
group with a presence across Asia, Africa, Middle East, Europe
and the Americas. In India, Religare’s largest market, the group
offers a wide array of products and services ranging from
insurance, asset management, broking and lending solutions to
investment banking and wealth management. The group has also
pioneered the concept of investments in alternative asset classes
such as arts and films. With over 10,000 employees across
multiple geographies, Religare serves over a million clients,
including corporates and institutions, high net worth families
and individuals, and retail investors. REL hold 44% equity in
ARLI.

About Bennett, Coleman & Company Limited
Bennett, Coleman & Company Limited (BCCL), part of the
mammoth Times Group, is India’s largest media house. It
reaches out to 2468 cities and towns all over India. The group
owns and manages powerful media brands like The Times of
India, The Economic Times, Maharashtra Times, Navbharat
Times, Femina, Filmfare, Grazia, Top Gear, Radio Mirchi,
Zoom, Times Now, Times Music, Times OOH, Private Treaties
and indiatimes.com. All of its brands are multinational in
48

outlook, traditional at heart and national in spirit. From the very
first edition on November 3, 1838 the mammoth BCCL Group
has come a long way. By way of the innovative venture of
Times Private Treaties.

CUSTOMER :-
1) Goverment employee
49

2) Private employee
3) Businessman
4) Farmer

COMPETITOR :-

1) Aviva Life Insurance
2) Bajaj Allianz
3) Bharati AXA Life Insurance
4) Birla Sun Life Insurance
5) HDFC Standard Life Insurance
6) ICICI Prudential
7) ING Vysya
8) Kotak Mahindra
9) LIC
10) Max New York Life Insurance
11) Reliance Life Insurance
12) SBI Life Insurance
13) Shriram Life Insurance
14) Tata AIG Life Insurance

50

Life Insurance Plans

AEGON Religare Life Insurance offers insurance and pension
plans specifically designed to help you plan your life better.
Select a plan based on your need – protection, saving, child or
retirement.

Protection plans

Protection plans are Term Plans which provide only life cover.
These plans can help you get adequately covered and secure
your family financially in case of unfortunate event. These are
low cost life insurance plans. What’s more, depending on your
future responsibilities and financial commitments Increasing
and Decreasing Term Plans offers you the flexibility to increase
or decrease the sum assured in systematic manner.

ULIP - Unit Linked Insurance Plans
51

Unit Linked Insurance Policies or ULIPs as they are
commonly called, are more innovative forms of life insurance
that also offer returns on your investments. Every ULIP
provides cover against death. In addition, these unit linked
insurance plans also serve as great means of long-term
savings, structured to give you miximum benefit. In simple
words, investment in ulips is great combination of protection
and investment.

Saving Plans

Savings Plans help you save and grow your money. Savings
Plan is a category of goal-based financial solutions that offers
wealth creation opportunities. At AEGON Religare Life
Insurance we have created products that cater to these very
needs.

Retirement Plans

The rising inflation has put the fear of the unseen in every
working person’s life. Today, more than ever, it is vital that
you save for the golden years post retirement so that you can
52

maintain your lifestyle as today. AEGON Religare Pension
plan comes with a unique Lifestyle fund which systematically
reduces the risk to your returns by reducing the equity
exposure of your investments progressively throughout the
policy term. Pension plans offered by life insurance companies
provide you with a regular pension that will help you take care
of the much needed basic necessities post retirement and assure
a secured tomorrow

53

CONCLUSION

• What assumption or hypothesis we made is totally valid,
what feedback given by the sample is totally match with
our assumption.
• On the basis of sample feedback we may able to say that
short term short term investment interest of people are the
top most constraint for insurance industry.
• Product intangibility doesn’t matter for employee as well as
advisor also because they it 6th rank to this constrain.

• It is again prove that insurance is the contact base business ,
because all employee and advisor all were using contact
base prospecting tool.

• It is also prove that insurance industry are offering high
package to their employee only for customer prospecting.

54

• So major problem for life insurance company is peoples are
do not aware about their human life that’s why industry are
facing customer prospecting problem.

55

RECCOMENDATION

• It is very true that in today’s scenario no one have time to
wait for his investment return, so if the all insurance
company will launch some term investment tool along with
long term one, it may be beneficial for insurance industry.
• Still insurance industry focusing on urban area, if
they divert their focus from urban to rural, then it
may be beneficial for them for customer prospecting.
• IRDA board should take initiative for filling the gap
between public company and private company, if
they really want to insurance should reach to the
every peoples of India, because LIC is also having its
own limitation.
• Before ULIP launch people were less aware about
charges but now people gradually awaking about
charges so all the companies should think on this
point of view.

56

ABBRIVATIONS

• IRDA – Insurance Regulatory and Development Authority
• ULIP – Unit Linked Insurance Plan

• TP – Traditional Plan

• FMC – Fund Management Charges

• GDP – Gross Domestic Product

• LIC – Life Insurance Corporation

57

REFERENCES:

1) Www. Google .com
2) Business Dictionary.com
3) Company product manual
4) Mr. Bhushan Pathe (Faculty Guide)

58

Questionnaire for employee of the company :

Employee Designation –
Company Name –

1) Do you aware about customer prospecting ?

 Yes
 No

2) Why you recruited advisor?

 For business generation
 Because company norm

3)Do you think there is specific reason for advisor
recruiting?
 Limitation of employee
 Limitation of advisor
 Customer prospecting

59

4) Do you think life insurance is contact base business?
 Yes
 No

5) If yes then why is it so?
 Contribution of business through contact is more
 Other

6) Can you tell me what are the customer prospecting method
you been use?
 Prospecting through advisor
 Cold call
 Referral call
 Repeat call
 Catalogue calling
 Tele calling (phone)
 Prospecting through media

60

7) Do you think most of the peoples are avoid to invest
in insurance?
 Yes
 No

8) If yes then why is it so?
 Lack of insurance awareness
 Interested in short term investment

10)Do you facing any constraint regarding customer
prospecting which concern to business generation?
 Yes
 No

11) What do you think about customer prospecting constraint
and which are those?
 Lack of awareness regarding insurance need
 People interested in short term investment
 High charges of insurance

61

 Intangibility of product
 Intense completion
 Public company and private company

12) Can you give the sequence for above customer
prospecting constraint from top most to lower one?
 People interested in short term investment
 Intense competition

13) Are you think employee attrition rate is high in life
insurance business?
 Yes
 No

62

14) What do you think about employee attrition rate, what’s
the reason?
 Business generation (not able to prospecting)
 Because of good package offer by others

15) Do you think insurance sector offer high salary as
compare to other sector?
 Yes
 No

16) If you think yes then why is it so?
 To attract new employee
 To retain employee
 For customer prospecting

63

Questionnaire for Advisor of company

1) Do you think you are the base of your Life insurance
company?
 Yes
 No

2) Why you think like that?
 More contribution in customer prospecting
 More contribution in total business of the company

3) How you prospect your customer ?
 Referral calling
 Cold Calling
 Tele calling

64

4) What do you think regarding constrain in customer
prospecting ?
 Peoples interested in short term investment

5) Can you give the sequence for above customer prospecting
constraint from top most to lower one?
 Peoples interested in short term investment

65

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