ashwini m project

8/7/2019 Ashwini m Project

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HDFC STANDARD LIFEINSURANCE

A

PROJECT REPORT

ON

RECRUITMENT OF FINANCIAL AGENTS

IN HDFC

Submitted in partial fulfillment of the requirements for

MBA(3rd SEM)

Roll No: 8

By

MEGHA GAUTAM

YWCANew Delhi

Jan 2011
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ACKNOWLEDGEMENT

The satisfaction & euphoria that accompany the successful completion of any task would

be incomplete without mentioning the people who made it possible, whose consistent

guidance & encouragement crowned the efforts with success. I wish to express my

gratitude to HDFC Standard Life for giving me an opportunity to be a part of their esteem

company and enhance my knowledge by granting permission to do my summer training

project under their guidance.

I feel immense pleasure in expressing my sincere and deep sense of gratitude to Prof.

Nidhi Sahore (faculty, YWCA). She has been a constant source of knowledge,

information, help and motivation for me through her depth knowledge and reflections.

Last but not the least I also express my sincere thanks to my parents and my friends who

gave suggestions as how to work on project and motivated me.

MEGHA GAUTAM

JAN 2011

EXECUTIVE SUMMARY


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The project report initially traces the companys profile, its evolution and growth and a

detail study of the recruitment process in HDFC STANDARD LIFE. An attempt was

made to know the role of agents (financial consultants), their working environment and

the most preferred profiles.

The research methodology consists of primary as well as secondary data to know the

recruitment process. The project report gives a reasonable understanding of whole

process from recruitment to licensing.

Finally SWOT analysis and suggestions were presented.

TABLE OF CONTENTS


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OBJECTIVES OF THE PROJECT


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Since my area of specialization is HR, I always wanted to

study how recruitment process takes place. Since HDFC

STANDARD LIFE is very reputed and large company which

has branches not only in India but also foreign countries, I

was curious -

To study how HDFC recruit agents/advisors

To study the sources from where they are recruited

What kind of environment they work in


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INTRODUCTION TO

INDUSTRY


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INTRODUCTION TO INSURANCE INDUSTRY

The story of insurance is probably as old as the story ofmankind .the same instinct that prompts modern businessmentoday to secure themselves against loss and disaster existed inprimitive men also. They too sought to avert the evilconsequences of fire and flood and loss of life and were

willing to make some sort of sacrifice in order to achieveSecurity. The history of life insurance in India dates back to1818 when it was conceived as a means to provide forEnglish Widows. Interestingly in those days a higherpremium was charged for Indian lives than the non-Indianlives, as Indian lives were considered more risky forcoverage.

The Bombay Mutual Life Insurance Society started itsbusiness in 1870. It was the first company to charge samepremium for both Indian and non-Indian lives. The Oriental

Assurance Company was established in 1880. The firstgeneral insurance company- Tital Insurance CompanyLimited was established in 1850. Till the end of nineteenthcentury insurance business was almost entirely in the handsof overseas companies.Insurance regulation formally began in India with the passingof the Life Insurance Companies Act of 1912 and theprovident fund Act of 1912. Several frauds during 20's and30's sullied insurance business in India. By 1938 there were176 insurance companies. The first comprehensive legislationwas introduced with the Insurance Act of 1938 that provided

strict State Control over insurance business. The insurancebusiness grew at a faster pace after independence. Indiancompanies strengthened their hold on this business butdespite the growth that was witnessed, insurance remained anurban phenomenon.The Government of India in 1956, brought together over 240private life insurers and provident societies under onenationalized monopoly corporation and LIC was born.


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Nationalization was justified on the grounds that it would

create much-needed funds for rapid industrialization. Thiswas in conformity with the Government's chosen path ofState lead planning and development.The (non-life) insurance business, however, continued tothrive with the private sector till 1972. Their operations wererestricted to organized trade and industry in large cities. Theinsurance sector in India has come a full circle from being anopen competitive market to nationalization and back to aliberalized market again. Tracing the developments in theIndian insurance sector reveals the 360-degree turn witnessedover a period of almost two centuries. By any yardstick,

India, with about 200 million middle class households,presents a huge untapped potential for players in theinsurance industry. Saturation of markets in many developedeconomies has made the Indian market even more attractivefor global insurance majors with the per capita income inIndia expected to grow at over 6% for the next 10 years andwith improvement in awareness levels, the demand forinsurance is expected to grow at an attractive rate in India. Anindependent consulting company, The Monitor Group hasestimated that the life insurance market will grow fromRs.218 billion in 1998 to Rs.1003 billion by 2008 (a

compounded annual growth of 16.5%.IMPORTANCE OF INSURANCE

Life is a roller coaster ride and is full of twists and turns. Youcannot take anything for granted in life. Insurance policies area safeguard against the uncertainties of life. Insurance issystem by which the losses suffered by a few are spread overmany, exposed to similar risks. Insurance is a protectionagainst financial loss arising on the happening of anunexpected event. Insurance policy helps in not onlymitigating risks but also provides a financial cushion againstadverse financial burdens suffered. As you can not fight

against these man-made and natural calamities, so at least beprepared for them and their aftermath by taking insurancepolicies.Insurance is an attractive option for investment but mostpeople are not aware of its advantages as an investmentoption. Remember that first and foremost, insurance is aboutrisk cover and protection. By buying life insurance, you buypeace of mind. Insurance also serves as an excellent tax


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saving mechanism. The Government of India has offered tax

incentives to life insurance products in order to facilitate theflow of funds into productive assets. Insurance policies coverthe risk of life as well as other assets and valuables, such as,home, automobiles, jewelry et al. On the basis of the risk theycover, insurance policies can be classified is

IRDA AND INSURANCE INDUSTRY

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA Act)

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, InsuranceRegulatory and Development Authority (IRDA, which wasconstituted by an act of parliament) specify the compositionof AuthorityThe Authority is a ten member team consisting of

(a) a Chairman;(b) five whole-time members;(c) four part-time members,

(all appointed by the Government of INDIA)

Duties,Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 laysdown the duties,powersand functions of IRDA..(1) Subject to the provisions of this Act and any other lawfor the time being in force, the Authority shall have the duty

to regulate, promote and ensure orderly growth of theinsurance business and re-insurance business.(2) Without prejudice to the generality of the provisionscontained in sub-section (1), the powersand functions of the Authority shall include, -

(a) issue to the applicant a certificate of registration, renew,modify, withdraw, suspend


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or cancel such registration;

(b) protection of the interests of the policy holders inmatters concerning assigning of

policy, nomination by policy holders, insurable interest,settlement of insurance

claim, surrender value of policy and other terms andconditions of contracts of

insurance;(c) specifying requisite qualifications, code of conduct and

practical training forintermediary or insurance intermediaries and agents;

(d) specifying the code of conduct for surveyors and loss

assessors;(e) promoting efficiency in the conduct of insurance

business;(f) promoting and regulating professional organisations

connected with the insuranceand re-insurance business;

(g) levying fees and other charges for carrying out thepurposes of this Act;

(h) calling for information from, undertaking inspection of,conducting enquiries and

investigations including audit of the insurers,

intermediaries, insuranceintermediaries and other organizations connected with

the insurance business;(i) control and regulation of the rates, advantages, terms and

conditions that may beoffered by insurers in respect of general insurance

business not so controlled andregulated by the Tariff Advisory Committee under

section 64U of the Insurance Act,1938 (4 of 1938);

(j) specifying the form and manner in which books of

account shall be maintained andstatement of accounts shall be rendered by insurers and

other insuranceintermediaries;

(k) regulating investment of funds by insurance companies;

(l) regulating maintenance of margin of solvency;


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(m) adjudication of disputes between insurers and

intermediaries or insuranceintermediaries;

(n) supervising the functioning of the Tariff AdvisoryCommittee;

(o) specifying the percentage of premium income of theinsurer to finance schemes for

promoting and regulating professional organisationsreferred to in clause (f);

(p) specifying the percentage of life insurance business andgeneral insurance business

to be undertaken by the insurer in the rural or social

sector; and(q) exercising such other powers as may be prescribed

IMPACT OF IRDA ON INDIAN INSURANCE SECTOR

The creation of IRDA has brought revolutionary changes inthe Insurance sector. In last 10 years of its establishment theinsurance sector has seen tremendous growth. When IRDAcame into being; only players in the insurance industry wereLife Insurance Corporation of India (LIC) and GeneralInsurance Corporation of India (GIC), however in last decade

23 new players have emerged in the filed of insurance. TheIRDA also successfully deals with any discrepancy in theinsurance sector.


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INTRODUCTION TO THE

COMPANY

MAN WITH A MISSION


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If ever there was a man with a mission it was Hasmukhbhai

Parikh, founder and chairman emeritus, Of HDFC groupwho left this earthly abode on November 18, 1994. Born in atraditional banking family in surat, Gujarat, Mr. Parikhstarted his financial career atHarkisandass lukhmidass a leading stock broking firm. Thefirm closed down in the late seventies, but, long before that,he went on to become a towering figure on the Indianfinancial scene. In 1956 he began his lifelong financial affairwith the Economic world, as general Manager of the newly-formed industrial credit and investmentCorporation of India (ICICI). He rose to become chairman

and continued so till hisretirement in 1972.At the ripe age of 60, Hasmukhbhaistarted his second dynamic Life, even more Illustrious thanhis first. His vision for mortgage finance for Housing gavebirth to the Housing development finance corporation Itwas a trend-setter for housing finance in the whole Asiancontinent. He was also a writer in his own right. There Areover 200 published articles by him.? In 1992, thegovernment of India honored Him with the Padma Bhushanaward. London school of economics & political scienceconferred on Him an honorary Fellowship. He was one of the

founder members of the centre for Advancement ofphilanthropy, and its chairman till 1993.He took active interest in the Bombay community publictrust, Designed specifically To serve the needs of the citysunderprivileged citizens.When Mr. Deepak Parikh took overas chairman from Hasmukhbhai, he said;Taking over from H.T Parikh is a formidable task; hisvisionbrought about notonly an institution, but an entire concept which has proveditself to be of lasting importance. Today we are the largestresidential mortgage finance institution

In India, with a net Worth of Rs. 2,703 crores as of march 31,2006 and an asset base Of over Rs.22, 000 Crores. We alsoaim to increase the flow of resources to theHousing sector by integrating the housing finance sector withthe overall domesticFinancial markets. Over a span of 25 years, HDFC hasbecome the pioneer in


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Housing finance in India and made it possible for over two

million families to own theirHomes, throughHousing loans worth over Rs.42,000 cores.

COMPANY PROFLE

HDFC STANDARD LIFE

HDFC Standard Life Insurance Company limited is one ofthe Indias leading private insurance companies, which offersa range of individual and group insurance solutions. it is ajoint venture between housing development finance

corporation limited(HDFC LIMITED),housing financeinstitution and a group of company of the standard lifepic.UK.As on 28,2009 HDFC Ltd,holds 72.43%and standardlife(Mauritius holding)2006,ltd. 26.00% of equity in the jointventure. While the rest is held by others.HDFC standard life believes that establishing a strong andethical foundation is an essential prerequisite for long termsustainable growth. to ensure this we have concentrated ourfocus on expansion on branch network, organizing anefficient and well trained sales force ,and setting up ofappropriate systems and processes with optimum use of

technology. As all these areas form the basic infrastructurefor establishing the highest possible customer servicestandards.

HISTORY OF STANSARD LIFE

The standard life assurance company (standard life) wasestablished in 1825 and the first standard life assurancecompany act was passed by parliament in 1832.standard lifewas reincorporated as a assurance company in 1925.The standard life group originally operated only though

branches o agencies of the mutual company in the untiedkingdom and certain other countries.Its Canadian branch was founded in 1833 and its Irishoperations in 1838.this largely remained the structure of thegroup until 1996, when it opened a branch in Frankfut,Germany with the aim of exporting its UK life assurance andpensions operating model to capitalize on the opportunitiespresented by EC directive 92/96/EEC (the third life


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directive)and offer a product range in that market with

features which local providers were unable to offer.In the 1990s, the group also sought to diversify its operationsinto areas which complimented its core life assurance andpensions business, with the intention of positioning itself as abroad range financial services provider.Banking, investment and healthcare-The group set up standard life bank, its Uk mortgage andretail savings banking subsidiary in 1998.the group acquiredprime health limited(subsequently renamed standard lifehealthcare)in the united kingdom in 2000.stndard lifehealthcare expanded in march 2006 with the acquisition of

the PMI business of firstAssist.Standard life Asia limited/joint ventures-

PARENTAGE

HDFC LIMITED

HDFC limited Indias premier housing finance institution hasassisted more than 3.3 million families own a home, since its

inception in 1977 across 2400 cities and towns through itsnetwork of over 250 officies.it has international offices inDubai, London and Singapore with a service associates inSaudi Arabia .Qatar, Kuwait and Oman to assist NRIs andPIOs to own home back in India. As of December 2008, thetotal asset size has cross more than Rs.95000croresIncluding the mortgage loan assets of more than Rs.82,800crores. Corporation has deposit base of Rs.17.551 crores,earning the trust of more than 900.000 depositors. Customerservice and satisfaction has been the mainstay of theorganization .has set benchmarks for the Indian housing

finance industry. recognition for the service to the sector hascome from several national and international entitiesincluding the world bank that has lauded HDFC as a modelhousing finance company for the developing countries.HDFChas undertaken a lot of consultancies abroad assistingdifferent countries including Egypt ,Maldives andBangladesh in the setting up of housing finance companies.


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Standard life group (standard life plc and its subsidiaries)

The standard life group has been looking after the financialneeds of customers for over 180 years. It currently hascustomer base of around 7 million people who rely on thecompany for their insurance, pension, investment, bankingand health-care needs. Its investment manager currentlyadministers $125billion in assets. it is a leading pensionsprovide in U.K,and is rated by standard & Poorsasstrongwith a rating of a+ as god with Moodys.Standard life was awarded the best pension provider in2004,2005 and 2006 at the money marketing awards and itwas voted as 5 star life and pensions provider at the financial

advisor service awards for last 10 years running. The '5 Star'accolade has also been awarded to Standard Life Investmentsfor the last 10 years, and to Standard Life Bank since itsinception in 1998. Standard Life Bank was awarded the 'BestFlexible Mortgage Lender' at the Mortgage Magazine Awardsin 2006.

KEY STRENGHTS

Financial expertise

As a joint venture of leading financial services groups, HDFC

standard life has expertise required to manage your long terminvestments safely and efficiently.

Range of solutions

We have a range of individual and group solutions which canbe easily customized t specific needs. Our group a solutionhas been designed to offer \you complete flexibility combinedwith low charging structure.

Track record so far

Our gross premium income for the year ending March 31,

2009 stood at Rs.5, 564.69 crores .The company has coveredover 8, 33,070 lives as on march 31, 2009.

OBJECTIVE


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Focus on the productivity of each consultant, corporate or

individual, while stressing on the quality of proposals

Quick roll out of Products

Efficiency of Operations

Meet Social & Rural sector obligations

VISION AND VALUES

VISION

The most successful and admired life insurance company

which means that we are trusted company, the easiest to deal

with, offer the best value for money and set the standards.

VALUES

Values that we observe while we work:

Integrity

Innovation

Customer centric

People care one for all and all for one

Team work

Joy and simplicity

ASSOCIATE COMPANIES
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Helping Indians experience the joy of home ownership. The

road to success is a tough and challenging journey in the darkwhere only obstacles light the path. However, success on aterrain like this is not without a solution. As we found outnearly three decades ago, in 1977, the solution for success iscustomer satisfaction. All you need is the courage toinnovate, the skill to understand your clientele and the desireto give them your best. Today, nearly three million satisfiedcustomers whose dream we helped realize, stand testimony toour success. Our objective, from the beginning, has been toenhance residential housing stock and promote homeownership. Now, our offerings range from hassle-free home

loans and deposit products, to property related services and atraining facility. We also offer specialized financial servicesto our customer base through partnerships with some of thebest financial institutions worldwide.

The Housing Development Finance Corporation Limited(HDFC) was amongst the first to receive an 'in principle'approval from the Reserve Bank of India (RBI) to set up a

bank in the private sector, as part of the RBI's liberalisationof the Indian Banking Industry in 1994. The bank wasincorporated in August 1994 in the name of 'HDFC BankLimited', with its registered office in Mumbai, India. HDFCBank commenced operations as a Scheduled CommercialBank in January 1995.

HDFC Mutual Fund has been one of the best performing

mutual funds in the last few years. HDFC Asset ManagementCompany Limited (AMC) functions as an Asset Managementcompany for the HDFC mutual fund.AMC is a joint venture between housing finance giant HDFCand British investment firm Standard Life InvestmentsLimited. It conducts the operations of the Mutual Fund andmanages assets of the schemes, including the schemeslaunched from time to time. As of Aug 2006, the fund has
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assets of Rs.25,892 crores under management.

IN 2003, following a decision by the Zurich InsuranceCompany (ZIC), the Sponsor of Zurich India Mutual Fund, todivest its asset management business in India, AMC hadentered into an agreement with ZIC to acquire the assetmanagement business. Consequently, all the schemes ofZurich Mutual Fund in India had been transferred to HDFCmutual fund and renamed as HDFC schemes.Here is a list of mutual funds of HDFC which includes EquityFunds, Balanced Funds and Debt Funds.

HDFC Securities, a trusted financial service providerpromoted by HDFC Bank and JP Morgan Partners and theirassociates, is a leading stock broking company in the country,serving a diverse customer base of institutional and retailinvestors.HDFCsec.com provides investors a robust platform to tradein Equities in NSE and BSE , and derivatives in NSE. Ourwebsite will support you with the highest standards ofservice, convenience and hassle-free trading tools.

Our research team tracks the economy, industries andcompanies to provide you the latest information and analysis.Our content offers financial information, analysis, investmentguidance, news & views, and is designed to meet therequirements of everyone from a beginner to a savvy andwell-informed trader.

HDFC Realty is a wholly owned subsidiary of HDFC. We

have assisted individuals in acquiring homes valued at 5000million rupees.HDFC is a pioneer housing finance institution in India andwith over 30 years in operations has provided finance to overa million families in India.We are a team of real estate professionals facilitating Buying,Selling or Leasing of Residential / Commercial property.AtHDFC Realty, we provide personalized attention to the
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individuals and corporates in their process of identifying

properties. From understanding the requirement to organizingthe site visits to completion of transaction, we make everyeffort to make the process of acquiring a property, hassle freeand convenient.

ALL PRODUCTS

HDFC Standard Life realizes that not everyone has the same

kind of needs. Keeping this in mind, they have a varied range

of Products that people can choose from to suit all their

needs. These will help secure their future as well as the future

of their family.

HEALTH PLANS

These plans secure the health costs, gives financial

independence while illness and helps in meeting

medical expenses effortlessly. it includes HDFC

critical care plan and HDFC surgicare plan.

CHILDREN PLANS

These plans help you to secure your Childs dream,

provides economic support

when your child needs it more and funding major

milestone. it includes HDFC

Unit linked young star ii, HDFC Unit linked young

star plus and HDFC Unit

linked young star champion.

PROTECTION PLANS


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You can protect your family against the loss of your

income or the burden of a

loan in the event of your unfortunate demise,

disability or sickness. These plans

offer valuable peace of mind at a small price. Our

Protection range includes our

Term Assurance Plan & Plan, home loan protection

Plan.

SAVING AND INVESTMENT PLANS

Its Single Premium Whole Of Life plan is well suited

to meet your long term

investment needs. They provide you with attractive

long term returns through

regular bonuses. Their Savings Plans offer you

flexible options to build savings

For your future needs such as buying a dream homeor fulfilling your children

immediate and future needs. Their Savings range

includes Endowment Assurance

Plan, Unit Linked Endowment, Unit Linked

Endowment Plus, Unit Linked

Endowment plus II, Money Backplan, unit linked

wealth maximsor, Unit Linked

Endowment

winner,HDFC simple life.

PENSION PLANS

Their Pension Plans help you secure your financial

independence even after retirement. Their Pension
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range includes Personal Pension Plan, Unit Linked

Pension, Plus, unit linked pension maximiser and

immediate annuity.

BOARD MEMBERS

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 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
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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 Controlsand 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 practising 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 several papers of professional interest. Mr.


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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

(Honours) 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


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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

Master's 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.

ORGANISATIONAL STRUCTURE

The organization at HDFC SLIC consists of two departments

channel and retail. The head of the channel department is

called as CDM i.e. channel development manager and the

head of retail is called as DSM i.e. Direct Sales Manager.

Under the channel there are recruitment officer, recruitment

consultant, managemet trainee and job consultant which all

perform the task of recruiting agents (financial consultants)

who procure business for the organization. All have to report

to CDM about any case. On the other hand under the retail

department there is SDM (sales development manager) who

too recruit agents for the organization.


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WHAT IS RECRUITMENT?

The art of choosing men is not nearly so difficult as the

art of enabling those one has chosen to attain their

full worth. Recruitment is the process by which

organizations locate and attract individuals to fill job

vacancies. Most organizations have a continuing need to

recruit new employees to replace those who leave or are

promoted in order to acquire new skills and promote

organizational growth. Recruitment follows HR planning and

ORGANISATIONAL STRUCTURE

CHANNEL(CDM)

RETAIL(DSM)

RECRUITMENTCONSULTANT

RECRUITMENT OFFICER

MANAGEMENT TRANIEE/JOB CONSULTANT

FC (agent)

SDM

FC (agent)


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goes hand in hand with selection process by which

organizations evaluate the suitability of candidates. With

successful recruiting to create a sizeable pool of candidates,

even the most accurate selection system is of little use.

Recruiting begins when applications are bought in and end

when the same is finished. The result is the pool of

applicants, from where the appropriate candidate can be

selected

WHY RECRUIT?

Developing new agents is critical to the long term

viability of the insurance industry

Current producers are reaching the later stage of their

career-50% of affiliated agents are 48 years or old,

and 505 of independent producers are 56 years or

older.

On an average only 11% of career agents stay with the

same company for 4 years.

Companies are competing with other organizations to

attract shrinking pool of experienced agents.

Recruitment is not just adding new bodies to an

organization; it is acquiring and keeping new quality

agents.

WHAT ARE AGENTS?

An agent is the representative of an insurance company who

sells different policies or products to its client. Another term


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used for insurance agents is advisors; this term was used by

reliance life insurance company ltd. it is a person who we

recruit and who in turn procures business (insurance

premium) for the organization. They are the most important

link between the market and the company. Today in life

insurance companies advisors are known to be the backbone

of the whole system. Advisors/agents do not work on

monthly payroll basis; they receive a certain commission on

the policies they sell to the clients. Before a person becomes

an advisor/agent he/she has to undergo training according to

IRDA norms, which is compalsary.70-75% of profits gained

in life insurance business is through advisors/agents.

SOURCES FOR AGENTS

Personal network

Referrals

Industry seminars

Associations & clubs

Advertisements In appropriate journals, media

RECOMMENDED CRITERIA (3 Q SCORE)

More than 30 years of age

Graduate(minimum)

Living in the same area since past 3 years

Well networked


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Family income of more than Rs 3 lacs

PREFFERD QUALITIES

Passion

Result oriented

Well networked

Good communication skills

Need for recognition

Need for money

ROLE OF AGENTS

To provide ongoing financial advice for his/her clients:

Identify future clients

Making appointments

Conduct financial review meetings with

prospects/clients.

Close sales

Get referrals

Provide service to clients.

Follows internal sales and reporting system.

OPPORTUNITIES FOR ADVISOR/AGENT

No startup capital required.

Flexible working environment.

Be your own boss.

Unlimited earning potential.


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To be a part of a world-class team.

HOW AN ADVISOR /AGENT WORK?

Firstly the advisor or gent has to make a list of 100

people that he or she knows.

Then the advisor/agent makes a call to these clients

and tries to fix an appointment.

When the appointment is fixed the advisor/agent

meets the customer and tries to sell the product.

After that the agent/advisor asks for the reference of

maximum people from the client.

The reference is asked to make future calls to those

clients and the whole procedure is repeated again.

TO WHOM DOES THE ADVISOR REPORTS?

An Advisor/Agent are the most important link between

market and the company. They procure business to the

organization. There is no working hours and any particular

day on which advisor/agent has to report in the office. An

advisor can do his/her operations from any branch of the

company located anywhere in the country. He/she has to

report about the case to their SDM.

WHY HDFC SLIC IS BETTER?


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Investment returns: investment returns and business

growth provided by HDFC is validated by bajajCapital report. HDFC pacify the need of invertors upto healthy level and make the strong relationship withthem.

Financial Background and Experience: HDFCexisting in the market since 1977. It has a veryhandsome experience in the field of finance because itcompletely involved in finance Sector only where asthe others are running in many other field also likeReliance (Petroleum, Textile, Telecom etc.)

Ethics and Values: HDFC is an ethical and culturalorganization which prevents the false selling andprohibits the false commitment to the customer.

Huge branch network HDFC is having 450 branchesin all over the country.

Online accessibility: It makes the process faster andmakes the customer delighted.

TOP 5 USPS OF HDFC (Unique Selling Proposition)

1. IST private sector life insurance Company to be

granted a license.

2. Provides fast service to the customers in terms of

claim.

3. Best insurer according to Outlook.

4. Well supported by foreign partner Standard Life, U.K

which was recently voted ' company of the decade' in

U.K by the Independent Brokers called IFAs.


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ICICI-THE MAJOR COMPITETOR OF HDFC

ICICI Prudential Life Insurance Company is a jointventure between ICICI Bank - one of India's foremostfinancial services companies-and Prudential plc - a leadinginternational financial services group headquartered in theUnited Kingdom. Total capital infusion stands at Rs. 47.80billion, with ICICI Bank holding a stake of 74% andPrudential plc holding 26%. We began our operations inDecember 2000 after receiving approval from InsuranceRegulatory Development Authority (IRDA). For three yearsin a row, ICICI Prudential has been voted as India's Most

Trusted Private Life Insurer, by The Economic Times - ACNielsen ORG Marg survey of 'Most Trusted Brands'. As wegrow our distribution, product range and customer base, wecontinue to tirelessly uphold our commitment to deliverworld-class financial solutions to customers all over India.

LICENSING PROCESS

1) REGISTRATION

Documentation required for acquiring license

Forms

Agency application form

Form VA

Exam form

Agreement copy(all pages to be signed

by FC)

Supporting personal documents

9 passport size photograph


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age poof

proof of education

proof of identity

proof of residence

PAN card o PAN application

2) IRDA TRAINING

All the candidates have to undergo andcomplete 50 hours of IRDA

training. There are two types of training off line(class room) and online

training.

3) IRDA EXAMINATION

Recruitment examination can be done by 2modes, on line and off line.

Exams are conducted by insurance institute ofIndia (III).

IMPORTANCE OF TRAINING

Continuous training and upgrading technical, behavioral andmanagerial skills is a way of life in HDFC SLIC. HDFCSLIC encourages agent or sub-broker to hone their skillsregularly to enable them to face the challenges of thechanging requirements of customers that fit market up anddown. Training needs analysis is done on a regular basis and

systematic methodologies are ensured that skills andcapabilities of all agents are constantly upgraded to enablethem to perform in the challenging work. There is specialtraining session at regular time period in local branch to allfinancial consultant and agents about new scheme and toimprove their effectiveness. The successful candidates of theIRDA EXAM are given the product training. The Primarypurpose is to become quite conversant with the product that


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one sells. In Other words, product knowledge is very

important for any advisor. Product knowledge is not justabout knowing the broad terms and conditions of the variousschemes of INSURANCE. The advisors are explained aboutthe schemes, the terms related with it, the benefits it providesto investor. This training is aimed at making the advisorsfully equipped with the companies product information. Thistraining is aimed at making the advisors experts in selling thelife insurance products. This gives the advisors a systematicframework which they can follow so as to attract thecustomers and be effective in their work. Later the agents aretrained on products, need analyses and how to deliver the

message to the market.

SWOT ANALYSIS

STRENGH

Good brand name of the company all over India

Expertise in the field of mutual fund

Flexible products

Strong communication network all over the country

Sound financial resources of the company

WEAKNESS

Less awareness regarding mutual fund among

investors

Cannot trap rural market

Yet to build strong distribution network

OPPERTUNITIES

Untapped rural market


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Lack of competitive product to suit clients investment

objective

THREATS

The numbers of players are increasing which further

increases the competition

Customers mindsets are still rigid and they still prefer

traditional pattern of investments.

METHODOLOGY


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KEY OBJECTIVE To study the recruitment

process of agent/advisor

TYPE OF RESEARCH - observational study

The study uses both primary as well as secondary

data.

Primary sources

Personal observation

Friends

Secondary sources

Gathering information from the documents availableat the HDFCs Companys website

Recruitment to licensing process


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1. LEAD- The process of recruitment to licensing policystarts from generating leads which means a prerequisite condition for getting a stipend in youraccount. The lead generation means aspiring acandidate for getting a license to do business orearning a commission by selling the various productsor services. The lead starts with listing down of 100names of people from ones natural market. once thelead generated by initial trainee of bringing acandidate then the particular candidate has to gothrough the certain quality checks on the basis of

which company decides that whether this person isprospect for the company.

2. PROSPECT - The certain quality checks are Passion,Result oriented, Well networked, Goodcommunication skill, Need for recognition, Need formoney. When we sure about that prospectivecandidate then we allow them to be recruited for thecompany.

3. RECRUIT Then the procedure of documentation

(form filing) takes place. Once the form get filled andchecked by ASO (ASSISTANT SUPREDENDENTOFFICER) it get login and after 3-4 days thecandidate get their login id. After this the candidatehas to go through the IRDA training which is of twotypes offline and online. If the candidate has optedfor offline mode i.e. class room type of training thenhe/she has to go through training of 7-days from9.30am- 6.30pm with lunch facility provided.This training is about various products of HDFC-SLIC and about the insurance sector. Its also known

as manual training. Whereas, the other form oftraining is online training in which a candidate hasprovided a candidate id and password in which acandidate has to sit on the computer for 6-8hrs a dayand the report back of what they have done today tilltheir exam is scheduled. This type of training isbasically for the people who opted for part time.Sometimes people also opted for the refresher training


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which is of 2/3 days. This type of training is generally

opted by professionals who dont have time forboth the trainings.

4. IRDA EXAM- Once the training part is completed thecandidate get their loc- letter of completion. Whichmeans now the candidate is ready for the IRDA exam.After a week of loc the date of exam is scheduled atthe certain exams centers with proper logistics. Theexam is of 1-hour an the result will be a candidate isable to score 50% or not.

5. LICENCE - If candidate clears the exam he/she get alicense and license getActivated one he/she brings the business for the

company but if candidate fails orabsent at the time of exam then he/she has to

reappear with dd of 425/- and againthis process follows and person get a required

stipend.

6. ACTIVATION After getting the license a candidateis ready to procure business

for the organization.


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RESU

LT


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RESULT

The wider the rims of the recruitment funnel the more will be

the recruitment of agents. So one should gather as many

names as possible. The advisor has to go through the well

defined recruitment process. The stages of recruitments are

highly structured .Remember the recruitment formula:

25 CONTACTS 10 FOR INTERVIEW

2 SELECTED

HDFC has well defined progression path for its agents with

rewards and recognition.

BASIC UNDERSTANDING

In todays rapidly changing business environment,

organizations have to respond quickly to requirements for

people. The Financial market has been witnessing growth

which is manifold for last few years. Many private players have

entered the economy thereby increasing the level of

competition. In the competitive scenario it has become a

challenge for each company to adopt practices that would help

the organization stand out in the market. The competitiveness

of a company of an organization is measured through the

quality of products and services offered to customers that are

unique from others. Thus the best services offered to the

consumers are result of the genius brains working behind them.


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Human Resource in this regard has become an important

function in any organization. All practices of marketing and

finances can be easily emulated but the capability, the skills

and talent of a person cannot be emulated. Hence, it is

important to have a well-defined recruitment policy in place,

which can be executed effectively to get the best fits for the

vacant positions. Selecting the wrong candidate or rejecting the

right candidate could turn out to be costly mistakes for the

organization. Therefore a recruitment practice in an

organization must be effective and efficient in attracting the

best manpower.

CONCLUSION


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Conclusion

Based on the answers given in the interview with differentagent/advisor (sample size 30)I came to know that there are many career options availablefor an advisor like he/she can become an SDM (Salesdevelopment manager) BM (branch manager) TM(territory manager) RM (regional manager) and can evenstart up its own business.The biggest motivational factor for an individual to becomean agentIs money money induces work motivation? Though otherfactors like working environment within the organization,financial incentives and recognition of work too playsimportant role but money is the basic factor that is theindication of ones status in the society. In the competitivescenario it has become a challenge for each company to standout in market .It is the need of an hour to posses some qualitytraits like patience and understanding customers needs toprocure business for the organization. An individual shouldhave lot of patience. It allows prospects to become clients.


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BIBLOGRAPHY

WEBSITES

www.hdfcinsurance.com

www.google.com
http://www.hdfcinsurance.com/http://www.google.com/http://www.google.co.in/imgres?imgurl=http://www.domain-b.com/finance/insurance/200204apr/hdfc-standard-life-insurance%2520logo.gif&imgrefurl=http://www.domain-b.com/finance/insurance/200204apr/20020404_equity.html&h=64&w=173&sz=2&tbnid=MCluDZZMMQX4bM::&tbnh=37&tbnw=100&prev=/images%3Fq%3DHDFC%2BSTANDARD%2BLIFE%2BLOGO&hl=en&usg=__snrQztL_AvoP1Kxv2HIS7sBoyck=&ei=3F2_SafTLtXLkAWfksUn&sa=X&oi=image_result&resnum=1&ct=image&cd=1http://www.hdfcinsurance.com/http://www.google.com/


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ANNEXURE

INTERVIEW SHEDULE

NAME

AGE

CONTACT NUMBER


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Q.1 How large is your client base?

Q.2 The major challenge for an advisor /agent according to

you?

Q.3 what is the greatest motivational factor for an individual

to become an

Agent/Advisor?

Q.4 The reason that comes out to be the success for an

agent?

Q.5 what is the most important quality trait that you think

should be in an agent to do

good business?

Q.6 what are the career options available for an advisor?

\

ashwini m project

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