Summer Internship_SBI Life Insurance_Abhishek Roy
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Summer Internship in SBI Life Insurance under Bancassurance Channel (Feb,2012-June,2012)

Summer Internship in SBI Life Insurance under Bancassurance Channel (Feb,2012-June,2012)

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Summer Internship_SBI Life Insurance_Abhishek Roy Summer Internship_SBI Life Insurance_Abhishek Roy Document Transcript

  • Industry Internship Project - 2013 Understanding Various Aspects & Leveraging Online Platform for Channel Development:- A case of Bancassurance Channel Submitted By: Abhishek Roy Marketing Batch PGDM-1380 Company Guide: - Faculty Guide: - Mr. Anup Kumar Singh Mrs. Arpita Pandey Deputy Manager, Bancassurance Assistant Professor, Marketing
  • ACKNOWLEDGEMENT Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel I would like to thank my College Guide Mrs. Arpita Pandey (Asst. Professor, Marketing Deptt.) who have supported me throughout this course of this project indirectly as a moral support to me to face any challenges or to overcome any hurdles during part of the Project. I would also like to thank Dr. C.S. Adhikari (Dean, Academics) who helped me regarding valuable suggestions and guidelines which helped me to prepare my Project Report. I would like to thank from bottom of my heart to SBI Life Insurance Co. Ltd. for giving me the privilege as well as a great opportunity to work with them as a part of Summer Internship. It was a great experience for me like never before to work with such an esteemed organisation where truly the Life prevails in a larger way. I would definitely miss such an organisation which supports every young bright mind to carve a niche and achieve a success through sustained hard work. Not only hard work this organisation taught me to live fuller and enjoy the spirit of being a part of this environment where every new idea gets appreciation. I would like to thank Mr. G. Durgadas (Country Head, Relationship Marketing, SBI Life Bancassurance) who supported me and gave me a meaningful Project which was not only challenging but interesting as well. I would also like to thank my Project Guide Mr. Anup Kumar Singh (Deputy Manager, Bancassurance) for giving me unconditional support and innumerous guidance which was necessary throughout the course of this project. I would like to mention few names of Banca Staffs- Ms. Aakansha Mittal, Mr. Sandeep Belgaonkar and Ms. Richa Bansal for small but important support throughout my Project Course as they helped in gaining insight for the Project. I extend my gratitude to all the Certified Insurance Facilitators (CIFs) of SBI and associate banks and Business Development Managers (BDMs) of SBI Life Insurance, who took out time and provided their insights that, have been an important phase of learning in this Project duration. Finally, I would like to thank entire Bancassurance Team which imbibed in me the unity of strength they have shown. I feel proud to be a part of this team which is not only workaholic but also the Team which is very lively and supportive to each and every member of this team. Institute for Technology and Management, Navi Mumbai Page 2
  • TABLE OF CONTENTS Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 1. EXECUTIVE SUMMARY .......................................................................................................5 2. INTRODUCTION......................................................................................................................7 2.1. INSURANCE........................................................................................................................7 2.2. SBI LIFE INSURANCE.............................................................................................. 7 2.3. BANCASSURANCE............................................................................................................8 2.4. SBI LIFE BANCASSURANCE ........................................................................................10 3. OBJECTIVE ............................................................................................................................16 3.1. PRIMARY OBJECTIVE ..................................................................................................16 3.2. SECONDARY OBJECTIVE ............................................................................................16 3.3. PROBLEM DEFINITION ................................................................................................16 4. RESEARCH DESIGN .............................................................................................................18 4.1. RESEARCH METHODOLOGY .....................................................................................18 4.2. SAMPLING ........................................................................................................................20 4.3. DATA COLLECTION METHODS.................................................................................21 5. KEY TERMS RELATED TO PROJECT.............................................................................23 5.1. SURAKSHA PLUS ............................................................................................................23 5.2. RINN RAKSHA .................................................................................................................25 5.3. BANCA ONLINE...............................................................................................................27 5.4. ABOUT Z-CARDS.............................................................................................................28 5.5. ABOUT MDRT ..................................................................................................................31 6. KEY ANALYSIS AND FINDINGS .......................................................................................34 6.1. FIELD WORK ...................................................................................................................34 6.2. REWARDS AND RECOGNITIONS...............................................................................35 6.3. LICENSE RENEWAL PROJECT...................................................................................40 6.4. SURAKSHA CUSTOMER CALLING............................................................................45 6.5. MDRT SORTING..............................................................................................................47 6.6. BANCA ONLINE ANALYSIS .........................................................................................49 7. DESIGNING OF Z-CARDS ...................................................................................................57 Institute for Technology and Management, Navi Mumbai Page 3
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 8. LIMITATIONS ........................................................................................................................58 9. CONCLUSIONS ......................................................................................................................59 10. RECOMMENDATIONS.......................................................................................................61 11. REFERENCES.......................................................................................................................63 12. APPENDIX.............................................................................................................................64 List of Figures: Figure 1: Different Channel Performances of SBI Life.....................................................................11 Figure 2: New Business Premium Total Market Share......................................................................14 Figure 3: New Business Premium among the Private Players............................................................14 Figure 4: Original Z-Card layout .....................................................................................................29 Figure 5: C-Fold Layout ..................................................................................................................30 Figure 6: K-Fold Layout ..................................................................................................................31 Figure 7: Book Fold Layout.............................................................................................................31 Figure 8: CIF calling summary those who met persistency criteria....................................................37 Figure 9: CIF calling summary those who did not met persistency criteria ........................................38 Figure 10: Calling Summary for Branch Manager Contest...............................................................39 Figure 11: Calling Summary of CIFs whose license already expired .................................................40 Figure 12: Break-Up of Responses of CIFs Interested in Renewing License......................................40 Figure 13: Break-Up of Responses of CIFs Not Interested in Renewing their License .......................41 Figure 14: Calling Summary of CIFs license about to be expiring in Quarter-4 FY 2012-13..............42 Figure 15: Calling Summary of CIFs license about to be expiring in Quarter-1 FY 2013-14..............43 Figure 16: Break-Up of Reasons for those CIFs that were informed .................................................44 Figure 17: Break-Up of Reasons for those CIFs that were not informed............................................45 Figure 18: Summary of calling Customers for eSuraksha Plan .........................................................46 Figure 19: SBI Life Channel-wise contribution of performer CIFs to MDRTs (FY-2013-14) .............47 Figure 20: Break-Up of SBI Circle-wise contributions to MDRTs .....................................................48 Figure 21: Break-Up of Associate Banks Circle-wise contributions to MDRTs ..................................48 Figure 22: The Non–Users of BAOL ..............................................................................................50 Figure 23: Break-up of Non-User CIFs into Figure 24: Break-up of Non-User ..........51 Figure 25: Different Reasons for not using Banca Online Portal by CIFs .........................................52 Figure 26: Top of mind issues and suggestions based on rated premium ...........................................53 Figure 27: Top of mind issues and suggestions based on age group...................................................54 Figure 28: Top of the mind issues and suggestions based on years of association ..............................55 Institute for Technology and Management, Navi Mumbai Page 4
  • 1. EXECUTIVE SUMMARY Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Insurance is considered to be important as it is an alternative to any unforeseen situation which may result into accident/death of a person. It is a very promising service sector considering huge population in India where everyone needs it but many are unaware of it. But still the picture is far from reality. Its penetration in India is very low (less than 3%). People have lost trust in Insurance Sector since there has been a lot of mis-selling of Insurance Products, delay in settlement of claims, etc. in last few years. This along with Economic Recession there has been negligible growth in Insurance Industry. Last 3-5 years there has been a decline in performance of Insurance Industry be it public or private sectors. Channels have always been a backbone of Insurance Industry. Concept of Bancassurance Channel came to India only in 2000 the model has been adopted from European Countries where it came back a long ago. Keeping in mind that Banks forms a large distribution network geographically spread it should do good amount of business but the reality is exactly opposite. Being an effective channel where State Bank Group (State Bank of India comprising 14 circles and Associate Banks having 5 circles) have joined with SBI Life and has presence of more than 18000 branches all over India covering Rural, Semi-Urban, Urban and Metros still its performance is declining. Our Project is to study and find out the cause behind this decline and give some recommendations after doing in-depth research through telephonic conversation with CIFs (A CIF is an employee of State Bank Group which does cross-selling of Insurance Products on behalf of SBI Life) , BDMs (SBI Life Representative who visits branches and keep a track record of CIFs). Also some researches about latest happening of Insurance Industry by accessing various reports from IRDA, reading various articles about Insurance on Internet and understanding Insurance Terminologies is done to back above research. Another problem was seen related low usage or awareness of SBI Life Banca Online Intranet Portal which is made exclusively for CIFs where information is readily accessible which are very useful for any CIFs. So research was carried out in this direction to find out which links they normally visits and any suggestions or improvement they want in portal. Also feedback was noted for various issues they were having when they visited the portal. For helping CIFs further like awareness of rewards structure and for product like RiNn Raskha design of Z- Cards were done so that they can refer it anywhere and size is so small that they can keep in pocket and roam anywhere and access it. For new products like e-Suraksha Plus which is a pure term plan that is redirected from Online SBI website Customer Relationship was given top priority and any doubt or queries regarding online filling up of form or product information in general, all were resolved by having detailed conversation with them so that a good relationship is established with our valuable customers. Also layout or process of filling up forms were slightly modified based on problems that Institute for Technology and Management, Navi Mumbai Page 5
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel customer faced. So everything was done as a part of Customer Feedback and having a strong relationship with our customer. Scope of the Study: An attempt was made to find out reasons why there has been decline in Performance of Bancassurance Channel of SBI Life by various researches as mentioned above. Along with that there was also an attempt to find out low usage of Banca Online Intranet Portal by leveraging online portal. Also main issues have been highlighted in this report which is given under Recommendations that can be incorporated to improve efficiency of Bancassurance Channel of SBI Life. Institute for Technology and Management, Navi Mumbai Page 6
  • 2. INTRODUCTION Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 2.1. INSURANCE Insurance is a contract between the insurance company (insurer) and the policyholder (insured). In return for a consideration (the premium), the insurance company promises to pay a specified amount to the insured on the happening of a specific event. In layman term Insurance is the mechanism of transfer of risk wherein the person taking out insurance transfers their risk to the insurance company in return for a payment (known as the premium). Insurance is necessary because no one foresees the event which may happen in future. If anybody can see their future then there was no need of Insurance. In case of future untoward events risk like Accident/Death, Insurance comes to rescue where the financial gap due to these risks is compensated upon. Insurance is generally divided into two parts:(1) Life Insurance: - Life insurance companies cover risks that relate to human lives. They offer different benefits under different types of products and cover the risk of early death, as well as the risk of living into old age. Under traditional plans, like term insurance plans, insurance companies provide death cover. If the insured person dies within the term of the policy then the nominee/beneficiary is paid a specified amount (also known as the sum insured). Under pension plans, insurance companies offer periodic monthly payments (annuities) to support the insured during their retirement. (2) Non-Life Insurance (General Insurance): - Non-life insurance companies generally cover risks other than those relating to human lives. The exceptions to this are personal accident and health insurance, which are provided by non-life insurance companies. Any asset either gives a monetary return (e.g. a house given on rent), or offers convenience (e.g. a car which can be used to travel from one place to another) can be insured. All assets are exposed to various risks: they can be damaged or destroyed by fire, earthquake, riot, theft, flooding, cyclones etc. If the asset is damaged by any of these risks, the owner will be at a disadvantage and they will lose the income or the convenience the asset provided. Non-life insurance companies offer products that cover these risks and compensate the owner should the asset be damaged by one of them. It is a product from this type of company that an individual would buy to protect their assets, for example, their home against fire etc. 2.2. SBI LIFE INSURANCE SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. SBI owns 74% of the total capital and BNP Paribas Cardif the remaining 26%. Institute for Technology and Management, Navi Mumbai Page 7
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 2.2.1. Mission, Vision and Values of SBI Life: Mission: "To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalization period". Vision: "To be the most trusted and preferred life insurance provider." Values: Trustworthiness. Ambition. Innovation. Dynamism. Excellence. 2.2.2. Channels of SBI Life: SBI Life has got four important channels of distribution of its Life Insurance Products: Bancassurance. Institutional Alliance. Retail Agencies. Corporate Solutions. 2.3. BANCASSURANCE The bank insurance model (BIM), also sometimes known as Bancassurance, is the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products, an arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank's client base.BIM allows the insurance company to maintain smaller direct sales teams as their products are sold through the bank to bank customers by bank staff and employees as well. Bank staff and tellers, rather than an insurance salesperson, become the point of sale and point of contact for the customer. Bank staff are advised and supported by the insurance company through product information, marketing campaigns and sales training. The bank and the insurance company share the commission. Insurance policies are processed and administered by the insurance company. This partnership arrangement can be profitable for both companies. Banks can earn additional revenue by selling the insurance products, while insurance companies are able to expand their customer base without having to expand their sales Institute for Technology and Management, Navi Mumbai Page 8
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel forces or pay commissions to insurance agents or brokers. Bancassurance, the sale of insurance and pensions products through a bank, has proved to be an effective distribution channel in a number of countries in Europe, Latin America, and Asia. 2.3.1. Brief History:The first countries to venture into the field were Spain and France. In the early 70s, ACM (Assurances du Crédit Mutuel) Vie et IARD (life and general insurance) were officially authorized to start operations, a watershed event in the history of insurance. It was their idea to bypass the middleman for loan protection insurance and to insure their own banking customers themselves. They thus became the precursors of what – 15 years later – would become “Bancassurance”. For their part, the Spanish began their adventure in the early 1980s, when the BANCO DE BILBAO Group acquired a majority stake in EUROSEGUROS SA (originally LA VASCA ASEGURADORA SA, incorporated in 1968). However, their control was initially only financial, since Spanish law prohibited banks from selling life insurance. This legal barrier was removed in 1991. Today, the top five Spanish Bancassurance companies control one third of the market (Vida Caixa, BBVA, SHC Seguros, Aseval, Mapfre Vida). However, from a purely historical point of view, the real pioneers were the British with the creation of Barclays Life in September 1965. This subsidiary was not a great success in the UK, and nor, for that matter, was the concept of Bancassurance. On the other hand, the Bancassurance concept attracted more than one bank on the continent and the big players very quickly began to set up subsidiaries or joint ventures, thereby introducing the model into their respective countries: France: in 1971, Crédit Lyonnais acquired the Médicale de France Group and in 1993 signed an agreement giving the Union des Assurances Fédérales Group exclusive rights to sell life insurance through the Crédit Lyonnais network. Spain: in 1981, the Banco de Bilbao Group acquired a majority interest in EUROSEGUROS SA, an Insurance and Reinsurance company Belgium: in 1989, AG – Belgium’s leading insurance company – and Générale de Banque, created Alpha Life. One year later, the big Dutch insurance company AMEV N.V., and VSB, a Dutch bank, went into business together. In the same year, they were joined in the first cross-border merger by AG Group, thereby creating the Fortis Group. In Europe, Germany and Italy took much longer to get involved, as did Asia, where Bancassurance only really began to attract existing Korean banks after government authorization in 2003. In 2004, Fortis signed a contract in Thailand with Muang Thai Group for life and non-life policies, in the process taking a 25% stake in Muang Thai Life Insurance. Fortis, which was seeking Institute for Technology and Management, Navi Mumbai Page 9
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel to extend the Bancassurance model to Asia, already had partnerships in Malaysia and China. On markets where Bancassurance is sufficiently developed, like France or Belgium, companies are now moving into a new phase of development. Start 1975 - 1985 External partnerships/ creation of subsidiaries (internal) Distribution only Maturity 1985 – 2000 Takeovers/acqui sition driven growth Diversification 2000 – 2005 Alliances Partnerships Service integration Concentration 2006 onwards Acquisitions Customized approach Table 1: Evolution of Bancassurance Channel over the years 2.3.2. Bancassurance in India: - In 1993 the Government set up a committee under the chairmanship of R N Malhotra (Malhotra Committee), the former Governor of RBI, to make recommendations for the reform of the insurance sector. In its report in 1994, the committee recommended, among other things, that the private sector and foreign companies (but only through a joint venture with an Indian partner) be permitted to enter the insurance industry. Following the recommendations of the Malhotra Committee report, the insurance sector was opened to private companies. Foreign companies were also allowed to participate in the Indian insurance market through joint ventures (JVs) with Indian companies. Under current regulations the foreign partner cannot hold more than a 26% stake in the joint venture. Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body in 1999 (following Malhotra Committee recommendations) to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April 2000. SBI Life started its Bancassurance Channel on 10th May, 2002 as a first private life insurer. LIC followed the trend as forming Bancassurance Channel by tying up with Corporation Bank on 9th Sept, 2002. After that many players entered the arena and thus Bancassurance Channel was seen as most promising channel in Insurance Sector. 2.4. SBI LIFE BANCASSURANCE It is the largest channel of distribution compared to others (i.e. Institutional Alliance, Corporate Solutions, and Retail Agencies). Bancassurance Channel only contributed around 40-50% profits for SBI Life. Institute for Technology and Management, Navi Mumbai Page 10
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Source: SBI Life Annual Report 2011-12 Figure 1: Different Channel Performances of SBI Life 2.4.1. Process of Insurance Selling:It has its Bancassurance tie-up with State Bank of India and it 5 associate banks, namely State Bank of Patiala, State Bank of Mysore, State bank of Travancore, State Bank of Hyderabad and State bank of Bikaner and Jaipur. Employees of these banks are volunteer or chosen by their managers to become Insurance Advisors for SBI Life. The prospective Insurance Advisors have to pass an exam and undergo a stipulated amount of hours’ of training after which they obtain a license from the IRDA. These individuals are called Certified Insurance Facilitators (CIF). In addition to their banking duties and responsibilities, the CIFs undertake the task of cross selling insurance products in order to earn cross selling revenue for their bank. Thus all CIFs are employees of SBI and its associate banks. Business Development Managers (BDMs) from SBI Life oversee and coordinate the activities of the CIFs in the bank branches. The branch target and individual targets are assigned by the head offices. Incentive driven contests are run by both, SBI Life as well as SBI in order to motivate and encourage the sales force. Since the CIFs are bank employees, they report to their managers in the branch itself. The CIF approaches the customers on his/her own and goes ahead to complete the deal. In certain cases, CIFs pass on the leads to their respective BDMs who tales it ahead from there. The number of CIFs varies from branch to branch depending on its nature of business, span of operation, location and scale. 2.4.2. Products of SBI Life:Products are broadly categorized into:(1) Individual Plans Institute for Technology and Management, Navi Mumbai Page 11
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel (2) Health Plans (3) Group Plans (1) Individual Plans:- Individual Plans are further classified into:(i) Unit Linked Plans: - Under Unit Linked Plans there are 7 products offered by SBI Life. These products are Smart Performer, Unit Plus Super, Saral Maha Anand, Smart Elite, Smart Scholar, Smart Horizon and Smart Wealth Assure. Unit Linked Insurance Plans are long term investment cum protection plans that offer customer an opportunity of availing market linked returns while providing life insurance protection. Depending on risk appetite, customer has the option of choosing from host of funds having varied degree of risk exposure. Flexibility and transparency are some of the other attractive features that make ULIPs an attractive long term investment option. (ii) Child Plans: - There are two products offered under this plan namely Scholar II and Smart Scholar. These plans basically secure child’s future by taking care of expense like education and provide financial support in case of any uncertainty in future. Also it secures child life from an unfortunate event, by securing financial gap where nominee would receive full sum assured along with vested bonus, plus regular guaranteed survival benefit if there is death of parent. (iii)Pension Plans: - Two products are offered under this plan namely Annuity Plus and Saral Pension. About nearly 70-80% of people doing job does not have the facility of pension. So this plan secure financial gap that might occur after retirement. Thus the products mentioned here provide regular income even after retirement so that people do not compromise their standard of living even after retirement. (iv)Protection Plans: - There are 6 products under this plan and they are eSheild, Grameen Bima, Swadhan, Saral Sheild, Smart Sheild and Smart Income Shield. These plans are basically pure term plan (term plan has got only death benefit no maturity benfit) and thus these plans are cheaper at cost. They provide death cover with full sum insured during term plan. (v) Savings Plans: - In this plan there are 6 products mainly Smart Income Protect, Sanjeevan Supreme, Shubh Nivesh, Saral Life, Flexi Smart and Money Back. These types of plans are for those who want to invest so that Institute for Technology and Management, Navi Mumbai Page 12
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel they can save. Instead of saving and keeping at home the money can be invested under these plans to get better deal with interest and bonus which will be payable at maturity. (2) Group Plans: - SBI Life offers a wide range of employee benefit solutions which helps organizations to retain, reward and encourage the best talent in the industry. It also provides a host of corporate solutions to both statutory needs as well as voluntary needs of the employers and hence ensures to strengthen the employer -employee relationship in the long run. Under this plan there are many Products but main two products which are selling huge are – RiNn Raksha and Swadhan. (i) RiNn Raksha- RiNn Raksha provides Insurance against Car Loans as well as Home Loans. Thus it provides tension free life without any liability worries and thus the best seller product since most of family wants a Home and Car which today has become a necessity. This plan offers life to live “Debt Free” and thus tagline of the product says “Inherit your home and not home loan”. (ii) Swadhan (Group):- It is a Non-Participating Group Term Insurance Plan which offers dual benefits of life cover protection in the event of death and refund of premium in case of survival up to the end of the cover term. The top selling products are Smart Performer and RiNn Raksha. 2.4.3. Competitive Analysis:Until year 2000, LIC was the only company providing life insurance. In the year 2000, private companies and foreign companies (only through a joint venture with an Indian company) were allowed to enter the business. The foreign companies are allowed to have a 26% stake in the joint venture. Presently, there is one public company in life insurance business, LIC which has & 71.36% share of total market share of new business premium (FY 2011-12) and the rest 28.64% is with the private players (see Figure 2). Institute for Technology and Management, Navi Mumbai Page 13
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Source: IRDA New Business Report FY 2011-12 Figure 2: New Business Premium Total Market Share Figure 3 shows the market shares of major private players in the insurance industry. SBI Life is the leading private insurance company amongst private players. Source: IRDA New Business Report FY 2011-12 Figure 3: New Business Premium among the Private Players Comparative chart of the performances of SBI Life and different private insurers are being shown below: - Institute for Technology and Management, Navi Mumbai Page 14
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel IRDA Industry Ranking for March 2013 (Figures in Rs. Crores) Company March '13 NBP Private Share 1161.7 16.7% 825.2 11.8% 1003.6 14.4% 629.8 9.0% 311.6 4.5% 468.5 6.7% 233 3.3% 676.4 9.7% SBI Life ICICI Prudential HDFC Life Bajaj Allianz Max Life Birla Sunlife Reliance Life IndiaFirst Kotak Mahindra Old 345 Mutual Met Life 169.5 Total Private 6968.8 LIC 15,540.2 Total Market 22,508.9 NBP 5184.2 4808.8 4435.6 2992 1899.4 1836.8 1376.6 1316.4 Private Share Total Share Rankings Growth 16.9% 4.8% 1 -20.6% 15.6% 4.5% 2 -5.3% 14.4% 4.1% 3 15.7% 9.7% 2.8% 4 10.3% 6.2% 1.8% 5 -0.5% 6.0% 1.7% 6 -4.6% 4.5% 1.3% 7 -23.9% 4.3% 1.2% 8 34.0% 5.0% 1188.1 3.9% 1.1% 9 2.0% 2.4% 840.6 30,765 76,245.6 107,010.7 2.7% 84.2% 0.8% 28.7% 71.3% 100.0% 10 -21.8% -6.0% -6.5% -6.3% Table 2: Comparison of SBI Life and its competitors Institute for Technology and Management, Navi Mumbai Page 15
  • 3. OBJECTIVE Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel According to work done in Project being assigned the objectives is being divided into two parts on the basis of importance and goals that need to be achieved on immediate basis. 3.1. PRIMARY OBJECTIVE To understand various aspects of Bancassurance Channel in terms of its performance, its strength and areas where it can be improved, its sales force efficiency and how it performs the tasks at ground level. To leverage Bancassurance Online (in short named as Banca Online) which is an Intranet Portal dedicated exclusively for the sales force who are interested in selling Insurance Products of SBI Life. 3.2. SECONDARY OBJECTIVE To know about Bancassurance Channel as for a general overview. To explore the Banca Online Intranet Portal. 3.3. PROBLEM DEFINITION The Project was taken on the basis of two major problems related to the objectives mentioned above: The main problem regarding Bancassurance Channel of SBI Life was that it was declining for past 3 years which was way below than other competitors in Bancassurance Channels like ICICI Prudential, HDFC Life etc. There has been constant decline in Bancassurance Channel Performance of SBI Life whereas in case of competitors channels are improving, delivering better business even though they are having less number of branches to sell Insurance as compared to SBI which has largest number of branches in India (approx 18000+). It contributed 40-50% of profits of SBI Life recently. Still there is a scope for huge improvement as considering competitors it has largest number of branches but they are not doing business as they can do. Competitors with far less number of branches are doing approximately near to same amount of business. So the objective was based on the fact to Improve Bancassurance Channel of SBI Life along with giving some suggestions to implement upon. So for better understanding of problem there was a necessity to understand various aspects of Bancassurance Channel. Institute for Technology and Management, Navi Mumbai Page 16
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel SBI Life Insurance Performance Competitor Insurance Performance Year Year  Another problem was that regarding low usage of Bancassurance Intranet Portal (better known as Banca Online). Bancassurance Online (BAOL) is an intranet platform designed for those employees of State Bank Group who are interested in Life insurance business. It is a single point of getting information for the Certified Insurance Facilitators (CIFs). There might be possibility of low efficiency of CIFs especially the non-performer ones as they have low awareness of this portal. So the objective was to increase the usage rate of this portal by CIFs so that they can deliver performance in a better way. Institute for Technology and Management, Navi Mumbai Page 17
  • 4. RESEARCH DESIGN Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 4.1. RESEARCH METHODOLOGY Primary as well as Secondary Research is done to find out the cause behind decline in Bancassurance Channel Performance and low- usage of Banca Online Portal (BAOL). 4.1.1. Primary Research: Visiting various branches along with BDMs to know more about how they perform their tasks and problems they are facing in business during branch visits, also to gather information from the CIFs working on a particular branch by having detailed conversation and from these information to generate more ideas for improving efficiency of the Channel by focusing on problems related to CIFs. This is available on Field Work. During JFM period, New Year Hungama Contest was launched by SBI where different rewards and recognitions are entitled to CIFs those who have done voluminous businesses for SBI Life by selling insurance on their behalf. As a representative of SBI Life to monitor the performance and as general awareness telephonic conversation with the CIFs to make them aware of the rewards they are getting for their performances and to motivate them to perform to their utmost potential and drive volume business for SBI Life so as to achieve maximum rewards. Also making note of suggestions or any problems they are facing right now while doing their business. On similar lines this contest was also for Branch Managers for rewarding them and steps followed were exactly the same. The detailed findings are given under Rewards and Recognitions under Analysis and Findings. CIF are branch staffs of SBI and Associate Banks and cross-sell insurance products on behalf of SBI Life. For selling Insurance they need license and IRDA has the authority for issuing license. For first timers CIFs need to give exam and pass that exam for obtaining license from IRDA along with stipulated hours of training. The license is valid for only three years. Over past few years a trend is seen that many CIFs are unaware of their license expiry date and thus they get exited from the system. They are so large in numbers that they exceed CIFs added into system by huge margin. Thus throughput of the system declines. Thus a telephonic conversation with CIFs was made to make them aware about their license being expired or on verge of expiring. Analysis is given under License Renewal Project. Institute for Technology and Management, Navi Mumbai Page 18
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel e-Suraksha Plus plan is the new product launched on this year. Since it is an online plan, customers were facing many difficulties while filling up the online form. The main task was to guide them and understand the responses given by the customers and suggest possible solutions or redirect them to some other alternative way out so that to have a better customer relationships. Research was done on basis of telephonic conversations with esteemed customers through lead generation in MIS. Detailed Analysis regarding this can be found under e-Suraksha Customer Calling. Personal research was also carried out in the area regarding number of CIFs for the top honors who do among the best business so that they are recognized in the MDRT (Million Dollar Round Table) League. Every year Bancassurance Channel of SBI Life produces large number of MDRT CIFs which is globally recognized as highest standard of business by a Life Insurance Agent. So from MIS report accessible found out the number contributed from each and every circle. Detailed Analysis is given under MDRT Sorting. To know about the reasons of Bancassurance Online (BAOL) not being used widely, primary research was required. The research was conducted in three phases. In the first phase, telephonic interview of 500 CIFs were taken. Since there were no predetermined factors, open ended questions about issues being faced while using Bancassurance Online were asked. This gave insights about top of the mind issues. Also, it was observed how CIFs use the platform and the practical issues that exist were noted. The questions asked included the following points:  Usage rate of BAOL  Problems faced in using BAOL  Requirements in BAOL/ Suggestions In the second phase, close ended telephonic interview of 100 CIFs were taken based on the identified issues faced and the requirements of content in the online platform, Bancassurance Online. This helped to find out what are the issues that are also faced by CIFs when asked in particular. A calculator, Custom Benefit Illustrator (CBI), is provided as a tool which calculates the amount of premium customer will have to pay based on the product, sum assured and the customer’s details. This calculator is of prime use to the CIF. Most CIFs might be using Bancassurance Online to use this tool. However, lot of other useful information and reports are provided in the platform. In order to find out the awareness about other features of the platform, users were asked if they knew about all the features. This all are given under Banca Online Analysis. Institute for Technology and Management, Navi Mumbai Page 19
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 4.1.2. Secondary Research: Before doing above activities, read about different Products in SBI Life through Brochures given by the company. Gone through IC-33 manual which gave a lot of confidence to understand various terminologies used in Insurance Industry which was completely new. Also gone through various reports on Bancassurance Channel to find out different models followed in India and across the World. Along with that got accessed to various news and reports from IRDA to find out recent channel performance decline and current trend going on regarding future scope and penetration of Insurance in India. Also accessed information of comparison charts of SBI Life Products and their competitors from their Quarterly Magazine (e- Bandhan). Accessed several data about CIFs form MIS system of SBI Life and made a detailed study. The Banca Online Portal website was extensively browsed; all links and reports were checked. This was done in order to personally observe the kind of issues that a CIF might face in accessing certain features or reports provided in the website. 4.2. SAMPLING (i) Field Work- Sample size of 4 CIFs were taken who were questioned in details. (ii) Rewards and Recognitions- Telephonic Conversations with CIFs and Branch Managers (BMs). (1) JFM Contest for CIFs Sample Size of the CIFs meeting the persistency criteria- 720 Sample Size of the CIFs not meeting the persistency criteria- 659 (2) Branch Manager Contest Sample Size of the Branch Managers called- 399 (iii)License Renewal Project- Sample Size for telephonic interaction with the CIFs whose licenses are about to expire- 196 in the Quarter 4(FY 2012-13) and 946 CIFs in Quarter-1(FY 2013-14). Sample Size of CIFs license already being expired- 104. (iv)e-Suraksha Customer Calling- Sample size taken for customer calling as part of telephonic conversation- 314. (v) Banca Online Analysis- Sample size of 600 CIFs taken for understanding the problems they faced in the portal. Sampling was done by accessing CIF Master File from MIS of organisation where details about them were there. Institute for Technology and Management, Navi Mumbai Page 20
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 4.3. DATA COLLECTION METHODS 4.3.1. Field Work: Primary Research was done by direct one to one conversation with CIFs where open ended questions were asked about to know in details about how they approach customers when they sell insurance, what are the problems they are facing on ground level and any suggestions to improve the situation based on their problems. Also primary research was carried out in same fashion with BDMs who were coordinating and supervising their works. Detailed interview were taken by asking them open-ended questions. Noted down the suggestions if any mentioned. All was documented which is available in Key Analysis and Findings-Section. Secondary Research was carried out where details of CIFs received from MIS of the organization and made detailed study of about CIFs and BDMs as available from the Reports on SBI Life Intranet Portal mainly how they functions to have better knowledge before actual Field Visit which aided Primary Research mentioned above. 4.3.2. Rewards and Recognition: Primary Research was done by telephonic conversations with CIFs and Branch Managers and the feedback or responses were noted. This research helped to gain insights about the awareness about the rewards and how many were really interested to work harder to achieve these rewards. It brought out the attitude and problems of CIFs in better way by having detailed conversations. Secondary Research was done earlier by accessing and studying various types of rewards the CIFs and Branch Managers were eligible for and structure of rewards. Some rewards were Quarterly Based whereas some rewards were given on basis of annual performance. Also Club Membership there is reward which is given at end of Financial Year based on bracket which they fall under. Also information about CIFs and Branch Managers lists were given from MIS data of organization which were properly studied beforehand. 4.3.3. License Renewal Projects: Primary Research was done to find out how many of them actually renew their license which expires after every 3years. This research was based on telephonic interview of CIFs where their responses are noted regarding whether they say yes, no, not interested on awareness about their license which is about to expire. If they are not interested the reasons are noted down. It helped to gain proper insights how many of them really interested with business they are doing on behalf of SBI Life. Secondary Research was carried out to back above primary research. Data about the CIFs were accessed from MIS of organization and studied in details. Also data Institute for Technology and Management, Navi Mumbai Page 21
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel was there regarding their last license renewal date, date when their license is going to expire, contact numbers along with their BDMs contact number and name (if in case CIFs were unable to respond when call is made). 4.3.4. e-Suraksha Customer Calling: Primary Research was done regarding the problems the customer faces while filling up online form. Also some feedback or suggestions were noted related to the product. This research was carried out by having a detailed telephonic conversation with the customers by asking them the issues or problems they faces while filling up form or anything related to product be it product knowledge, its terms and conditions. Calling was done on behalf of SBI Life as SBI Life representatives. Secondary Research was carried out regarding detailed study of product which is Suraksha Plus, features along with terms and conditions etc. Also accessed to lists of Lead Customers from the MIS data. 4.3.5. Banca Online Analysis: Both primary and secondary data were used. Primary data was collected by conducting telephonic interviews of CIFs and during the field visit to various branches. Secondary data about details of CIFs was obtained from SBI Life office, it included:         CIF Code Name Phone number Circle/ Bank Area Age Time since CIF is associated with SBI Life YTD Rated Premium (March’13) collected This all are given under Banca Online Analysis. . Institute for Technology and Management, Navi Mumbai Page 22
  • 5. KEY TERMS RELATED TO PROJECT Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 5.1. SURAKSHA PLUS Suraksha Plus is a traditional, Non Participating, Non Linked Group Term Assurance Product provided by SBI Life. Suraksha Plus a pure term non participating product for all types of Groups such as Employer - Employee Groups, Credit Card or Banks or Mutual Fund Customer and any group of people sharing a common view, at a very affordable premium wherein SBI Life aims at Protecting your members and their family under all circumstances. 5.1.1. Eligibility Criteria for Suraksha Plus Plan: SBI Accountholder: - The customer opting for this plan should have an account in State Bank of India, also he or she should have the net banking facility. Free from all the diseases: - During the time of taking up this plan, the person should never had a heart problem, a stroke, paralysis, high blood pressure, cancer, diabetes, raised blood sugar, kidney failure, liver failure, mental illness, tuberculosis, HIV infection or AIDS. Should not be NRI/SEG: - Only Resident Indians having Savings Bank Account with internet banking facility are eligible for this scheme. Accountholders under NRE/NRISHG or Business/Loan/OC/OD or any other related accounts are out of the purview of this scheme. 5.1.2. Key Features of the Plan: Simple, quick and hassle free online process: - Since it is purely an online process so a person willing to buy this plan need be able to visit any branches, rather it can be purchased through online only. Even the bond paper will also be coming into the customer’s email. Insurance at Affordable cost: - The premium one has to pay for this policy for ten years is very nominal and that too yearly. Easy Payment Option: - Customers have to pay through the SBI net banking account which is very safe but easier to pay it. Enrollment based on Declaration of Good Health: - A customer is eligible for this insurance plan only if he/she is mentally as well as physically fit during the time of taking this policy. Institute for Technology and Management, Navi Mumbai Page 23
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel No Maturity or Surrender Benefit: - If a customer wants to surrender the policy, there is no surrender benefit in it. Also, there is no maturity benefit in this policy. In other words a customer is not entitled to get anything return after the term period of policy is over. 5.1.3. Boundary Conditions: - Para meter Entry A ge* Max imum Cover Ceasing A ge Sum Assured Premium P ayme nt Term P olicy Term P remium Payment M ode Fe ature 1 8-45 ye ars 5 5 ye ars 5/10 lakhs 10 years 1 0 ye ars A nnual Table 3: Plan Details of Suraksha Plus (*Age as on last birthday) Benefits of Suraksha Plus: Death Benefit: - In the Event of death of the Life Assured, the sum assured will be paid immediately. Suraksha Plus is offering accidental death benefit as well as natural death benefit. Online Term Plan: - Unlike any other plans of SBI Life, customers can buy this plan online without even going to SBI branches and visit SBI Life representatives and also they do not require any medical certificate in order to purchase this product. Grace Period: The Grace period under the plan is 30 years. If premium is not paid within the grace period the policy lapse that is there will be no life cover once the grace period is over. Revival Period: - Institute for Technology and Management, Navi Mumbai Page 24
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel The policy can be revived within 180 days from the first unpaid premium. The policy can be reinstated on payment of all unpaid premiums along with the interest at the rate prescribed by the company from time to time. Cessation of Insurance Cover: The cover will cease on the earliest of: the Date of Lapse of the Life Cover Member ceases to be a part of the group as defined in the scheme rules The date of death claim has been admitted. Free Look Period: If a customer is not satisfied with the terms and conditions of the policy you can return the policy within the 30 days from the date of receipt of the Certificate of Insurance. In case of cancellation during Free Look Period, refund of Premium Less Stamp Duty will be made. Exclusion: In case the Life Assured commits suicide within one year from the Date of Commencement of risk, the death benefits shall not be payable. Nomination: Nomination is compulsory. The nominee shall be a person nominated by the member in accordance with the provision of section (39) of the Insurance Act 1938 to receive the benefits under the scheme in the event of his/her death . 5.2. RINN RAKSHA RiNn Raksha is among top and bestseller products of SBI Life. Everyone always aspires to own his/her Dream Home! To fulfill this dream, an individual works towards it systematically and stretches to acquire loans. To safeguard this liability, SBI Life launched “SBI Life -RiNn Raksha”, a Group Credit Insurance Plan that assures the customer’s family gets the best and also enjoys the asset (Home) which he/she has so lovingly acquired, without having to worry about the liability in case of any eventuality. As India is a nation which is booming with high aspirations from millions of people and buying Home is not only a necessity but today has become the pride factor! People are buying homes( for investment) like never before as like gold it has good value and always increases on time to time So real estate has seen a rapid growth with upward Institute for Technology and Management, Navi Mumbai Page 25
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel projection of property prices especially in Tier-I cities (Metros) and Tier-II cities (SemiUrban like Nagpur, Ahmadabad etc.). Property prices are now over the roof so banks are offering Home Loans at special interest rates to woo customers and they have seen tremendous growth in Home Loan applications over the last few years. SBI was offering Home Loans long way back. But there was liability factor that remain (Home is a biggest liability for middle and uppermiddle class which forms large chunk of Indian Population) even if you buy a Home because you need to pay interest along with the money you have taken loan. Thus, SBI Life started insuring Home Loans so that you can have a “Peace of Mind” not worrying about liability. In other words, “SBI Life- RiNn Raksha” is the answer for your home loan liability worries. Key Features of RiNn Raksha:  Cover can be availed for a Policy Term as low as 8 years and up to maximum period of 30 years.  Limited Premium Paying Option- 5 years  Up to 3 Co-Borrowers (including primary borrower) can be insured.  Tax Benefits* as per prevailing laws.  The premium is financed by bank.  Insurance cover that it protects works out to be less than Rs. 10 per day. So protection per day is less than cup of coffee and travel that people spends every day!!  Family inherits the Home not Home Loan. Institute for Technology and Management, Navi Mumbai Page 26
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Table 4: Rinn Raksha Plan Details 5.3. BANCA ONLINE Bancassurance Online (BAOL) is an intranet platform designed for those employees of State Bank Group who are interested in Life insurance business. It is a single point of getting information for the Certified Insurance Facilitators (CIFs). It helps the CIFs to communicate the right information to the customers by giving them access to the following features: Products: CIFs can get product snapshots and highlights Download Center: Download product brochures and forms for proposal, claims, policy servicing etc CIF Zone: CIFs can get personalized reports for their business and performance. They can login by entering their CIF code. Latest Updates & Events: It gives updated information about new products, services and events. Fund Details: Present and historic fund values for various products is shown Cracking Competition: Information about the life insurance industry is shown and it allows to compare SBI Life products with competitors. Branch Related Reports: Various useful reports can be downloaded Appendix 3 shows a look of the existing home page(s) of Bancassurance Online. Institute for Technology and Management, Navi Mumbai Page 27
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Bancassurance Online (BAOL) is a very helpful tool provided that the CIFs are able to exploit all the features provided. It has been observed that the tool is not being used widely amongst the CIFs. It is imperative to promote this tool so as to ultimately promote Bancassurance channel of marketing SBI Life products and tap the huge potential that exists due to the existing extensive network of State Bank Group branches all over the country. 5.4. ABOUT Z-CARDS Z-CARD is the registered trademark for the foldable guide invented by George McDonald when he was a travel writer and consultant for British Airways. McDonald found that traditional fold-out maps were too bulky to carry with him on travel research trips and wanted a more convenient solution. From this the Z-CARD was developed and launched in 1992, with the company as it looks today being founded in 2003. Since then we have been on a constant journey of development, taking Z-CARD Ltd from a singleproduct entity to a solutions-led agency focused on delivering high value communications to an increasingly mobile audience. The Z-CARD was quickly adopted as a marketing communications tool and reached such prevalence that the term z-card is now used as reference to many z-folds or concertina card and not just those produced by Z-CARD Ltd. While Z-CARD pioneered the z-fold market from 1992, a number of other companies have since entered the market by producing their own take on the z-fold format. The original inspiration for the product came from the familiar fold-out map format. Z-CARD has won industry recognition for their products, with clients winning awards such as Euro RSCG's Heist Awards. Loughborough University developed the Maths Card—a classic Z-Card format that opens out to reveal an extensive list of pure maths formulae—that also claimed top honors in the Direct Marketing category of the Heist Awards. Different types of Z-Cards: 1) Original Z-Card. 2) C-Fold. 3) K-Fold. 4) Book Fold. 5) Direct Mail. 1) Original Z- Card: - The Original Z-CARD is the ideal way to condense information into a retainable and highly portable format. Most popular product Institute for Technology and Management, Navi Mumbai Page 28
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel remains the 6-panel Z-CARD®. Perfect for all communications, there are many options for customizing inserts and covers. These include: Recycled or sustainable forest paper stocks. Digital printing for cost-effective small orders. Personalization options. Cover extras - pockets, RFID, lenticular. Z-CARD Specifications below are most popular Z-CARD sizes. There are many options for customizing inserts and covers. The smallest cover size that is offered is 48mm x 48mm and the largest is 150mm x 300mm. All sizes in between these are possible. 4 panel Credit Card* Cover: 85mm x 54mm Insert: 234mm x 200mm 4 panel Pocket Card* Cover: 108mm x 78mm Insert: 297mm x 420mm 8 panel Credit Card* Cover: 85mm x 54mm Insert: 234mm x 400mm 8 panel Pocket Card* Cover: 108mm x 78mm Insert: 297mm x 560mm 6 panel Credit Card* Cover: 85mm x 54mm Insert: 234mm x 300mm 6 panel Pocket Card* Cover: 108mm x 78mm Insert: 297mm x 280mm (* available in up to 13 panels) Figure 4: Original Z-Card layout 2) C-Fold: - The C-Fold Z-CARD is concertina folded and is a great lower cost option for conveying smaller amounts of information. It can be used for vouchers, Institute for Technology and Management, Navi Mumbai Page 29
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel support banners, product information and much more. Customization options include: Recycled or sustainable forest paper stocks. Digital printing for small orders. Cover extras - pockets, RFID, lenticular. C-Card specifications below are most popular C-Fold sizes. There are many options for customizing inserts and covers. The smallest cover size we offer is 48mm x 48mm and the largest is 150mm x 300mm. All sizes in between these are possible. (* available in up to 12 panels) 6 panel Credit Card* Cover: 85mm x 54mm Insert: 78mm x 400mm 6 panel Pocket Card* Cover: 108mm x 78mm Insert: 99mm x 560mm 8 panel Credit Card* Cover: 85mm x 54mm Insert: 78mm x 300mm 8 panel Pocket Card* Cover: 108mm x 78mm Insert: 99mm x 420mm Figure 5: C-Fold Layout 3) K-Fold: - K-Fold Z-CARD is the ideal format for delivering promotional coupons or vouchers. It is also one of the best formats for incorporating a response mechanism, with options including tear-off panels and horse-shoe re-moist. Customization options include: Tear-off vouchers/response forms Personalization Recycled or sustainable forest paper stocks Cover extras - pockets, RFID, lenticular. Below are most popular K-Fold sizes. There are many options for customizing inserts and covers. The smallest cover size we offer is 48mm x 48mm and the largest is 150mm x 300mm. All sizes in between these are possible. Institute for Technology and Management, Navi Mumbai Page 30
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 6 panel Credit Card* Cover: 85mm x 54mm Insert: 156mm x 400mm 6 panel Pocket Card* Cover: 108mm x 78mm Insert: 99mm x 420mm panels) 8 panel Credit Card* Cover: 85mm x 54mm Insert: 156mm x 300mm 8 panel Pocket Card* Cover: 108mm x 78mm Insert: 99mm x 560mm (* available in up to 13 Figure 6: K-Fold Layout 4) Book Fold: - Z-Book and Z-Wrap formats open like a book creating a tactile marketing tool that engages the end user. Each format contains a Z-CARD insert and can include: A cover pocket - perfect for travel cards or hotel room key cards. A closing mechanism - the Z-Wrap has a wrap-around cover, hinged like a book, that holds contents safely inside when closed. Below are most popular Book Fold sizes. There are many options for customizing inserts and covers, with a number of possible size variations. Z-Book 6 panel Credit Card* Cover: 85mm x 54mm (closed) Insert: 234mm x 300mm Z-Book 6 panel Pocket Card* Cover: 108mm x 78mm (closed) Insert: 297mm x 420mm Z-Wrap 6 panel Credit Card* Cover: 85mm x 54mm (closed) Insert: 234mm x 300mm (* available in up to 13 panels) Figure 7: Book Fold Layout. 5.5. ABOUT MDRT Founded in 1927, the Million Dollar Round Table (MDRT), The Premier Association of Financial Professionals, is an international, independent association of nearly 38,000 of the world's leading life insurance and financial services professionals from more than 450 Institute for Technology and Management, Navi Mumbai Page 31
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel companies in 79 countries. MDRT members demonstrate exceptional professional knowledge, strict ethical conduct and outstanding client service. MDRT membership is recognized internationally as the standard of sales excellence in the life insurance and financial services business. 5.5.1. Mission: To be a valued, member-driven, international network of leading insurance and investment financial services professionals/advisors who serve their clients by exemplary performance and the highest standards of ethics, knowledge, service and productivity. 5.5.2. History: In 1927, 32 extraordinary life insurance producers, each of whom had sold at least $1 million of life insurance, dreamed of a forum dedicated to fostering a highstandard, professional approach to life insurance sales and service. Founded on the belief that growth is a result of exchanging ideas, the concept was: "To receive, individuals must give." Out of this dream emerged MDRT – an international, independent association that represents the world's best sales professionals in the life insurance-based, financial services industry. MDRT, a positive influence in the life insurance industry, has developed a rich tradition of sharing knowledge for the benefit of clients, prospects, producers and companies. 5.5.3. Code of Ethics: MDRT members should be ever mindful that complete compliance with and observance of the Code of Ethics of the Million Dollar Round Table shall serve to promote the highest quality standards of membership. These standards will be beneficial to the public, and the insurance and financial services profession. 5.5.4. Strategic Plan:MDRT has a strategic plan that it follows when developing new programs and benefits for its members. The strategic plan contains nine goals and objectives to guide the organization in helping its members better serve their clients and learn from one another. 5.5.5. Executive Committee:MDRT is governed and managed by a five-member Executive Committee duly elected each year by the MDRT membership. 5.5.6. Court of the Table and Top of the Table: Court of the Table and Top of the Table serve as additional incentives for members to increase their levels of production. Court of the Table members must earn three times the MDRT base production requirement, and Top of the Table Institute for Technology and Management, Navi Mumbai Page 32
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel members must earn six times the base production requirement. Both Court of the Table and Top of the Table members can take advantage of additional member benefits provided exclusively to them. 5.5.7. Annual Meeting:The MDRT Annual Meeting has been described as a one-of-a-kind event, unrivaled in the world of business. Every year, approximately 4,000 of the world's top producers gather in a spirit of camaraderie for one of the greatest gatherings of financial services professionals in the world. Annual Meeting attendees are exposed to some of the finest and most innovative sales ideas in the life insurance-based, financial services business. The meeting offers about 100 speakers during its motivational Main Platform presentations, educational Focus Sessions and insightful breakfast and evening sessions. And, perhaps most importantly, members can network with other top financial services professionals from around the world, building friendships that last a lifetime. 5.5.8. Top of the Table Annual Meeting:The purpose of the Top of the Table Annual Meeting is to provide an annual educational meeting for the exchange of advanced sales ideas and for the development of interpersonal relationships among leading financial producers who are Top of the Table members. During the four-day meeting, about 40 professional, nonmember and Top of the Table member speakers discuss subjects of vital concern to those in the life insurance and financial services industry. 5.5.9. MDRT Experience:The purpose of this event is to bring MDRT's Annual Meeting experience to producers in other countries. This event, modeled after MDRT's prestigious Annual Meeting, delivers cutting-edge sales techniques and ideas, technical information and motivational concepts for those in the life insurance and financial services business. The MDRT Experience is open to both MDRT members and non-members. 5.5.10. MDRT Foundation: The MDRT Foundation is the philanthropic arm of MDRT. Since its formation in 1959, the MDRT Foundation has granted more than USD 26 million to charitable organizations serving people in 67 countries and all 50 U.S. states. The MDRT Foundation awards grants to charitable organizations that are empowering people in need in MDRT member communities worldwide. The grants given by the MDRT Foundation are distributed to organizations in which members have a vested interest. Grant recipients have either been endorsed by an MDRT member or receive money in honor of a member's volunteerism. Institute for Technology and Management, Navi Mumbai Page 33
  • 6. KEY ANALYSIS AND FINDINGS Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 6.1. FIELD WORK 6.1.1. SBI, Carter Road Branch, Bandra: - Reporting Person: - Mr. Ajay Singh (BDM) Products on Demand on that branch: - Child Plan, Smart Performer. Name of the CIF Present there: –Mrs. Hemlata. Target Customers- Middle Income customers but mostly targeted upon HNI and NRI customers aged from 20 to 80 years. Key Observations: CIF is not motivated enough. Does not push for products to customers as CIF might not be interested. There was unawareness about new products launched by SBI Life when asked about. Thus there was huge gap between knowledge about the Products. SBI Life conducts training for CIFs whenever there is new product launch or if there any modification about existing product. When the CIF questioned about this fact responded negative. Thus CIF does not attend training properly. CIFs are busy with their branch work and they are hardly focusing on insurance policy selling. 6.1.2. SBI , Turnor Road Branch, Bandra Reporting Person: - Mr. Ajay Singh (BDM) Products on Demand: - Smart Performer. Name of the CIF Present there –Mr. Ashutosh. Target Customers- Middle Income customers but mostly targeted upon HNI and NRI customers aged from 20 to 80 years. Key Observations: CIF have the proper knowledge about the products and most of the customers are also loyal to SBI so, they can be easily convinced from the minimum effort of CIF and they are ready to pay the premium of more than 2 lakhs. More HNI prospects are turning up for the insurance policy. Institute for Technology and Management, Navi Mumbai Page 34
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel This one is very active CIF as judged through by having the knowledge of competitors’ product and also maintains good relationships with the customers. 6.1.3. SBI, Naupada Branch, Thane Reporting Person: -Yogesh Deoghare (BDM Region-IV THANE) Products on Demand: - Child Plan, Smart Performer. Key Observations: During interaction with BDM it was found out that new CIF are not doing business as the old ones are doing. As per him only 40% new CIFs are doing business. Most of business is driven by old CIFs. Heavy work load from Branch to do its own business so concentrating more on Branch Business rather than cross-selling Insurance. Many CIFs are unaware about SBI Life products. Even if they are aware most of times they cannot push for products due to lack of knowledge of other competitor products. They cannot make comparison so many customer turns away resulting in loss of business. SBI Life provides training for CIFs periodically about product knowledge or for new products but many CIFs cannot attend that training due to lack of time(huge pressure from bank). Money is not a motivating factor since having various incentives for every quarter provided by SBI Life still many CIFs not willing to do business. 6.2. REWARDS AND RECOGNITIONS 6.2.1. For CIF: Brief Description:Calling was done as part of Reward Contest organized by SBI during Jan-FebMar, 2013 (better known as JFM Contest/ New Year Hungama Contest). The main objective behind calling was to monitor performance of CIFs as a SBI Life Representative and appreciate them who have done considerable amount of business as pre-defined by SBI Life. Also another objective is to make them aware about the rewards as many CIFs do not know what is reward structure followed by SBI Life and to increase their performance by mentioning about extra rewards they will be eligible for if they achieve next immediate shortfall in business. Calling was done in two parts:(1) CIFs meeting the Persistency Criteria. (2) CIFs not meeting the Persistency Criteria. Institute for Technology and Management, Navi Mumbai Page 35
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Along with that parallel contest was going on regarding Annual Club Membership Rewards where CIFs were eligible for rewards according to various clubs as mentioned below in increasing order of rewards: (i) AGM Club (ii) DGM Club (iii)GM Club (iv)CGM Club (v) MD Club Persistency Parameter: Persistency Parameter is most important criteria for qualifying for any reward. Premium as well as Policy Persistency of 50% is mandatory requirement. It is calculated using simple mathematical formula:Premium/Policy Persistency= Premium/Policy Collected * 100 (in %) Premium/Policy Due For Persistency Calculation, collectable Rated Premium at end of a Particular Quarter and collected with an extension of 1 month after Quarter end shall be taken into consideration. For Example- For Quarter-1 contest collectable dues as on 30th June, 2012 and collected as on 31st July, 2012 shall be taken for persistency percentage calculation (min. 50% required). 6.2.1.1. CIFs Meeting The Persistency Criteria: - Contest Total Calling= 720 0% 35% Informed about Contest 65% Could not be informed On Leave/Not well/Language problem Institute for Technology and Management, Navi Mumbai Page 36
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Number of CIFs Contest Total Calling= 720 500 450 400 350 300 250 200 150 100 50 0 469 248 3 Informed about Contest Could not be informed On Leave/Not well/Language problem Summary of Calling Figure 8: CIF calling summary those who met persistency criteria 6.2.1.2. CIFs Not Meeting The Persistency Criteria: Total CIFs called= 659 those who do not meet the persistency criteria in spite of eligibility for rewards in relation to amount of business done in particular quarter. Institute for Technology and Management, Navi Mumbai Page 37
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Sample Size- 659 Figure 9: CIF calling summary those who did not met persistency criteria Implications: In both the cases a large number of CIFs were not communicated. It may happen due to number of reasons. Those who were not picking up the call might be busy with their work. Those who have been transferred to other regions their contact numbers were not updated. Feeble responses from CIFs those who have not achieved persistency. Also those CIFs who met persistency very few of them really tracked their business details to know about their rewards they are eligible for. Many CIFs were not aware of what is Persistency so they were made aware of this fact and the importance of it for eligibility of any rewards. Some were not interested to do more business citing reasons that it is time for Annual Closing so they have to prioritize the Bank’s main business and too much pressure is affecting them to do Insurance Business. 6.2.2. Branch Manager Contest: Brief Description: This contest was again launched during same period i.e. JFM by SBI to reward the Branch Managers who looks after Branch. The objective was to reward them on basis of performance their branch did on Insurance Business selling. Institute for Technology and Management, Navi Mumbai Page 38
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Figure 10: Calling Summary for Branch Manager Contest Implications: Those who were busy can be tried later as many may answer when they are free. So the calling can be done again at later to increase the Contacted Column. Here also due to transfer they cannot be contacted so there must be system in place where updating of contact details takes place. Those who were contacted were not aware of their reward structure. So there should be a general awareness campaign before contest starts. Institute for Technology and Management, Navi Mumbai Page 39
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 6.3. LICENSE RENEWAL PROJECT Brief Description: This Project was generally a sort of awareness campaign for CIFs. For becoming a CIF one has to give exam and obtain a license from Regulatory Body i.e. IRDA on successful completion of exam. This license is valid for only 3 years and after that they have to renew their license. Most of CIFs that were interacted were not aware of their license expiry and continue to do business even after that. It has been seen that throughput of the system decreases because of license expiry and thus less number of CIFs can do their business as compared to before. This is larger than New CIFs being joined in the system. Thus this may be one of reason why there is decline in performance of Channel. 6.3.1. CIF whose license already expired: - Figure 11: Calling Summary of CIFs whose license already expired Figure 12: Break-Up of Responses of CIFs Interested in Renewing License Institute for Technology and Management, Navi Mumbai Page 40
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Table 5: Region-wise break up of Interested CIFs for renewal of license Figure 13: Break-Up of Responses of CIFs Not Interested in Renewing their License Implications: Those CIFs whose licenses were expired many of them are not aware about their license expiry. They need to be told that license renewal is mandatory to conduct business. Those CIFs who did not respond the reasons were: - wrong number or transferred, switched off, not reachable, temporary out of service etc. Those CIFs who were really interested to renew their license after being made aware have given reasons as based from Figure 12. Also the break-up of Interested CIFs according to Circle wise is given under Table 5. Those CIFs who were not at all interested the responses are shown in Figure 13. Main reasons seen here is huge pressure from Banks to do its own business which led to Non- Interested in doing cross-selling in Insurance Business. Institute for Technology and Management, Navi Mumbai Page 41
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 6.3.2. CIF whose license about to expire: 6.3.2.1.License about to be expiring during JFM Period (Quarter 4, FY 2012-13) Total CIFs Called= 198 Informed 8% 23% Not Interested 67% 2% Busy/Wrong No/Switched off Not Picking up Call Number of CIFs Total CIFs Called= 198 140 120 100 80 60 40 20 0 Series1 Informed Not Interested Busy/Wrong Not Picking up No/Switched Call off Status of Call Summary Figure 14: Calling Summary of CIFs license about to be expiring in Quarter-4 FY 2012-13 6.3.2.2.License about to be expiring during AMJ Period (Quarter 1, FY 2013-14) Institute for Technology and Management, Navi Mumbai Page 42
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Total CIFs Called= 946 48% Informed 52% Not Informed Total CIFs Called= 946 495 500 Number of CIFs 490 480 470 460 451 450 440 430 420 Informed Not Informed Status of Call Summary Figure 15: Calling Summary of CIFs license about to be expiring in Quarter-1 FY 2013-14 Total CIFs Informed= 495 0% 5% Interested Not Interested 95% Institute for Technology and Management, Navi Mumbai Not Understanding Language Page 43
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Number of CIFs Total CIFs Informed= 495 468 500 450 400 350 300 250 200 150 100 50 0 25 Interested 2 Not Interested Not Understanding Language Reasons Figure 16: Break-Up of Reasons for those CIFs that were informed Total CIFs Not Informed= 451 Switched off Busy Tone 6% 15% 11% 41% 10% 1% 13% Incoming Call Facility not there No. does not exist Temporary Out of Service Not Picking up Call 3% Wrong No. Number of CIFs Total CIFs Not Informed= 451 200 180 160 140 120 100 80 60 40 20 0 186 69 47 58 47 4 12 Reasons Institute for Technology and Management, Navi Mumbai 28 Page 44
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Figure 17: Break-Up of Reasons for those CIFs that were not informed Implications: There were also many cases in these where CIFs were unaware about their license expiry in near future date. Those CIFs who were informed majority of them were interested to renew their licenses. Those CIFs who were not informed has mostly their contact details wrong updated. Also numbers being switched off caused considerable amount of being not communicated. Reasons for not being informed are given in Figure 17. Not Interested cases being few were among either they were retired or about to retire or not getting the reward as expected and huge pressure from banks to do business were some reasons. 6.4. SURAKSHA CUSTOMER CALLING Brief Description: The main objective behind calling customers or lead suspects to convert them into prospects. The calling was done to close the deal of buying an Online Term Plan which is e-Suraksha Plus (For more details refer to Key Terms Related to Project). Also by feedback taken from customers to change the design of Online Layout of filling up Proposal Form was another objective. So Customer Centricity was kept at top most. Total Customer Called= 314 2% 7% Browser Problem 1% 9% 13% Not Picking up Call 12% 15% 9% 8% 17% 2% 5% Not Interested/Wants to cancel policy Unreachable/Wrong numbers/No. does not exist Institute for Technology and Management, Navi Mumbai Page 45
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Total Customer Called= 314 60 53 Number of Customers 50 40 46 40 39 20 29 28 30 24 17 21 7 10 5 5 0 Summary of Calling Figure 18: Summary of calling Customers for eSuraksha Plan Total Customer Called Browser Problem Not Picking up Call Not Interested/Wants to cancel policy 314 40 39 17 % 12.74 12.42 5.41 Unreachable/Wrong numbers/No. does not exist 28 8.92 Call after two days/one week 7 2.23 No Query/Product Brought,no issue Tick in one of three options Other Issues Complete details of product Have not applied for Language Problem No Number Total 53 16.88 24 46 21 5 5 29 314 7.64 14.65 6.69 1.59 1.59 9.24 100 Table 6: Break-Up Number as well as Percentage-wise distribution of Calling Summary Institute for Technology and Management, Navi Mumbai Page 46
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Implications:  Total customer called= 314.  Customer using different browser (mostly Chrome) and having problem=40.  17 customers are either not interested/already taken product want to cancel.  28 customers are either unreachable/wrong numbers.  7 customers requested calling after two-three days due to busy schedule.  53 customers have either no query or already brought product (no issues).  46 customers have various issues ranging from not having SBI A/C to claim process to enquiring for Mediclaim/Health Insurance or variable amount policies (1 customer does not want any phone call from SBI Life).  Tick in one of three options in Step2 not going to Step3=24.  Wants complete details of the product in mail=21.  5 customers haven’t applied for this product. (2 of them either friend/husband applied for them and not having any clue about the product).  5 customers were having problem of understanding English Language.  29 customers did not provide any number.  39 customers did not pick up any call. 6.5. MDRT SORTING Brief Description: Details about MDRT are given under Key Terms Related to Project. The main objective for this Project is to understand how many of active or performer CIFs gets recognized for MDRTs which is highest level of recognition for anyone doing Insurance Business. Also to get an idea how much Bancassurance Channel contributed to MDRT as compared to other Channels of SBI Life. MDRT Contributions 38, 2% 45, 3% 441, 27% SBI ASSOCIATE BANKS 1105, 68% Corporate Solution RRBs Total=1629 Page 47 Figure 19: SBI Life Channel-wise contribution of performer CIFs to MDRTs (FY-2013-14) Institute for Technology and Management, Navi Mumbai
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel SBI 76, 7% 75, 7% Total=1105 AHMEDABAD 42, 4% 69, 6% 91, 8% BANGALORE BENGAL 131, 12% 120, 11% BHOPAL 89, 8% BHUBANESHWAR 100, 9% 132, 12% 74, 6% 52, 5% 13, 1% 41, 4% CHANDIGARH CHENNAI DELHI HYDERABAD Figure 20: Break-Up of SBI Circle-wise contributions to MDRTs ASSOCIATE BANKS Total=441 48, 11% 142, 32% 52, 12% SBBJ SBH 59, 13% SBM SBOP 140, 32% SBT Figure 21: Break-Up of Associate Banks Circle-wise contributions to MDRTs Implications: Total Forms received in bulk= 2000 approx. Total forms received in Bancassurance Channel(SBI + Associate Banks + RRBs) 1629-38= 1591 (approx. 97.67%) SBI contributed 1105 MDRT CIFs (FY 2012-13) = 68%. Associate Banks (ABs) contributed 441 MDRT CIFs=27%. State Bank Group (SBI + ABs) contributed (1105+441) 1546= 95%. Corporate Solutions (another channel of SBI Life) contributed only 38 CIFs=2%. Institute for Technology and Management, Navi Mumbai Page 48
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Major revenue of business is due to Bancassurance Channel of SBI Life (Based on number of MDRT CIFs contributed by State Bank Group). From SBI a total of 21 CIFs have made it to COT, in Associate Banks a total of 7 CIFs have made it to COT. From North East Circle of SBI 1 CIF has made it to TOT. Largest numbers of MDRT CIFs were contributed from Delhi (132) and Mumbai (131) Circles of SBI (approx 12% each). After that SBI Bhopal Circle contributed to maximum number of MDRT CIFs (120i.e. approx 11%). Least number of MDRT CIFs are from SBI Chennai Circle (13 i.e. only 1%) and followed by SBI Chandigarh (41) and Bangalore (42) Circles (i.e. approx 4%). Highest contributor to MDRT CIFs from Associate Banks is State Bank of Bikaner and Jaipur (SBBJ – 142) (i.e. approx 32%) followed by State Bank of Hyderabad (SBH -140) (approx 32%). Least contributor is State Bank of Travancore (SBT-48 i.e. approx 11%) followed by State Bank of Patiala (SBOP-52 i.e. approx 12%) and State Bank of Mysore (SBM-59 i.e. approx 13%). Key Findings: After this some feedback was taken in general from Bancassurance Staffs regarding the MDRT produced every year so they said there is some decline over past few years. This year it contributed only 1629 MDRT CIFs where it used to be more than 2000 two years back. So there is again a reason in decline in Channel Performance. So by this activity also it came to know that many potential CIFs (active/performer CIFs) are not able to become MDRTs. Main reason as got to know from feedback is Persistency Parameter which many are not either aware of or many may do considerable amount of business but fail on this parameter. So even if many Performer CIFs do good amount of business but fail on Persistency (Policy as well as Premium) so only a handful of them become MDRTs. Thus considering a huge channel like Bancassurance and huge number of CIFs its MDRT Contribution is almost nil. 6.6. BANCA ONLINE ANALYSIS 6.6.1. Telephonic interviews (phase 1) ( Overall Statistics) Table 7: Overall Statistics Telephonic Interviews (phase 1) Institute for Technology and Management, Navi Mumbai Page 49
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Top of the mind issues: Accessibility/ Slow:Users felt that the portal does not open at times , it is slow including business illustrator, takes time to download. Late updates:Users felt that the reports, including persistency report, are not updated. Receipts of premium not updated until last day Top of the mind suggestions: Business Details:CIFs want breakup of policies done and eligibility of rewards accordingly. NAV details:Historical NAVs and Comparative charts are required by CIFs. Surrender value:Amount recoverable if a particular policy is surrendered is required Policy status:Status of policy should be shown before the time of acceptance/ rejection Feedback/ Notification Notifications of product updates, renewal time of a policy etc, sent by sms. Figure 22: The Non–Users of BAOL Institute for Technology and Management, Navi Mumbai Page 50
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Top of the mind issues & suggestions It is necessary to find out the proportion of CIFs who are not using Bancassurance Online at all and also the reasons for the same. Table 8: Non-User Summary 32% of the CIFs are not using BAOL presently. This not evenly distributed. The number of non-users is much more amongst the non-performer CIFs and also the CIFs of Associate Banks. Figure 23 shows percentage of non-users of BAOL in Non Performer category and Performer category. Figure 24 shows percentage of non-users of BAOL in Associate Banks (AB) and SBI Bank. Table 8 shows the reasons of Bancassurance Online not being used by 32% of CIFs. Figure 23: Break-up of Non-User CIFs into Performer and Non-Performer Figure 24: Break-up of Non-User CIFs from SBI and Associate Banks Institute for Technology and Management, Navi Mumbai Page 51
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Figure 25: Different Reasons for not using Banca Online Portal by CIFs Unawareness about the platform is the prime reason amongst the CIFs not using of BAOL. Observations based on Performance Table 9: Break-Up of Observations based on Performance Institute for Technology and Management, Navi Mumbai Page 52
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Figure 26: Top of mind issues and suggestions based on rated premium Implications:  Highest frequency of use for the CIFs in rated premium >50 lakhs category.  CIFs in category with rated premium > 50 lakhs have details of business as the top of mind suggestion.  Non-performers (=1 lakh rated premium) complaint most about speed. Observations based on Age Group Table 10: Observations based on Age Group Institute for Technology and Management, Navi Mumbai Page 53
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Figure 27: Top of mind issues and suggestions based on age group Implications: CIFs of higher age group(s) have higher average premium and want more business details. CIFs below 30 and low average premium have primary concern in the policy status. Observations based on number of years of association with SBI Life Table 11: Observations based on number of years of association with SBI Life Institute for Technology and Management, Navi Mumbai Page 54
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Figure 28: Top of the mind issues and suggestions based on years of association Implications  CIFs associated with SBI life for 2-5 years, have the highest average rated premium and ask for more business details.  CIFs associated with SBI Life for longer time but having lower YTD Rated premium (march’13) have felt maximum problem due to speed of the platform. 6.6.2. Visit to IT Department, SBI Life Office (Belapur) A visit was made to the IT department at SBI Life office in Belapur was made to discuss the feasibility of recommendations. This visit was generally done on an objective that there were some suggestions based on feedback from calling CIFs. In a meeting with Mr Randip Basu (IT Deptt. Head) the following were discussed: Formal contact shall be made with various departments responsible for the reports which are not working. Need of each report shall be reassessed and then uploaded accordingly. A new design for the home page of Bancassurance Online was suggested and accepted. The new design has been shown. Please refer Appendix 3 and Appendix 5. A new design for Custom Benefit Illustrator was suggested in which the customer’s details which are common for all products shall be taken once and Institute for Technology and Management, Navi Mumbai Page 55
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel then the product shall be chosen, this shall help to save time by removing redundancy when a customer is being shown possibility of multiple products. It was suggested that Custom Benefit Illustrator’s software should be made downloadable on the platform. Whenever a new version is uploaded, a notification can be sent to CIFs to upgrade. The file size is approx. 30 MB hence, it was noted that the State Bank server speed may get slow when multiple downloads occur. Therefore, a suggestion was made that the download could be allowed after 6 PM which would reduce load on State Bank server during busy hours. Automated welcome message can be sent to CIFs (personalised with name and CIF code). The problem with the tool ‘My Customer Portfolio’ was discussed, that it was not working properly. CIF Zone can have a view if CIFs business done the way it is shown in ‘aaram reports’ (which are a part of Management Information System at SBI Life, not accessible to CIFs but only to SBI Life staff). The ‘proposal tracker’ link shall be given in Bancassurance Online to allow CIFs to track policy status. A suggestion was made by IT department that Custom Benefit Illustrator if hosted on State Bank server instead of SBI Life server then the problem of speed shall be reduced as currently bandwidth size of SBI Life server reduces the speed. Different queries of CIF shall be mailed to info@baonline.com which can then forward the queries of various departments responsible. Institute for Technology and Management, Navi Mumbai Page 56
  • 7. DESIGNING OF Z-CARDS Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 7.1. RINN RAKSHA Z-CARD: - For RiNn Raksh the thinking was based on regarding the shape and size of Z-Card which was crucial in designing. For an idea, an access was made to last year simple design of ZCard as a sample to study upon. From there it was got to know how much information would be needed to be included in Z- Card so that everything in short is covered. Keeping in mind of above things the challenging task was to think of some innovative shape that will attract the attention of anybody using that card. As RiNn Raksha product was based on securing the Home Loans an idea struck that shape should be in size of a Home. The complete design is given in Appendix 2. (Details about RiNn Raksha Product is given in Key Terms Related to Project). 7.2. SMART CELEBRATIONS REWARD OPTIMIZER: As based on previous experience of calling CIFs as a part of telephonic conversation it was implied that many CIFs were unaware about their reward structure. This led to the making of Smart Celebration Reward Optimizer to help CIFs plan their business quarterwise as well as annually. For designing Smart Celebration Contest research was done by getting the knowledge about Z-Cards from its website and also from the previous year ZCard design. ( For Z-Card Details refer to Key Terms Related to Project). In Smart Celebration Reward Optimizer the thinking was based upon two thingsdesigning the structure for Reward Optimizer so that all the rewards get into that structure and then designing the illustrator so that CIFs could avail maximum rewards by doing certain amount of business. After so much of brainstorming, an idea came up with the optimizer wheel that is mentioned in Appendix 1. The proposed layout will be two layered structures (in the shape of circle) where one will rotate above the other. One circle will be giving details about the various rewards structures a CIF can get per quarter and another circle will contain the illustrators along with the various awareness campaigns on the back side of that circle. Institute for Technology and Management, Navi Mumbai Page 57
  • 8. LIMITATIONS Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel As undergoing tasks related to project there were indeed many limitations which might have interfered in actual results. Also some limitations have been listed down here is due to system itself. Thus on summing it up some of them has been mentioned below: Due to telephonic way of conducting interviews, the responses were recorded may not be as accurate as it would be in case of questionnaire format. Some of the respondents may have been biased while disclosing the issues they have in using Bancassurance Online. The analysis has been conducted assuming that the responses given were correct. The sample size of calling CIFs or Customers may not represent the complete population. Due to huge pressure from Banks to do their business CIFs do not cross-sell much. In spite of many rewards and recognition programs from SBI Life many CIFs are not interested to do business even if they have time. They are happy with Bank’s business. Thus it may be seen that money is not a motivating factor. Many CIFs cannot be tracked because they get transferred often and their mobile numbers are not updated with SBI Life. Due to transfer CIF does not feel motivated to do business in new surroundings. Those CIFs who are there in rural areas branch do very little business due to poor demand. Less co-ordination of CIF with BDM is also a major limitation. Often BDM cannot track individual CIFs as they continuously go on field visit and training programs. Less awareness of Banca Online Portal which is exclusively dedicated to CIFs for any type of enquiry related to Insurance Business. Less use of technology is also a major limitation. Designing Z-Cards is purely subjective to Perception that varies from Individual to Individual. Thus the design may or may not be similar to some other perceptions. Institute for Technology and Management, Navi Mumbai Page 58
  • 9. CONCLUSIONS Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 9.1. About Banca Online Intranet Portal Unawareness about the portal is the prime reason for less use of Bancassurance Online. Also, amongst the user CIFs, there is unawareness about some of the existing features of BAOL. It is required that an initiative be taken so that awareness about the existence of the platform and also its features be spread to all the CIFs. CIFs looking for specific information on the platform are not able to find it. The present design of the platform BAOL is not user friendly to navigate. This acts as a barrier to retrieve the required information quickly. There is unawareness about some features and reports offered in the platform. Some of the banks of State Bank Group may have slower server speed, due to which accessibility issues come up. Custom Benefit Illustrator and other calculators could be provided in downloadable form on BAOL. The policy details required by CIFs are available on SBI Life website (sbilife.co.in) under the policy tracker link. A link to the same can be added in BAOL. Current design of custom benefit illustrator and other calculators is more time consuming. The problem of slow speed of website is not there in every branch. It may depend upon SBI Bank server and connectivity speed in a particular branch. 9.2. About Calling CIFs for License Renewal and Reward Recognition Awareness Many CIFs were unaware of their license renewal due to less communication from BDMs. During calling most of CIFs’ contact number from lists given in excel sheet were wrong. So they could not be communicated. Apart from this there were many CIFs whose numbers cannot be reached due to many reasons (temporary out of service, not reachable, switched off etc.) Many CIFs were not aware of Reward they were eligible for. Most of them had no clue what persistency is all about and had to be explained as it is most crucial for any reward. Due to less use or unawareness of “Banca Online Portal” whatever may be the reason CIF could not access their information like reward points and rewards them being eligible. Institute for Technology and Management, Navi Mumbai Page 59
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Many of them wanted to do business and earn reward points and rewards from SBI Life but due to huge pressure from SBI and Associate Banks to do their business are hampering them to go extra mile! Information about the CIFs whose licenses need to be renewed should be passed on to BDM. Even the rewards and incentive details of the CIFs should be communicated to their respective BDMs because it is easy to communicate with BDMs rather than to track CIFs for passing on the information. 9.3. Designing Z- Cards Design in any form is not as easy as there are many ideas but few to implement. Innovation comes from hard work as there is lot of rejections before actual design is approved. So one must not give up and continue thinking process to be an innovator. Z-Cards should match with product theme you are making. For example in RiNn Raksha a product from SBI Life to insure home against loan so design was based on structure of home (theme we got from product features). 9.4. Suraksha Plus project While telephonic conversations with the Customers from South region especially, there was a communication gap in the sense that they do not understand Hindi or English language. Maximum of the customers those who are not interested were either expecting maturity benefit. The customers who switched to other vendors were disappointed with the SBI Life because they were awaiting responses from SBI Life representative. Customers were also complaining that information about the browsers (that need to be used for filling up the form to reach payment gateway) were not visible to them and for that reason they were trying to go by Google Chrome browsers (number of users are mentioned in the figure). Institute for Technology and Management, Navi Mumbai Page 60
  • 10.RECOMMENDATIONS Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 10.1. Banca Online Portal Awareness campaign about the portal can be distributed in various State Bank Group branches in form a single page flyer. Appendix 4 shows a proposed design for the same. Design of Bancassurance Online home page(s) need to be enhanced so as to avoid less useful content on home page and useful links should be included. A design has been proposed which eliminates the need of choosing a circle (or associate bank) when non circle (or associate bank) specific information is required. The proposed design for home page has been shown in Appendix 5. An interactive tour to Bancassurance Online can be provided as a link for the CIFs who are not fully aware about all the feature of the intranet platform Bancassurance Online. A proposed tour has been designed in Microsoft PowerPoint presentation form, a screenshot of the same has been shown in Appendix 6. A ‘welcome message’ for new CIFs can be sent to their emails at the time of getting associated with SBI Life. This message can also tell about features of BAOL. A proposed design of such a message has been attached as Appendix 7. Design of Custom Benefit Illustrator needs to be enhanced so as to make it time saving. The new design may take the customers information (which is required for most products) first and then allow to choose a product. This shall remove redundancy when same customer is being allowed to choose from multiple products. It can also be provided in downloadable form. Business details including number of policies done and eligibility for rewards should be provided in CIF Zone. 10.2. CIF Calling for Renewal and Reward Recognition Awareness CIFs not picking up call/not reachable/switched off/busy tone can be tried again by calling as many may respond now. Not interested CIFs (except retirement reason) may be motivated by their respective BDMs. Among wrong number at least 70-80% is transferred so data may be updated from previous branch or from branch they joined recently. Message may be delivered in mail or through SMS to CIFs prior to two months advance of renewal due date. Institute for Technology and Management, Navi Mumbai Page 61
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Many times during calling it is seen that BDM does not co-ordinate with CIFs. So when CIF gets transferred or when CIF from other region joins then BDM has no clue which CIF has been transferred or joined. There need to be more co-ordination of BDMs and CIFs. BDM has got list of CIFs whose license is going to expire much beforehand. But still due to above reason CIFs are unaware. So BDM needs to make them aware of their license expiry date prior to two months. From CIF end they need to register their mobile number if they are changing their numbers on event being transferred. Also if they are changing their mobile numbers they need to inform SBI Life office regarding the same. So a Circular regarding this can be sent to CIFs. Most of them could not be contacted (Approx. 35% in case of MDRT CIFs JFM Contest and 40% in case of Branch Manager Contest). The main reason being transferred so if there is a system being in place like updating of mobile numbers of those who are transferred then process of information flow becomes efficient. It is better to inform them through mails or through SMS so that they can receive information which will be handy for them. All these information are given in Banca Online Intranet Portal but still CIFs do not access this portal so this portal should be highlighted for its maximum usage by a short demonstration of portal to CIFs. Use of Z-Cards for knowing about different rewards structure. 10.3. Suraksha Plus Project It should be clearly mentioned on website regarding access to this plan can be only through Internet Explorer browser version 8 and Mozilla Firefox browser version 15.0,16.0 or 17.0. Regarding “Need Advice” option, its description should also be there on top of the page so that customers having difficulty in understanding the plan should put tick mark under this option. Life Insurance Cover of this plan should extend from 10 years to 20 years term policy. ‘Take a tour’ animation can be put up for showing process flow of filling up of form so that customer can understand and fill up accordingly. Suraksha Plus Online plan should be redirected from sbilife.co.in in order to make them easy to go through the process of buying. Institute for Technology and Management, Navi Mumbai Page 62
  • 11.REFERENCES Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel Borislav Kolaric, Leposava Grubic Nešic, Robert Petrovic and Slobodan Radojcic (2012), “Employee Perceptions of the Efficient Application of the Intranet in an E-Business”. International Journal of Management Vol. 29 No. 4 Dec 2012 Ajai Kumar Singhal and Rohit Singh (2010), “Bancassurance: Leveraging on the Synergy between Banking and Insurance Industry”. The IUP Journal of Risk & Insurance, Vol. VII, Nos. 1 & 2, 2010 Mark Teunissen (2008), “Bancassurance: Tapping into the Banking Strength”. The International Association for the Study of Insurance Economics 1018-5895/08. Bill Rogers (2001), “Get Ready for Next Generation Intranet”. Interactive Week; 3/26/2001, Vol. 8 Issue 12, p77, 1p http://www.sbilife.co.in/sbilife/content/home. http://www.sbilife.co.in/sbilife/images/File/documents/Annual_Report_2011_12.pdf. http://www.sbilife.co.in/sbilife/content/8_0. http://www.zcard.co.uk IC-33 study text for Pre-recruitment Qualification of Life Agents. A. Karunagaran, “Bancassurance : A Feasible Strategy for Banks in India ?” Reserve Bank of India Occasional Papers Vol. 27, No. 3, Winter 2006. Institute for Technology and Management, Navi Mumbai Page 63
  • 12.APPENDIX Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 1. Smart Celebration Reward Optimizer Design: (i) This will be right on the top. It will rotate on a similar circle below. Below one will be fixed. (ii) Below Circle Top Part: - It will contain all illustrators which will be a sort of Business Planner for CIFs for planning their business not only quarterly but also annually so that they can optimize their rewards. They can also see difference between amounts of rewards according to difference of business in thousands. Institute for Technology and Management, Navi Mumbai Page 64
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel All illustrator will be shown here with increasing amount of business annually and accordingly Rewards that a CIF will be eligible for. (iii)Below Circle Bottom Part: - It will contain essential information which will be for CIFs. Institute for Technology and Management, Navi Mumbai useful Page 65
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 2. RiNn Raksha Z-Card Design: i. Front part of Rinn Rakhsa is given below: ii. On the back side it will look like the figure given below Institute for Technology and Management, Navi Mumbai Page 66
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 3. Suraksha Plus New Layout The new layout was designed according to feedback received from the customers intend to buy this plan but was having issues while filling up the form. Earlier ther was separate Need Advice column which was incorporated in above design. Because of customer clicking in Need Advice more frequently without reading properly the payment page did not crop up and thus the website does not redirect the page to Payment Authentication Gateway. Institute for Technology and Management, Navi Mumbai Page 67
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 4. Current Bancassurance Home Page screen shots After choosing a circle or an associate bank to which the CIF belongs, the following home page occurs: - Institute for Technology and Management, Navi Mumbai Page 68
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 7. Proposed flyer for awareness campaign Institute for Technology and Management, Navi Mumbai Page 69
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 5. Proposed Home Page design Institute for Technology and Management, Navi Mumbai Page 70
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 6. Proposed online tour of BAOL Institute for Technology and Management, Navi Mumbai Page 71
  • Understanding Various Aspects & Leveraging Online Platform for Channel Development: - A case of Bancassurance Channel 7. Proposed welcome message for new CIFs Welcome Message Dear _________ Congratulations on becoming a CIF! We are pleased to have you as a part of SBI Life family. SBI Life has a wide range of life insurance products to cater to the needs of all customers. We are confident that you shall be able to assist your clients in choosing the right product for them. Our complete support in doing so shall be there with you at all times. We hope that you will enjoy working with us and feel free to revert back to us in case of any needs in future. Bancassurance Online An intranet portal has been developed by SBI Life for your benefit. It will help you to communicate faster the right information to your customers and therefore improve customer satisfaction. You can access Bancassurance Online through useful links on the State Bank Times website. At Bancassurance online, you will have access to the following features:  CIF Zone: Get personalized reports for your business and performance. Get access to hot leads! Just Login by entering “CIF<<your CIF Code>>”.  Latest Updates & Events: Get updated information about new products, services and events.  Products: Get product snapshots and highlights.  Fund Details: See present and historic fund values for various products  Download Center: Download product brochures and forms for proposal, claims, policy servicing etc.  Cracking Competition: Get to know about the life insurance industry, compare SBI Life products with competitors and lot more  Branch Related Reports: Download various useful reports and stay updated.  Contact List: Get all the relevant contacts in one place. Contact Us For any queries, feel free to send us an e-mail at this id: baonline@sbilife.co.in Institute for Technology and Management, Navi Mumbai Page 72