max new york lic - child plan
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marketing project reportTRANSCRIPT
A Project on child plan
INSURANCE INDUSTRY
India Insurance Industry: - New Avenues For Growth
With an annual growth rate of 15-20% and the largest number of life
insurance policies in force, the potential of the Indian insurance
industry is huge. Total value of the Indian insurance market (2004-
05) is estimated at Rs.450 billion (US$10 billion). According to
government sources, the insurance and banking services’
contribution to the country's gross domestic product (GDP) is 7% out
of which the gross premium collection forms a significant part.
The funds available with the state-owned Life Insurance Corporation
(LIC) for investments are 8% of GDP. Till date, only 20% of the
total insurable population of India is covered under various life
insurance schemes, the penetration rates of health and other non-life
insurances in India is also well below the international level. These
facts indicate the of immense growth potential of the insurance
sector.
The year 1999 saw a revolution in the Indian insurance sector, as
major structural changes took place with the ending of government
monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting all entry restrictions for
private players and allowing foreign players to enter the market with
some limits on direct foreign ownership.
Though, the existing rule says that a foreign partner can hold 26%
equity in an insurance company, a proposal to increase this limit to
49% is pending with the government. Since opening up of the
insurance sector in 1999, foreign investments of Rs. 8.7 billion have
poured into the Indian market and 21 private companies have been
granted licenses.
Innovative products, smart marketing, and aggressive distribution
have enabled fledgling private insurance companies to sign up Indian
customers faster than anyone expected. Indians, who had always
seen life insurance as a tax saving device, are now suddenly turning
to the private sector and snapping up the new innovative products on
offer.
The life insurance industry in India grew by an impressive 36%, with
premium income from new business at Rs. 253.43 billion during the
fiscal year 2004-2005, braving stiff competition from private
insurers. RNCOS’s report, “Indian Insurance Industry: New Avenues
for Growth 2012”, finds that the market share of the state behemoth,
LIC, has clocked 21.87% growth in business at Rs.197.86 billion by
selling 2.4 billion new policies in 2004-05. But this was still not
enough to arrest the fall in its market share, as private players grew
by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29
billion in 2003-04.
Though the total volume of LIC's business increased in the last fiscal
year (2004-2005) compared to the previous one, its market share
came down from 87.04 to 78.07%. The 14 private insurers increased
their market share from about 13% to about 22% in a year's time.
The figures for the first two months of the fiscal year 2005-06 also
speak of the growing share of the private insurers. The share of LIC
for this period has further come down to 75 percent, while the
private players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public
sector companies and eight private insurers. According to estimates,
private insurance companies collectively have a 10% share of the
non-life insurance market.
Though the focus of this market research report is on the potential
growth on the Indian Insurance Sector, it also talks about the market
size, market segmentation, and key developments in the market after
1999. The report gives an instant overview of the Indian non-life
insurance market, and covers fire, marine, and other non-life
insurance. The data is supplied in both graphical and tabular format
for ease of interpretation and analysis. This report also provides
company profiles of the major private insurance companies.
Report Highlights:
Gains of Liberalization in Indian Insurance Sector
Indian Insurance Market Segmentation By Products
Size of the Market and Market Share Of Life Insurers, In INR
(crore)
Market Share Of Non-Life Insurers
Forecast of Life Insurance Growth Up to 2012
Forecast of Non-Life Insurance Growth Up to 2012
Market Revenue of Both Public and Private Insurers
Policies and Measures Taken By IRDA To Develop The
Insurance Market
Research and Development Activities
Regulation of insurance and reinsurance companies
Major Challenges That Indian Insurance Sector is Facing
Profiles of the Major Players
LIFE INSURANCE IN INDIA
With such a large population and the untapped market area of this
population Insurance happens to be a very big opportunity in India.
Today it stands as a business growing at the rate of 15-20 per cent
annually. Together with banking services, it adds about 7 percent to
the country’s GDP .In spite of all this growth the statistics of the
penetration of the insurance in the country is very poor. Nearly 80%
of Indian populations are without Life insurance cover and the
Health insurance.
This is an indicator that growth potential for the insurance sector is
immense in India. It was due to this immense growth that the
regulations were introduced in the insurance sector and in
continuation “Malhotra Committee” was constituted by the
government in 1993 to examine the various aspects of the industry.
The key element of the reform process was Participation of overseas
insurance companies with 26% capital. Creating a more efficient and
competitive financial system suitable for the requirements of the
economy was the main idea behind this reform.
Since then the insurance industry has gone through many sea
changes .The competition LIC started facing from these companies
were threatening to the existence of LIC. Since the liberalization of
the industry the insurance industry has never looked back and today
stand as the one of the most competitive and exploring industry in
India. The entry of the private players and the increased use of the
new distribution are in the limelight today. The use of new
distribution techniques and the IT tools has increased the scope of
the industry in the longer run.
A Brief History
The origin of insurance is very old .The time when we were not even
born; man has sought some sort of protection from the unpredictable
calamities of the nature. The basic urge in man to secure himself
against any form of risk and uncertainty led to the origin of
insurance. The insurance came to India from UK; with the
establishment of the Oriental Life insurance Corporation in 1818.
The Indian life insurance company act 1912 was the first statutory
body that started to regulate the life insurance business in India. By
1956 about 154 Indian, 16 foreign and 75 provident firms were been
established in India. Then the central government took over these
companies and as a result the LIC was formed. Since then LIC has
worked towards spreading life insurance and building a wide
network across the length and the breath of the country. After the
liberalization the entrance of foreign players has added to the
competition in the market.
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. In 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. In 1972 The General
Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January
1973.
It was after this that 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.
Present Scenario
The government of India liberalized the insurance sector in march
2000 with the passage of the Insurance Regulatory and Development
Authority (IRDA) bill. Lifting all entry restrictions for private
players to enter the market with some limits on direct foreign
ownership. premium rate of most general insurance. Policies come
under the purview of the government appointed Tariff Agenty
Committee. The opening up of the sector is likely to lead to greater
spread and deepening of insurance in India and this may also
restructuring and revitalizing of the public sector companies. A host
of private insurance companies operating in both life and non life
segments have started selling their insurance policies since 2001.
Non life insurance market, In December 2000, the GIC subsidiaries
were restructured as independent insurance companies. At the same
time, GIC was converted into national re-insurer. In July2002,
Parliament passed a bill, delinking the four subsidiaries from GIC.
Presently there are 12 general insurance companies with 4 public
sector companies and 8 private insures. Although the public sector
companies still dominate the general insurance business, the private
insurance companies have a 10 percent share of the market, up from
4 percent in 2001. In the first half of 2002, the private companies
booked premium worth 6.34 billion. Most of the new entrants
reported losses in first yr of their operation in 2001.
Insurance costs constitute roughly around 1.2 – 2 % of the total
project costs. Under the existing norms, insurance premium
payments are treated as part of the fixed costs. Consequently they are
treated as pass through costs for tariff calculations.
For projects costing up to Rs.1 billion, the tariff Agent committee
sets the premium rates, for projects between 1 billion and 15 billion,
the rates are set in keeping with committee’s guidelines; and projects
above 15 billion are subjected to reinsurance pricing. It is the last
segment that has a number of additional products and competitive
pricing. Insurance, like project finance, is extended by a consortium.
Normally one insurer takes the lead, shouldering about 40-50% of
the risk and receiving proportionate percentage of the premium.
Company profile of MAX NEW YORK LIFE :
Max New York Life Insurance
“Max New York Life wants people to view insurance as a financial
protection and wealth creation instrument and not just a tax-saving tool.”
Max New York Life Insurance Company Ltd. is a joint venture
between New York Life, a Fortune 100 company and Max India Limited,
one of India's leading multi-business corporations. The company has
positioned itself on the quality platform. In line with its vision to be the most
admired life insurance company in India, it has developed a strong corporate
governance model based on the core values of excellence, honesty,
knowledge, caring, integrity and teamwork. The strategy is to establish itself
as a trusted life insurance specialist through a quality approach to business.
New York Life is a Fortune 100 company that has over 160 years of
experience in the life insurance business. Max India Limited is a multi-
business corporate dealing in Clinical Research, IT and Telecom Services,
and Specialty Plastic Products businesses.
Max New York Life Insurance started its operations in India in 2000. It is
the first life insurance company in India to be awarded the IS0 9001:2000
certification. Max New York offers customized products tailored to suit
individual's needs. With its various Products and Riders, there are more than
400 product combinations to choose from. Today, Max New York Life
Insurance has a network of 57 offices spread over 37 cities all over India.
In line with its values of financial responsibility, Max New York Life
has adopted prudent financial practices to ensure safety of policyholder's
funds. The Company's paid up capital is Rs. 657 crore, which is more than
the norm laid down by IRDA.
Max New York Life has identified individual agents as its primary
channel of distribution. The Company places a lot of emphasis on its
selection process, which comprises four stages - screening, psychometric
test, career seminar and final interview. The agent advisors are trained in-
house to ensure optimal control on quality of training.
Max New York Life invests significantly in its training program and
each agent is trained for 152 hours as opposed to the mandatory 100 hours
stipulated by the IRDA before beginning to sell in the marketplace. Training
is a continuous process for agents at Max New York Life and ensures
development of skills and knowledge through a structured program spread
over 500 hours in two years. This focus on continuous quality training has
resulted in the company having amongst the highest agent pass rate in IRDA
examinations and the agents have the highest productivity among private life
insurers.
It has established a wide agency distribution network with 172 offices
and representatives across 120 cities in India. The company has established
additional channel with 22 bancassurance relationships, corporate tie-ups
and a strong Direct Sales Team. Through its wide network of highly
competent life insurance agent advisors, flexible product solutions and
strong customer focus, Max New York life is creating a partnership for life
with its customers in India.
Max New York Life, one of India’s leading life insurance companies,
expanded its presence in the southern region by opening its first general
office in the city of Mysore. Max New York Life now has established a
countrywide network of 172 offices and representatives across 120 cities in
India.
Max New York Life, which has till date sold over 1.53 million
policies and recorded a sum assured of over Rs. 46,000 crore, has positioned
itself on the quality platform. The company has developed a strong corporate
governance model based on defined core values of caring, knowledge,
excellence and honesty. Its strategy is to establish itself as a trusted life
insurance specialist on the bedrock of quality of advice. The company has
over 25,300 agent advisors, who are widely considered the best in the
business.
Max New York Life aspires to be the "life insurance brand of first
choice" amongst Indian consumers. To achieve this the company will draw
on New York Life's demonstrated competence in developing and managing
a superior personal sales network. For the last 46 years consecutively, the
largest number of agents qualifying for membership to the Million Dollar
Round Table (MDRT) have been from New York Life. The MDRT is the
industry's most prestigious organization comprising the world's most
successful insurance agents. Max New York Life, a merit oriented and equal
opportunities employer, is looking for a few good men and women who will
spearhead the effort to realize this vision.
“Max New York Life wants people to view insurance as a financial
protection and wealth creation instrument and not just a tax-saving tool.
Since the launch of our operations, our focus has always been on providing
risk protection and long-term wealth creation solutions to our customers.
With a diverse product portfolio to meet customer requirements, it is evident
that we are setting benchmarks in the marketplace and are well on course of
realizing our vision to become India’s most admired Life Insurance
Company.”
“An ever expanding presence of Max New York Life offices across
India reinforces our commitment to serving the nation. We are extremely
pleased with our progress in the region and feel that opening an office in
Mysore would help us educate people about the true potential and benefits of
life insurance. As life insurance specialists, Max New York Life will
continue to help consumers make the right choices to meet their financial
goals, both for the short and long-term, through sound quality advice offered
by our agent advisors and a right mix of product offerings.” he added.
Max New York Life has been instrumental in changing the paradigm
of life insurance in India. It is the first life insurance company in India to
introduce cause related marketing.
Children are at the very heart of Max New York Life's strategy. SOS
Children's Villages of India is internationally recognized for its work in
giving underprivileged children a wholesome life. The mission of SOS is "to
help orphaned and abandoned children, by providing them with a family, a
permanent home, education and strong foundation for an independent life."
It's mission ties in with Max New York Life's philosophy of helping people
secure the future of their near and dear ones.
Vision:Vision statement is "Most Admired Life Insurance Company in India".
Mission: Become one of the top quartile life insurance companies in India
Be a national player
Be the brand of first choice
Be the employer of choice
Become principal of choice for agents
Max New York Life Values and Beliefs
Excellence
"In every aspect of work. Ranging from the in-house training institute to the
detailed Personal Insurance Plan. Max New York Life is focused on
achieving the highest standards of quality in every aspect of their business".
Honesty
"Is the heart of the Life Insurance business. Max New York believes that
above all, Life Insurance is based on trust. Transparency, Dependability and
Integrity will form the cornerstones of the Max New York Life experience."
Knowledge
"Is what makes experts. Max New York Life is focused on the Life
Insurance business. Perfectly combining global expertise with local
knowledge, Max New York Life is the Indian Life Insurance specialist."
Caring
"For the customer. Max New York Life is redefining the Life Insurance
paradigm to focus on the needs of the customers. The Max New York
service process is responsive, personalized, humane and empathetic."
Culture:
Our "in house culture recipe" has some of the finest ingredients going into
its making. Some of the more prominent aspects of our culture are stated
below:
Customer comes first
Do it right the first time
Bias for result oriented action
Financial strength and discipline
Clarity of purpose
International quality standards
Inclusive Meritocracy
Learning opportunities
Fun at work
Commitment to published value system
Max New York Life InsuranceFACT SHEET – As of July 31st, 2009
Founded 2000
Started Operations April 2001
Headquarters New Delhi, India
World Wide Web Address http://www.maxnewyorklife.com
Chairman Analjit Singh
Managing Director & CEORajesh Sud
Paid-Up CapitalRs. 1,782 crore
Sum AssuredRs 1,03,500 crore
Number of Policies Sold3.9 million
Employees12,531
Agent Advisors92,667
Number of Products (INDIVIDUAL) 37
Number of Riders/Options (Individual) 8
Product Combinations Possible (Individual)Over 800
Number of Products (Group) 6
Number of Riders/Options (Group) 7
Number of Offices712
Number of Offices Dedicated To Rural Business 137 (21 hub offices, 116 spoke offices)
MDRTs 218 (for calendar year 2008)
Trainers824
Five plan of Max New York Life insurance company
Whatever you need, Max New York Life has a plan for you. Because we
understand everyone has different needs. Our plans are designed towards
meeting your long term financial goals & aspirations & helping you fulfill
your dreams & commitments
• Life Plans: To ensure that your family will be taken care of in case of
any eventuality. To find peace of mind was never so easy.
[Whole Life Plus]-[Life Partner Plus]-[Life Gain Plus]
• Growth Plans: Plans designed to offer insurance cover along with
superior returns in the long term. Just what you need for a secure future.
[SMART Assure]-[Life Maker Premium]
• Pension Plans: To ensure that your retirement years are the most
precious of your life.
[SMART Invest]
• Child Plans: Plans perfect for the ever growing needs of children.
After all, you would want to give the best to your child.
[SMART Steps]-[SMART Steps Plus]-[SMART Steps Single Premium]
• Health Plans: To provide a comprehensive cover for your health,
from hospitalization to recuperation. As they say, health is wealth.
[Lifeline Wellness Plus]-[Lifeline Medicash Plus]-[Lifeline Safety Net]
What is child plan?
Planning does not necessarily mean about what you wish your
child would grow up to be, or have certain characteristics, but it
also essentially means you as a responsible parent having various
obligations to fulfill that would help him to grow better in this world. The first thing that strikes is providing for education (graduation as
well as post graduation). The most often repeated statement, ‘Assume that a two year MBA
program in a leading business school costs Rs 5,00,000 at present.
Your child is five years old now and will pursue the management degree
at the age of 20 years. This gives you a time frame of 15 years.
Assuming that the inflation rate is 10% per annum, the education would
cost Rs 2,088,624. Now that seems a handful, doesn't it?’ The dynamics of planning for the child's future have changed radically
over the years. The conventional method of providing for the child was
to just set aside some amount of money in a savings bank account.
These funds would then be utilized for the child's life stages. A few
parents would also make investments in fixed deposits with the intention
of utilizing the maturity amount. However, it would be safe to say that
such an approach is not only outdated, but also inadequate in the
present scenario. Life insurance plays an important role in an individual's financial
planning exercise. Insurance can assist individuals in planning for
their own life stages as well as provide for their child's future. It also
secures the child’s future in case of any unfortunate event. Various types
of child insurance products are available in the market today. Child insurance plans have traditionally played an important role in
securing the child's future. With a plethora of children insurance plans
available in the market, it becomes difficult for most parents to evaluate
them objectively. Individuals need to understand the dynamics for
planning their children so that they can best utilize the alternatives
available in the market.
Parents must consider at the outset that they would have to build as
sufficient corpus for their children especially if the child is to be sent
abroad for education or a professional post graduation degree from the
premier institutes in the country itself. As in our above example, a 15 year
planning time frame has raised the amount required considerably,
parents must keep this in mind. As a parent, one would generally plan from the perspective of making
funds available for
Education
Marriage
Seed capital for business
The factors to consider while planning,
Time frame for building a corpus
Age at which the fund would be required.
Approximate amounts to build the corpus.
Investment avenues to be considered.
The amount available to the child in case of death of parents or disability
of the premium-paying parent.
Child plans come in two broad variants –Traditional child plans and unit
linked insurance plans (ULIPs). The primary difference between the two
lies in the way they invest their premium. Traditional plans invest a major
portion of their money in debt instruments like corporate bonds and
government securities (as specified by the regulator). Conversely, ULIPs
can invest across equity and debt markets in varying proportions.
Parents have plenty of choice; they can either opt for a regular ‘
Traditional endowment plan’ which carries relatively lower risk since it is
invested mainly in corporate bonds and government securities. The
bonuses are stable and give the parent considerable comfort knowing
roughly how much he
can expect. Regular endowment plans are suited for parents with a low
risk appetite.
Parents with some risk appetite can opt for a ULIP child plan that invests
across equity and debt markets.
The reason why ULIP child plans can prove to be significant is because over the long-term (15-20
years), equities can add considerably to the corpus you plan to build
for your child's needs. Equities
are best placed to beat inflation over the long term. However, to achieve
this, one must invest wisely. Debt
on the other hand brings stability to a portfolio. While the returns for debt
at times may seem
unattractive as compared to equities, their importance in a portfolio
(ULIP) cannot be
understated. Parents should consider taking on some risk (by investing in equities) to
beat inflation, which is the main
reason the cost of everything right from your child's education to his
marriage is forever spiraling. Over a
15-20 year time frame, if wisely selected, a ULIP even with moderate
equity allocations could add
considerably to your child's corpus Life insurance has much to offer to parents looking to accumulate
wealth for their child's future. There
are several plans offering enough flexibility to help parents with the same.
In the end, it all boils down to
making an informed choice and ensuring that your plan is working
in line with your
expectations.
Child plan
Children’s Endowment to 18 (par)
Plan overview
Life has innumerable surprises stored for us. Parenthood is wonderful
and it is one such stage, when you experience various emotions you
never thought you had. But parenthood also brings its own set of
apprehensions and worries. What will your child grow up to be in the
future? Will his/her future be as secure as you want it to be? Or more
importantly what can you do to make sure his/her future is hassle-free
and secure? So, planning ahead for your child’s future needs such as
higher education is extremely important and ensuring that you have
the ability to fulfill those needs is even more critical.
Max New York Life presents Children's Endowment Participating
Insurance to age 18 with an option to buy a permanent life insurance
policy without medical underwriting (irrespective of his/her health at
that time). This policy which is especially designed to enable you to
provide for higher education of your child and take care of your child’s
future needs in case of spiraling costs.
Children’s Endowment to 24 (Par)
Plan overviewParenthood is wonderful. However, this is a phase in life when you
are expected to fulfill various responsibilities, which grows as your
child gets older. It’s important that you plan in advance to meet your
child’s future needs and be financially prepared. It’s important that
you plan in advance to meet your child’s future needs and be
financially prepared.
Max New York Life’s Children's Endowment Participating Insurance
to age 24 provides an option to buy a permanent life insurance policy
without medical underwriting (irrespective of his/her health at that
time). This policy enables you to provide for various events in your
child’s life such as a grand wedding of your child. This excellent plan
is a participating plan, which is also eligible for bonuses and Max
New York Life may declare these bonuses from time to time and from
the third policy year. An important feature of this plan is that the entire
sum assured is paid out on maturity and the plan automatically vests
when the child turns 18.
Smart step
Plan overviewAs a responsible parent, it is your responsibility to ensure that your \
child has a safe and a bright future. Higher education, marriage, and
financial security for your child are just some of the most important
things that you would want to save your money for. However, with
ever-rising cost of living in today’s world, simple savings would not be
enough. As a good planner, you need to look ahead and plan
accordingly. As you work hard to ensure that your child receives
quality education and has a secured future, you need a plan, which
would provide you the helping hand and the desired financial support
at times of unavoidable crisis in the future.
Introducing Max New York Life’s regular premium unit linked life
insurance children’s plan – SMART Steps™, which will help you plan
for your child's future in a SMART way and takes your worries away.
This plan offers the required financial protection for your loved ones if
you are not alive and provides an unmatched investment opportunity
by way of well managed investment funds. This policy also entitles
you to make partial withdrawals for various unplanned expenses in
the future.
Smart step Plus
Plan overview
It is your responsibility to ensure that your child has a safe and a
bright future. Higher education, marriage, and financial security for
your child are just some of the most important things that you would
want to save your money for. However, with ever-rising cost of living
in today’s world, simple savings would not be enough. As you work
hard to ensure that your child receives quality education and has a
secured future, you need a plan, which would provide you the helping
hand and the desired financial support at times of unavoidable crisis
in the future. Children plans ensure that money is made available at
the crucial junctures in a child's education and to fund crucial
commitments for the child's future.
A regular premium unit linked life insurance plan, Max New York
Life’s SMART Steps™ Plus will help you plan for your child's higher
education, marriage, and financial security. This plan offers no-
compromise 360 degree protection to your children even if you are
not alive and provides an unmatched investment opportunity by way
of well managed investment funds. This policy also entitles you to
make partial withdrawals for various unplanned expenses in the
future.
Smart step single premium plan
Plan overview
Higher education, marriage, and financial security for your child are
some of the most important things that you would want to save your
money for. It is your responsibility to ensure that your child has a safe
and a bright future. However, with ever-rising cost of living in today’s
world, simple savings would not be enough for all your child’s future
needs. Your support and financial security for your child is of utmost
importance and that’s the reason you need a plan, which would
provide you the helping hand and the desired financial support at
times of unavoidable crisis. Children plans ensure that money is
made available at the crucial junctures in a child's education and to
fund crucial commitments for the child's future.
Max New York Life’s SMART Steps™ Single Premium policy will help
you plan for your child's future in a SMART and organized manner.
Apart from offering 360 degree protection to your child if you are not
alive, this plan also provides an unmatched investment opportunity by
way of well managed investment funds. This policy also entitles you
to make partial withdrawals for various unplanned expenses in the
future.
Max India Group Key Milestones as on 31st March 2009. ←
Max India Group crosses USD 1 billion mark in revenue.
←
← Consolidated Revenue CAGR of 57% in 3 years, marking ←
← impressive performance. ←
← The total investment in various businesses of Rs. 1,800 Crore ←
← triples to Market Valuation of Rs. 5,000 Crore. ←
← The Group has over 581 offices across more than 382 ←
← locations in the Country and with people strength of 100,000+ ←
← persons. ←
← The total consumer base increased from 2.5 million in 2007-08 ←
← to 3.5 million in 2008-09.
Key Highlights as on March 31, 09 ←
← Outperforms the industry in terms of First Year Premium growth ←
← - Market share improved to 6% from 5% in FY 2008-09 ←
← Embedded Value of Life Insurance Business at Rs. 2,284 ←
← Crore, up 74% ←
← Assets Under Management grow 51% to USD 1.2 billion ←
← more than doubles agency strength from 37,000 agents to ←
← 84,000 agents.
RESEARCH METHODOLOGY
Research: - is a process of collecting, analyzing, interpreting and
summarizing in a significant manner for the purpose of framing out
necessary conclusion and findings of data perceived and formulated
for deriving out the meaningful information. To carry our research
necessary telephonic calls needed to be done, suitable appointments
were to be fixed and therefore market survey is to be followed.
Objective of training: - To understand life insurance and
recruitment of capable life insurance advisors for growth prospects.
Process: Methodology or process involving in the Research
followed during the course of summer training is as follows: -
a) Collection of data : - This is an important aspect in formulating
the objective of research process where the data is collected via
two process: - i) Primary Sources and ii) Secondary sources
i) Primary sources : - Where the data is collected primarily by
interviewing and personal observation and is original in nature
and accurate to the considerable extent.
ii) Secondary sources : -Where the data is obtained from some
published and printed sources such as newspaper, magazines,
websites and so on.
b) Analyzing of collected data : - The data collected through market
survey and published sources is then processed to obtained
necessary inferences and findings for the purpose of achieving the
objective as well as to derive necessary conclusion. A
considerable skill and knowledge is involved in analyzing the
data for the purpose of interpreting thereof.
c) Interpreting of data : - it is the significant step where the data
collected and analyzed is interpreted in the forms of graphs and
figures is depicted in the report called Project report.
d) Summarizing of data : - Thereby necessary summary is prepared
which is essential in the project report of the summer training
being done under an organization.
Helpful Arms of Research Methodology: -
Questionnaire: - Questionnaire is a set or group of questions being
framed for the purpose of obtaining market perspective about a
particular aspect or topic.
There are two types questionnaire bing carried necessary for the
market survey of the summer training being undertaken and put for
the by the trainee to the sample people taken as a base for entire
population:
a) Open ended Questionnaire : - where the people (also called
respondents) are required freedom to present their views and
suggestions for the benefits and success of the organization.
b) Close ended questionnaire : - where the respondents is limited to
the choice of answer being delivered by the interviewer itself so
that quick and fast means of responses be derived out without
wasting much time. Here close ended questionnaire being
followed by me during the course of the summer training market
survey.
Sampling: - Sampling is a process of obtaining a number of
individuals taken a base for the entire population since entire
population can not be asked about the necessary objective upon
which a questionnaire is put forth needed for the responses to be
derived for the purpose of generation of facts and customer view
point regarding their perception of particular product or services.
There are two type of sampling – i) Random Sampling and ii)
Systematic sampling.
i) Random sampling : - Random sampling is a process of
selecting the sample size randomly and no choice or
preference to be made about the selection of respondents for
the market survey and questionnaire to be put forth against
him. Here, Random sampling being adopted by me.
ii) Systematic sampling : - it is a sampling where the limited
number of selected respondents is figured out based on some
criteria so that only those respondents can be asked for the
purpose of filing questionnaire.
Sample Size: - 105 respondents.
MARKET SURVEY
LIFE INSURANCE IS:51
38
16
0102030405060
Protection ofhuman asset value
against uncertainty
Tax benefit device Both
CATEGORY
RE
SPO
NSE
S
From the survey it was drawn that life insurance is more a protection of human
asset value against uncertainty (conferred by 51 respondents) where it is a tax
saving option (being accepted by 38 respondents). Life insurance is a service
involving both these prerequisites as depicted by remaining 16 respondents. The
following depicted this:
Protection of human asset value against uncertainty 51
Tax benefit device 38
Both 16
78
27
01020304050607080
NO
. OF
RE
SPO
ND
EN
TS
Yes No
RESPONSES
IS LIFE INSURANCE ESSENTIAL?
It has been observed and applied as a Life insurance is an essential
service and should be applicable to every one, as favored by
considerable 78 respondents where it is not essential to an extent by
27 respondents from the summer training project survey by putting
forth the set questionnaire.
RESPONDENT'S QUALIFICATION
33%
10%
57%
Post graduate
Graduate
Senior secondary
When further enquired about the qualification of respondents, it was
found that 57% of the respondents were graduates, 33% were post
graduates and remaining 10% were of higher secondary out of total
105 respondents. Further depicted in the following tabular
representation : -
Post graduate 35
Graduate 59
Senior secondary 11
AGE QUALIFICAITON:
39%20%
6%
35%
18-25 age group25 – 35 age group35 – 45 age groupAbove 45 age group
Further, the age qualification for agency recruitment, it was found that 39%
respondents were belonging to 18 – 25 age group, 35% were belonging to 25 –
35 age group where as 20% to 35 -45 age group and remaining 6% to above 45
age group. Also depicted in the following tale mentioned below: -
18-25 age group 41
25 – 35 age group 37
35 – 45 age group 21
Above 45 age group 6
CAUSES OF DISSATISFACTION
17%
16%
10%23%
34%
Low employment
Low earning / income
Low status
Huge capital investment
All of the above
Respondents had different views about the dissatisfaction from the
present status of working or occupation. Dissatisfaction has been
depicted in a table below and graphically above:
Low employment 24 Low earning 36 Huge capital investment 17
Low status 18 All of the above 10
ABOUT CAREER IN LIFE INSURANCE
59
46
010203040506070
Yes NoRESPONSES
NO
. OF
RE
SPO
ND
EN
TS
When asked about whether they would like to know about a glorified
career in life insurance agency where they can fulfill any and every
desire of their life, 59 respondents agreed while 46 respondents said
No and will see later sometime in future. It has been depicted that
life insurance sector should be promoted at the wide extent as it
contribute to the economy as a useful source beneficial for both
nation as well as is citizens.
86
19
0
20
40
60
80
100N
O. O
F R
ESP
ON
DE
NT
S
Yes No
RESPONSES
IS LIFE INSURANCE A NOBLE SERVICE?
Indeed Life insurance is a noble business as it provides a needful
financial support in the situation of fatal calamity where the family is
deprived by the fact to live in future and sustains their living. When
surveyed about life insurance as a noble service. 89 respodents
agreed and believe that insurance is a bettering service to human life
and society as a whole where as 19 respondents show disagreement.
18
41
0
10
20
30
40
50N
O. O
F R
ESP
ON
DE
NT
S
Yes No
RESPONSES
ACCEPT LIFE INSURANCE AS A CAREER?
From the 59 respondents who agreed to know about the life
insurance as a career, 18 of them agreed to join MAX NEW YORK
life insurance for agency and come to the company fore more
information whereas 41 still took time to think and postponed to
some future date. People are highly dissatisfied from the earning,
status and living standard they are sustaining at present and would
definitely like to make some additional source of earning and for this
agency for life insurance would prove a boon.
92
13
0
20
40
60
80
100R
ESP
ON
DE
NT
S
Yes No
RESPONSES
IS LIFE INSURANCE INDUSTRY GROWING?
From all 105 respondents, 92 agreed that life insurance sector is a
growing concern and will grow at a rapid pace in future where as 13
took as a mere stagnant industry. Financial services are growing at a
tremendous pace as people are urging to make their investment in
lucrative opportunities and therefore life insurance sector is playing a
vital role in educating the people to make their investment which
could secure their future, needs and living despite some fatal
calamity that might or might not occur.
AGREE WITH PRIVATISATION OF LIFE INSURANCE?
74
31
01020304050607080
Yes NoRESPONSES
RE
SPO
ND
EN
TS
Among 74 respondents from 105 respondents favored the
privatization of the life insurance and perceive that the people of
India will know be more aware and knowledgeable with respect to
life insurance than that in the past 50 years with the working of LIC.
The myth of LIC since it is a Government concern is still continue to
prevail even though people have become more advanced and they
can invest their hard earned money after undertaking their pros nad
cons and company position in the market.
SWOT ANALYSIS
STRENGTHS
1. MAX NEW YORK life insurance offers a range of individual
and group insurance solutions.
2. MAX NEW YORK life has the financial expertise required to
manage your long-term investments safely and efficiently.
3. The company has covered over 8,77,000 lives year ending
March 31, 2007
4. Rated ‘AAA’ by CRISIL and ICRA for the 10th consecutive
year for High service standards
5. Life insurance industry is a rapid growing and a nobler service
industry.
WEAKNESSES
1. LIC is prevalent and sustains even today a major source of
population.
2. Low number of offices and network and number of life
insurance agents.
3. Lack of knowledge and expertise.
OPPORTUNTIIES
1. Life insurance has captured its mere15 – 20% growth therefore
a wide open untapped market is open to the company to
develop, grow and measure its success.
2. Still the number of companies are few and company has every
capabilities to grow and forward its performance areas to the
widest
THREATS
1. People are hesitant to invest and put their hard earned money
to the private life insurance company with the fear of getting
lost.
2. Belief towards LIC as it is a government corporation phobia is
continue to surmount the people of India despite lots of flaws
and development and liberalization of life insurance.
3. Alternative financial services such as mutual fund, banking
services, share and securities also pose problems and threats to
the working of the life insurance sector.
4. Illiteracy and unemployment also pose threat.
5. Rising real estate industry also pose threat as people are
investing a bulk of their money over to that industry.
6. CONCLUSION
7. Summer training is a best example for a trainee to learn about
the company working, corporate culture under which is
operating the functions. MAX NEW YORK life insurance is a
life insurance company under which I gained a significant
knowledge with respect to life insurance, its importance and
applicability as well as undertook the task to recruit capable
life insurance advisors which is conducive for the company to
grow with more prosperity. What I taught in the management
institute utilized them fruitfully leading to the best advantage
to the company and to the best experience for mine.
8. At far I can conclude that life insurance is a noble service
which is very important for every citizen to learn and realize its
importance because this is the only source which can remain
the status where one is with the family bread earner and ever
when he is not.
9. With the growing financial sector I would like to opt this
industry for my future career advancement and as an
opportunity to service this industry.
10.BIBLIOGRAPHY
11.Following are sources which helped me during my summer
training:
12.BOOKS:
13.KOTHARI C.R.: Research Methodology Management, 3rd Edition
14.KOTLER PHILIP: Marketing Management” 11th Revised edition
,2002
15.GUPTA S.P.: Statistical Methods “Thirteen revised edition, 2001
16.MAGAZINES:
17.India Today
18.Business World
19.REFERENCES
20.Websites : -
21.www.MAX NEW YORK lifeinsurance.com
22.www.irdaindia.org
23.www.liccouncil.org
24.www.businessconnect.com
QUESTIONNAIRE
Name: - ……………………………………………………………
Age:- ……………………………………………………………
Location: - ……………………………………………………………
Occupation: -……………………………………………………………
Q.1. What do you mean by life insurance?
a) Protection of human asset value against uncertainty
b) A sum received after death
c) Both
Q.2. Do you think life insurance is essential for every one?
a) Yes
b) No
Q.3. What is your qualification?
a) Post graduate
b) Graduate
c) Senior secondary
Q.4. Do you come under:
a) 18-25 age group
b) 25 – 35 age group
c) 35 – 45 age group
d) Above 45 age group
Q.5. What dissatisfied you most in your occupation
a) Low employment
b) Low earning / income
c) Low status
d) Huge capital investment
e) All of the above
Q.6. Would you like to know about a career in life insurance
advisor ship where you can fulfill every desire of your life?
a) Yes
b) No
Q.7 Do you perceive that life insurance business is a noble
service oriented business?
a) Yes
b) No
Q.8. Would you like to become or opt for life insurance advisor
under esteemed and prospering organization MAX NEW YORK
life insurance?
a) Yes
b) No
Q.9. Do you agree that the life insurance business is a growing
industry and will grow and rapid pace in future?
a) Yes
b) No
Q.10. Do you favor the privatization of life insurance by the
Government where a significant number of companies now in
the market for life insurance to the customers with the alliance
of multinationals?
a) Yes
b) No
Suggestions: - 1. ……………………………………………………………
2. ……………………………………………………………
3. ……………………………………………………………
4. ……………………………………………………………
5. ……………………………………………………………