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SUMMER PROJECT REPORT

Submitted In Partial Fulfillment of the Requirement for the Award of

Degree of

Master in Management Studies, Mumbai University

ON

To Study & work with the Channel Marketing Team(Tied Agency) of

Kotak Life Insurance to develop its distribution Channel.

A detailed study done in

Kotak Life Insurance

Under the guidance of

Mr.Avdhoot Joshi

(Channel Marketing Manager)

Submitted by

Vishal Suri

Roll no -51

Batch 2009 -11

S.I.E.S College of Management Studies

Nerul, Navi Mumbai.

CERTIFICATE

This is to certify that Mr. Vishal Suri of SIES College of Management Studies, Navi

Mumbai, working on project To Study & work with the Channel Marketing

Team(Tied Agency) of Kotak Life Insurance to develop its distribution Channel. has

successfully completed the project work under our guidance.

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Mr. Avdhoot Joshi Prof. Sumana

Bose

Channel Marketing Manager

Kotak Life Insurance Faculty Guide

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ACKNOWLEDGEMENT

A lot of effort has gone into this training report. My thanks are due to many people

with whom I have been closely associated.

I would like to extend my sincere gratitude and appreciation to my Mentor Mr.

Avhdoot Joshi, Assistant Branch Manager, Kotak Life Insurance, for extending

valuable guidance and encouragement from time to time, without which it would not

have been possible to undertake and complete this project. I am also indebted to Mr.

Prabhu K Mishra, for giving me the opportunity of doing my internship under his

aegis. I am grateful to all the above mentioned individuals for putting their faith in me

to conceptualize the Research Design and be part of crucial projects and for giving usopportunity to get hands-on Experience in the Life Insurance Sector. At Kotak Life

Insurance.

I would also like to extend my gratitude to Prof. Sumana Bose, SIES College of

Management Studies for being an excellent mentor and helping me whenever I

approached her.

.

I would also like to thank my family for their support and patience throughout

the completion of the project.

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PREFACE

The contours of insurance business have been changing across the globe and the ripple

effects of the same can be observed in the domestic markets as well. An evolving

insurance sector is of vital importance for economic growth. While encouraging

savings habit it also provides a safety net to both enterprises and individuals. The

insurance industry also provides crucial financial intermediation services, transferring

funds from the insured to capital investment, which is critical for continued economic

expansion and growth, simultaneously generating long-term funds for infrastructure

development. In fact investments in infrastructure are ideal for asset-liability matching

for life insurance companies given their long term liability profile. Development of the

insurance sector is necessary to support the structural changes in the economy. Social

security and pension reforms too benefit from a mature insurance industry. The

insurance sector in India, which was opened-up for private participation in the year

1999 has completed seven years in a liberalized environment. Since opening up of the

insurance sector in 1999, 24 private companies have been granted licenses by 31st

March, 2007 to conduct business in life and general insurance. Of the 24, 15 were in

the life insurance and nine (including a standalone health insurance company) in

general insurance. During the last seven years capital amounting to Rs.9625.28 crore

was brought in by the private players, of which the contribution of the foreign partners

has been Rs.2174.28 crore. During this period the average annual growth of first year

premium in the life segment worked out to 47.06 per cent and in the non-life segment it

was 16.87 per cent. The industry services the largest number of life insurance policies

in the world. Yet Indian insurance industry has scope to further expansion with a large

untapped potential.

The Authority and the industry have been playing an active role in increasing

consumer awareness. Insurance companies in general and private insurance companiesin particular, are reaching out to untapped semi-urban and rural areas through

advertisement campaigns and by offering products suitable to meet the specific needs

of the people in these segments.

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The insurers are increasingly introducing innovative products to meet the specific

needs of the prospective policyholders. products, imaginative marketing, and

aggressive distribution enabled fledgling private insurance companies to sign up Indian

customers faster belying expectations at the time of opening up of the sector. At the

time of opening up of the sector, life insurance was viewed as a tax saving device. Of

late policyholders perspective is slowly changing towards taking insurance cover

irrespective of tax incentives. The insurable populace is looking for products which

suit their specific requirements. As of now a variety of choices are available in the

market meeting the requirements of different cross-sections of the society and across

age groups. With the registration of Bharti Axa Life Insurance Co. Ltd., the number of

companies operating in the life insurance industry has increased to sixteen. The new

entrant commenced underwriting life premium in August, 2006. By end March 2007,

there were sixteen life and sixteen non-life insurance companies (including the national

re-insurer). Apollo DKV, another standalone health insurance company and Future

Generali Insurance Co. Ltd. and Future Generali Indian Life insurance Co. Ltd. were

granted Certificate of Registration in 2007-08 and are in the process of commencing

operations.

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EXECUTIVE SUMMARY

Insurance is a federal subject in India and has a history dating back to 1818. Life and

general insurance in India is still a nascent sector with huge potential for various global

players with the life insurance premiums accounting to 2.5% of the country's GDP

while general insurance premiums to 0.65% of Indias GDP. The insurance sector in

India has gone through a number of phases and changes, particularly in the recent years

when the govt. of India in 1999 opened up the insurance sector by allowing private

companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian

insurance sector is considered as a booming market with every other global insurance

company wanting to have a lion's share. Currently, the largest life insurance company

in India is still owned by the government.

Insurance in India has its history dating back till 1818, when oriental life insurance

company was started by Europeans in Kolkata to cater to the needs of European

community. Pre-independent era in India saw discrimination among the life of

foreigners and Indians with higher premiums being charged for the latter. It was only

in the year 1870, Bombay mutual life assurance society, the first Indian insurance

company covered Indian lives at normal rates.

At the dawn of the twentieth century, insurance companies started mushrooming up. In

the year 1912, the life insurance companies act, and the provident fund act were passed

to regulate the insurance business. The life insurance companies act, 1912 made it

necessary that the premium rate tables and periodical valuations of companies should

be certified by an actuary. However, the disparage still existed as discrimination

between Indian and foreign companies. The oldest existing insurance company in India

is national insurance company ltd, which was founded in 1906 and is doing business

even today. The insurance industry earlier consisted of only two state insurers: life

insurers i.e. Life insurance corporation of India (LIC) and general insurers i.e. General

insurance corporation of India (GIC). GIC had four subsidiary companies.

With effect from December 2000, these subsidiaries have been de-linked from parent

company and made as independent insurance companies: oriental insurance company

limited, new India assurance company limited, national insurance company limited and

united India insurance company limited. The reforms in the insurance sector leading

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finally to the opening of the insurance sector for private participation have brought in

its wake major changes not only in the design of the products available in the market

but also the manner in which they are marketed. We have today a host of products

coupled with a large number of intermediaries who market them.

The post-liberalized insurance industry panorama in India is witnessing dramatic

changes in terms of a slew of latest products and services, new channels of distribution,

greater use of I.T. as a service facilitator etc. There is also the phenomenon of

noticeable shifts in consumer preferences impacting the product mix being offered by

insurers. The market structure dominated by a few stabilized public sector players and

the 'new' players in the market (some of whom claim their lineage from established

international insurance behemoths) is in a state of flux- in terms of figure out market

shares but is full of potential.

Added to these are the rising trends of convergence of financial services, especially in

the areas like wealth management and evolution of newer risk management tools,

particularly in the context of reinsurance management. Greater attention is also being

bestowed on the areas like Agricultural Insurance and risk coverage of export-import

trade. Then there is impact of visible socio-economic changes like greater urbanization,

greater job mobility, growth of the services industry, weakening of traditional family

structure, impact of globalization etc. All in all, interesting things are happening in the

Indian insurance scene.

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TABLE OF CONTENTS

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2

Sr. No.

1. Introduction to the Industry

History of Insurance Sector

Insurance Services

Brief History of Insurance Sector in India

Lead Generation

The Sales and Marketing Relationship

Lead Sources

2. Introduction to the Company

Logo of Kotak Life Insurance

Insurance and myth

Enter Companies

The growing years

Kotak In India

Company Detail

Kotak's story

Products & Services

Kotak Mahindra group of companies

Vision

Analysis of Kotak Mahindra Life Insurance

Life Advisor Profiles for Kotak Life InsuranceSWOT Analysis

3. Research Methodology

a. Title

i. Title Justification

b. Objective

i. Objective One

ii. Objective Two

c. Scope of the Study

d. Significance of the study

e. Research Design

f. Sampling Methodology

g. Limitations

4. Facts and Findings

5. Data Analysis and Interpretation

6. Recommendations

7. Conclusion


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Table of Contents

1. Introduction to the Industry -10

- History of Insurance Sector-11

- Insurance Services-12

- Brief History of Insurance Sector in India-13

- Lead Generation-19

- The Sales and Marketing Relationship-20

- Lead Sources-24

2. Introduction to the Company -26

- Logo of Kotak Life Insurance-27

- Insurance and myth-28

- Enter Companies-28

- The growing years-28

- Kotak In India-31

- Company Detail-31

- Kotak's story-32

- Products & Services-32

- Kotak Mahindra group of companies-32

- Vision-33

- Analysis of Kotak Mahindra Life Insurance-33

- Life Advisor Profiles for Kotak Life Insurance-36

- SWOT Analysis-37

3. Research Methodology-38

a. Title-39

i. Title Justification -39

b. Objective-39

i. Objective One-39

ii. Objective Two -39

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c. Scope of the Study-39

d. Significance of the study -39

e. Research Design-40

f. Sampling Methodology -40

g. Limitations -41

h.Activities carried out-41

4. Facts and Findings-43

5. Data Analysis and Interpretation -54

6. Recommendations-65

7. Conclusion -68

8. Bibliography -71

a. Books-72

b. Internet

i. Sites-72

ii. Search Engines-72

9. Annexure-73

a. Questionnaire-74

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INTRODUCTION

TO THE

INDUSTRY

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HISTORY OF INSURANCE SECTOR

The insurance sector in India has come to a full circle from being an open competitive

market to nationalization and back to a liberalized market again. Tracing the

developments in the Indian insurance sector reveals the 360-degree turn witnessed over

a period of almost 190 years. The business of life insurance in India in its existing form

started in India in the year 1818 with 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 toregulate the life insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government

to collect statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC

Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to

the Triton Insurance Company Ltd., the first general insurance company established in

the year 1850 in 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 classes of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India,frames a code of conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from 1st January 1973.

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107 insurers amalgamated and grouped into four companies viz. the National Insurance

Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance

Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a

company.

INSURANCE SERVICES

Insurance is system by which the losses suffered by a few are spread over many,

exposed to similar risks. Insurance is a protection against financial loss arising on the

happening of an unexpected event. Insurance policy helps in not only mitigating risks

but also provides a financial cushion against adverse financial burdens suffered.

Insurance policies cover the risk of life as well as other assets and valuables such as

home, automobiles, jewellery.

The functions of Insurance can be bifurcated into two parts:

Primary Functions

Secondary Functions

Primary Functions

Provide Protection: The primary function of insurance is to provide protection against

future risk, accidents and uncertainty. Insurance cannot check the happening of the

risk, but can certainly provide for the losses of risk. Insurance is actually a protection

against economic loss, by sharing the risk with others.

Collective Bearing of Risk: Insurance is a device to share the financial loss of few

among many others. Insurance is a mean by which few losses are shared among larger

number of people. All the insured contribute the premiums towards a fund and out of

which the persons exposed to a particular risk is paid.

Assessment of Risk: Insurance determines the probable volume of risk by evaluating

various factors that give rise to risk. Risk is the basis for determining the premium rate

also

Provide Certainty: Insurance is a device, which helps to change from uncertainty to

certainty. Insurance is device whereby the uncertain risks may be made more certain.

Secondary Functions

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Prevention of Losses: Insurance cautions individuals and businessmen to adopt suitable

device to prevent unfortunate consequences of risk by observing safety instructions;

installation of automatic sparkler or alarm systems, etc. Prevention of losses cause

lesser payment to the assured by the insurer and this will encourage for more savings

by way of premium. Reduced rate of premiums stimulate for more business and better

protection to the insured.

Small Capital to cover Larger Risks: Insurance relieves the businessmen from security

investments, by paying small amount of premium against larger risks and uncertainty.

Contributes towards the Development of Larger Industries: Insurance provides

development opportunity to those larger industries having more risks in their setting

up. Even the financial institutions may be prepared to give credit to sick industrial units

which have insured their assets including plant and machinery.

BRIEF HISTORY OF INSURANCE SECTOR IN INDIA

The insurance sector in India has come a full circle from being an open competitive

market to nationalization and back to a liberalized market again. Tracing the

developments in the Indian insurance sector reveals the 360-degree turn witnessed over

a period of almost 190 years. The business of life insurance in India in its existing form

started in India in the year 1818 with the establishment of the Oriental Life Insurance

Company in Calcutta.

The General insurance business in India, on the other hand, can trace its roots to the

Triton Insurance Company Ltd., the first general insurance company established in the

year 1850 in Calcutta by the British. Some of the important milestones in the general

insurance business in India are:

LIFE INSURANCE, INDIA

Life is very fragile and death is a certainty. We cannot control the uncertainties of life.

But, we can cover the risks surrounding us. Life insurance, simply put, is the cover for

the risks that we run during our lives. It protects us from the contingencies that could

affect us.

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Life insurance is not for the person who passes away, it for those who survive. It is the

responsibility of every bread earner to guard against the events that could affect the

family in the unfortunate circumstance of his / her demise. Thus, having a life

insurance policy is very vital. Before going for a life insurance policy it is imperative

that you know about various types of life insurance policies. Major among them are:

Endowment Policy

Whole Life Policy

Term Life Policy

Money-back Policy

Joint Life Policy

Group Insurance Policy

Loan Cover Term Assurance Policy

Pension Plan or Annuities

Unit Linked Insurance Plan

GENERAL INSURANCE, INDIA

General Insurance provides much-needed protection against unforeseen events such as

accidents, illness, fire, burglary et al. Unlike Life Insurance, General Insurance is not

meant to offer returns but is a protection against contingencies. Almost everything that

has a financial value in life and has a probability of getting lost, stolen or damaged, can

be covered through General Insurance policy.

Property (both movable and immovable), vehicle, cash, household goods, health,

dishonesty and also one's liability towards others can be covered under general

insurance policy. Under certain Acts of Parliament, some types of insurance like Motor

Insurance and Public Liability Insurance have been made compulsory.

Major insurance policies that are covered under General Insurance are:

Home Insurance

Health Insurance

Motor Insurance

Travel Insurance

INSURANCE COMPANIES IN INDIA

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Before insurance sector was opened to the private sector Life Insurance Corporation

(LIC) was the only insurance company in India. After the opening up of Insurance

sector in India there has been a glut of insurance companies in India. These companies

have come up with innovative and flexible insurance policies to cater to varying needs

of the individual. Opening up of the Insurance sector has also forced the Lic to tighten

up its belt and deliver better service. All in all it has been a bonanza for the consumer.

Major Life Insurance Companies

Aviva Life Insurance

Bajaj Allianz

Birla Sun Life Insurance

HDFC Standard Life Insurance

ICICI Prudential

ING Vysya

Kotak Mahindra

LIC

Max New York Life Insurance

Metlife India Insurance

Reliance Life Insurance

SBI Life Insurance

Shriram Life Insurance

Tata AIG Life Insurance

Insurance in a narrow sense would be an individual or group purchasing health care

coverage in advance by paying a fee called premium. In its broader sense, it would be

any arrangement that helps to defer, delay, reduce or altogether avoid payment for

health care incurred by individuals and households. Given the appropriateness of this

definition in the Indian context, this is the definition, we would adopt. The health

insurance market in India is very limited covering about 10% of the total population.

The existing schemes can be categorized as:

(1) Voluntary health insurance schemes or private-for-profit schemes;

(2) Employer-based schemes;

(3) Insurance offered by NGOs / community based health insurance, an

(4) Mandatory health insurance schemes or government run schemes (namely ESIS,

CGHS).

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Voluntary health insurance schemes or private for profit schemes

In private insurance, buyers are willing to pay premium to an insurance company that

pools people with similar risks and insures them for health expenses. The key

distinction is that the premiums are set at a level, which provides a profit to third party

and provider institutions. Premiums are based on an assessment of the risk status of the

consumer (or of the group of employees) and the level of benefits provided, rather than

as a proportion of the consumers income.

In the public sector, the General Insurance Corporation (GIC) and its four subsidiary

companies (National Insurance Corporation, New India Assurance Company, Oriental

Insurance Company and United Insurance Company) and the Life Insurance

Corporation (LIC) of India provide voluntary insurance schemes. The Life Insurance

Corporation offersAshadeep Plan II and Jeevan Asha Plan II. The General Insurance

Corporation offers Personal Accident policy, Jan Arogya policy, Raj Rajeshwari

policy, Mediclaim policy, Overseas Mediclaim policy, Cancer Insurance policy,

Bhavishya Arogya policy and Dreaded Disease policy (Srivastava 1999 as quoted in

Bhat R & Malvankar D, 2000) Of the various schemes offered, Mediclaim is the main

product of the GIC. The Medical Insurance Scheme or Mediclaim was introduced in

November 1986 and it covers individuals and groups with persons aged 5 80 yrs.

Children (3 months 5 yrs) are covered with their parents. This scheme provides for

reimbursement of medical expenses (now offers cashless scheme) by an individual

towards hospitalization and domiciliary hospitalization as per the sum insured. There

are exclusions and pre-existing disease clauses. Premiums are calculated based on age

and the sum insured, which in turn varies from Rs 15 000 to Rs 5 00 000. In 1995/96

about half a million Mediclaim policies were issued with about 1.8 million

beneficiaries

(Krause Patrick 2000). The coverage for the year 2000-01 was around 7.2 million.

Another scheme, namely the Jan Arogya Bima policy specifically targets the poor

population groups. It also covers reimbursement of hospitalization costs up to Rs 5 000

annually for an individual premium of Rs 100 a year. The same exclusion mechanisms

apply for this scheme as those under the Mediclaim policy. A family discount of 30%

is granted, but there is no group discount or agent commission. However, like the

Mediclaim, this policy too has had only limited success. TheJan Arogya Bima Scheme

had only covered 400 000 individuals by 1997. The year 1999 marked the beginning of

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a new era for health insurance in the Indian context. With the passing of the Insurance

Regulatory Development Authority Bill (IRDA) the insurance sector was opened to

private and foreign participation, thereby paving the way for the entry of private health

insurance companies. The Bill also facilitated the establishment of an authority to

protect the interests of the insurance holders by regulating, promoting and ensuring

orderly growth of the insurance industry. The bill allows foreign promoters to hold

paid up capital of up to 26 percent in an Indian company and requires them to have a

capital of Rs 100 crore along with a business plan to begin its operations.Currently, a

few companies such as Bajaj Alliance, ICICI, Royal Sundaram, and Cholamandalam

among others are offering health insurance schemes. The nature of schemes offered by

these companies is described briefly.

Bajaj Allianz: Bajaj Alliance offers three health insurance schemes namely, Health

Guard, Critical Illness Policy and Hospital Cash Daily Allowance Policy.

- The Health Guard scheme is available to those aged 5 to 75 years (not allowing entry

for those over 55 years of age), with the sum assured ranging from Rs 100 0000 to 500

000. It offers cashless benefit and medical reimbursement for hospitalization expenses

(preand post-hospitalization) at various hospitals across India (subject to exclusions

and conditions). In case the member opts for hospitals besides the empanelled ones, the

expenses incurred by him are reimbursed within 14 working days from submission of

all the documents. While pre-existing diseases are excluded at the time of taking the

policy, they are covered from the 5th year onwards if the policy is continuously

renewed for four years and the same has been declared while taking the policy for the

first time. Other discounts and benefits like tax exemption, health check-up at end of

four claims free year, etc. can be availed of by the insured. - The Critical Illness policy

pays benefits in case the insured is diagnosed as suffering from any of the listed critical

events and survives for minimum of 30 days from the date of diagnosis. The illnesses

covered include: first heart attack; Coronary artery disease requiring surgery: stroke;

cancer; kidney failure; major organ transplantation; multiple sclerosis; surgery on

aorta; primary pulmonary arterial hypertension, and paralysis. While exclusion clauses

apply, premium rates are competitive and high-sum insurance can be opted for by the

insured. The Hospital Cash Daily Allowance Policy provides cash benefit for each and

every completed day of hospitalization, due to sickness or accident. The amount

payable per day is dependant on the selected scheme. Dependant spouse and children

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(aged 3 months 21years) can also be covered under the Policy. The benefits payable

to the dependants are linked to that of insured. The Policy pays for a maximum single

hospitalization period of 30 days and an overall hospitalization period of 30/60

completed days per policy period per person regardless of the number of confinements

to hospital/nursing home per policy period.

ICICI Lombard: ICICI Lombard offers Group Health Insurance Policy. This policy is

available to those aged 5 80 years, (with children being covered with their parents)

and is given to corporate bodies, institutions, and associations. The sum insured is

minimum Rs 15 000/- and a maximum of Rs 500 000/-. The premium chargeable

depends upon the age of the person and the sum insured selected. A slab wise group

discount is admissible if the group size exceeds 100. The policy covers reimbursement

of hospitalization expenses incurred for diseases contracted or injuries sustained in

India. Medical expenses up to 30 days for Pre-hospitalization and up to 60 days for

post-hospitalization are also admissible. Exclusion clauses apply. Moreover,

favourable claims experience is recognized by discount and conversely, unfavourable

claims experience attracts loading on renewal premium. On payment of additional

premium, the policy can be extended to cover maternity benefits, pre-existing diseases,

and reimbursement of cost of health check-up after four consecutive claims-free years.

Royal Sundaram Group: The Shakthi Health Shield policy offered by the Royal

Sundaram group can be availed by members of the womens group, their spouses and

dependent children. No age limits apply. The premium for adults aged up to 45 years is

Rs 125 per year, for those aged more than 45 years is Rs 175 per year. Children are

covered at Rs 65 per year. Under this policy, hospital benefits up to Rs 7 000 per

annum can be availed, with a limit per claim of Rs 5 000. Other benefits include

maternity benefit of Rs 3 000 subject to waiting period of nine months after first

enrolment and for first two children only. Exclusion clauses apply (Ranson K & Jowett

M, 2003)

Cholamandalam General Insurance: The benefits offered (in association with the

Paramount Health Care, a re-insurer) in case of an illness or accident resulting in

hospitalization, are cash-free hospitalization in more than 1 400 hospitals across India,

reimbursement of the expenses during pre- hospitalization (60 days prior to

hospitalization) and post- hospitalization (90 days after discharge) stages of treatment.

Over 130 minor surgeries that require less than 24 hours hospitalization under day care

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procedure are also covered. Extra health covers like general health and eye

examination, local ambulance service, hospital daily allowance, and 24 hours

assistance can be availed of Exclusion clauses apply.

LEAD GENRATION

A sale is the pinnacle activity involved in selling products or services in return for

money or other compensation. It is an act of completion of a commercial activity.

The "deal is closed", means the customer has consented to the proposed product or

service by making full or partial payment (as in case of installments) to the seller.

A sale is completed by the seller, the owner of the goods. It starts with consent (or

agreement) to an acquisition or appropriation or request followed by the passing of title

(property or ownership) in the item and the application and due settlement of a price,

the obligation for which arises due to the seller's requirement to pass ownership, being

a price the seller is happy to part with ownership of or any claim upon the item. The

purchaser, though a party to the sale, does not execute the sale, only the seller does

that. To be precise the sale completes prior to the payment and gives rise to the

obligation of payment. If the seller completes the first two above stages (consent and

passing ownership) of the sale prior to settlement of the price the sale is still valid andgives rise to an obligation to pay.

Sales agents

Agents in the sales process can be defined as representing either side of the sales

process for example:

Sales broker or Seller agency or seller agent

This is a traditional role where the salesperson represents a person or company on the

selling end of the deal.

Buyers broker or Buyer brokerage

This is where the salesperson represents the consumer making the purchase. This is

most often applied in large transactions.

Disclosed dual agent

This is where the salesperson represents both parties in the sale and acts as a mediator

for the transaction. The role of the salesperson here is to over see that both parties

receive an honest and fair deal, and is responsible to both.

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Transaction broker

This is where the salesperson doesn't represent either party, but handles the transaction

only. This is where the seller owes no responsibility to either party getting a fair or

honest deal, just that all of the papers are handled properly.

Sales Outsourcing

This is direct branded representation where the sales reps are recruited, hired, and

managed by an external entity but hold quotas, represent themselves as the brand of the

client, and report all activities (through their own sales management channels) back to

the client. It is akin to a virtual extension of a sales force.

Sales Managers

It is the goal of a qualified and talented sales manager to implement various sales

strategies and management techniques in order to facilitate improved profits and

increased sales volume. They are also responsible for coordinating the sales and

marketing department as well as oversight concerning the fair and honest execution of

the sales process by his agents.

Salespersons

The primary function of professional sales is to generate and close leads, educate

prospects, fill needs and satisfy wants of consumers appropriately, and therefore turn

prospective customers into actual ones. The successful questioning to understand a

customer's goal and requirements relevant to the product, the further creation of a

valuable solution by communicating the necessary information that encourages a buyer

to achieve their goal at an economic cost is the responsibility of the salesperson or the

sales engine (e.g. internet, vending machine etc). A good sales person should never

miss sell or over evaluate the customers requirements.

THE SALES AND MARKETING RELATIONSHIP

Marketing and Sales are very different, but have the same goal. Marketing improves

the selling environment and plays a very important role in sales. If the marketing

department generates a potential customers list, it can be beneficial for sales. The

marketing department's goal is increase the number of interactions between potential

customers and the sales team using promotional techniques such as advertising, sales

promotion, publicity, and public relations, creating new sales channels, or creating new

products (Product Development), among other things. In most large corporations, the

marketing department is structured in a similar fashion to the sales department [citation

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needed] and the managers of these teams must coordinate efforts in order to drive

profits and business success. For example, an "inbound" focused campaign seeks to

drive more customers "through the door" giving the sales department a better chance of

selling their product to the consumer. A good marketing program would address any

potential downsides as well. For example, very often (for legal reasons, e.g. in non-

store retailing) companies have to provide credit to customers. This may cause a

conflict between the sales department on the one hand and the credit department on the

other hand (See Burez & Van den Poel (2007) for potential solutions to this problem.).

A good marketing plan would recognize this problem and address it by, for example,

target marketing where credit risk is minimal.

The Sales department's goal would be to improve the interaction between the customer

and the sales facility or mechanism (example, web site) and/or salesperson. Sales

management would break down the selling process and then increase the effectiveness

of the discreet processes as well as the interaction between processes. For example, in

many out-bound sales environments, the typical process is out bound calling, the sales

pitch, handling objections, opportunity identification, and the close. Each step of the

process has sales-related issues, skills, and training needs as well as marketing

solutions to improve each discrete step, as well as the whole process.

One further common complication of marketing involves the inability to measure

results for a great deal of marketing initiatives. In essence, many marketing and

advertising executives often lose sight of the objective of sales/revenue/profit, as they

focus on establishing a creative/innovative program, without concern for the top or

bottom lines. Such is a fundamental pitfall of marketing for marketing's sake.

SALES LEAD

A sales lead is the identity of a person or entity potentially interested in purchasing a

product or service, and represents the first stage of a sales process. The lead may have

a corporation or business associated (a B2B lead) with the person(s). Sales leads come

from either marketing lead generation processes such as trade shows, direct marketing,

advertising, Internet marketing or from sales person prospecting activities such as cold

calling. For a sales lead to qualify as a sales prospect, or equivalently to move a lead

from the process step sales lead to the process sales prospect, qualification must be

performed and evaluated. Typically this involves identifying by direct interrogation the

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lead's product applicability, availability of funding, and time frame for purchase. This

is also the entry point of a sales tunnel, sales funnel or sales pipeline.

Lead generation efforts are generally focused on identifying and qualifying high grade

selling opportunities for the sales force.

For the most part, lead generation programs do not generate order taking opportunities.

If the prospects are ready to buy, the lead generator might just as well take the first

order there and then.

In reality, sales only take place due to the persuasive ability of a sales rep to win the

new customer and come away with the first order, as the final step in a program of lead

generation, lead nurturing and lead qualification,

The following diagram indicates the 4 levels of sales lead opportunities.

As you move up the pyramid, the cost per opportunity increases and the volume of

opportunities decreases. You could decide only to provide the low hanging fruit to your

sales force. This strategy, however, is rarely practical and could be significantly

counterproductive. In your experience, how many of your qualified prospective

customers were actually waiting for you to call on them to sell your services/products?

Sales conversion rates from opportunities to sale are likely to follow the same

sequence, with Level 1 having the highest conversion rate and Level 4 the lowest.

Management must therefore seek the balancing point where the sales force is most

productive If the lead generation effort is not producing sufficient quantities of highly

qualified opportunities from levels 1 and 2, there may be several reasons.

The best strategy is finding a happy medium? Somewhere in between. However, the

ultimate arbiters are the sales people who will be following up. Unfortunately, it may

be that some of the sales force is part of the problem. To our constant disbelief, many

companies refer the decision of whether or not to continue a lead generation program

to the sales force. When they do this here is what normally happens:

The sales people who are successfully closing business want the program to continue.

Those not closing enough business tend to blame the quality of the leads for their poor

performance.

This suggests that giving the prerogative to the sales force is may not be the best

answer. Because a sales person who is not closing business will almost never admit its

his or her fault, it is invariably, something or someone else. And the finger of failure

often times points at the source of the lead or its quality.

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This is a situation where management ought not to duck its responsibility. If the sales

force is not closing fully qualified opportunities (that meet the specified criteria) then

surely it must be poor performing salespersons who is the problem, not the leads.

Especially when some of the sales force are succeeding and others not. If no sales at all

were being recorded (rare!) you would have a sure fire case against the quality of the

lead generation effort.

Well, first, management needs to be fully aware of the problem. Then it needs to make

strategic decisions.

1. Determine the optimal level you wish to allow that is economically viable and

practical from a sales force productivity standpoint.

2. Non-performers may need some skill training. If this does not help, then other

options should be exercised.

Some time ago, etc started a major project for a Fortune 100 financial services client

with a sales force of 150. They faced the exact situation. The program was enormously

successful in every way for about half the sales force, while the other half were pulling

down the overall result.

Instead of killing the very successful half of the lead generation effort, however, the

company decided to fire about 40% of the poor performing reps. New reps were

employed and trained specifically to support the lead generation effort. Guess what?

our client enjoyed a major success and the client now has in place a comprehensive,

measurable selling operation. They are no longer reliant for their success solely on the

success of the top half of sales people who sold profitably.

The purpose of developing a pipeline of ready to buy opportunities is to build a

measurable, consistent and growing sales operation. In the above example, some of the

sales force had been in place for many years. They had, for the most part, been doing

their own thing. For all intents and purposes they owned the prospect relationships. In

fact, the company often had no idea who the prospects were! In essence, the sales

people were in control of the companies destiny. Worst of all, they were not

accountable!

In the environment that was developed as part of ethic lead generation effort, our client

was now in full control. The flow of opportunities was controlled centrally in a

relational database. Management now had visibility and control of each and every

opportunity. Moreover, they had a complete and accurate view of the activity of its

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sales force. They could now demand that each one of the sales reps be accountable and

report on the progress of each sales opportunity provided to them. And they had a

structure in which to track all of that.

A comprehensive compliance and lead rating system was put in place to check and

verify proper cooperation. Those who performed became part of the permanent sales

team and were hugely successful. Those who did not play by the new rules were

ushered out. The net result? A sales force that was molded into a comprehensive

selling machine with the company in charge of a measurable, accountable, highly

profitable sales operation. Half way through the process, management told us they had

"learned more about their business in the first 6 months of the program than they had

learned in the previous 10 years!" A great compliment and a tribute as much to their

being able to listen and respond effectively, as to the validity of our guidance.

Few managers want to make tough decisions that hurt their employees. We understand

that. Some would rather live with the problem than with the trauma of handing out

those pink slips. In fact, more would rather do this than deal with the real issues.

Nevertheless, if your goal is to maximize the ROI of your customer acquisition efforts,

theres no escaping tough decisions in business.

Once a qualified lead exists, additional operations may be performed such as

background research on the lead's employer, general market of the lead, contact

information beyond that provided initially or other information useful for contacting

and evaluating a lead for elevation to prospect, the next sales step.

If a sales lead eventually makes a purchase, this is called conversion and a closed sale.

The ratio of sales leads that convert is often referred to as the conversion rate, a way to

measure the effectiveness of a sales process, sales team, or sales person.

Brand marketers also use online lead generation to generate marketing leads.

Marketing leads were introduced to the online lead generation market in 2007. Till

then, a large portion of the online lead generation market was focused on generating

sales leads.

Sales leads are generic leads that are generated on the basis of demographic criteria

such as FICO score, income, age, HHI, etc. These leads are often resold to multiple

advertisers. Sales leads are typically followed up through phone calls by the sales

force. They are commonly found in the mortgage, insurance and finance industries.

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Marketing leads are brand-specific leads generated for a unique advertiser offer. In

contrast to sales leads, marketing leads can only be sold to a unique advertiser.

Marketing leads are generated for a unique brand Wells Fargo, Coca Cola, etc.

Marketing leads are typically generated for e-newsletter lists, email databases, member

loyalty programs, community sites or for vendor-specific sales efforts. Sales leads are

generated for a particular industry e.g. Finance, Mortgage, etc.

LEAD SOURCES

Leads can be generated by many different marketing campaigns or can have many

different sources. You can generate leads by mailings (fax, paper, email), fairs and

trade markets, phone (call centers), database marketing and the websites. Leads from

websites are often called web leads.

Great salespeople focus on near-term opportunities and on closing deals. Their success

is in recognizing ripe opportunities when they see them. These same characteristics,

however, can cause them to devalue longer term opportunities or even to cherry-pick

the "hot" leads they somehow conclude are better, even without hard supporting

evidence. So marketing spends many thousands of dollars to generate leads from a

variety of channels and the salesforce follows up on only that segment that falls

quickly to the bottom of the sales opportunity funnel.

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The gap between the leads marketing is generating and the limited number followed up

by the salesforce is your sales opportunity pipeline - an extremely valuable asset. Most

opportunities need to be nurtured to full maturity and contacted cyclically to ensure

that your products and services are top of mind when the need arises. Awareness needs

to be enhanced, interest in your offerings built, and the specific details of each

prospect's pain needs to be detailed, captured, and quantified to support the selling

process.

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INTRODUCTION

TO THECOMPANY

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LOGO OF THE KOTAK LIFE INSURANCE

Almost 4,500 years ago, in the ancient land of babylonia, traders used to bear risk of

the caravan trade by giving loans that had to be later repaid with interest when the

goods arrived safely. In 2100 bc, the code of hammurabi granted legal status to the

practice.

That, perhaps, was how insurance made its beginning.

Life insurance had its origins in ancient Rome, where citizens formed burial clubs that

would meet the funeral expenses of its members as well as help survivors by making

some payments.

As European civilization progressed, its social institutions and welfare practices also

got more and more refined. With the discovery of new lands, sea routes and the

consequent growth in trade, medieval guilds took it upon themselves to protect theirmember traders from loss on account of fire, shipwrecks and the like.

Since most of the trade took place by sea, there was also the fear of pirates. So these

guilds even offered ransom for members held captive by pirates. Burial expenses and

support in times of sickness and poverty were other services offered. Essentially, all

these revolved around the concept of insurance or risk coverage. That's how old these

concepts are, really.

In 1347, in Genoa, European maritime nations entered into the earliest known

insurance contract and decided to accept marine insurance as a practice.

The first step insurance as we know it today owes its existence to 17th century

England. In fact, it began taking shape in 1688 at a rather interesting place called

Lloyd's coffee house in London, where merchants, ship-owners and underwriters met

to discuss and transact business. By the end of the 18th century, Lloyd's had brewed

enough business to become one of the first modern insurance companies.

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Insurance and myth...

Back to the 17th century. In 1693, astronomer edmond halley constructed the first

mortality table to provide a link between the life insurance premium and the averagelife spans based on statistical laws of mortality and compound interest. In 1756, Joseph

Dodson reworked the table, linking premium rate to age.

Enter companies...

The first stock companies to get into the business of insurance were chartered in

England in 1720. The year 1735 saw the birth of the first insurance company in the

American colonies in Charleston, sc.

In 1759, the Presbyterian synod of Philadelphia sponsored the first life insurance

corporation in America for the benefit of ministers and their dependents. However, it

was after 1840 that life insurance really took off in a big way. The trigger: reducing

opposition from religious groups.

The growing years...

The 19th century saw huge developments in the field of insurance, with newer products

being devised to meet the growing needs of urbanization and industrialization.

In 1835, the infamous New York fire drew people's attention to the need to provide for

sudden and large losses. Two years later, Massachusetts became the first state to

require companies by law to maintain such reserves. The great Chicago fire of 1871

further emphasized how fires can cause huge losses in densely populated modern

cities. The practice of reinsurance, wherein the risks are spread among several

companies, was devised specifically for such situations.

There were more offshoots of the process of industrialization. In 1897, the British

government passed the workmen's compensation act, which made it mandatory for a

company to insure its employees against industrial accidents. With the advent of theautomobile, public liability insurance, which first made its appearance in the 1880s,

gained importance and acceptance.

In the 19th century, many societies were founded to insure the life and health of their

members, while fraternal orders provided low-cost, members-only insurance.

Even today, such fraternal orders continue to provide insurance coverage to members

as do most labour organizations. Many employers sponsor group insurance policies for

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their employees, providing not just life insurance, but sickness and accident benefits

and old-age pensions. Employees contribute a certain percentage of the premium for

these policies.

In India

Insurance in India can be traced back to the Vedas. For instance, Yogakshema, the

name of life insurance Corporation of Indias corporate headquarters, is derived from

the Rig-Veda. The term suggests that a form of "community insurance" was prevalent

around 1000 BC and practiced by the Aryans.

Burial societies of the kind found in ancient Rome were formed in the Buddhist period

to help families build houses, protect widows and children.

Bombay mutual assurance society, the first Indian life assurance society, was formed in

1870. Other companies like oriental, Bharat and empire of India were also set up in the

1870-90s.

It was during the Swadeshi movement in the early 20th century that insurance

witnessed a big boom in India with several more companies being set up.

As these companies grew, the government began to exercise control on them. The

insurance act was passed in 1912, followed by a detailed and amended insurance act of

1938 that looked into investments, expenditure and management of these companies'

funds.By the mid-1950s, there were around 170 insurance companies and 80 provident fund

societies in the country's life insurance scene. However, in the absence of regulatory

systems, scams and irregularities were almost a way of life at most of these companies.

As a result, the government decided nationalise the life assurance business in India.

The life insurance corporation of India was set up in 1956 to take over around 250 life

companies.

For years thereafter, insurance remained a monopoly of the public sector. It was only

after seven years of deliberation and debate - after the RN Malhotra committee report

of 1994 became the first serious document calling for the re-opening up of the

insurance sector to private players -- that the sector was finally opened up to private

players in 2001.

The insurance regulatory & development authority, an autonomous insurance regulator

set up in 2000, has extensive powers to oversee the insurance business and regulate in a

manner that will safeguard the interests of the insured.

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Myth 1: Insurance is for tax saving

There's always this rush to buy insurance policies towards the end of the financial year,

making one wonder if the tax-saving purpose of life insurance has not overshadowed

its other roles.

Yes, the tax benefits associated with life insurance policies do help make the

investment more attractive. The public provident fund also offers the 20% tax rebate

under section 88 of the income tax act, 1961, as do small saving schemes like post

office deposits and national savings certificates. You may also avail of tax benefits

under section 80ccc with certain plans. And there are other investment options that

give you higher returns than insurance. But these don't offer you security, the risk

cover that helps you overcome the uncertainties of life. The primary function of life

insurance is to cover you against financial losses arising out of sudden death or

disability. It also offers returns and tax savings. Life insurance, as an instrument, is

hence a good marriage of risk cover, returns and tax benefits.

Myth 2: Insurance does not give good returns

Insurance is different from routine investment options. A fixed deposit or even a

national savings certificate may apparently fetch more returns than a life insurance

policy. But that's not a fair straight-line comparison.

If monetary returns are evaluated in isolation, a Fixed Deposit (FD) offering 9.5%

might look very good in this depressed market. But insurance offers other benefits

along with returns.

Look at security for instance. If you invest in an FD and happen to die, your nominee

can claim only the amount of the FD. If you live, you will get back the sum of the FD

with the desired interest.

Compare this to a life insurance policy. For a sum of Rs 5,000 invested in a FD, you

would get the same amount at the end of the year whereas for a small insurance

premium of say Rs 5,000 per annum, you could buy yourself a cover of around Rs

50,000 to Rs 2 lakhs depending on your age and type of policy. If you happen to die

during the tenure of the policy, your family members would get Rs 50,000 to Rs 2

lakhs as a benefit. In case you live, you will get back the entire sum assured with

maybe a decent return.

Evaluate the two options. For a small "notional loss" in returns, you are running the

risk of leaving your loved ones uncared for if something happened to you. On the other

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hand, with an insurance policy, peace of mind will never be an issue. Thats something

money can seldom buy.

Company detail

Kotak Mahindra is one of India's leading financial conglomerates, offering completefinancial solutions that encompass every sphere of life. From commercial banking, to

stock broking, to mutual funds, to life insurance, to investment banking, the group

caters to the financial needs of individuals and corporate.

The group has a net worth of over Rs 5,997 crore, employs over 20,000 people in its

various businesses and has a distribution network of branches, franchisees,

representative offices and satellite offices across 370 cities and towns in India and

offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The

group services around 5 million customer accounts.

Our story

The Kotak Mahindra group was born in 1985 as Kotak capital management finance

limited. This company was promoted by Uday Kotak, Sidney a. A. Pinto and Kotak &

company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986,

and that's when the company changed its name to Kotak Mahindra finance limited.

Since then it's been a steady and confident journey to growth and success.

1986 Kotak Mahindra finance limited starts the activity of bill discounting

1987 Kotak Mahindra finance limited enters the lease and hire purchase market

1990 the auto finance division is started

1991 the investment banking division is started. Takes over FICOM, one of

India's largest financial retail marketing networks

1992 enters the funds syndication sector

1995 brokerage and distribution businesses incorporated into a separate

company - Kotak securities. Investment banking division incorporated into a separate

company - Kotak Mahindra capital company

1996 the auto finance business is hived off into a separate company - Kotak

Mahindra prime limited (formerly known as Kotak Mahindra primus limited). Kotak

Mahindra takes a significant stake in ford credit Kotak Mahindra Limited, for

financing ford vehicles. The launch of matrix information services limited marks the

group's entry into information distribution.

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1998 enters the mutual fund market with the launch of Kotak Mahindra asset

management company.

2000 Kotak Mahindra ties up with old mutual plc. For the life insurance

business.

Kotak Securities launches its on-line broking site (now

www.kotaksecurities.com). Commencement of private equity activity through setting

up of Kotak Mahindra venture capital fund.

matrix sold to Friday corporation

Launches insurance services

Kotak Mahindra finance ltd. Converts to a commercial bank - the first Indian

company to do so.

Launches India growth fund, a private equity fund.

Kotak group realigns joint venture in ford credit; buys Kotak Mahindra prime

(formerly known as Kotak Mahindra primus limited) and sells ford credit Kotak

Mahindra.

Launches a real estate fund

bought the 25% stake held by Goldman Sachs in Kotak Mahindra capital

company and Kotak Securities

Kotak group products & services Bank

Credit cards

Life insurance

Mutual fund

Car finance

Securities

Institutional equities

Investment banking

International business

Kotak private equity

Kotak realty fund

KOTAK MAHINDRA GROUP OF COMPANIES

Kotak Mahindra offers pragmatic, world-class solutions. Put simply, solutions with a

lot of common sense; Solutions that take care of every individuals four basic financial

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needs - Earning, Saving, Investing and Spending i.e. Helping people to live life in

the complete sense, sans worries.

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial banking, to


caters to the financial needs of individuals and corporate.

The group has a net worth of over Rs. 2,840 crore, employs around 7,800 people in its



offices in New York, London, Dubai and Mauritius. The Group caters over 1.6 million

customer accounts.

KOTAK MAHINDRA BANK LTD

KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LTD

KOTAK MAHINDRA CAPITAL COMPANY LTD

INTERNATIONAL SUBSIDIARIES

KOTAK MAHINDRA PRIME LTD

KOTAK SECURITIES LTD

KOTAK MAHINDRA ASSET MANAGEMENT COMPANY

THEIR VISION

The Global Indian Financial Services Brand: Their customers will enjoy the

benefits of dealing with a global Indian brand that best understands their needs and

delivers customized pragmatic solutions across multiple platforms. They will be a

world class Indian financial services group. Their technology and best practices will be

benchmarked along international lines while their understanding of customers will be

uniquely Indian. They will be more than a repository of their customers savings. We,

the Group, will be a single window to every financial service in a customer's universe.

The most Preferred Employer in Financial Service: A culture of empowerment and

a spirit of enterprise attract bright minds with an entrepreneurial streak to join them and

stay with them. Working with a home-grown, professionally-managed company, which

has partnerships with international leaders, gives their people a perspective that is

universal as well as unique.

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The most trusted financial services company: They endeavor create an ethos of trust

across all their constituents. Adhering to high standards of compliance and corporate

governance is an integral part of building trust.

Value Creation: Value creation rather than size alone is their business driver.

ANALYSIS OF KOTAK MAHINDRA LIFE INSURANCE

Kotak Mahindra is one of India's leading financial conglomerates, offering complete

financial solutions that encompass every sphere of life. From commercial banking, to


caters to the diverse financial needs of individuals and corporate.

The group has a net worth of over Rs. 3,380 crore, employs around 12,300 people in its



offices in New York, London, Dubai, Mauritius and Singapore. The Group services

around 2.9 million customer accounts.

In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford

Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra

(FCKM) held by Kotak Group.

In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in Kotak Capital

and Kotak Securities.

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak

Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take

important financial decisions at every stage in life by offering them a wide range of

innovative life insurance products, to make them financially independent.

Kotak Life Insurance saw its First Year Premium income jump from Rs 126 cr in

2003-04 to 375 cr in 2004-05, a growth of 198%. This follows a 246% growth in the

previous year.

Kotak Life Insurance is likely to maintain its aggressive growth of infrastructure with

Sales Managers numbers planned to grow from 450 in 2004-05 to 850 in current

financial. Correspondingly, the Life Advisor base of 7000 in 2004-05 is planned to

move up to 12000 by end of this financial. Even the Alternate Distribution Channel

and the Group Insurance Sales Teams has been expanded. However all this shall be

done with them getting more out of the current structure. The important element of

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current year strategy is how they sweat the infrastructure that they have put in place

over the last couple of years. It is imperative that they make their money go longer than

the competition to ensure them breakeven faster. Kotak Life Insurance plans to achieve

this Break Even within the next three years.

Kotak Life Insurance shall continue with its pilot project in Kerala of trying out the All

Full Time Advisor model of Old Mutual, the South African Insurance Major and its JV

partner. This coupled with drives to strengthen presence in high potential states is

Kotak Lifes key steps in increasing Geographical presence. Their belief on segmented

approach towards selecting target markets and segments shall continue and with higher

penetration in states like Tamil Nadu and Punjab they will be able to exploit the

opportunity that the vibrant economy is offering in even smaller towns and rural

markets.

Kotak Group is building a strong financial service offered under the banner of "Think

Investment. Think Kotak." and Kotak Life Insurance lead products, Kotak Safe

Investment Plan II and Kotak Flexi Plan have captured a significant share of the

business. Built around the promise of Capital Guarantee, both these products offer

excellent opportunity for their customers and embody the brand promise perfectly.

Kotak Life builds around the same innovative streak for which Kotak has been famous

in other segments of the financial services earlier. Their offerings in the market are

rated highly by both the distributors as well as the customers. They are committed to

build stronger and better products in the future too.

Kotak Life Insurance is very bullish about its future. Built around the three pillars of

stronger leverage,- group synergies, greater focus on quality execution and innovative

product offerings.

Their challenge will lie in channelising their accumulated learning across the group to

their advantage and building a culture, which encourages performance-linked growth.

Kotak is and shall remain a company that encourages people to take challenges and

build value for all the stakeholders

Kotak Mahindra believes in offering its customers a lifetime of value- A commitment

that has made it a leading financial services group with net worth of around Rs. 1700

crore as well as a market leader in the areas of investment banking and distribution of

financial products.

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The company has raked in new business premium of Rs 160 crore at the end of July

2007, a growth of 46 per cent from Rs 110 crore in the year-ago period

LIFE ADVISOR PROFILES FOR KOTAK LIFE INSURANCE

If you're looking for a profession that allows you to value your independence, turn tokotak life insurance. Being a life advisor with us allows you to stay independent,

financially as well as in terms of working hours. It gives you a unique opportunity to

positively change peoples' lives by ensuring that they secure their own as well as their

family's future.

Job profile

As a life advisor your role would go beyond selling policies. Your role would be to

explain life insurance and its benefits to potential customers and help them decide

which plan suits them best after analyzing their financial needs. Hence, life insurance

offers you with an opportunity for:

An exciting / challenging career

Flexible work hours.

Unlimited income.

Regular income for years till the policies sold by you are in force.

Support and benefits provided by us

As a life advisor with Kotak life insurance you would enjoy the following benefits:

1. Enriching training program: an intensive training program before you commence

your new career. This would equip you with all the information and knowledge about

life insurance, its benefits and our products. This would help you perform your job

better and meet your goals. You would also enjoy the benefits of continuous training

and mentoring programs that are designed to update you, apart from enhancing your

selling skills.

2.Mentoring: trainingand support from the company to meet your goals. Opportunity

to learn from industry professionals.

3. Flexibility: decide you own working hours and earning goals.

4. Freedom: continue with your present job occupation if you so desire and treat this as

a parallel source of income. This allows you time to decide if you want to take the job

of a life advisor as a full time activity.

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5. Earnings: entitlement to a percentage of the premium as commission till the time

the policies sold by you are in force.

6. Attractive additional benefits for high-performers: palmtops, planners, leather

portfolio bags, offsite conferences, foreign trips and sales promotional schemes.

Qualifications required

You need to be a graduate. Some other factors that we look for are:

A wide social network

Good interpersonal skills

Desire to meet people

If you are interested and wish to know more about this unique opportunity, please

apply now, so that we can depute a company official to brief and help you pursue this

opportunity.

SWOT ANALYSIS

Strengths:

High employee satisfaction.

High commission as compared to others i.e. 20% - 40%.

Great incentives.

Weakness:

Low marketing strategies.

Low market awareness.

Opportunities:

Huge market potential.

Greater demands.

Threats:

Government policies as under control of I.R.D.A.

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Threats from the competitors in the market i.e. Max New York, Reliance,

I .C.I .C .I.

RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

(a) Title:

Study & work with the Channel Marketing Team(Tied Agency) of Kotak Life

Insurance to develop its distribution Channel.

i. Title Justification

Keeping in mind the above considerations, the purpose of this project report is to

enable the marketer to understand life advisors needs and maximize their productivity

thorough lead generation taking Kotak Life advisor is not an employ with the

company, as in case of my research. The research is to show that how I have created

the leads of the Life advisor from the market activity or from my personal contacts ie

the no. of people I have made life advisor by telling them about the incentives &

commission which will be given to them by the company if they sell the policy Life

Insurance as a special case. Insurance is a financial tool surrounded with many

misconceptions and hence a life advisor plays a central role to keep customer on track

and create awareness. The thesis will also highlight the problems within the lead

generation factor.

b. Objective

Objective One: To analyze the Lead generation factor for the Kotak Life Insurance

sales advisor;

Objective Two: To analyze and implement the comparative strategy for Lead

generation for increasing sales.

c. Scope of the Study

Insurance industry is growing at a very fast pace. In this cut throat competitive era it is

important for the marketers to design and deliver their services efficiently. Marketer

has to understand the needs of the untapped customers. This thesis will help to

understand the industry with respect to the needs, demands, preferences of the

customer and the products that the company offers to cater to those needs.

d. Significance of the Study

India is a huge, diverse and complex market of which, the insurance sector was opened

for private competition in 2000. Thus, insurers endeavored to segment the market

carefully. Distribution was seen to be the key of success. Regulators were made to

formulate strong and fair guidelines. Private insurers were perceived to have served

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best by a middle-market approach, targeting customer segments that were currently

untapped. Multinational insurers were observed to be keenly interested in emerging

insurance markets.

It was believed that Private insurers would learn and unlearn simultaneously. New

entrants with small share of a large and growing market would be profitable. The new

entrants would be best served by micro-level two pronged strategies. First, by

introducing innovative products; offering a right mix of flexibility/risk/return and

secondly, by targeting specific markets. In a scenario where buyers look for the low

prices, Brand loyalty would be at high risk. Therefore, strong marketing strategies

would be needed. Kotak, being an old player, had huge opportunities awaiting it.

Through the devising of various effective strategies it has made a place for itself in the

insurance industry. New schemes and distribution channels have strengthened its

resolve to be able to better serve its customers and contribute to the industry.

e. Research Design

Data has been collected through one to one interaction and discussion with various

people who are involved in the business of insurance as Sales manager, Life Advisors,

Marketing Manager Customers and others. Newspapers, Internet, Magazines and

Journals would provide ample material about latest trends and practices in insurance

industry. Kotak organizes various outdoor activities to boost its business and brand.Interaction with customers during such outdoor activities would enable to understand

the success ratio of such kind of outdoor activities. Various products of the company

would be discussed with respect to their benefits and advantages. Various insurance

players would be compared with respect to their market share and products that they

offer.

Primary Data has been collected through discussions, activities and observations of

various people involved in the business whereas

Secondary Data through annual reports of the company, newspaper, magazines,

journals and internet.

f. Sampling Methodology

1. Sampling design is Random Sampling Method

2. Sampling Area would be Mumbai

3. Sample Size: 100 (50 Male and 50 Female)

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g. Limitations

Only Mumbai region covered for this report because of not availability of time and

resource.

Also for lead generation factor analysis for a company are not sharing more

internal information either on internet or ready to give.

Not many people are keen on interacting and the conversion factor of a lead

converting into an actual advisor is very less.

g. Other Activities Carried Out In order to generate leads for Life Advisors there were various activities which

were carried out.

A budget was given to us and we were made to think of creative ideas to find

means to interact to people on a personal and one to one basis.

Few of the creative ideas given by us which were implemented are listed below-

Photograph at McDonalds- We clicked photographs of people walking in at

McDonalds with RONALD & asked them for their respective address. Later

we delivered the photograph clicked to their residence. The person carrying the

photograph to their residence explained the benefits of being a life advisor.

Free PUC checkups conducted in Chembur- We had arranged for a free PUC

(Pollution under Control) checkup for four wheelers as well as two wheelers

(excluding Heavy vehicles & Auto rickshaws). Personal details like address &

phone number were taken at the time of checkup and explanation was given

about the benefits of being a life advisor. If a person showed interested then asales manager was sent to his residence for the presentation and further

explanation.

BMI test at Karmashetra society, Sion-Koliwada- Pamphlets were

distributed to bring about awareness about BODY MASS INDEX TEST a day

prior to the activity day. People were asked for their respective address and

phone numbers while taking the BMI test, so that the report of BMI test could

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be sent to their places along with a doctor's health prescription. The person

delivering the report was accompanied by a Sales manager from Kotak who

gave the details and the benefits of becoming a life advisor.

Camp at Sahakari Bhandar, Matunga- It was observed that most Females

visited Sahakari Bhandar between 5pm to 9pm. So a camp was setup during

this period and the best sales managers were present to convince the females

coming in to be a part of our life advisor family.

Pamphlets distribution in BARC colony- In order to target dependents on

BARC employees we spoke to the local newspaper vendor to put in the

pamphlets along with the newspapers.

In order to make this campaign effective we came up with a 3 day

pamphlet activity.

The first day pamphlet read as follows Are you saturated sitting

idle at your place watching SAAS BAHU fight?"

The second day pamphlet read Are you looking out for something

which will keep you busy by choice & also fetches you good money?"

The final one read Kotak Life Insurance offers you a life time

opportunity to make easy money ".The contact details were mentioned along

with the final pamphlet.

SMS blast- It was an activity wherein a common SMS was sent simultaneously

to a large number of people. Around 10% of the population reverted to such an

activity.

Thus we used these techniques to promote the life time opportunities

provided by kotak life insurance.. The response was overwhelming and the

activities were well appreciated by the officials at Kotak.

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FACTS

AND

FINDINGS

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FACTS AND FINDINGS

1. What is your gender?

Male -

Female

Gender Survey Result

Male 50%

Female 50%

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2. What is your Age?

Less than 18 Years-

Between 23-26 Years-


between 21-22 years-

Between 33-45 years-

More than 45 years-

Other -

Grade Survey Result

Less than 18 Years 17%

Between 23-26 Years 16%

Between 26-32 Years 12%

between 21-22 years 28%Between 33-45 years 8%

More than 45 years 2%

Other 3%

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3. Choose any one of them in following?

House wives

Professionals

Business man

Others

Fresh MBA or Graduate (student)

Grade Survey Result

House Wives 20%

Professional 25%

Business Man 0%

Other 15%

Fresh MBA or Graduate (student) 40%

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4. What is your Educational Qualification?

10th Pass or below 10th

12th Pass

Graduate

Post Graduate or above

Educational Qualification

10th pass 13

12th Pass 45

Graduate 23

Post Graduate 19

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5. What is your annual Salary?

Less than 3 lac

Equal to 3 lac

3 lac or more

Annual Salary

Less than 3 Lac 38

Equal to 3 Lac 32

More than 3 lac 30

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6. What is your Marital Status?

Single

Married

Marital Status

Single 77

Married 23

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7. What is your Tenure in the city?

Less than 3 yrs

Equal to 3 yrs

More than 3 yrs

None

Tenure in the City

Less than 3 yr 34

Equal to 3 Yr 16

More than 3 Yr 39

None 11

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8. How many numbers of members are dependent on you?

None

Less than 3 yrs

Equal to 3 yrs

More than 3 yrs

Dependent Member

Less than 3 13

Equal to 3 45

More than 3 23

None 19

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9. Do you see clear prospects of your career in life advisor role in Kotak Life Insurance

Company?

Yes

No

Survey Result

Yes 56%

No 44%

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10. What Benefit generally received a life advisor in Kotak Life Insurance.

(a) Incentive (b) Club Membership

(c) Conventional Programme (d) Day Login Gift

(e) Self Employment (f) Product Training

(g) Rewards

Benefit generally received Survey Result

Incentive 25%

Club Membership 13%

Conventional Programme 4%

Day Login Gift 3%

Self Employment 18%

Product Training 12%Rewards 25%

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DATA ANALYSIS

AND

INTERPRETATION

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DATA ANALYSIS AND INTERPRETATION

1. What is your gender?

Male

Female

Interpretation: In our survey we taken 50% Male and 50% Female in the proper

survey format because it gives us insight to the balance survey method because it is the

based out the life advisor need to hire for the Kotak Life Insurance and Lead which

getting from the marketing and other to need to maintain these ratio.

1. What is your Age?

Less than 18 Years-



between 21-22 years-

Between 33-45 years-

More than 45 years-

Other -

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Interpretation: Out of 100 people for our survey 28% people responded that they

serving to Kotak life insurance are in between of 21 to 22 years which is largest in the

pie. Adding to this 17% respondent working with Kotak life insurance is more than of

18+ years which is basically junior management also 16% said they working with

Kotak life insurance is more than with range of 23-26 years.14% respondent said they

working w

lead kotak life insurance repaired)

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