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  1. 1. 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
  2. 2. CERTIFICATE This is certify that Mr. Sachin B. Bone hassuccessfully completed his final report ofManagement Thesis which entitled is “Tounderstand the challenges for customer prospectingwith reference to Life insurance’’ in fulfillment ofMBA (2010-2012) curriculum. The work has beencarried out at Amravati.Date : ACKNOWLEDGMENT 2
  3. 3. I express my sincere thanks toward (Faculty guideIIPS Amravati) who gave me an opportunity to doproject on “ To understand the challenges forcustomer prospecting with reference to Lifeinsurance” in Amravati city and provide valuedguidance for completing Final Report on this. EXECUTIVE SUMMARY/ABSTRACT 3
  4. 4. This report about the “ To understand the challengesfor customer prospecting with reference to Lifeinsurance ’’ prepared by Sachin Bone student of IIPSCollege of Management. In today’s cut throatcompetition we all are aware that every organization istrying to increase their customer base through sellingtheir product and for this selling we want customerand for this every organization undertaking oneactivity that is called Customer Prospecting. TABLE OF CONTENT 4
  5. 5. Cover Page ………………… 1Title Page ………………… 2Authorization ………………… 3Acknowledgment ………………... 4Executive Summary/Abstract ……………….. 5Table of content ………………. . 61.Introduction ……………….. 7-13 • Objectives • Methodology • Limitation2. Industry Details ……………… 14-323. Data Analysis ……………… 33-454. Secondary data ……………….46-53 • Company • Customer • Competitor5. Conclusion andRecommendation …………… 54-55 5
  6. 6. 6
  7. 7. INTRODUCTIONIn today’s cut throat competition we all are aware thatevery organization is trying to increase their customer basethrough selling their product and for this selling we wantcustomer and for this selling we want customer and for thisevery organization undertaking one activity that is calledCustomer Prospecting. Simply, customer prospectingmeans to search or find out any individual or group forbuying our products, which should be fulfill his needs andwants. Effective prospecting is a critical component ofsustainable sales success. However, prospecting is notselling. You may be a well-trained and/or experiencedsalesperson. But your training may not have includedprospecting. Or perhaps you never prospected at all.The output of prospecting is a list of qualified leads thatmay buy your product or service. Selling begins only aftera lead is categorized as qualified. If you start selling tooearly, you run the risk of pigeonholing your products andservices before you have the opportunity to understand 7
  8. 8. your prospects requirements. That generally leads tocommoditization--where price becomes the most importantbuying criteria.Winners understand that, as with effective selling,prospecting should not be done by the seat of ones pants.You need a plan. That means an objective assessment ofyour situation, a goal, and resulting strategies and tactics toachieve that goal. So if you arent comfortable withprospecting or havent had to do it, I would like to sharewith you my plan that has worked for many of thosewinners.This is a simple one: Prospecting is the process bywhich we turn "suspects" - those with a potential need forour product into "prospects" - those who express a needfor our product. If we are selling dishwashers, suspectscould be home-owners living in their homes long enoughfor a dishwasher to wear out - a "prospect" has told youon a cold call that he is remodeling his kitchen. Suspects fita demographic. Prospecting is the process of weedingthrough those suspects. OBJECTIVES 8
  9. 9. 1)To study the Life Insurance Industry.2)To study about different techniques of customerprospecting.3)To study what are the impact of customer prospecting onemployee.4)To study about customer prospecting techniques in differentinsurance companies.5) To study what are the challenges face by insurance player intoday’s scenario regarding customer prospecting. METHODOLOGY 9
  10. 10. 1) Selection of title – Title of this report is influenced by theproblem facing by the insurance industry regarding customerprospecting.2) Interpret the data by using the tool like Microsoft excel sheet,and on the basis of requirement use statistical tool likecorrelation – whatever primary data we collect it will be tabulatein excel sheet.3) Collect the primary data and secondary data.4) As per analysis some observation will be made and toaccomplish the objectives of the study.5) As per analysis and interpretation of collected dataconclusions will be draWHAT IS METHODOLOGY 10
  11. 11. Methodology, unlike method (which systematically details agiven procedure or process), does not describe specific methodsdespite the attention given to the nature and kinds of processesto be followed in a given procedure or in attaining an objective.When proper to a study of methodology, such processesconstitute a constructive generic framework; thus they may bebroken down in sub-processes, combined, or their sequencechanged. As such, methodology may entail a description ofgeneric process or, metaphorically, may be extended toexplications of philosophically coherent concepts or theories asthey relate to a particular discipline or field of inquiry. Bysimilar reasoning methodology refers to the rationale and/or thephilosophical assumptions that underlie a particular study or aparticular methodology (for example, the scientific method). Inscholarly literature a section on the methodology of theresearchers is typically de rigueur.Research Methodology refers to a back philosophy of research.As an example of methodology in theoretical work, thedevelopment of paradigms satisfies most or all of the criteria formethodology. 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 intercalatedelements.SAMPLING 11
  12. 12. Sampling is that part of statistical practice concerned with theselection of a subset of individuals from within a population toyield some knowledge about the whole population, especiallyfor the purposes of making predictions based on statisticalinference.Researchers rarely survey the entire population for two reasons(Adèr, Mellenbergh, & Hand, 2008): the cost is too high, and thepopulation is dynamic in that the individuals making up thepopulation may change over time. The three main advantages ofsampling are that the cost is lower, data collection is faster, andsince the data set is smaller it is possible to ensure homogeneityand to improve the accuracy and quality of the data.Each observation measures one or more properties (such asweight, location, color) of observable bodies distinguished asindependent objects or individuals. In survey sampling, surveyweights can be applied to the data to adjust for the sampledesign. Results from probability theory and statistical theory areemployed to guide practice. In business and medical research,sampling is widely used for gathering information about apopulation.In statistics, a sampling distribution or finite-sample distributionis the distribution of a given statistic based on a random sampleof size n. It may be considered as the distribution of the statisticfor all possible samples from the same population of a given 12
  13. 13. size. The sampling distribution depends on the underlyingdistribution of the population, the statistic being considered, andthe sample size used. The sampling distribution is frequentlyopposed to the asymptotic distribution, which corresponds to thelimit case n → ∞.For example, consider a normal population with mean μ andvariance σ². Assume we repeatedly take samples of a given sizefrom this population and calculate the arithmetic mean foreach sample — this statistic is called the sample mean. Eachsample has its own average value, and the distribution of theseaverages is called the “sampling distribution of the samplemean”. This distribution is normal since the underlyingpopulation is normal, although sampling distributions will alsooften be normal when the population distribution is not.This is an example of a simple statistic taken from one of thesimplest statistical populations. For other statistics and otherpopulations the formulas are frequently more complicated, andoftentimes they don’t even exist in closed-form. In such casesthe sampling distributions may be approximated through Monte-Carlo simulations, bootstrap method, or asymptotic distributiontheory 13
  14. 14. LIMITATION1) Study is limited to Amravati city.2) In today’s recessional scenario it is might be possibility thatemployee refuses to us for giving appointment. 14
  15. 15. INDUSTRY DETAILSWhat is Life Insurance?Life insurance is a contract between the policy holder and theinsurer, where the insurer promises to pay a designatedbeneficiary a sum of money (the "benefits") upon the death ofthe insured person. Depending on the contract, other events suchas terminal illness or critical illness may also trigger payment. Inreturn, the policy holder agrees to pay a stipulated amount (the"premium") at regular intervals or in lump sums. In somecountries, death expenses such as funerals are included in thepremium; however, in the United States the predominant formsimply specifies a lump sum to be paid on the insuredsdemise.The value for the policy owner is the peace of mind inknowing that the death of the insured person will not result infinancial hardship.Life policies are legal contracts and the terms of the contractdescribe the limitations of the insured events. Specificexclusions are often written into the contract to limit the liabilityof the insurer; common examples are claims relating to suicide,fraud, war, riot and civil commotion. HISTORY 15
  16. 16. In India, insurance has a deep-rooted history. It finds mention inthe writings of Manu (Manusmrithi), Yagnavalkya(Dharmasastra) and Kautilya (Arthasastra). The writings talkin terms of pooling of resources that could be re-distributed intimes 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 ofinsurance in the form of marine trade loans and carriers’contracts. Insurance in India has evolved over time heavilydrawing from other countries, England in particular. 1818 saw the advent of life insurance business in India withthe establishment of the Oriental Life Insurance Company inCalcutta. This Company however failed in 1834. In 1829, theMadras Equitable had begun transacting life insurance businessin the Madras Presidency. 1870 saw the enactment of the BritishInsurance Act and in the last three decades of the nineteenthcentury, the Bombay Mutual (1871), Oriental (1874) and Empireof India (1897) were started in the Bombay Residency. This era,however, was dominated by foreign insurance offices which didgood business in India, namely Albert Life Assurance, RoyalInsurance, Liverpool and London Globe Insurance and theIndian offices were up for hard competition from the foreigncompanies. In 1914, the Government of India started publishing returnsof Insurance Companies in India. The Indian Life AssuranceCompanies Act, 1912 was the first statutory measure to regulatelife business. In 1928, the Indian Insurance Companies Act was 16
  17. 17. enacted to enable the Government to collect statisticalinformation about both life and non-life business transacted inIndia by Indian and foreign insurers including providentinsurance societies. In 1938, with a view to protecting theinterest of the Insurance public, the earlier legislation wasconsolidated and amended by the Insurance Act, 1938 withcomprehensive provisions for effective control over theactivities of insurers. The Insurance Amendment Act of 1950 abolished PrincipalAgencies. However, there were a large number of insurancecompanies and the level of competition was high. There werealso allegations of unfair trade practices. The Government ofIndia, therefore, decided to nationalize insurance business. An Ordinance was issued on 19th January, 1956 nationalisingthe Life Insurance sector and Life Insurance Corporation cameinto existence in the same year. The LIC absorbed 154 Indian,16 non-Indian insurers as also 75 provident societies—245Indian and foreign insurers in all. The LIC had monopoly till thelate 90s when the Insurance sector was reopened to the privatesector.The history of general insurance dates back to the IndustrialRevolution in the west and the consequent growth of sea-faringtrade and commerce in the 17th century. It came to India as alegacy of British occupation. General Insurance in India has itsroots in the establishment of Triton Insurance Company Ltd., inthe year 1850 in Calcutta by the British. In 1907, the IndianMercantile Insurance Ltd, was set up. This was the firstcompany to transact all classes of general insurance business. 17
  18. 18. 1957 saw the formation of the General Insurance Council, awing of the Insurance Associaton of India. The GeneralInsurance Council framed a code of conduct for ensuring fairconduct and sound business practices. In 1968, the Insurance Act was amended to regulateinvestments and set minimum solvency margins. The TariffAdvisory Committee was also set up then. In 1972 with the passing of the General Insurance Business(Nationalisation) Act, general insurance business wasnationalized with effect from 1st January, 1973. 107 insurerswere amalgamated and grouped into four companies, namelyNational Insurance Company Ltd., the New India AssuranceCompany Ltd., the Oriental Insurance Company Ltd and theUnited India Insurance Company Ltd. The General InsuranceCorporation of India was incorporated as a company in 1971 andit commence business on January 1sst 1973. This millennium has seen insurance come a full circle in ajourney extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the lastdecade and more has seen it been opened up substantially. In1993, the Government set up a committee under thechairmanship of RN Malhotra, former Governor of RBI, topropose recommendations for reforms in the insurancesector.The objective was to complement the reforms initiated inthe financial sector. The committee submitted its report in 1994wherein , among other things, it recommended that the privatesector be permitted to enter the insurance industry. They statedthat foreign companies be allowed to enter by floating Indiancompanies, preferably a joint venture with Indian partners. 18
  19. 19. Present ScenarioThe most important aspect for any financial services institutiondealing with today’s regulatory framework is the need to buildan integration, risk, compliance and regulatory environment.The globalization of business, the proliferation of, anddependency on, technology, and the preservation of a trustedand secure environment to facilitate financial institutions, allrequire financial services organizations to have in place themechanisms to ensure sound and reliable security and privacy.The industrys landscape is continuously changing andincreasing in complexity across financial services, causing firmsto face a diverse array of challenges and concerns. Role ofPrivate sector has grown rapidly in the service industry,especially with reference to Insurance management.The insurance industry, as an integral part of the financialservices industry does not stand apart from the profoundchanges in the financial sector. Recently we are witnessing anenhanced competition in the insurance industry probably due tothe opening up of this sector to private participants. There is aclose inter-action between insurance and economic growth. Aseconomy grows, the living standards of people increase. As aconsequence, demand for insurance increases. As the assets ofpeople and of business enterprises increase in the growthprocess, the demand for general insurance also increases. In fact,with the widening of the economy, the demand for new types ofinsurance products emerges. Insurance now extends not only toproduct market but also to service industries including finance. 19
  20. 20. It is equally true that growth itself is facilitated by insurance.The global consolidation of the financial services sector is inlarge part driven by acquisition activity. Companies competingfor a greater share of consumer funds are seeking quick accessto new markets, new products and new channels of distribution,both domestically and economically.Grounded in a deep understanding of the issue, we have tried todeal with today’s life insurance and financial servicesenvironment in a very lucid manner covering all the aspects suchas productivity, management of processes, growth drivers,critical factors for success and policy implications. 20
  21. 21. Advantage of Life InsuranceIt is a general belief that life insurance is meant only for thosewith families. It is true that Life Insurance Policies like whole-life insurance, joint-life-insurance, pension-life-insurance etc areessential for familys financial security, but they are equallyimportant for individuals. Term Insurance policies protect yourfinancial resources against the uncertainties of life so you canprotect your familys 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
  22. 22. • 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
  23. 23. 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
  24. 24. • 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 24
  25. 25. Life Insurance related actThe Insurance Act, 1938The Insurance Act, 1938 was the first legislation governing allforms of insurance to provide strict state control over insurancebusiness.Life Insurance Corporation Act, 1956Even though the first legislation was enacted in 1938, it wasenacted in 1938, it was only in 19 January 1956, that Lifeinsurance in India was completely nationalized, through aGovernment 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 afternationalization of the 245 companies into one entity. There were245 insurance companies of both Indian and foreign origin in1956. 25
  26. 26. 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 privateplayers entered in the Insurance sector of India. Companies with equal strength competing in the Indian insurance market. 26
  27. 27. INTRODUCTION TO CUSTOMER PROSPECTINGDefination of customer prospecting -Customer Prospecting is a type of marketing analysis that helpsidentify areas of interest for targeting new customers. Areas aredetermined by analyzing the demographic variables in the areathat contain your current target customers.Approach for prospecting –1.Generating sales lead – A sales lead can be in the form of anindividual or an organization that might need or buy company’sproduct.2. Identifying prospect – Prospect is the individual or anorganization that indicate need for the product. A sales personcan identify a prospect by using various prospecting techniques.3. Qualifying prospect – After identifying a potential lead, thesales person qualifies weather the prospect can afford to make apurchase or not. 27
  28. 28. Various method of Customer prospecting :1.Business Networking EventsThis is real world business networking event such as powerlunch, breakfast meeting, or leisure gathering.2. RoadshowsSetting up sales booth on roadshows not only increase theexposure of your business but also increase the numbers of yourprospects that could become your customers in the future.3. Product Launching PartiesDoing a product launching party may be one of a goodprospecting methods as this not only increase the exposure butalso the image of your business and branding.4. Mail Order (Snail Mail) SystemThis is one of the very popular conventional method in doingprospecting. This prospecting methods have evolved into emailmarketing as it is more targetable and more cost effective. 28
  29. 29. 5. eMail Marketinge-mail marketing as one of the recent uprising prospectingmethods has become so popular due to its efficiency, time andcost savings nature. Besides, the overall prospecting plan notonly can be measured upon the effectiveness (mostly ROI), itcould also provides a better prospecting ideas for futureprospecting plan.6. Social Networking SitesPeople are not just horsing around with social media. It’s howyour prospects and customers interact with your business now.Take this ‘Play’ seriously.7. Asking for referrals Remember to always ask clients, colleagues, even prospects ifthey know anyone who could benefit from your services.8. Executive NetworkingLet your work speak for itself. Get your client CEO’s to call oremail others in their industry on your behalf. Executive-to-executive sales will always outperform seller-to-executive sales. 29
  30. 30. 9. Cold Calling Contrary to popular belief, the reason this method keeps re-occurring in sales is that it works. No other method can increaseyour prospecting efforts like cold calling can. No matter which prospecting methodsyou prefer or used, remember that each prospecting methods hasits own target prospect groups.When you run a roadshows, youmay be expecting your prospects from a very wide source ofindustries as these people may be just happened to drop by theshopping mall or convention center that happened to be one ofyour roadshow locations.However, when you are doing prospecting via businessnetworking events, you may already know that the prospects thatturn out are somehow business people, either a business owneror self-employed person, in most cases.There is no such thing asthe best prospecting methods as it pretty much depends on yourprospecting ideas and your prospecting plan.If you have smallerbudget and want a more targeted group and more accurateeffectiveness reporting, eMail Marketing and Social NetowrkingSites may be more a better prospecting methods for thisobjective.Effective prospecting is a critical component of sustainable salessuccess. However, prospecting is not selling. You may be awell-trained and/or experienced salesperson. But your trainingmay not have included prospecting. Or perhaps you neverprospected at all. In either case, read on.The output of prospecting is a list of qualified leads that may 30
  31. 31. buy your product or service. Selling begins only after a lead iscategorized as qualified. If you start selling too early, you runthe risk of pigeonholing your products and services before youhave the opportunity to understand your prospects requirements.That generally leads to commoditization--where price becomesthe most important buying criteria.Winners understand that, as with effective selling, prospectingshould not be done by the seat of ones 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 youarent comfortable with prospecting or havent had to do it, Iwould like to share with you my plan that has worked for manyof those winners.This is a simple one: Prospecting is the process by which weturn "suspects" - those with a potential need for our product into"prospects" - those who express a need for our product. If we areselling dishwashers, suspects could be home-owners living intheir homes long enough for a dishwasher to wear out - a"prospect" has told you on a cold call that he is remodeling hiskitchen. Suspects fit a demographic. Prospecting is the processof weeding through those suspectsSales Prospecting is the hunt. In other words it is finding andqualifying new potential customers. The prospective customerneeds to fit into the needs / capabilites match to qualify as aprospect. Why call on someone who for any number of reasonscannot buy from you? Prospecting at one time was calledpanning for gold and that is what sales people should be doingall day. Once you achieve some traction and are making money, 31
  32. 32. it is a matter of finding new customers. You will be both addingand replacing to your customer base. Thats when prospectingbecomes a sport and is fun. DATA ANALYSIS FOR EMPLOYEE 32
  33. 33. Data analysis was done using Microsoft Excel. Data wasanalyzed by using percentage. Appropriate graph have beenaligned along with the data collected more understandable andfor the purpose of making report is more presentable.Observation (On Primary data)By analyzing the primary data following observation can bedoneGraph 1:In total sample size of 40. The 100% of the sample are agree forinsurance is contact base business.Graph 2: 33
  34. 34. In the total sample size, according to 83% sample customerprospecting is reason and according to 17% sample employeelimitation. 34
  35. 35. Graph 3:In the total sample size, according to 100% sample they wereuse customer prospecting method through advisor.Graph 4: 35
  36. 36. In the total sample size, according to 35% sampleuse customerprospecting method through cold call and remaining 65% notuse it.Graph 5:In the total sample size, according to 100% sample use customerprospecting method through reference calling. 36
  37. 37. 37
  38. 38. Graph 6:In the total sample size, according to 22% sample use customerprospecting method through media calling and remaining 78%not use media calling. 38
  39. 39. Graph 7:In the total sample size, according to 100% sample peoples areavoid to invest in insurance. 39
  40. 40. Graph 8:In the total sample size, according to 100% sample attrition rateis high in insurance. 40
  41. 41. Graph 9:In the total sample size, according to 8% sample, employee wereswitch their job due to good package and remaining 92% samplesay they were unable to prospecting that’s why switch the job. 41
  42. 42. DATA ANALYSIS FOR ADVISORGraph 1:In total sample size of 80 advisor. The 100% of the sample areusing referral calling for customer prospecting. 42
  43. 43. 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
  44. 44. 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
  45. 45. SEONDARY DATACOMPANY :- The primary purpose of life insurance is to provide financialstability to families in the event the breadwinner dies. Inaddition, owning life insurance has many other benefits in termsof cash value, tax and estate planning. However, regardless ofthese benefits, purchasing life insurance can pose severalchallenges to the insured or policy owner.AEGON RELIGARE LIFE INSURANCE COMPANYReligare Enterprises Ltd. is an India based financial servicescompany with operations around the globe. Commonly referred 45
  46. 46. to as Religare, the company offers a range of financial servicesthrough its group companies. The services offered includebroking, insurance, asset management, lending solutions,investment banking and wealth management. Serving over amillion clients, Religare has around 15 billion dollars of assetsunder management.The Religare group of companies includeReligare Capital Markets, Religare Securities, Religare Broking,Religare Online, Religare Finvest, Religare Finmart, ReligareInsurance, Religare Health Insurance, Aegon Religare, ReligareMutual Funds, Religare Macquire, Milestone Religare, ReligareArt. There are basically two types of life insurance: terminsurance and cash value. Term insurance is pure life insurance.It has no savings account or cash value. As a result, its muchcheaper than cash value. Term insurance is purchased one "termperiod" at a time. Although the pure cost to insure you goes upeach year due to age, the price you pay will remain the samethroughout the chosen term period. At the end of the specifiedterm period, you must renew for another term period.Religare is an emerging markets financial services group with apresence across Asia, Africa, Middle East, Europe, and theAmericas. In India, Religare’s largest market, the group offers awide array of products and services including broking,insurance, asset management, lending solutions, investmentbanking and wealth management. With 10,000-plus employeesacross multiple geographies, Religare serves over a millionclients, including corporate and institutions, high net worthfamilies and individuals, and retail investors.AEGON, an international life insurance, pension andinvestment company, Religare, a global financial services group 46
  47. 47. and Bennett, Coleman & company, India’s largest mediahouse, have come together to launch AEGON Religare LifeInsurance Company Limited (ARLI). This venture isdedicated to build a profitable customer-centric business withscale, providing a work environment that fosters excellence andinnovation. This joint venture will balance a local approach withthe power of an expanding global operation.ARLI launched its pan-India operations in July, 2008 followinga multi-channel distribution strategy with a vision to help peopleplan their life better. The fulfillment of this vision is based uponhaving a complete product suite, providing customised adviceand enhancing the overall customer experience through superiorservice.ARLI has launched a suite of products that are focused onproviding the customer with the means to meeting their long-term financial goals. At the same time product development hasbeen founded on the tenet of providing the customer with greatvalue. ARLI products such as AEGON Religare iTerm Plan andAEGON Religare Future Protect Plan have been ranked amongthe best in terms of value and have attracted many externalaccolades.About AEGONAs an international life insurance, pension and investmentcompany, AEGON has businesses in over twenty markets in theAmericas, Europe and Asia. With headquarters in The Hague,the Netherlands, AEGON companies employ approximately 47
  48. 48. 28,000 people and serve some 40 million customers across theglobe. The company’s common shares are listed on three stockexchanges: Amsterdam, New York and London. AEGON hasmore than 160 years of experience with its roots going back to1844. AEGON holds 26% equity in ARLI.About Religare Enterprises LimitedReligare Enterprises Limited (REL) is a global financial servicesgroup with a presence across Asia, Africa, Middle East, Europeand the Americas. In India, Religare’s largest market, the groupoffers a wide array of products and services ranging frominsurance, asset management, broking and lending solutions toinvestment banking and wealth management. The group has alsopioneered the concept of investments in alternative asset classessuch as arts and films. With over 10,000 employees acrossmultiple geographies, Religare serves over a million clients,including corporates and institutions, high net worth familiesand individuals, and retail investors. REL hold 44% equity inARLI.About Bennett, Coleman & Company LimitedBennett, Coleman & Company Limited (BCCL), part of themammoth Times Group, is India’s largest media house. Itreaches out to 2468 cities and towns all over India. The groupowns and manages powerful media brands like The Times ofIndia, The Economic Times, Maharashtra Times, NavbharatTimes, Femina, Filmfare, Grazia, Top Gear, Radio Mirchi,Zoom, Times Now, Times Music, Times OOH, Private Treatiesand All of its brands are multinational in 48
  49. 49. outlook, traditional at heart and national in spirit. From the veryfirst edition on November 3, 1838 the mammoth BCCL Grouphas come a long way. By way of the innovative venture ofTimes Private Treaties.CUSTOMER :- 1) Goverment employee 49
  50. 50. 2) Private employee 3) Businessman 4) FarmerCOMPETITOR :-1) Aviva Life Insurance2) Bajaj Allianz3) Bharati AXA Life Insurance4) Birla Sun Life Insurance5) HDFC Standard Life Insurance6) ICICI Prudential7) ING Vysya 8) Kotak Mahindra 9) LIC10) Max New York Life Insurance11) Reliance Life Insurance12) SBI Life Insurance13) Shriram Life Insurance14) Tata AIG Life Insurance 50
  51. 51. Life Insurance PlansAEGON Religare Life Insurance offers insurance and pensionplans specifically designed to help you plan your life better.Select a plan based on your need – protection, saving, child orretirement.Protection plansProtection plans are Term Plans which provide only life cover.These plans can help you get adequately covered and secureyour family financially in case of unfortunate event. These arelow cost life insurance plans. What’s more, depending on yourfuture responsibilities and financial commitments Increasingand Decreasing Term Plans offers you the flexibility to increaseor decrease the sum assured in systematic manner. ULIP - Unit Linked Insurance Plans 51
  52. 52. 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 PlansSavings Plans help you save and grow your money. SavingsPlan is a category of goal-based financial solutions that offerswealth creation opportunities. At AEGON Religare LifeInsurance we have created products that cater to these veryneeds.Retirement PlansThe rising inflation has put the fear of the unseen in everyworking person’s life. Today, more than ever, it is vital thatyou save for the golden years post retirement so that you can 52
  53. 53. maintain your lifestyle as today. AEGON Religare Pensionplan comes with a unique Lifestyle fund which systematicallyreduces the risk to your returns by reducing the equityexposure of your investments progressively throughout thepolicy term. Pension plans offered by life insurance companiesprovide you with a regular pension that will help you take careof the much needed basic necessities post retirement and assurea secured tomorrow 53
  54. 54. 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
  55. 55. • 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
  56. 56. 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
  57. 57. 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
  58. 58. REFERENCES:1) Www. Google .com2) Business Dictionary.com3) Company product manual4) Mr. Bhushan Pathe (Faculty Guide) 58
  59. 59. 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
  60. 60. 4) Do you think life insurance is contact base business? Yes No5) If yes then why is it so? Contribution of business through contact is more Other6) 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
  61. 61. 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 customerprospecting 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
  62. 62.  Intangibility of product  Intense completion  Public company and private company12) Can you give the sequence for above customer prospecting constraint from top most to lower one? Lack of awareness regarding insurance need People interested in short term investment High charges of insurance Intangibility of product Intense competition Public company and private company13) Are you think employee attrition rate is high in life insurance business? Yes No 62
  63. 63. 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 others15) Do you think insurance sector offer high salary as compare to other sector? Yes No16) If you think yes then why is it so? To attract new employee To retain employee For customer prospecting 63
  64. 64. Questionnaire for Advisor of company1) Do you think you are the base of your Life insurance company?  Yes  No2) Why you think like that?  More contribution in customer prospecting  More contribution in total business of the company3) How you prospect your customer ?  Referral calling  Cold Calling  Tele calling 64
  65. 65. 4) What do you think regarding constrain in customer prospecting ?  Lack of awareness regarding insurance need  Peoples interested in short term investment  High charges of insurance  Intangibility of product  Intense competition  Public company and private company5) Can you give the sequence for above customer prospecting constraint from top most to lower one?  Lack of awareness regarding insurance need  Peoples interested in short term investment  High charges of insurance  Intangibility of product  Intense competition  Public company and private company 65
  66. 66. 66