3cet report on hdfc

3CET REPORT ON HDFC LIFE 2

OBJECTIVE

In a professional course like P.G.D.M Summer training is one of the major experiencing components of the practical knowledge and industrial exposure. I am able to understand the customer relationship and got to know how a company measures to resolve their grievances and negotiate with them also service them to the maximum for future prospect and success.

My one of the job is to recruit Financial Consultants (FCs)& another job is analysis the marketing strength of HDFC-LIFE(comparative . There are some basic criteria which are needed to follow while selecting and recruitment of FCs. I gathered contacts from friends, recharge shops and also did field work like distribution of leaflets in order to generate data base, then contacted people and ask them for the interview. I selected some candidates through this process; offer them the job of a FC. If they show their interest about the job, then I provide them necessary details, log in their forms. Initially they have to go through a 50 hours training and IRDA exam to get the IRDA license. After receiving the license, one can work as a FC. Second thing with the help of my Channel Development Executive Mr.Somnath Basu’s constant support I was able to take up the proper follow up of the candidates who thereby converted from potential to actual FC’s. The main opportunities for a FC are:

Flexible work timings - One can work full-time or part-time, depending on his/her convenience

Any one can join - Young graduates, Housewives, Retired Personnel, Self-employed or Working Professionals

Zero Investment – There is no start-up capital required

Attractive Remuneration -One have unlimited earning potential


COMPANY PROFILE

Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited) - India's leading housing finance institution, and a Group Company of the Standard Life Plc, UK. The Company is one of leading private insurance companies, offering a range of individual and group insurance solutions, in India. Being a joint venture of top financial services groups, HDFC Standard Life has adequate financial expertise to manage long-term investments safely and resourcefully.

HDFC Limited, India's premier housing finance institution has assisted more than 3.4 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 271 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRI's and PIO's to own a home back in India. As of December 2009, the total asset size has crossed more than Rs. 104,560 crores including the mortgage loan assets of more than Rs.90,400 crores. The corporation has a deposit base of over Rs. 23,000 crores, earning the trust of nearly one million depositors. Customer Service and satisfaction has been the mainstay of the organization. HDFC has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries. HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance companies .

MISSION

To be the top life insurance company in the market.

This not only means being the largest or most productive company in the market but a combination of several things like:

Customer service of highest order Value for money for customers Professionalism in carrying out the business. Increasing market share. Use of best technology for improved service standards. Innovative products to cater different needs of different customers.


VISION AND VALUES

The most successful and admired life insurance company, which means that they are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry.

Values that they observe while they work:

Integrity

Innovation

Customer centric

People Care “One for all and all for one”

Team work

Joy and Simplicity

MANAGEMENT TEAM:

Mr. Amitabh Chaudhry is the Managing Director and Chief Executive Officer of HDFC Life. Mr. Paresh Parasnis is the Executive Director and Chief Operating Officer of HDFC LIFE. He has been associated with the HDFC Group since 1984.

Ms.Vibha Padalkar is the Chief Financial Officer of HDFC Life. Mr. Ashley Rebello is the Chief Actuary and Appointed Actuary of HDFC Life. Mr. Sharad Gangal is the General Manager HR and heads the vertical in HDFC Life. Mr.Vikram Mehta heads the Sales and Marketing function for HDFC Life. Mr. Prasun Gajri is the Chief Investment Officer of HDFC Life.


MARKETING DETAILS:

Speaking on this association, Mr. Sanjay Tripathy, EVP & Head - Marketing and Direct Channels, HDFC Life said, “HDFC Life is delighted to share the privileges of sponsoring Rajasthan Royals with the volunteers of Yuva Unstoppable. India is a young country, hence it is very important to motivate such spirited youngsters for their selfless efforts towards the betterment of our society. In line with our motto of Sar Utha ke Jiyo - which empowers people to believe in themselves and live with pride, HDFC Life is proud to present these volunteers with a coveted opportunity to experience an IPL match live in the stadium. This is a stepping stone towards a much larger corporate social responsibility initiative, which we plan to launch in the near future.”

HDFC Life will be associating with various NGOs across Rajasthan to provide this unique experience for the under-privileged throughout IPL4 for all the matches of Rajasthan Royals held in Jaipur.

Pavan Jain, Vice President, Yuva Unstoppable said “I would thank HDFC Life for extending this special gift for our volunteers. Such opportunities are a huge boost for our young volunteers and helps imbibing in them positive energy and moral values. The volunteers are all excited to experience this opportunity to see IPL match live in the stadium of Jaipur.

ABOUT YUVA UNSTOPPABLE:

Yuva Unstoppable is a premier volunteer movement with a force of 60,000 young people across 30 cities of India helping more than 100,000 kids in municipal schools / slums through organizational partnerships with schools, colleges and corporate companies. YUVA Unstoppable is currently the largest volunteer movement of India and growing exponentially. YUVA Unstoppable motivates and fosters Random acts of kindness through its three initiatives like School Unstoppable, College Unstoppable and Corporate Unstoppable.

(Source:http://www.business-standard.com/india/news/hdfc-life-cheersyuva-unstoppable-to-supportrajasthan-royals/433582/)

HDFC LIFE LAUNCHES ‘MOST IMPORTANT DOCUMENT’ FOR CUSTOMERS:

HDFC Life, one of India’s leading private life insurance companies, has taken yet another significant step as part of its Customer Centric Approach. The company has rolled out ‘Most Important Document (MID),’ an one-page questionnaire on HDFC Life’s key product features to

http://www.business-standard.com/india/news/hdfc-life-cheersyuva-unstoppable-to-supportrajasthan-royals/433582/

http://www.business-standard.com/india/news/hdfc-life-cheersyuva-unstoppable-to-supportrajasthan-royals/433582/


be mandatorily filled by customers in full and sign across, acknowledging full understanding of the product features at the time of filling up proposal forms.The MID has been rolled out across all its main Distribution Channels with effect from April 8, 2011. The roll out of MID is a proactive initiative from HDFC Life to ensure that customers understand products well before making a decision to purchase it.

HDFC LIFE'S OTHER KEY CUSTOMER CENTRIC INITIATIVES INCLUDE:

Grievance handling system with comprehensive investigations/counseling to customers in case of complaints

A Strict Malpractices Matrix in place to address mis-sell (including termination)

All to customers to get a first hand feel of their expectations, to gauge satisfaction with the company’s sales process and if the right product has been sold based on customer needs

PRODUCTS OF HDFC LIFE:

PROTECTION PLANS: Protection Plans helps to shield family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them incase of your untimely demise or critical illness.

RETIREMENT PLANS: Retirement Plans provide with financial security so that when professional income starts to ebb, one can still live with pride without compromising on their living standards.

SAVINGS & INVESTMENT PLAN: It basically focuses on people who thinks to keep their family happy and are dependent on them so future expenses of the family are need to be taken care of.

HEALTH PLANS: Health plans give the financial security to meet health related contingencies. Due to changing lifestyles, health issues have acquired completely new dimension overtime, becoming more complex in nature.

CHILDREN’S PLAN: Children's Plans helps to save so that one can fulfill their child's dreams and aspirations. As a parent, one wish to provide their child with the very best that life offers, the best possible education, marriage and life style.

FINANCIAL DETAILS (2010-2011)

Robust growth of 29% in total premium income to Rs. 9004 crore from Rs. 7005 crore in 2009-10 26% growth in individual new business (regular and single) to Rs. 3488 crore from Rs. 2753 crore in 2009-10 High quality of existing policies & continuous focus on persistency lead to 36%


increase in renewal premium of Rs. 4924 crore from Rs. 3627 crore last year Strongest market share gain of 4.2%* in private space in 2010-11 over same period last year; Market share increased to 12.9% in private space in 2010-11 from 8.7% in 2009-10; Overall market share increased to 5.9% in 2010-11 from 4.6% in 2009-10.Stood first in the industry in individual business; Stood 3rd in the private space in 2010-11 in total premium Conservation ratio (individual business) improved substantially to 81% in 2010-11 from 72% in 2009-10 31% growth in Assets Under Management over March 31, 2010 to Rs. 27,177 crore from Rs. 20,767 crore same period last year Solvency ratio as on March 31st, 2011 was 172% as against regulatory requirement of 150% Claim repudiation ratio for FY 2010-11 is 3.97%, which means we have settled 96.03% claims Distribution mix - 66% from Ban assurance, 31% from Agency and rest from others including Direct Sales.

(Source:IIFL)

HUMAN RESOURCES:

HUMAN RESOURCE STRUCTURE OF HDFC LIFE

HEAD HR

(MR.RAJENDRA GARG)

TALENT ACUSITIO

N

BUSINESS HR- (MS.SUCHIK SAHAY VP HR

HRD(MS-ANURADHA GANPATHY-VP

EMPLOYEE RELATION (MR.INDRANIL CHOWDH

L&D(MR-R.CHANDRA SEKHA

ADMINISTRATION (MR-SUNIL KHELKAR) VP ADM


ORGANIZATION STRUCTURE OF HDFC LIFE


DEPARTMENTS

ALL INDIA HEAD

REGIONAL MANAGER OF CHANNEL DEVELOPMENT

TERRITORY MANAGER OF CHANNEL DEVELOPMENT

AREA MANAGER OF CHANNEL DEVELOPMENT

CHANNEL DEVELOPMENT MANAGER

CHANNEL DEVELOPMENT EXECUTIVE

RECRUITMENT CONSULTANT

FINANCIAL CONSULTANTS


RECRUITMENT POLICY OF HDFC LIFE

For recruitment of Financial Consultant (FCs), there were mainly five criteria:

25 years of age: This age shows attainment of maturity and responsibility

Married: Married people are more eager to earn money. Family pressures increase responsibility and secondly customers are convinced more by the stability of a married FC.

MARKETING DEPARTMENT

SALES DEPARTMENT

CHANNEL DEVELOPMENT DEPARTMENT

OPERATIONS DEPARTMENT

ADMINISTRATION

DEPARTMENT

TRAINING DEPARTMENT


Graduate: Graduate people have basic skills like communication skills, numerical ability, convincing abilities etc. So it is easy to teach them further.

Income more than 3 lakhs: FC’s financial stability enables them to make business within their family also.

Spent 3 years in the city: Person who stays more than 3 years has huge natural market which helps him to get more business in short period.

WORK CULTURE:

The company attributes its success to the contributions made by its employees and believes that strength is their people, so its Endeavour is to surpass their expectations and give them the best possible work environment and benefits that match the best in the industry.

Talent management initiatives in HDFC Standard Life are driven by a set of organizational core competencies (Mantra 10) as well as position-specific competencies. The competency set includes knowledge, skills, experience, and personal traits (demonstrated through defined behaviors) based on the bedrock of sharp vision and strong values of HDFC Standard Life.

In this endeavor of shaping and nurturing talent pool, HDFC Standard Life adopts a four-step model:

ACQUIRING AND RETAINING TALENT:

HDFC Standard Life believes in building capability for superior performance leading to a superior shareholder value. We have a bouquet of people processes like Assessments, Potential Review, Defined Career plans that identify and invest to create effective leaders. Our path breaking career progression progamme -- Frontline Assessment and Growth Program (FLAG)for the retail channel is designed towards achievement orientation. It recognizes achievers through fast track career progression coupled with attractive remuneration.

COMPETENCY MAPPING & DEVELOPING CAPABILITY:


Competencies are the desired business behaviors, which enable an individual to contribute towards organizational growth. We have a set of identified core competencies, which help employees to imbibe and achieve a consistent business performance.

SWOT ANALYSIS

STRENGTHS:

HDFC Standard life insurance offers a range of individual and group insurance solutions.

HDFC Standard Life has the financial expertise required to manage your long-term investments

safely and efficiently.

Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive year for High service standards.

Uses the most aggressive marketing strategies

Free switching options online informing customers about the performance of their investment by

sending monthly reports and statements

Training provided to all people

First private company to get registered under IRDA

First one to hit IPO

HDFC Standard Life was one of the first private life insurers to disclose the embedded value of

its business

WEAKNESSES:

LIC is prevalent and sustains even today a major source of population.

Low number of offices and network and number of life insurance agents.

Lack of knowledge and expertise.

They are unable to target rural areas as compared to LIC


Poor awareness of products in the minds of customers

Negligence to customers after the investment is sold

Sometimes right advice is not given to the customers

OPPORTUNITIES:

Life insurance has captured its mere15 – 20% growth therefore a wide open untapped market is

open to the company to develop, grow and measure its success.

Still the number of companies are few and company has every capabilities to grow and forward

its performance areas to the widest

Strong brand helps to boost up the sales

No.1 in adapting new technologies like online search

THREATS:

People are hesitant to invest and put their hard earned money to the private life insurance

company with the fear of getting lost.

Belief towards LIC as it is a government corporation phobia is continue to surmount the people

of India despite lots of flaws and development and liberalization of life insurance.

Alternative financial services such as mutual fund, banking services, share and securities also

pose problems and threats to the working of the life insurance sector.

Illiteracy and unemployment also pose threat.

Rising real estate industry also pose threat as people are investing a bulk of their money over to

that industry.

Entry of more of Private Players in the market

Faster rate of employee attrition


KEY PLAYERS IN THE INSURANCE SECTOR:

Life Insurance Corporation Of India

ICICI Prudential

Birla Sun life

LIC

Bajaj Allianz

Max New York Life

Met Life India Insurance

Reliance Life Insurance

SBI Life Insurance

Tata AIG Life Insurance

Kotak Mahindra

Aviva Life Insurance

Shri Ram Life Insurance

MAJOR COMPETITORS OF HDFC LIFE & THEIR COMPETITIVE ANALYSIS:

LIFE INSURANCE CORPORATION OF INDIA (LIC):

LIC has an excellent money back policy which provides for periodic payments of partial survival

benefits as long as the policy holder is alive. 20% of the sum assured is payable after 5, 10, 15

and 20 years and the balance 40% is payable at the 20th year along with accrued bonus.

(Source:www.lic.com)

For a 25 years term , 15% of the sum assured becomes payable after 5,10,15and 20 years and the

balance 40% plus the accrued bonus becomes payable at the 25th year. An important feature of


these types of policies is that in the event of the death of the policy holder at any time within the

policy term the death claim comprises of full sum assured without deducting any of the survival

benefit amounts which have already been paid. The bonus is also calculated on the full sum

assured.

HDFC SLIC does not have a money back policy. It could offer a money back plan and capture

some portion of this market.

LIC offers 66 different plans; plans are formulated for specific occasions –whole life plans, term

assurance plans, money back plan for women, child plans, plans for the handicapped individuals,

endowment assurance plans ,plans for high worth individuals, pension plans, unit linked plans,

special plans, social security schemes – diversified portfolio of products. HDFC LIFE could

diversify its product portfolio. It could add more plans for high worth individuals and women.

ICICI PRUDENTIAL:

ICICI Prudential is a stiff competitor for HDFC SLIC. The company is a merger between ICICI

Bank which is the biggest private bank in India and Prudential Plc which is a global life

insurance company. The company has an investment plan which is market related – Invest Shield

Life. In this plan even if the market falls, the premium will be returned to investors. It is a

guaranteed plan which ensures the company carefully invests your money. The stock market

performance of ICICI Prudential is much better than HDFC SLIC. The returns on the growth

fund were 46.28%compared to the 42.70% offered by HDFC SLIC. Customers are attracted by

higher returns and this is a plus point for Prudential.

The company is very well advertised. The advertisements are showcased in movies, television,

newspapers, magazines, bill boards, radio etc. Earlier the company had an excellent brand

ambassador – Mr. Amitabh Bacchan. His promotion of the company builds trust and faith in the

minds of our people and now Shahrukh Khan having established leadership and their retail

business.

However the charges are very high in the plans offered by ICICI Prudential. It is 35% during the

first year, 15% in the next year and 3% from the third year onwards. Also a higher minimum


premium of Rs. 8000 is charged. Hence the policies are not accessible to the lower strata of the

society. (Source:www.iciciprulife.com)

BIRLA SUN LIFE:

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group,

one of the largest business houses in India and Sun Life Financial Inc., a leading international

financial services organization. The local knowledge of the Aditya Birla Group combined with

the expertise of Sun Life Financial Inc., offers a formidable protection for your future.

(Source:www.birlasunlife.com)

The Aditya Birla Group has a turnover close to Rs. 33000 crores with a market capitalization of

Rs. 53400 crores (as on 31st March 2007). It has over 72000employees across all its units

worldwide. It is led by its Chairman - Mr. Kumar Mangalam Birla. Some of the key

organizations within the group are Hindalco and Grasim.

Sun Life Financial Inc. and its partners today have operations in the key markets worldwide

including Canada, US,UK, Hongkong, Indonesia, China, Japan.

Being a customer centric company, BSLI has invested heavily in technology to build world class

processing capabilities. BSLI has covered more than a million in terms of building up its

customer base by spreading its network in more than 1000 cities and towns.

It has flexible Line plan offers life long insurance cover till the policy holder is 100 years of age.

BAJAJ ALLIANZ:

Bajaj Allianz is the no1 private life insurer for the year 2005-2006.It is leading by 78 crores.The

company has sold more than 300000 policies and sacked by more than 550 offices across India.

It offers travel insurance, motor insurance ,home insurance, health and corporate insurance. The

mortality charges are lower as compared to HDFC SLIC. The entry age could be zero years

which allow even new born babies to be insured. (Source: www.bajajallianz.com)

http://www.bajajallianz.com/


MARKET SHARE OF ALL INSURANCE COMPANIES

Here is how Various Life Insurers stack up against each in the Industry as a whole. The following Data suggests that LIC of India is still the market leader followed by ICICI Prudential, HDFC Standard Life, SBI, Reliance, Bajaj, Birla Sun Life, Max New York etc.

HDFC LIFE HAS BEEN RANKED 3RD IN THE PRIVATE INSURANCE SECTOR

ENVIRONMENT:

HDFC LIFE benefited a lot when it merged with the UK based Company Standard Life.

HDFC Standard life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Each of the JV player is highly rated and been conferred with many awards. HDFC is rated ‘AAA’ by both CRISIL and ICRA. The joint venture of these two companies increased the profit, brand image and more reliable to the customers as well as increased the market share.

3cet report on hdfc

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