Hdfc standard life_project


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Hdfc standard life_project

  1. 1. INTRODUCTION The business of insurance is related to the protection of the economic values ofassets. Every asset has a value. The asset would have been created through the efforts ofthe owner. The asset is valuable to the owner, because he expects to get some benefits fromit. It is a benefit because it meets some of his needs. The benefit may be an income or insome other form. In the case of a factory, the product generated by it is sold and income isgenerated. In the case of a motor car, it provides comfort and convenience intransportation. There is no direct income. Both are assets and provide benefits.Every asset is expected to last for a certain period of time during which it will provide thebenefits. After that, the benefit may not be available. There is a life time for a machine in afactory or a cow or a motor car .None of them will last for ever. The owner is aware of thisand he can so manage his affairs that by the end of that period or life-time, a substitute ismade available. Thus, he makes sure that the benefit is not lost. However, the asset may getlost earlier. An accident or some other unfortunate event may destroy it or make itincapable of giving the benefits. An epidemic may kill the cow suddenly. In that case, theowner and those enjoying the benefits there from would be deprived of the benefits. Theplanned substitute would not have been ready. There is an adverse or unpleasant situation.Insurance is a mechanism that helps to reduce the effects of such adverse situations. Itpromises to pay to the owner or beneficiary of the asset, a certain sum if the loss occurs.PURPOSE AND NEED OF INSURANCEToday, there is no shortage of investment options for a person to choose from. Modern dayinvestments include gold, property, fixed income instruments, mutual funds and of course,life insurance. Given the plethora of choices, it becomes imperative to make the rightchoice when investing our hard-earned money. Life insurance is a unique investment thathelps us to meet our dual needs - saving for lifes important goals, and protecting ourassets.Life insurance is designed to protect us and our family against financial uncertainties thatmay result due to unfortunate demise or illness. We can also view it as a comprehensive 1
  2. 2. financial instrument – as a part of our financial planning offering savings & investmentfacilities along with cover against financial loss. By choosing the right policy as per ourneeds i.e. customized solutions, we will be able to plan for a secure future for our self andour loved ones.Insurance need will change as our life does, from starting to work to enjoying our goldenyears and all the stages in between. Each one of these stages may pose a different insuranceneed/cover for us. In this section, we have drawn up the basic life stages and help us toanalyze various insurance needs accordingly. Life Stage Primary Need Life Insurance Product Young & Single Asset creation Wealth creation plans Young & Just married Asset creation & protection Wealth creation and mortgage protection plans Married with kids Childrens education, Asset Education insurance, creation and protection mortgage protection & wealth creation plans Middle aged with grown up Planning for retirement & Retirement solutions & kids asset protection mortgage protection Across all life-stages Health plans Health InsuranceAssets are insured, because they are likely to be destroyed or made non-functional beforethe expected life time, through accidental occurrences. Such possible occurrences are 2
  3. 3. called perils. Fire, floods, breakdowns, lightning, earthquakes, etc. are perlis. If such perilscan cause damage to the asset. We say that the asset is exposed to that risk. Perils are theevents. Risks are the consequential losses or damages. The risk to an owner of a building,because of the peril of an earthquake, may be a few lakhs or a few crores of rupees,depending on the cost of the building, the contents in it and the extent of damage.Insurance does not protect the asset. It does not prevent its loss due to the peril. The perilcannot be avoided through insurance. The risk can sometimes be avoided, through bettersafety and damage control measures. Insurance only tries to reduce the impact of the riskon the owner of the asset and those who depend on that asset. They are the ones whobenefit from the asset and therefore, would lose, when the asset is damaged. Insurance onlycompensates for the losses and that too, not fully.Only economic consequences can be insured. If the loss is not financial, insurance may notbe possible. Examples of non-economic losses are love and affection of parents, leadershipof managers, sentimental attachments to family heirlooms, innovative and creative abilities,etc.The risk only means that there is a possibility of loss or damage. The damage may or maynot happen. The earthquakes may occur, but the building may not have been affected at all.Insurance is done against the possibility that the damage may happen. There has to be anuncertainty about the risk. The word ‘possibility’ implies uncertainty. Insurance is relevantonly if there are uncertainties. If there is no uncertainty about the occurrence of an event, itcannot be insured against. In the case of a human being, death is certain, but the time ofdeath is uncertain. The person is insured, because of the uncertainty about the time of hisdeath. In the case of a person who is terminally ill, the time of death is not uncertain,though not exactly known. It would be ‘soon’. He cannot be insured.CHARACTERISTICS OF INSURANCE  Sharing of risk 3
  4. 4.  Co-operative device  Evaluation of risk  Payment of happening of a special event  The amount of payment depends on the nature of loss incurred  The success of insurance business depends upon the large number of people insured against similar risk.  Insurance is a plan, which spreads the risk and losses of few people among a large number of people.  The insurance is a plan in which the insured transfers his risk on the insurer.OBJECTIVE OF THE STUDYThis is an overall study about the different departments of the organisation. This study hasbeen designed with the following objectives.  To familiar with the organisation environment  To understand the organisational structure and the services provided  To have an exposure to the functions of major departments  To interact with the managers at various level of organisational hierarchyBRANCH SELECTED FOR THE STUDY o Malleswaram Branch, BangaloreSCOPE OF THE STUDY o To get in touch with the industrial and organisational environment o To understand the actual working condition in the organizationPERIOD OF THE STUDYFrom 24th June 2008 to 30th July 2008 4
  5. 5. METHODOLOGY OF THE STUDY • Source of data Primary data and Secondary dataPRIMARY DATA: - Primary data is collected directly through observations and interviewwith managers and executives at various level of the organization.SECONDARY DATA: - Secondary data is collected from various publications, journals,company broucher, internet and Annual reports of HDFCSLIC.LIMITATION OF STUDY • The non availability of certain data due to is confidential nature. • The study was mainly based on personal interviews and thus personal bias is included. LIFE INSURANCE 5
  6. 6. Life insurance is a contract that pledges payment of an amount to the person assured (or hisnominee) on the happening of the event insured against.The contract is valid for payment of the insured amount during:  The date of maturity, or  Specified dates at periodic intervals, or  Unfortunate death, if it occurs earlierAmong other things, the contract also provides for the payment of premium periodically tothe Corporation by the policyholder. Life insurance is universally acknowledged to be aninstitution, which eliminates risk, substituting certainty for uncertainty and comes to thetimely aid of the family in the unfortunate event of death of the breadwinner.By and large, life insurance is civilisations partial solution to the problems caused bydeath. Life insurance, in short, is concerned with two hazards that stand across the life-pathof every person: 1. That of dying prematurely leaves a dependent family to fend for itself. 2. That of living till old age without visible means of support.HISTORY OF INSURANCEInsurance has been known to exist in some form or other since 3000BC. The Chinesetraders, traveling treacherous river rapids would distribute their goods among severalvessels, so that loss from any one vessel being lost would be partial and shared and nottotal. The Babylonian traders would agree to pay additional sums to lenders, as the pricefor writing off the loans, in case of the shipment being stolen. The inhabitants of Rhodesadopted the principle of ‘general average’, whereby, if goods are shipped together, theowners would bear the losses in proportion, if loss occurs, due to jettisoning duringdistress. (Captains of ships caught in storms, would throw away some of the cargo toreduce the weight and restore balance. Such throwing away is called jettisoning).TheGreeks had started benevolent societies in the late 7th century AD, to take care of thefuneral and families of members who died. The friendly societies of England were 6
  7. 7. similarly constituted. The Great Fire of London in1666, in which more than 13000 houseswere lost, gave a boost to insurance and the first fire insurance company, called the Fireoffice, was started in1680.The origins of insurance business as in vogue at present, is traced to the Lloyd’s CoffeeHouse in London. Traders, who used to gather in the Lloyd’s coffee house in London,agreed to share the losses to their goods while being carried by ships. The losses used tooccur because of pirates who robbed on the high seas or because of bad weather spoilingthe goods or sinking the ship. In India, insurance began in 1818 with life insurance beingtransacted by an English company the Oriental Life Insurance Company Limited. The firstIndian company was the Bombay Mutual Assurance Society Ltd. formed in 1870 inMumbai. This was followed by the Bharat Insurance Co. in 1896 in Delhi, the Empire ofIndia in1897 in Mumbai, the United India in Chennai, the National, the national Indian andthe Hindustan Cooperative in Kolkata.Later, were established the cooperative assurance in Lahore, the Bombay life (originallycalled the Swadeshi Life), the Indian Mercantile, the New India the Jupiter in Mumbai andthe Lakshmi in New Delhi. These were all Indian companies started as a result of theswadeshi movement in the early 1900s.By the year 1956, when the life insurance businesswas nationalised and the Life Insurance Corporation of India (LIC) was formed on 1 stSeptember 1956, there were 170 companies and 75 provident fund societies transacting lifeinsurance business in India .After the amendments to the relevant laws in 1999, the LIC didnot have the exclusive privilege of doing life insurance business in India. Now, nineteennew life insures had been registered and were transacting life insurance business in India.A BRIEF 7
  8. 8. The business of life insurance in India in its existing form started in India in the year 1818with the establishment of the Oriental Life Insurance Company in Calcutta.Some of the important milestones in the life insurance business in India are:1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate thelife insurance business.1928 - The Indian Insurance Companies Act enacted to enable the government to collectstatistical information about both life and non-life insurance businesses.1938 - Earlier legislation consolidated and amended to by the Insurance Act with theobjective of protecting the interests of the insuring public.1956 - 245 Indian and foreign insurers and provident societies taken over by the centralgovernment and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,with a capital contribution of Rs. 5 crores from the Government of India.The General insurance business in India, on the other hand, can trace its roots to the TritonInsurance Company Ltd., the first general insurance company established in the year 1850in Calcutta by the British.Some of the important milestones in the general insurance business in India are:1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classesof general insurance business.1957 - General Insurance Council, a wing of the Insurance Association of India, frames acode of conduct for ensuring fair conduct and sound business practices.1968 - The Insurance Act amended to regulate investments and set minimum solvencymargins and the Tariff Advisory Committee set up.1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized thegeneral insurance business in India with effect from 1st January 1973. 8
  9. 9. 107 insurers amalgamated and grouped into four company’s viz. the National InsuranceCompany Ltd., the New India Assurance Company Ltd., the Oriental Insurance CompanyLtd. and the United India Insurance Company Ltd. GIC incorporated as a company.LAW AND REGULATIONSINSURANCE ACT, 1938The insurance Act 1938, which came into effect from 1 st July 1939,and was amended in1950 and later in 1999, is the principal enactment relating to the business of insurance inIndia. The Act contains provisions regarding licensing of agents and their remunerations,prohibition rebates, and protection of policyholder’s interests. It also has provisions placinglimits on the expenses of insurers, use of funds and patterns of investments, maintainingsolvency levels, and constitution of Insurance Associations and Insurance Councils and theTariff Advisory Committee for general insurance.Till the constitution of the IRDA be the IRDA act in1999, the Controller of Insurance wasresponsible for the administration of the Insurance Act. Since 1999, the IRDA has replacedthe Controller of Insurance .The insurance Act vests the IRDA with powers to  Register insurance companies and also cancel their registrations  Monitor and certify the soundness of the terms of the life insurance business  Make regulations relating to the conduct of the business of insurance  Inspect documents of insurers  Appoint additional directors  Issue directions  Take over the management of an insurer and appoint administrators  Adjudicate on disputes between insurers and intermediaries  Decide on disputes relating to settlement of claims of amounts not exceeding Rs.2000.By the end of December 2006, the IRDA had issued more than 25 regulations and alsoissued several guidelines to insurers on a variety of matters. 9
  10. 10. LIFE INSURANCE CORPORATION ACT, 1956This Act was the basis for the establishment of the L.I.C. as body corporate consisting ofnot more than 16 members appointed by the Central Government, one of the beingChairman. The corporation’s duty was to carry on life insurance business to the bestadvantage of the community. Section 30 gave the L.I.C. exclusive privilege ceased as aresult of the amendments made in 1999.These amendments were made in pursuance of theGovernment’s policy of economic reforms.16 insurance companies were registered and hadcommenced life insurance business till 31.08.2007.INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT 1999This Act passed in December 1999, provided for the establishment of the IRDA to protectthe interests of holders of insurance policies, to regulate, promote and ensure orderlygrowth of the insurance industry and for matters connected therewith or incidental thereto.It also sought to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956and the General Insurance Business (Nationalization) Act, 1972.The IRDA is a corporate body .It is advised by an Insurance Advisory Committeeconsisting of not more than 25 members to represent the interests of commerce ,industry,transport, agriculture, consumer forums, surveyors, agents intermediaries, organisationsengaged in safety and loss prevention, research bodies and employees associations in theinsurance sector. It replaces the ‘Controller of Insurance’ to administer the provisions ofthe Insurance Act. That includes registrations, licensing, and laying down regulations forthe proper conduct of the business and the protection of the interests of policyholders. 10
  11. 11. INDIAN INSURANCE INDUSTRY:InsurersInsurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:Life Insurers:  Life Insurance Corporation of India (LIC)General Insurers:  General Insurance Corporation of India (GIC)GIC had four subsidiary companies, namely ( with effect from Dec2000, these subsidiarieshave been de-linked from the parent company and made as independent insurancecompanies. 1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited, 3. National Insurance Company Limited 4. United India Insurance Company Limited. 11
  12. 12. List of other Life Insurers after 01.04.2000 Table -1 S.No. Name of the Company 1 HDFC Standard Life Insurance Company Ltd 2 Max New York Life Insurance Co. Ltd. 3 ICICI Prudential Life Insurance Company Ltd. 4 Kotak Mahindra Old Mutual Life Insurance Limited 5 Birla Sun Life Insurance Company Ltd. 6 Tata AIG Life Insurance Company Ltd. 7 SBI Life Insurance Company Limited . 8 ING Vysya Life Insurance Company Private Limited 9 Bajaj Allianz Life Insurance Company Limited 10 Metlife India Insurance Company Ltd. 11 Aviva Life Insurance Co. India Pvt. Ltd. 12 Sahara India Insurance Company Ltd. 13 Shriram Life Insurance Company Ltd. 14 Bharti AXA Life Insurance Company Ltd. 15 Reliance Life Insurance Company Limited. 16 Future Generali Life Insurance Company Ltd. 17 IDBI Fortis Life Insurance Company Ltd. 18 Canara HSBC Oriental Bank of Commerce Life Insurance Co. LtdCONTRIBUTION OF LIFE INSURANCE SECTOR IN THE INDIAN ECONOMY (i) Life Insurance is the only sector which garners long term savings. (ii) Spread of financial services in rural areas and amongst socially less privileged. (iii) Long term funds for infrastructure. 12
  13. 13. (iv) Strong positive correlation between development of capital markets and insurance/pension sector. COMPANY WISE DETAILS Table-2 Capital Deployed Company Name Capital Deployed Dec 07 (Rs crs) Aviva Life 758.20 Bajaj Allianz Life 875.56 Bharti Axa 113.23 Birla Sunlife 1000.00 Future Generali 115.00 HDFC Std Life 1123.59 ICICI Prudential 3361.68 ING Vysya 884.76 Kotak 509.43 Max New York 907.43 MetLife 962.75 Reliance Life 1324.00 Sahara Life 232.00 SBI Life 600.00 Shriram Life 125.00 TATA AIG 697.00 COMPANY WISE DETAILS Table-3 Number of Employees Company Name Number of direct employees Dec 07 (Nos) Aviva Life 5645 Bajaj Allianz Life 20086 Bharti Axa 4602 Birla Sunlife 7486 Future Generali 129 HDFC Std Life 13415 13
  14. 14. ICICI Prudential 31217 ING Vysya 6982 Kotak 4576 Max New York 6402 MetLife 4578 Reliance Life 12902 Sahara Life 245 SBI Life 3610 Shriram Life 1212 TATA AIG 5719 COMPANY WISE DETAILS Table-4 Premium Income December 2007Total including Regular Single Renewal Total group business Premium Premium Premium (Rs crs) Aviva Life 632.38 13.37 522.01 1167.76Bajaj Allianz Life 3346.15 433.57 1455.29 5235.01 Bharti Axa 50.32 1.35 1.40 53.07 Birla Sunlife 1076.87 20.74 764.91 1862.52 Future Generali 0.62 0.00 0.00 0.62 HDFC Std Life 1387.61 151.03 1269.44 2808.08ICICI Prudential 4205.93 457.72 3093.88 7757.53 ING Vysya 404.87 18.96 221.50 645.33 Kotak 523.37 35.42 326.75 885.54 Max New York 848.05 189.54 725.85 1763.44 MetLife 394.75 15.77 181.74 592.26 Reliance Life 1062.52 324.96 216.71 1604.19 Sahara Life 40.21 23.03 8.15 71.39 14
  15. 15. SBI Life 1425.99 929.28 393.02 2748.29 Shriram Life 85.20 131.01 25.90 242.11 TATA AIG 522.91 74.30 751.37 1348.58 LIC 17929.50 17584.05 48758.28 84271.80COMPANY PROFILEHDFC Standard Life Insurance Company Ltd. is one of Indias leading private insurancecompanies, which offers a range of individual and group insurance solutions. It is a jointventure between Housing Development Finance Corporation Limited (HDFC Ltd.), Indiasleading housing finance institution and a Group Company of the Standard Life, UK. HDFCas on December 31, 2007 holds 72.38 per cent of equity in the joint venture.HDFC Standard Life  Founded on 14th August 2000  Received a license on 23rd October 2000  First private insurance company to get a license from the IRDA  Declared 7th consecutive bonusVisionThe most successful and admired life insurance company, which means that we are themost trusted company, the easiest to deal with, offer the best value for money, and set thestandards in the industry. The most obvious choice for all.Values 15
  16. 16. Values that we observe while we work:  Integrity  Innovation  Customer centric  People Care “One for all and all for one”  Team work  Joy and SimplicityBranches Zonal office 9 Regional Offices 29 Branch office and Spoke Locations 569 16
  17. 17. Finance Minister – Inaugurating HDFCSLIC Head Office January 2001HDFCSLIC Growth  The average EPI is Rs.34,000  EPI grew from Rs 1426 crores to Rs 2600crores in 2007-08Bancassurance Partners 17
  18. 18. Stake Holding Pattern 27.62% HDFC Standard Life 72.38 %Key StrengthsFinancial ExpertiseAs a joint venture of leading financial services groups, HDFC Standard Life has thefinancial expertise required to manage your long-term investments safely and efficiently.Range of Solutions 18
  19. 19. A range of individual and group solutions, which can be easily customized to specificneeds. HDFCSLIC group solutions have been designed to offer us complete flexibilitycombined with a low charging structure.Track Record so farGross premium income, for the year ending March 31, 2008 stood at Rs.4,859 crores andnew business premium income stood at Rs.2,685 crores. The company has covered over9,59,000 lives year ending March 31, 2008.Accolades and Recognition  Rated as the "Best New Insurer - 2003" by Outlook Money magazine, India’s number 1 personal finance magazine.  Rated by Business world as Indias Most Respected Private Life Insurance Company in 2004.  HDFC Standard Life Selected as 4Ps Power Brand 2006, for being one of Indias Top 25 Most Innovative Companies Board Members Brief profile of the Board of Directors • Mr. Deepak S Parekh is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. He 19
  20. 20. was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).• Mr. Keki M Mistry joined the Board of Directors of the Company in December, 2000. He is currently the Managing Director of HDFC Limited. He joined HDFC Limited in 1981 and became an Executive Director in 1993. He was appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of the Institute of Chartered Accountants of India and a member of the Michigan Association of Certified Public Accountants.• Mr. Alexander M Crombie joined the Board of Directors of the Company in April, 2002. He has been with the Standard Life Group for 34 years holding various senior management positions. He was appointed as the Group Chief Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of the Faculty of Actuaries in Scotland.• Ms. Marcia D Campbell is currently the Group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and Shared Services Centre. Ms. Campbell joined the Board of Directors in November 2005.• Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/ s. James Capel & Co. holding the positions of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Directors in November 2005.• Mr. Gautam R Divan is a practicing Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored 20
  21. 21. several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. • Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice- President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton School and BE (Honors) from Birla Institute of Technology and Sciences. • Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India (RBI). • Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since November, 2000. Prior to this, he was the Managing Director of HDFC Limited since 1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian Institute of Technology, Bombay and a Masters Degree in Business Administration from The American University, Washington DC. • Ms. Renu S. Karnad is the Executive director of HDFC Limited, is a graduate in Law and holds a Masters degree in economics from Delhi University. She has been employed with HDFC Limited since 1978 and was appointed as the Executive Director in 2000. She is responsible for overseeing all aspects of lending operations of HDFC Limited.PROMOTERS HDFC LIMITED  Incorporated in 1977 to provide home ownership by providing long term loans  Focus on Excellence; Customer Satisfaction and enhancing Shareholder value  Almost 90% of initial shareholding in the hands of domestic institutions and retail investors. Currently 78% of shares held by FII. 21
  22. 22.  Rated “AAA” by CRISIL and ICRA  HDFC is India’s leading housing finance institution and has helped build more than 23,00,000 houses since its incorporation in 1977.  In Financial Year 2003-04 its assets under management crossed Rs. 36,000 Cr.  As at March 31, 2004, outstanding deposits stood at Rs. 7,840 crores. The depositor base now stands at around 1 million depositors.  Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year  Stable and experienced management  High service standards  Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development.  Presented the ‘Dream Home’ award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards.Awards and Accolades  HDFC won the the award for “Investment Management in India ’’ at the Euromoney 2006 Real Estate Awards  “Best Home loan Provider ’’ title at the Zee Pinnacle Awards 2006  Limca Book of Records,2006:HDFC for the landmark achievement of One Lakh Crore  “Best strategy ’’, at the 4Ps Business – product , price , promotion , place of distribution, Marketing & Advertising Power Awards 2006  Dun &Bradstreet – American Express Corporate Awards 2006HDFC Group Companies 22
  23. 23. Future Activities DISTRIBUTION SECURITISATION 23
  24. 24. STANDARD LIFEThe Standard Life Assurance Company ("Standard Life") was established in 1825 and thefirst Standard Life Assurance Company Act was passed by Parliament in 1832. StandardLife was reincorporated as a mutual assurance company in 1925.The Standard Life group originally operated only through branches or agencies of themutual company in the United Kingdom and certain other countries.Its Canadian branch was founded in 1833 and its Irish operations in 1838. This largelyremained the structure of the group until 1996, when it opened a branch in Frankfurt,Germany with the aim of exporting its UK life assurance and pensions operating model tocapitalize on the opportunities presented by EC Directive 92/96/EEC (the “Third LifeDirective”) and offer a product range in that market with features which local providerswere unable to offer.In the 1990s, the group also sought to diversify its operations into areas whichcomplemented its core life assurance and pensions business, with the intention ofpositioning itself as a broad range financial services provider.Banking, Healthcare & Investments –The group set up Standard Life Bank, its UK mortgage and retail savings bankingsubsidiary, in 1998 and Standard Life Investments, which had previously been the in-houseinvestment management unit of the group’s life assurance and pensions business, wasseparated into a distinct legal entity in the same year, with the aim of establishing it as an 24
  25. 25. independent investment management business providing services to both the group andthird party retail and institutional clients. The group acquired Prime Health Limited(subsequently renamed Standard Life Healthcare) in the United Kingdom in 2000. StandardLife Healthcare expanded in March 2006 with the acquisition of the PMI business of FirstAssist.Standard Life Asia Limited/Joint ventures –The group’s Hong Kong subsidiary, Standard Life Asia Limited (“SL Asia”), wasincorporated in 1999 as a joint venture and became a wholly-owned subsidiary of StandardLife in 2002. The group’s operations in Hong Kong were established to give the group apresence in the Far East from which it could expand into China. The group’s joint venturesin India with Housing Development Finance Corporation Limited (“HDFC”) wereincorporated in 2000 (in relation to the life assurance and pensions joint venture) and 2003(in relation to the investment management joint venture). The group’s joint venture inChina with Tianjin Economic Development Area General Company (“TEDA”) becameoperational in 2003.Standard Life International Limited –The group also incorporated Standard Life International Limited (“SLIL”) in 2005 for thepurposes of providing the group with an offshore vehicle, based in Ireland, through whichit could sell tax-efficient investment products into the United Kingdom. Sales of theseproducts commenced in 2006.Service Company –Following the group’s strategic review in 2004, the group established a service companystructure for the provision of central corporate services to the group’s business units.Standard Life Employee Services Limited (“SLESL”) supplies a wide range of centralservices to the rest of the group, including IT, facilities, legal and human resources 25
  26. 26. services, and employs staff working in the group’s UK and Irish operations (other than SLI,SLB and SLH, which employ their staff directly). This service company structure wascreated to enable Standard Life to comply with regulatory restrictions on the provision ofnon-insurance services and to exploit group-wide synergies. Mission What we do; Our mission is to build valuable customer relationships by helping customers grow and protect their assets. Vision What we aspire to achieve; Our vision is to help our customers around the world feel confident about their future wealth and wellbeing.Overall corporate purpose Why we exist;Our corporate purpose is to generate sustainable, high-quality returns for our shareholders.(Delivery, Efficiency and Opportunity driving shareholder value)Strategy 26
  27. 27. How we will deliver our mission and vision; Our strategy is to build valuable customer relationships with leading service and compelling propositions through: • creating capital efficient, innovative products • opening new routes to markets • leveraging investment management expertise and performance • driving for operational excellenceSNAPSHOT-I  Founded in 1825  Providing a range of savings, pension, protection and investment products  Standard Life listed on 10 July 2006, the biggest float on the London Stock Exchange in the last five years.SNAPSHOT-II Head Office Edinburgh, Scotland (UK) United Kingdom 31 Branches Canada 11 Branches Ireland 7 Branches Germany 1 Branches Austria 1 Sales Office Hong Kong 1 Representative OfficeFINANCIAL STRENTH 27
  28. 28.  Standard Life Investments assets held at 30 June 2006: INR 10,469,791,000,000 or 1046979 Crores  Worldwide insurance new premium income for full year at 31 December 2005: INR 518,160,431,000 or 51816 CroresINDIAN MARKET EXPERIENCE  First market entry - 1847  Innovative products and processes  Last claim settled in 1997GROUP COMPANIES  Standard Life Bank offers a range of mortgages and savings products, and had mortgage book of £10.6 billion* as at 31 December 2005.  Standard Life Investments manages assets for the group as well as third parties, and has a record of strong investment performance  Standard Life Healthcare is one of the largest private medical insurance providers in the UK. 28
  29. 29. PRODUCT PROFILEHDFC Standard Life offers a bouquet of insurance solutions to meet every need. HDFCStandard Life, cater to both, individuals as well as to companies looking to provide benefitsto their employees.For individuals, a range of protection, investment, pension and savings plans that assist andnurture dreams apart from providing protection.For organizations a host of customized solutions that range from Group Term Insurance,Gratuity, Leave Encashment and Superannuation Products. These affordable plans apartfrom providing long term value to the employees help in enhancing goodwill of thecompany.(1) INDIVIDUAL PRODUCTSHDFC Standard Life realize that not everyone has the same kind of needs. Keeping this inmind, they have varied range of products that we can choose from to suit all our needs.These will help secure our future as well as the future of our family.Protection PlansProtection plans protect our family against the loss of our income or the burden of a loan inthe event of our unfortunate demise, disability or sickness. These plans offer valuablepeace of mind at a small price.Protection range includes:  Term Assurance Plan 29
  30. 30. A pure risk cover plan, which gives us protection against the uncertainties of life. TheHDFC Term Assurance Plan is an insurance policy that is designed to help secure ourfamilys financial needs. The plan does this by providing a lump sum to the family of thelife assured in case of death or critical illness (if option is chosen) of the life assured duringthe term of the contract. One can choose the lump sum that would replace the income lostto ones family in the unfortunate event of ones death.ADDITIONAL OPTIONAL BENEFITS SUMMARY Critical Illness(CI) Benefit  Will pay an amount, equal to the Sum Assured selected under this benefit, on diagnosis of any one of the 6 critical illnesses. The Sum Assured is payable only if we survive for 30 days after the date of CI Benefit claim.  Once such a claim is settled, no further CI Benefit is payable. However, the basic policy continues. Accidental Death Benefit (ADB)  Will pay an additional amount, equal to the sum Assured selected under this benefit, in case of our unfortunable demise: o Due to an accident, and o Within 90 days of the accident. Accelerated Sum Assured (ASA)Benefit  Will pay an amount, equal to the Sum Assured selected under this benefit, on diagnosis of any one of the 6 critical illnesses.  Once such a claim is settled, our basic policy terminates without value. The two optional benefits CI Benefit and ASA Benefit cannot be taken together.  Loan Cover Term Assurance Plan  Home Loan Protection PlanInvestment Plans 30
  31. 31. HDFC Standard Life provides you with attractive long term returns through regularbonuses.Investment range includes:  Single Premium Whole Of Life PlanHDFC Single Premium Whole of Life Insurance Plan is a tailor-made plan well suited tomeet our long-term investment needs. This participating plan offers us the followingbenefits:  Whole of life plan aimed at providing long-term real growth of your money.  Single premium investment plan.  In case of your unfortunate demise during the policy term, this participating (‘With Profits’) insurance plan will pay your family the Sum Assured and compound Reversionary Bonuses, which are usually added annually. An additional Terminal Bonus may be paid depending on the performance of the underlying investments.  During Guaranteed Surrender Periods you get the Sum Assured and all bonuses vested as at the date of surrender.Pension PlansPension Plans help us to secure our financial independence even after retirement.Pension range includes:  Personal Pension PlanHDFC Personal Pension Plan is an insurance policy that is designed to provide a post -retirement income for life with the freedom to choose our retirement date. We can chooseour premium, the Sum Assured and our retirement date. At the end of the policy term, Wewill receive the Sum Assured plus any attaching bonus, which will provide our postretirement income. The HDFC Personal Pension Plan is an insurance policy, which canbenefit us in the following ways:  Provides a post retirement income in our golden years.  Gives us the flexibility to plan our retirement date.  Gives us tax benefits on our premiums. 31
  32. 32. The plan receives simple Reversionary Bonuses, which are usually added annually. At theend of the term an additional Terminal Bonus may be paid depending on the performanceof the underlying investment.  Unit Linked Pension  Unit Linked Pension PlusSavings PlansHDFC Standard Life Savings Plans offer flexible options to build savings for our futureneeds such as buying a dream home or fulfilling our children’s immediate and future needs.Savings range includes:  Endowment Assurance PlanThe HDFC Endowment Assurance Plan gives us:  An ideal way to secure your long-term financial goals.  Valuable protection to your family by way of lump sum payment in case of your unfortunate demise within policy term.  Lump sum payment (basic Sum Assured plus any bonus additions) on survival up to maturity date.  Very flexible benefit options and payment options.In case of our unfortunate demise during the policy term, this participating (With Profits)insurance plan will pay our family the Sum Assured (together with the attached bonuses)we had chosen. 32
  33. 33. The plan receives simple Reversionary Bonuses, which are usually added annually. At theend of the term an additional Terminal Bonus may be paid depending on the performanceof the underlying investment .  Assurance Plan  Savings Assurance Plan  Childern’s PlanHDFC Childrens Plan gives us:  Invaluable financial support to our child.  A choice to customise an ideal plan for our child.  Multiple options for multiple benefits.The HDFC Childrens Plan is designed to secure our childs future by giving our child (thebeneficiary) a guaranteed lump sum, on maturity or in case of our unfortunate demise, earlyin the policy term. The premiums, paid by us, are invested by the company to give yougood long-term returns.The plan receives simple Reversionary Bonuses, which are usually added annually. At theend of the term an additional Terminal Bonus may be paid depending on the performanceof the underlying investment .  Money Back  Unit Linked Endowment Suvidha The HDFC Unit Linked Endowment Suvidha gives us:  An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. 33
  34. 34.  Valuable protection to your family in case you are not around.  Flexible premium payment options.  Access to your accumulated fund before maturity.  No need to go for medical. Just signing a “Declaration of Health” statement will do!We can choose our premium and the investment fund or funds. They will then invest ourpremium, net of premium allocation charges in our chosen funds in the proportion wespecify. At the end of the policy term, we will receive the accumulated value of our funds.In case of our unfortunate demise during the policy term, they will pay the greater of ourSum Assured (less any withdrawals we have made in the two years before our claim) andour total fund value to our family.Use HDFC Standard Life’s excellent investment options to maximize our savings & secureour and our family’s future. They will provide financial security for our family in ourabsence.All Unit Linked Life Insurance plans are different from traditional insurance plansand are subject to different risk factors.  Unit Linked Endowment Suvidha Plus  Unit Linked Endowment Plus II  Unit Linked Young Star Suvidha  Unit Linked Young Star Suvidha Plus  Unit Linked Young Star Plus II  Unit Linked Enhanced Life Protection II  Simplilife The HDFC SimpliLife gives:  Valuable protection to your family in case you are not around.  An outstanding investment opportunity by providing a choice of thoroughly researched and selected investments. 34
  35. 35. One we have chosen our investment fund or funds, they will then invest our premium, netof premium allocation charges in the proportion we specify. At the end of the policy termof 15 years, you will receive the accumulated value of our funds.In case of your unfortunate demise during the policy term of 15 years, they will pay thefollowing to our family.  The Unit Fund Value.  Plus Sum Assured of Rs. 1 Lakh.All Unit Linked Life insurance plans are different from traditional insurance plansand are subject to different risk factors.(2) GROUP PRODUCTSHDFC Standard Life has the most comprehensive list of products for progressiveemployers who wish to provide the best and most innovative employee benefit solutions totheir employees. HDFC Standard Life offer different products for different needs ofemployers ranging from term insurance plans for pure protection to voluntary plans such assuperannuation and leave encashment. They offer the following group products to ouresteemed corporate clients.  Group Term InsuranceThe Group Term Insurance (GTI) plan meets this need and serves as an ideal way forcompanies to reinforce their bond with their employees. The sort of needs, we, as anemployer need to cater to could be in form of:  Employee benefits.  Cover for housing or vehicle loans given by us to our employees.  A GTI cover for future service gratuity liability to be taken along with the HDFC Group Unit Linked Plan.The HDFC Group Term Insurance is a cost-effective plan that addresses these needs. Inaddition we have the choice to opt for a GTI with an experience discount feature ("Profit 35
  36. 36. Share"), where a discount is given on future premiums in case of favorable claimexperience (subject to group size).The HDFC group term insurance plan will have the following structure:  One year renewable term insurance plan.  One master policy issued covering all members of the group.  sum assured is payable on death (either due to natural causes or accidents).The plan covers death due to any cause; accidental or natural, and hence is morecomprehensive than Group Personal Accident Insurance. Several multinationalcorporations, large Indian companies, foreign banks and software companies have alreadychosen the HDFC Group Term Insurance, an innovative product from HDFC Standard LifeInsurance, to protect their employees.Optional Rider Benefits:  Accidental Death Benefit.  Total Permanent Disability.  Total Permanent and Partial Disability Benefit.  Critical Illness Benefit.  Terminal Illness Benefit.  Group Variable Term Insurance  Group Unit-Linked Plan  An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company  Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes(3) SOCIAL PRODUCTS  Development Insurance Plan 36
  37. 37. Development Insurance plan is an insurance plan which provides life cover to members ofa Development Agency for a term of one year. On the death of any member of the groupinsured during the year of cover, a lump sum is paid to that member’s beneficiaries to helpmeet some of the immediate financial needs following their loss.EligibilityMembers of the development agency and their spouses with:  Minimum age at the start of the policy 18 years last birthday  Maximum age at the start of policy 50 years last birthdayEmployees of the Development Agency are not eligible to join the group. The group to becovered is only eligible if it contains more than 500 members.Premium PaymentsThe premium to be paid will be quoted per member in the group and will be the same forall members of the group. The premium can only be paid by the Development Agency as asingle lump sum that includes all premiums for the group to be covered. Cover will notstart until the premium and all the member information in our specified format has beenreceived. The premium rate is Rs.25 per Rs.10,000 of lump sum, per member.BenefitsOn the death of each member covered by the policy during the year of cover a lump sumequal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death isas a result of an accident, an additional lump sum will be paid equal to half the sumassured. There are no benefits paid at the end of the year of cover and there is no surrendervalue available at any time.The role of the Development AgencyDue to the nature of the groups covered, HDFC Standard Life will be passing certainadministrative tasks onto the Development Agency. By passing on these tasks the premiumcharged can be lower. These tasks would include:  Submission of member data in a specified computer format 37
  38. 38.  Collection of premiums from group members  Recording changes in the details of group members  Disbursement of claim payments and the mortality rebate (if any) to group membersThese tasks would be in addition to the usual duties of a policyholder such as:  Payment of premiums  Reporting of claims  Keeping policy holder information up to dateTraining and support will be available to give guidance on how to complete the tasksappropriately. Since these additional tasks will impose a burden on the DevelopmentAgency, the Development Agency may charge Rs.10 administration fee to their members.Prohibition of rebatesSection 41 of the insurance act,1938 states  No person shall allow or offer to allow, either directly or indirectly ,as an Inducement to any person to take out or renew or continue as insurance in respect Of any kind of risk relating to lives or property in India ,any rebate of the whole or Part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any Rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer  If any person fails to comply with sub regulation(previous point) above, he shall be liable to payment of a fine which may extend to rupees five hundredTAX BENEFITS INCOME TAX GROSS ANNUAL HOW MUCH HDFC SECTION SALARY TAX CAN WE STANDARD LIFE SAVE? PLANS Sec. 80C Across All income Upto Rs.33,990 All the life Slabs saved on investment insurance plans of Rs. 1,00,000. 38
  39. 39. Sec. 80 CCC Across all income Upto Rs.33,990 All the pension slabs. saved on Investment plans. of Rs.1,00,000. Sec. 80 D* Across all income Upto Rs.3,399 All the health slabs. saved on Investment insurance riders of available with the Rs. 10,000 conventional plans. TOTAL SAVINGS Rs. 37,389 POSSIBLE ** Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000. Sec. 10 (10)D Under Sec. 10(10D), the benefits we receive completely tax-free, subject to the conditions laid down therein.* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured andWaiver of Premium Benefit.** These calculations are illustrative and based on our understanding of current taxlegislations, which are subject to change. ORGANISATION STRUCTURE CHART -1 39
  40. 40. MD & CEOGM- Sales and HOD - IT HOD - Legal & GM -Finance & GM- HR GM – Marketing Secretarial Actuarial Operation and Underwriting Zonal Services Business Managers HOD-Audit HOD-HR Head-North Zonal Managers Sales National Training Zonal Services Actuarial Manager HR Business Head- Managers South HOD -Health Zonal Managers -Sales HOD - HOD-Institutional. Medical OPERATION Sales Regional Managers HOD -Underwriting HOD-Marketing Territory Managers Process Finance Controller HOD-Sales Training Branch Managers HOD-Channel HOD-Accounts Development Sales Development Managers MARKETING DEPARTMENT 40
  41. 41. Different goals have been proposed to guide the marketing practitioner. The most commonview is that the marketer’s goal is to maximize the markets consumption of whatever thecompany is producing. Marketing success means selling more and more products in themarkets.Duties and responsibility of marketing department  Developing the customer relationship  On time product delivery and providing product information to the customers  Sales promotional activities  Creating customer satisfaction CHART SHOWING HIERARCHY OF MARKETING DEPARTMENT CHART -2 GM SALES & MARKETING HOD MANAGER TELECALLING MANAGER TELECALLING ZONAL MANAGER SALES DEPARTMENT 41
  42. 42. Sales at HDFC Standard Life cover an array of activities. HDFC Standard Life practicestwo types of sales channel. They are  Retail channel sales  Alternate channel salesRetail channel salesRetail channel sales are done through the help of financial consultant and salesdevelopment managers. In this channel financial consultant plays a vital role in selling theinsurance policies in the market.Alternate channel salesAlternate channel sales comprises of direct sales .Direct sales taps database to generatehigh quality leads for profitable business under direct sales these are create of recentcampaigns as well as details such as database list, target audience. Direct sales is donethrough the sales development managers (direct). CHART SHOWING HIERARCHY OF RETAIL SALES DAPARTMENT CHART -3 42
  45. 45. Human Resource Department has multiple goals. These include employee competencydevelopment, employee motivation development and organizational climate development.Employees require a variety of competencies to perform different tasks or functionsrequired by their jobs. The nature of jobs is constantly changing due to change inenvironment, changes in organizational priorities, goals and strategies, changes in theprofiles of fellow employees, changes in technology, new opportunities, new challenges,new knowledge base etc. Such changes in the nature of jobs require continuousdevelopment of employee competencies to perform the job well.Human Resource Development is said to be the core of a larger system known as HumanResource System (HRS), wherein Human Resource Development is mainly concerned withproviding learning experience for the people associated with an organization through abehavioral approach adopting various processes. In a broader sense, the term HumanResource Development means those learning experience, which are organized for a specifictime and designed to bring about the possibility of behavioral change.The main functions of Human Resource Department are:  Recruitment  Staffing  Performance appraisal  Training need analysis  Employee communication  Environmental regulations  House keeping CHART SHOWING HIERARCHY OF HUMAN RESOURCE DEPARTMENT 45
  47. 47. Role Profile –Channel Development ManagerDirect Responsibilities(1) Team Building  Resource recruitment (Recruitment Consultant, Project Trainee).(2) Training & Induction  Training program for the resources  Joint field work with resources(3) Planning & Implementation of Lead Generation Activities  Minimum Business Opportunity Presentation per week  Road shows  Bottom Line Activity(4) Resource Motivation and Drive  One vendor review meet per week(Channel Development Manager to review)  One vendor meet per month( Area Manager Channel Development to address)  Rewards to top performers(5) IRDA Training & Examination  Financial consultant 50 hours training tracking through recruitment consultant  IRDA examination tracking through recruitment consultant(6) MIS & Documentation  Documentation of vendor contracts & payment modes  MIS on recruitment & licensing of financial consultant (Branch Manager/Territory Manager wise. CHART SHOWING HIERARCHY OF CHANNEL DEVELOPMENT CHART -6 47
  49. 49. The main functions of Training Department are:  Proper maintenance of all the equipment in the company such as printer, scanner, fax machine, video conferencing equipment etc.  Keep record of stationery requirement in the various departments.  Tickets booking of the employee if they are traveling for the company purpose.  Purchasing of the stationery items.  House keeping work. CHART SHOWING HIERARCHY OF ADMINISTRATION DEPARTMENT CHART -7 HEAD HR ADMINISTRATION SENIOR MANAGER ADMINISTRATION MANAGER ADMINISTRATION ASSISTANT MANAGER ADMINISTRATION SENIOR EXECUTIVE EXECUTIVE SUPPORT STAFF LEGAL DEPARTMENT 49
  50. 50. The function of legal department is handling the legal issues of the company and solves theissue. The legal executive duties to see that there should not be any illegal work in thecompany premises .Legal executive has also duties like handle the cases for the company ifany cases are in the court. CHART SHOWING HIERARCHY OF LEGAL DEPARTMENT CHART -8 MANAGING DIRECTOR COMPANY SECREATARY & LEGAL HEAD ZONAL LEGAL EXECUTIVE RISK MANAGEMENT DEPARTMENT 50
  51. 51. Risk management is a structured approach to managing uncertainty related to a threat, asequence of human activities including: risk assessment, strategies development to manageit, and mitigation of risk using managerial resources.The strategies include transferring the risk to another party, avoiding the risk, reducing thenegative effect of the risk, and accepting some or all of the consequences of a particularrisk. Risk management is simply a practice of systematically selecting cost effectiveapproaches for minimising the effect of threat realization to the organization . CHART SHOWING HIERARCHY OF RISK MANAGEMENT DEPARTMENT CHART -9 BOARD OF DIRECTORS SECRETARY AUDIT OFFICER TRAINING DEPARTMENTThe main functions of Training Department are: 51
  52. 52.  Conduct the induction program on company requirement.  Training to the existing employee in the company.  Training to the financial consultant every month.  Conduct the IRDA exam classes on regular basis. CHART SHOWING HIERARCHY OF TRAINING DEPARTMENT CHART -10 NATIONAL TRAING MANAGER ZONAL SERVICES MANAGER ZONAL TRAINING MANAGER REGIONAL TRAING MANAGER TRAINING OFFICER TRAINING OFFICER CONSULTANT OPERATION DEPARTMENTThe main functions of Operation Department are: 52
  53. 53.  Verify the insurance policy application of the customers. Feed the data of the applicants in to the computer. Maintain the file of the customer’s documents. Login the application and inform to the concern department. Send daily report to the higher authorityCHART SHOWING HIERARCHY OF OPERATION DEPARTMENT CHART -11 GM OPERATION BUSINESS HEAD ZONAL SERVICE MANAGER HOD OF OPERATION ZONAL OPERATION MANAGER BRANCH OPERATION MANAGER TEAM MANAGER OPERATION EXECUTIVE OPERATION OFFICER GRADUATE TRAINEE (GT) AGENCY DEPARTMENT 53
  54. 54. The main functions of Agency Department are:  Verify the financial consultant application form.  Feed the applicants data in to the computer  Maintain the file of financial consultants application  Keep proper record for the IRDA exam and inform to the concern department.  Send daily report to the higher authority. CHART SHOWING HIERARCHY OF AGENCY DEPARTMENT CHART -12 GM OPERATION BUSINESS HEAD ZONAL SERVICE MANAGER HOD OF OPERATION ZONAL OPERATION BRANCH OPERATION MANAGER MANAGER TEAM MANAGER OPERATION EXECUTIVE AGENCY OFFICERS MEDICAL DEPARTMENT 54
  55. 55. The main functions of Medical Department are:  Verify the medical information given by the customer in the insurance application.  Inform the customer for the medical check-up.  Arrange the medical check-up facility.  Tied up with the hospital for the medical check-up and other medical related issues.  Daily report to be submitted to the higher authority. CHART SHOWING HIERARCHY OF MEDICAL DEPARTMENT CHART -13 SENIOR VICE PRESIDENT MANAGER MEDICAL SUPPORT EXECUTIVE MEDICAL SUPPORT OFFICER MEDICAL SUPPORTSWOT ANALYSIS 55
  56. 56. SWOT analysis is a tool for auditing an organization and its environment. It is the firststage of planning and helps marketers to focus on key issues. SWOT stands for strengths,weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.Opportunities and threats are external factors.In SWOT, strengths and weaknesses are internal factors. For example: strength could be:  Patents  Strong brand names  Good reputation among customers  Cost advantages from proprietary know-how  Exclusive access to high grade natural resources  Favorable access to distribution networksA weakness could be:  Lack of patent protection  A weak brand name  Poor reputation among customers  High cost structure  Lack of access to the best natural resources  Lack of access to key distribution channels 56
  57. 57. In SWOT, opportunities and threats are external factors. For example: An opportunitycould be:  an unfulfilled customer need  arrival of new technologies  loosening of regulations  removal of international trade barriersA threat could be:  shifts in consumer tastes away from the firms products  emergence of substitute products  new regulations  increased trade barriersThe SWOT MatrixA firm should not necessarily pursue the more lucrative opportunities. Rather, it may havea better chance at developing a competitive advantage by identifying a fit between thefirms strengths and upcoming opportunities. In some cases, the firm can overcome aweakness in order to prepare itself to pursue a compelling opportunity.To develop strategies that take into account the SWOT profile, a matrix of these factors canbe constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below: SWOT / TOWS Matrix Strengths Weaknesses Opportunities S-O strategies W-O strategies Threats S-T strategies W-T strategies • S-O strategies pursue opportunities that are a good fit to the companys strengths. • W-O strategies overcome weaknesses to pursue opportunities. 57
  58. 58. • S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. • W-T strategies establish a defensive plan to prevent the firms weaknesses from making it highly susceptible to external threats.HSFC STANDARD LIFESTRENGTHS  Financial Expertise As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.  RANGE OF SOLUTIONS HDFCSLIC a range of individual and group solutions, which can be easily customized to specific needs. HDFCSLIC group solutions have been designed to offer complete flexibility combined with a low charging structure.  TRACK RECORD SO FAR HDFCSLIC gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859 crores and new business premium income stood at Rs. 2,685 crores. The company has covered over 9,59,000 lives year ending March 31, 2008.  Money power which makes them ignorant about the gestation period.  Large network branches which helped to customer for the payment  Brand image ,business experience and innovative products  The financial consultant are very selectively chosen have excellent communication skills.  Service quality which is crux of their mission  HDFCSLIC declared 7th consecutive bonus. 58
  59. 59.  The average EPI is Rs.34,000.  It is the fastest growing Pvt. Life Insurance Company in India.WEAKNESS  High targets for financial consultants and for the sales departments.  Many competitors in the market offer same product by the title difference in the premium brand and offerings.  Sustainable to risk associated with investments in money markets.  Try to catch middle lower people also.OPPORTUNITIES  Huge market is literally untapped, out of estimated 320 millions insurable markets only 20% of the population is insured.  Health insurance and pension schemes, an estimated market potential of approximately $15 billion.  HDFCSLIC should give the insurance coverage both to parent and child so that their life could be covered in both cases. The customer doesn’t mind paying some extra premium for thatTHREATS  Players like ICICI Prudential and Birla Sun Life with low premium for the same plans.  Entery of many other private companies with equally strong experience and financial strength of foreign partners making the competition difficult and saturating the urban markets.  Current Govt. policies do not encourage gross domestic savings. If the tax liability of the service can rises ,the customer will have little money to invest. 59
  60. 60.  LIC has woken up from sleep and is following competitive strategies .Its huge surplus in the Life Fund gives a capability to lodge price war.VisionThe most successful and admired life insurance company, which means that we are themost trusted company, the easiest to deal with, offer the best value for money, and set thestandards in the industry. The most obvious choice for all.ValuesValues that we observe while we work:  Integrity  Innovation  Customer centric  People Care “One for all and all for one”  Team work  Joy and Simplicity 60
  61. 61. Findings  Motivated workforce  Participative management  Weekly team meeting among executive  High performing employees have clear opportunity for growth  Finance department is centralize and all the finance related work is operated from head branch Mumbai.  Company should come up with branch in the rural areas. With objective and goals to meet the demand and expectations of the public. Because of the entrance of private players will increase the competition and it would be a tough task to secure a good position in market.  As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. The company should try to expand & buildup with infrastructure because there is a large potential for insurance in India. 61
  62. 62. SUGGESTIONSThe suggestion section contains some of the inputs given by me from the observation madeduring the internship.  Recruit more number of financial consultants.  Company should introduce attractive offers to draw the attention of customers.  Educating the potential customers about the HDFCSLIC products and focus on, how trust worthy and useful are these products.  Procedure of availing loans on the policy should be made easier on insurance policy. 62
  63. 63. RECOMMENDATIONSThe insurance companies should now try to identify the gap between current level ofcustomer service and customer expectation .some of the strategies being recommended areas follows:  Product differentiation: Offering a product that is distinctly different from other products available in the market.  Innovativeness: Identifying a delightful customer experience.  Riders: These are additional offerings along with the main product.  Proper policy documentation: Wrong interpretationnon-awareness of policy document by the customer may have the serious implication in the long term. 63
  64. 64. ConclusionHDFC Standard Life Insurance Company Ltd. is one of the best insurance company inIndia. All members are striving towards even more betterment of the company whole-heartedly. The company intends to see its efficiency and quality through customer servicesand satisfaction. With the creative and innovative culture of the company it has beensuccessful in creating a very good image in the minds of the customers.Personally speaking it was my pleasure being with company for period of 4 weeks. I had anopportunity to learn about the recruitment of financial consultant, working of differentdepartments in the organization, and the knowledge about the insurance industry and theproducts of the company. 64
  67. 67. 67