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INTRODUCTION TO INDIAN INSURANCE INDUSTRY
Insurance may be described as a social device to reduce or eliminate risk of life and
property. Under the plan of insurance, a large number of people associate themselves bysharing risk, attached to individual.
The risk, which can be insured against include fire, the peril of sea, death, incident, &
burglary. Any risk contingent upon these may be insured against at a premium
commensurate with the risk involved.
Insurance is actually a contract between 2 parties whereby one party called insurer
undertakes in exchange for a fixed sum called premium to pay the other party happening
of a certain event.
Insurance is a contract whereby, in return for the payment of premium by the insured, the
insurers pay the financial losses suffered by the insured as a result of the occurrence of
unforeseen events.
With the help of Insurance, large number of people exposed to a similar risk make
contributions to a common fund out of which the losses suffered by the unfortunate few,
due to accidental events, are made good.
The domestic insurance industry in India is estimated to be around US$ 60.5 billion by 2010,
of which US$ 35 billion will come from rural and semi-urban areas. While the life insurance
market is expected to grow to US$ 35 billion, non-life insurance market will touch an
estimated US$ 25 billion.
With the largest number of life insurance policies in force in the world, Indias insurance
sector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per cent in 1999-2000,
far ahead of China where insurance accounts for just 1.7 per cent of the GDP and even
the US where insurance penetration stands at 4 per cent of the GDP. One area that
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continues to cause concern is the number of customer grievances in insurance, especially
in a few specific classes. This calls for more transparency in designing the contract
wording and on insisting that the applicant is sufficiently informed about the coverage
and more particularly the exclusions. In addition, the legislation itself requires to be
transformed to meet the needs of the emerging markets. The Law Commission of India
which has gone extensively into the various insurance laws has submitted its report. The
demand for health insurance covers has seen a healthy increase, and today the sector is
the fastest growing segment in the non-life insurance industry in India, which grew at
over 40% last year. It is also emerging as an increasingly significant line of business for
life insurance companies. During the last five years, the premium from health insurance
products in non-life companies has grown from 675 crores in 2001-02 to Rs 3200 crores
in 2006-07, almost 5 times its level 5 years back. While this rate of growth appears to be
very healthy, it is on a low base, and health insurance penetration in the country
continues to be low. Only about 25 million persons are presently covered for health
through commercial insurance, in a country of over 1.1 billion people. Overall, the Indian
health sector is still characterized by the near absence of any significant risk protection
against major health-related expenditure, as insurance and other organized forms of
payment for health services, including ESIS, CGHS and other such schemes barely
constitute a tenth of all health expenditure in the country. Almost four-fifths of the health
spending in the country is private, out-of-pocket expenditure. In the absence of such
protection, the financial impact of hospitalization can be very pronounced, and indeed is
reported as one of the leading causes of impoverishment in the country.
Indian insurance companies recorded a 19.9 per cent growth in premium in dollar terms
(adjusted for inflation) in 2006-07, compared to the world market growth rate of 2.9 per
cent. This rate of growth of the industry looks particularly impressive when seen against
the fact that the combined penetration of both life and non-life is less than 2 per cent of
the GDP compared to world average of 7.52 per cent. Clearly, the scope for growth is
enormous.
Led by the Life Insurance Corporation (LIC), the life insurance industry registered a
growth of 110 per cent in fiscal 2006-07, taking the total business to US$ 19.2 billion
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from the previous years US$ 9.1 billion. The life insurance market has grown rapidly
over the past six years, with new business premiums growing at over 40 per cent per year
owing to the entry of a host of new players with significant growth aspirations and capital
commitments.
The total life insurance market premiums is likely to more than double from the current
US$ 40 billion to US$ 80-US$100 billion by 2012, says a study by McKinsey. The study
titled India Insurance 2012: Fortune Favours the Bold, expects a rise in premiums
between 5.1 and 6.2 per cent of the GDP in 2012 from the current 4.1 per cent driven by
greater insurance intensity per capita as the average per capita income increases and rise
in penetration in urban and rural areas. The life insurance premium contributions per
capita have jumped from a little over US$ 7 in 1999-2000 (pre-liberalization) to US$
38.5 in 2006-07.
Life insurance penetration in India - which was less than 1 per cent till 1990-91 -
increased to 2.53 per cent in 2005, and to 3 per cent in 2006-07. While the impetus for
growth has come from both public and private insurers, the number of players in this
segment have also increased to 16 (15 in private sector), with Life Insurance Corporation
(LIC) being the dominant player (market share of over 74 per cent).
The general insurance industry grew 11.6 per cent between April and November in 2007-
08 with robust performances by private players. The 13 non-life insurers collected US$
4.7 billion in premium against US$ 4.2 billion in the same period last year. While the
public sector could increase its premiums by just 3.57 per cent, 9 private sector players
clocked premium growth of 26.49 per cent. Private sector players market share has
grown to about 40 per cent in FY08 as compared to the public sectors 60 per cent.
INSURANCE SECTOR POLICY BY GOVERNMENT
Foreign direct investment up to 26 per cent is permitted under the automatic route
subject to obtaining a license from the IRDA.
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IRDA has removed administered pricing mechanism, i.e. de-tariffing in respect of fire
and engineering along with motor insurance of general insurance for premium, effective
from 1 January, 2007.
The control rates on fire, engineering and workmens compensation insurance classes
have been removed from 1 September, 2007.
Some state governments have also taken a dynamic role in this sector. The Government
of Andhra Pradesh after piloting the Arogya Sri health insurance scheme in three
districts plans to issue health cards to 18 million BPL (below the poverty line) families.
As a result, about 60 million of the States 80 million people will have insurance cover.
The Karnataka Government has partnered with the private sector to provide coverage at a
low cost in the Yeshaswini Insurance scheme. Launched in 2002, the scheme provides
coverage for major surgical operations, including those pertaining to pre-existing
conditions, to Indian farmers who previously had no access to insurance.
With less than 10 per cent of the population having some sort of health insurance, the
potential market for health insurance is huge. A McKinsey-CII report estimates the
number of potential insurable lives at 315 million. In 2006-07, the fast-growing Indian
health insurance business grew 40 per cent to US$ 812 million. The sector is projected to
grow to US$ 5.75 billion by 2010.
Some Developments in The Indian Insurance Industry follows:
Society Generale has entered into a joint venture with India Bulls Financial Services for
a life insurance joint venture in India through its French life insurance company Sogecap.
Tata have formed a joint venture with US based American Int. Group (AIG) Max India
has formed a joint venture with US based life insurance company, New York Life.
Indian Farmers Fertilizer Cooperative (IFFCO) has formed a joint venture with Tokio
Marine and Fire of Japan to form IFFCO Tokio General Insurance Company.
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State Bank of India has formed a joint venture with Cardiff SA of France (the insurance
arm of BNP Paribas Bank) as SBICardiff Life.
ICICI has joined hands with UK based Prudential- ICICI Prudential Life Insurance.
The rapid growth of insurance industry, especially in the life segment has brought to the
fore a number of issues which is a vital link between the insured and insurer. In order to
spread the message of insurance to the far corners of the country, the IRDA had enlarged
the scope of the intermediaries structure from the traditional tied agents to the corporate
agent, micro insurance agent, the Banc assurance mode and the referral system. Insurers
have also adopted other channels of sales to suit e-selling such as computer points at
convenient locations, on-line insurance purchase etc.
These systems have been in place for some time now, some of them for the last eight
years. Some of the practices that have crept into the system in terms of remuneration or
reimbursement of expenses or incentive schemes and so on require a detailed
examination to ascertain whether they are in conformity with the provision of the
Insurance Act and their impact on the acquisition cost.
Nature of industry
Goods and services: The insurance industry provides protection against financial
losses resulting from a variety of perils. By purchasing insurance policies, individuals and
businesses can receive reimbursement for losses due to car accidents, theft of property,
and fire and storm damage; medical expenses; and loss of income due to disability or
death.
Industry organization:The insurance industry consists mainly of insurance carriers
(or insurers) and insurance agencies and brokerages. In general, insurance carriers are
large companies that provide insurance and assume the risks covered by the policy.
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Insurance agencies and brokerages sell insurance policies for the carriers. While some of
these establishments are directly affiliated with a particular insurer and sell only that
carriers policies, many are independent and are thus free to market the policies of a
variety of insurance carriers. In addition to supporting these two primary components, the
insurance industry includes establishments that provide other insurance-related services,
such as claims adjustment or third-party administration of insurance and pension funds.
These other insurance industry establishments also include a number of independent
organizations that provide a wide array of insurance-related services to carriers and their
clients. One such service is the processing of claims forms for medical practitioners.
Other services include loss prevention and risk management. Also, insurance companies
sometimes hire independent claims adjusters to investigate accidents and claims for
property damage and to assign a dollar estimate to the claim.
Some insurance policies cover groups of people, ranging from a few to thousands of
individuals. These policies usually are issued to employers for the benefit of their
employees or to unions, professional associations, or other membership organizations for
the benefit of their members. Among the most common policies of this nature are group
life and health plans. Insurance carriers also underwrite a variety of specialized types of
insurance, such as real-estate title insurance, employee surety and fidelity bonding, and
medical malpractice insurance.
Other organizations in the industry are formed by groups of insurance companies, to
perform functions that would result in a duplication of effort if each company carried
them out individually. For example, service organizations are supported by insurance
companies to provide loss statistics, which the companies use to set their rates.
Recent developments:Congressional legislation now allows insurance carriers and
other financial institutions, such as banks and securities firms, to sell one anothers
products. More insurance carriers now sell financial products such as securities, mutual
funds, and various retirement plans. This approach is most common in life insurance
companies that already sold annuities, but property and casualty companies also are
increasingly selling a wider range of financial products. In order to expand into one
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anothers markets, insurance carriers, banks, and securities firms have engaged in
numerous mergers, allowing the merging companies access to each other's client base and
geographical markets.
Insurance carriers have discovered that the Internet can be a powerful tool for reachingpotential and existing customers. Most carriers use the Internet simply to post company
information, such as sales brochures and product information, financial statements, and a
list of local agents. However, an increasing number of carriers are starting to expand their
Web sites to enable customers to access online account and billing information, and some
carriers even allow claims to be submitted online. Many carriers also provide insurance
quotes online based on the information submitted by customers on their Internet sites. In
fact, some carriers will allow customers to purchase policies through the Internet without
ever speaking to a live agent.
Working conditions/Hours: Many workers in the insurance industryespecially
those in administrative support positionswork a 5-day, 40-hour week. Those in
executive and managerial occupations often put in more than 40
Hours. There are several occupations in the insurance industry where workers may work
irregular hours outside of office settings. Those working in sales jobs need to be available
for their clients at all times. This accommodation may result in these individuals working
50 to 60 hours per week. Also, call centers operate 24 hours a day, 7 days a week, so
some of their employees must work evening and weekend shifts. The irregular business
hours in the insurance industry provide some workers with the opportunity for part-time
work. Part-time employees make up 8 percent of the workforce.
Employment
The insurance industry had about 2.3 million wage and salary jobs in 2006. Insurancecarriers accounted for 62 percent of jobs, while insurance agencies, brokerages, and
providers of other insurance-related services accounted for 38 percent of jobs.
The majority of establishments in the insurance industry were small; however, a few
large establishments accounted for many of the jobs in this industry. Insurance carriers
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tend to be large establishments, often employing 250 or more workers, whereas agencies
and brokerages tend to be much smaller, frequently employing fewer than 20 workers.
Many insurance carriers home and regional offices are situated near large urban centers.
Insurance workers who deal directly with the public are located throughout the country.Almost all of those working in sales work out of local company offices or independent
agencies. Many others in the industry work for independent firms in small cities and
towns throughout the country.
Significant Points
Job growth in this large industry will be limited by corporate downsizing, newtechnology, and increasing direct mail, telephone, and Internet sales, but numerous
job openings will arise from the need to replace workers who leave or retire.
Growing areas of the insurance industry are medical services and health insurance,and its expansion into other financial services, such as securities and mutual funds.
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Jobs in office and administrative occupations usually may be entered with a highschool diploma, but employers prefer college graduates for sales, managerial, and
professional jobs.
Growth of Indian insurance industry
With an annual growth rate of 15-20% and the largest number oflife 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 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. This 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)
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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.
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INSURANCE HISTORY
INDIAN INSURANCE INDUSTRY:
Insurers
Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:
Life Insurers:
Life Insurance Corporation of India (LIC)
General Insurers:
General Insurance Corporation of India (GIC) (with effect from Dec'2000, aNational Reinsurer)
GIC had four subsidary companies, namely ( with effect from Dec'2000, these
subsidiaries have been de-linked from the parent company and made as independent
insurance companies.
1. The Oriental Insurance Company Limited2. The New India Assurance Company Limited3. National Insurance Company Limited4. United India Insurance Company Limited.
http://www.licindia.com/http://gicofindia.in/http://www.orientalinsurance.nic.in/http://www.newindia.co.in/http://www.nationalinsuranceindia.com/http://www.uiic.co.in/http://www.uiic.co.in/http://www.nationalinsuranceindia.com/http://www.newindia.co.in/http://www.orientalinsurance.nic.in/http://gicofindia.in/http://www.licindia.com/7/31/2019 Factors Influencing Recrutiment of Financial Consultants
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Year: 2000-2001: (16 new entrants)
life insurers:
S.No. Registration
Number
Date of
Reg.
Name of the Company
1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited .
8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited
10 117 06.08.2001 Metlife India Insurance Company Ltd.
11 133 04.09.2007 Future Generali India Life Insurance Company Limited
12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.maxnewyorklife.com/http://www.iciciprulife.com/http://www.omkotakmahindra.com/http://www.birlasunlife.com/http://www.tata-aig-life.com/http://www.sbilife.co.in/http://www.ingvysyalife.com/http://www.allianzbajaj.co.in/http://www.metlife.co.in/http://www.fg-life.in/http://www.idbifortis.com/http://www.idbifortis.com/http://www.fg-life.in/http://www.metlife.co.in/http://www.allianzbajaj.co.in/http://www.ingvysyalife.com/http://www.sbilife.co.in/http://www.tata-aig-life.com/http://www.birlasunlife.com/http://www.omkotakmahindra.com/http://www.iciciprulife.com/http://www.maxnewyorklife.com/http://www.hdfcinsurance.com/7/31/2019 Factors Influencing Recrutiment of Financial Consultants
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General insurers :
S.No. Registration
Number
Date of
Registration
Name of the Company
1 102 23.10.2000 Royal Sundaram Alliance
Insurance Company Limited
2 103 23.10.2000 Reliance General Insurance
Company Limited.
3 106 04.12.2000 IFFCO Tokio General
Insurance Co. Ltd
4 108 22.01.2001 TATA AIG General Insurance
Company Ltd.
5 113 02.05.2001 Bajaj Allianz General
Insurance Company Limited
6 115 03.08.2001 ICICI Lombard General
Insurance Company Limited.
7 131 03-08-2007 Apollo DKV Insurance
Company Limited
8 132 04-09-2007 Future Generali India Insurance
Company Limited
9 134 16-11-2007 Universal Sompo General
Insurance Company Ltd.
http://www.irdaindia.org/www.royalsundaram.comhttp://www.irdaindia.org/www.royalsundaram.comhttp://www.irdaindia.org/www.royalsundaram.comhttp://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.itgi.co.in/http://www.itgi.co.in/http://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.icicilombard.com/http://www.icicilombard.com/http://www.apollodkv.co.in/http://www.apollodkv.co.in/http://www.irdaindia.org/www.fg-general.inhttp://www.irdaindia.org/www.fg-general.inhttp://www.universalsompo.com/http://www.universalsompo.com/http://www.universalsompo.com/http://www.universalsompo.com/http://www.irdaindia.org/www.fg-general.inhttp://www.irdaindia.org/www.fg-general.inhttp://www.apollodkv.co.in/http://www.apollodkv.co.in/http://www.icicilombard.com/http://www.icicilombard.com/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.irdaindia.org/www.tata-aiggeneral.comhttp://www.itgi.co.in/http://www.itgi.co.in/http://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.irdaindia.org/www.royalsundaram.comhttp://www.irdaindia.org/www.royalsundaram.com7/31/2019 Factors Influencing Recrutiment of Financial Consultants
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Year: 2001-2002: (From 1st Jan 2001 to Dec. 2002)
Insurance Industry in this year, so far has 5new entrants; namely
Life Insurers:
Sino. Registration
Number
Date of
Reg.
Name of the Company
1 121 03.01.2002 Reliance Life Insurance Company Limited.
2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.
General Insurers :
Sino. Registration
Number
Date of
Registration
Name of the Company
1 123 15.07.2002 Cholamandalam General
Insurance Company Ltd.
2. 124 27.08.2002 Export Credit Guarantee
Corporation Ltd.
3. 125 27.08.2002 HDFC-Chubb General
Insurance Co. Ltd
http://www.reliancelife.com/http://www.reliancelife.com/http://www.avivaindia.com/http://www.cholainsurance.com/http://www.cholainsurance.com/http://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.hdfcchubbindia.com/http://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.irdaindia.org/http;/www.ecgcindia.comhttp://www.cholainsurance.com/http://www.cholainsurance.com/http://www.avivaindia.com/http://www.reliancelife.com/7/31/2019 Factors Influencing Recrutiment of Financial Consultants
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Year: 2003-2004: (From 1st Jan 2003 till Date)
Insurance Industry in this year, so far has 1new entrants
Life Insurers:
S.No. Registration
Number
Date of
Reg.
Name of the Company
1 127 06.02.2004 Sahara India Insurance Company Ltd.
Year: 2004-2005:
Insurance Industry in this year, so far has 1new entrants
Life Insurers:
S.No. RegistrationNumber
Date of
Reg.Name of the Company
1 128 17.11.2005 Shriram Life Insurance Company Ltd
Year: 2006-2007:
Insurance Industry in this year, had 1new entrants
Life Insurers:
S.No. RegistrationNumber Date of
Reg.
Name of the Company
1 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.
http://www.saharalife.com/http://www.saharalife.com/http://www.saharalife.com/http://www.bharti-axalife.com/http://www.bharti-axalife.com/http://www.saharalife.com/http://www.saharalife.com/7/31/2019 Factors Influencing Recrutiment of Financial Consultants
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Year: 2007-2008 :
Insurance Industry in this year, had 2 new entrants
S.No
.
Registratio
n
Number
Date of
Reg.
Name of the Company
1 133 04.09.200
7
Future Generali India Life Insurance Company
Limited
2 135 19.12.200
7
IDBI Fortis Life Insurance Company Ltd.
Year: 2008-2009:
Insurance Industry in this year, so far has 3 new entrants in Life and 1 new entry in
General
Life Insurers:
S.N
o.
Registrati
on
Number
Date of
Reg.
Name of the Company
1 136 08.05.20
08
Canara HSBC Oriental Bank of Commerce Life Insurance
Company Ltd.
2 138 27.06.20
08
Aegon Religare Life Insurance Company Ltd.
3 140 27.06.20
08
DLF Pramerica Life Insurance Company Ltd.
http://www.irdaindia.org/www.fg-life.inhttp://www.irdaindia.org/www.fg-life.inhttp://www.irdaindia.org/www.fg-life.inhttp://www.idbifortis.com/http://www.canarahsbclife.com/http://www.canarahsbclife.com/http://www.aegonreligare.com/http://www.dlfpramericalife.com/http://www.dlfpramericalife.com/http://www.aegonreligare.com/http://www.canarahsbclife.com/http://www.canarahsbclife.com/http://www.idbifortis.com/http://www.irdaindia.org/www.fg-life.inhttp://www.irdaindia.org/www.fg-life.in7/31/2019 Factors Influencing Recrutiment of Financial Consultants
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General Insurers:
S.No. RegistrationNumber
Date of
Reg.Name of the Company
1 139 27.06.2008 Bharti Axa General Insurance Company Ltd.
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INTRODUCTION TO HDFC
The first private sector retail Housing Finance Company in India was incorporated in
1977 with almost 90% of the initial share holding in the hands of domestic institution and
retail investors and currently 77% of the shares hold by foreign institutional investors and
a primary objective of meeting a social needs of the common mass of India as well as
promising ownership by providing long term finance to households for their needs.
However, the needs were according to National Building Organization. The demand
was estimate at 2 million units per year and the total housing shortfall is estimated to be
19.4 million units with the division of 12.6 million for rural and 6.64 million for urban. Itis listed on both BSE and NSE and having the market capitalization of Rs 79 billion. It
has 118 offices and having the second largest employment generator in India with the
staff strength of 1099.
KEY PLAYERS
Mr. Deepak S Parekhis the Chairman of the Company. He is also the Executive Chairman
of Housing Development Finance Corporation Limited (HDFC Limited). He joined
HDFC Limited in a senior management position in 1978. He was inducted as a whole-
time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in
1993. He is the Chief Executive Officer of HDFC Limited. Mr. Parekh is a Fellow of the
Institute of Chartered Accountants (England & Wales).
Mr. Deepak M Satwalekar is the Managing Director and CEO of the Company since
November, 2000. Prior to this, he was the Managing Director of HDFC Limited since
1993. Mr. Satwalekar obtained a Bachelors Degree in Technology from the Indian
Institute of Technology, Bombay and a Masters Degree in Business Administration from
The American University, Washington DC.
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FINANCIAL STRENGTH
Was promoted with an initial share capital of 100 million. Asset Base of more than Rs 21459 cr. AAA (High Security and High Safety) rated for seven consecutive years.
MISSION
To be the top new life insurance company in the country.
Values
1. SERVICE
Offer a high quality customer service. Trained consultants who would advice the customers in choosing the right
product for him.
2. TRUST
Commitment to the Indian market to establish themselves as the mostprofessional Life Insurance Company in India.
3. INNOVATION
Commitment for developing quality products for the specific needs of theIndian customers.
Use latest technology.
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HDFC IS A HIGHLY DIVERSIFIED GROUP. ITS GROUP
COMPANIES ARE:
GROUP COMPANIES
HDFC Bank: World Class Indian Bank- among the top private banks in India.
HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.
Intelenet Global: BPO services for international customers.
CIBIL: Credit Information Bureau India Limited.
HDFC Chubb: Upcoming Private companies in the field of General Insurance.
HDFC Mutual FundHDFC reality.com: Helps to search properties in all major cities in India
HDFC securities.
i. HDFC LIMITED:
HDFC was incorporated in1977 with the primary objective of meeting a social
need that of promoting home ownership by providing long term finance to
households for their housing needs. HDFC was promoted with an initial share
capital of Rs. 100.
ii. HDFC BANK LIMITED:
The Housing Development Finance Corporation Limited (HDFC) was amongstThe first to receive approval from the Reserve Bank of India to set up a bank in
the private sector. The bank was incorporated in August 1994 the name of HDFC
Bank Limited, with its registered office in Mumbai.
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iii. HDFC ASSET MANAGEMENT:
HDFC Fund is dominant player in the Indian Mutual Fund space, recognized its
high levels of ethical and professional conduct a commitment towards enhancing
investor interest.
iv. HDFC STANDARD LIFE INSURANCE:
HDFC STANDAED LIFE is the name, which is working as one of the best
private insurance company in insurance sector. HDFC STANDARD LIFE
Insurance company ltd. was incorporated on 14th august 2000. It got the certificate
of registration on 23rd October.
INTRODUCTION TO STANDARD LIFE
Standard was incorporated d in 1825. It is mainly a U.K based company having
31 branches in U.K itself and many other branches in all over the world. It is also
renounced as the European Largest Mutual Life Insurance Company and recently
voted Company do the decade by independent financial advisor U.K.
STANDARD LIFE:
STANDARD HEALTH CARE
STANDARD INVESTMENT
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SOME FACTS ABOUT THE COMPANY:
1. Founded in 18252. Mutual life insurance3. Largest mutual life insurance company in Europe4. Assets under management over Rs 707836 cr. Total assets under management Rs
707836 cr.
5. New premium income Rs 76277 cr.6. AAA rated by Standard & Poors and Moodys.
THE JOINT VENTURE OF HDFC AND STANDARD LIFE:
Be granted license by the IRDA to operate in life insurance sector. Each of the JV HDFC
Standard Life Insurance Company Ltd was one of the first companies to who is highly
rated and conferred with many awards. HDFC is rated AAA by both CRISIL and
ICRA. Similarly, Standard Life is rated AAA both by Moodys and Standard and
Poors. These reflect the efficiency with which HDFC and Standard Life manage their
assets base of Rs 15000cr and Rs 600,000 Cr respectively.
PRODUCTS & SERVICES
The right investment strategies won't just help plan for a more comfortable tomorrow --
they will help you get Sar Utha ke Jiyo. At HDFC SLIC, life insurance plans are
created keeping in mind the changing needs of family. Its life insurance plans are
designed to provide you with flexible options that meet both protection and savings
needs. It offers a full range of transparent, flexible and value for money products. HDFC
SLIC products are modern and contemporary unitized products that offer unique
customer benefits like flexibility to choose cover levels, indexation and partial
withdrawals.
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RECRUITMENT OF FINANCIAL
CONSULTANT
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INTRODUCTION TO RECRUITMENT
Recruitment is the process of searching the candidates for employment and stimulating
them to apply for jobs in the organization. Recruitment is the activity that links the
employers and the job seekers. A few definitions of recruitment are:
1 A process of finding and attracting capable applicants for employment. Theprocess begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applications from which new employees are
selected.
2 Recruitment of candidates is the function preceding the selection, which helpscreate a pool of prospective employees for the organisation so that the
management can select the right candidate for the right job from this pool. The
main objective of the recruitment process is to expedite these election process
3 Recruitment is a continuous process whereby the firm attempts to develop a poolof qualified applicants for the future human resources needs even though specific
vacancies do not exist. Usually, the recruitment process starts when a manger
initiates an employee requisition for a specific vacancy or an anticipated vacancy.
RECRUITMENT NEEDS ARE OF THREE TYPES
1 PLANNEDi.e. the needs arising from changes in organization and retirement policy.
2 ANTICIPATEDAnticipated needs are those movements in personnel, which an
organization can predict by studying trends in internal and external
environment.
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3 UNEXPECTEDResignation, deaths, accidents, illness give rise to unexpected needs.
Purpose and importance
1. Attract and encourage more and more candidates to apply in the organisation.
2. Create a talent pool of candidates to enable the selection of best candidates for the
organization.
3. Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
4. Recruitment is the process which links the employers with the employees.
5. Increase the pool of job candidates at minimum cost.
6. Help increase the success rate of selection process by decreasing number of visibly
under qualified or overqualified job applicants.
7. Help reduce the probability that job applicants once recruited and selected will leave
the organization only after a short period of time.
8. Meet the organizations legal and social obligations regarding the composition of its
workforce.
9. Begin identifying and preparing potential job applicants who will be appropriate
candidates.
10. Increase organization and individual effectiveness of various recruiting techniques
and sources for all types of job applicants.
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SOURCES OF RECRUITMENT
Every organisation has the option of choosing the candidates for its recruitment processes
from two kinds of sources: internal and external sources. The sources within the
organisation itself (like transfer of employees from one department to other, promotions)
to fill a position are known as the internal sources of recruitment. Recruitment candidates
from all the other sources (like outsourcing agencies etc.) are known as the external
sources of recruitment.
SOURCES OF RECRUITMENT
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FACTORS AFFECTING RECRUITMENT
The recruitment function of the organisations is affected and governed by a mix of
various internal and external forces. The internal forces or factors are the factors that can
be controlled by the organisation. And the external factors are those factors which cannot
be controlled by the organisation. The internal and external forces affecting recruitment
function of an organisation are:
FACTORS AFFECTING RECRUITMENT
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RECRUITMENT PROCESS
The recruitment and selection is the major function of the human resource department
and recruitment process is the first step towards creating the competitive strength and the
strategic advantage for the organisations. Recruitment process involves a systematic
procedure from sourcing the candidates to arranging and conducting the interviews and
requires many resources and time. A general recruitment process is as follows:
1. Identify vacancy2. Prepare job description and person specification3. Advertising the vacancy4. Managing the response5. Short-listing6. Arrange interviews7. Conducting interview and decision making
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medical care and loss of income due to illness or injury. They also may sell dental
insurance and short-term and long-term-disability insurance policies. Agents may
specialize in any one of these product areas, or function as generalists, providing multiple
products to a single customer.
An increasing number of insurance sales agents are offering comprehensive financial
planning services to their clients. These services include retirement planning, estate
planning, and assistance in setting up pension plans for businesses. As a result, many
insurance agents are involved in cross-selling or total account development. Besides
offering insurance, these agents may become licensed to sell mutual funds, variable
annuities, and other securities. This practice is most common with life insurance agents
who already sell annuities, but many property and casualty agents also sell financial
products.
Insurance sales agents also prepare reports, maintain records, and seek out new clients. In
the event that policy holders experience a loss, agents help them settle their insurance
claims. Increasingly, some agents are also offering their clients financial analysis or
advice on how to minimize risk.
Insurance sales agents working exclusively for one insurance company are referred to as
captive agents. Independent insurance agents, or brokers, represent several companiesand match insurance policies for their clients with the company that offers the best rate
and coverage.
Technology has greatly affected the insurance business, making it much more efficient
and giving the agent the ability to take on more clients. Agents computers are now
linked directly to insurance carriers via the Internet, making the tasks of obtaining price
quotes and processing applications and service requests faster and easier. Computers also
allow agents to be better informed about new products that the insurance carriers may beoffering.
Increasing competition in the insurance industry has spurred carriers and agents to find
new ways to keep their clients satisfied. One solution is to increase the use of call centers,
which usually are accessible to clients 24 hours a day, 7 days a week. Insurance carriers
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and sales agents also are hiring customer service representatives to handle routine tasks
such as answering questions, making changes in policies, processing claims, and selling
more products to clients. The opportunity to cross-sell new products to clients will help
agents businesses grow. The use of call centers also allows agents to concentrate their
efforts on seeking out new clients and maintaining relationships with old ones.
Work environment.
Insurance sales agents working as captive agents are usually based in small offices, from
which they contact clients and provide information on the policies they sell. Independent
insurance agents, or brokers, may work in offices of varying sizes, depending on the size
of the agency. However, much of their time may be spent outside their offices, traveling
locally to meet with clients, close sales, or investigate claims. Agents usually determine
their own hours of work and often schedule evening and weekend appointments for the
convenience of clients. Some sales agents may meet with clients during business hours
and then spend evenings doing paperwork and preparing presentations to prospective
clients. Although most agents work a 40-hour week, some work 60 hours a week or
longer.
Education and training.
For insurance sales agent jobs, many companies and independent agencies prefer to hire
college graduatesespecially those who have majored in business or economics. High
school graduates may be hired if they have proven sales ability or have been successful in
other types of work. Agents learn many of their job duties on the job from other agents.
Many employers have their new agents shadow an experienced agent for a period of time.
This allows the agent to learn how to conduct their business, how the agency interacts
with clients, and how to write policies.
Employers also are placing greater emphasis on continuing professional education as the
diversity of financial products sold by insurance agents increases. It is important for
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insurance agents to keep up to date on issues concerning clients. Changes in tax laws,
government benefits programs, and other State and Federal regulations can affect the
insurance needs of clients and the way in which agents conduct business. Agents can
enhance their selling skills and broaden their knowledge of insurance and other financial.
Licensure.
more Insurance sales agents must obtain a license in the States where they plan to work.
Separate licenses are required for agents to sell life and health insurance and property and
casualty insurance. In most States, licenses are issued only to applicants who complete
specified prelicensing courses and who pass State examinations covering insurance
fundamentals and State insurance laws. The insurance industry is increasingly moving
toward uniform State licensing standards and reciprocal licensing, allowing agents who
earn a license in one State to become licensed in other States more easily. Most State
licensing authorities also have mandatory continuing education requirements focusing on
insurance laws, consumer protection, ethics, and the technical details of various insurance
policies.
Job prospects.
Multilingual agents should have good job prospects because they can serve a wider range of
customers. Additionally, insurance language tends to be quite technical, so agents who have a
firm understanding of relevant technical and legal terms will also be desirable to employers.
Many beginning agents fail to earn enough from commissions to meet their income goals and
eventually transfer to other careers. Many job openings are likely to result from the need to
replace agents who leave the occupation or retire, as a large number of agents are expected to
retire over the next decade.
Agents may face increased competition from traditional securities brokers and bankers as they
begin to sell insurance policies. Insurance sales agents will need to expand the products and
services they offer as consolidation increases among insurance companies, banks, and brokerage
firms and as demands increase from clients for comprehensive financial planning.
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Recruitment process of insurance agent in HDFC standard life
insurance
Recruitment process Under the regulation of Insurance Agents Regulatory Act 2000,
any person desirous of obtaining an agent''s licence shall have to pass the pre-recruitment
examination in life or general insurance business conducted by an examination body duly
recognised by the Insurance Regulatory and Development Authority (IRDA).
Step 1: Information gathering/contacts\
Step 2: Evaluation of required qualification
Step 3: Training
Step 4: Irda exam for license procurement.
Information gathering
Gathering data through contacts and many other sources to explore people who will be
interested in becoming a financial consultant.
Evaluation of required qualification
Employers prefer to hire insurance agents who have college degrees, particularly in
business or economics. They might consider hiring a high school graduate who has
proven sales ability.
Insurance sales agents should be flexible, enthusiastic, confident, disciplined, hard
working, and willing to solve problems. They should communicate effectively and
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inspire customer confidence. Because they usually work without supervision, sales agents
must be able to plan their time well and have the initiative to locate new clients.
TRAINING
Agents can enhance their selling skills and broaden their knowledge of insurance and
other financial services by taking training at colleges and universities and by attending
institutes, conferences, and seminars sponsored by insurance organizations.
IRDA EXAM FOR LICENSE PROCUREMENT
Every state requires insurance agents to be licensed. They are required to obtain separate
licenses to sell life and health insurance or property and casualty insurance. In most
states, sales agents, in order to become licensed, must complete pre-licensing courses and
pass state examinations.
Be our Certified Financial Consultant
Name:
Sex :
Address :
State :
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Branch:
(Select the place nearest to you)
Email :
Telephone :
Age :
Educational Qualifications :
Do you hold a licence to act as an insurance Agent for Life/ General/Composite
Insurance? Yes NO
If 'YES' : Licence No :
Do you hold a Life and/or General Insurance Agency
If 'YES' :Name Of General Insurer :
If 'YES' :Name Of Life Insurer :
IRDA Regulations for becoming an agent : The three pre-requisites laid down byIRDA to qualify as an agent under the licensing regulations are:
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Educational Qualification: Possess a minimum educational qualification of 12th
standard or equivalent (if population >5000) and 10th standard or equivalent (if
population < 5000).
Practical Training: Complete one hundred hours (100) of practical training in lifeinsurance business.
Pre-recruitment Test: Pass the pre-recruitment test, based on an examinationconducted by the Insurance Institute of India or another approved body.
The regulations also mention a 'Tied Agency System' wherein an agent can representonly one life insurer or one general insurer or both, at a time. A person having both
agencies, life and non-life shall be known as a 'Composite Agent'.
DUTIES,POWER AND FUNCTIONS OF IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..
(1) Subject to the provisions of this Act and any other law for the time being in force,the Authority shall have the duty to regulate, promote and ensure orderly growth of
the insurance business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section (1),the powers and functions of the Authority shall include
(3) a) Issue to the applicant a certificate of registration, renew, modify, withdraw,suspend or cancel such registration.
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b)protection of the interests of the policy holders in matters concerning assigning
of policy, nomination by policy holders, insurable interest, settlement of
insurance claim, surrender value of policy and other terms and conditions of
contracts of insurance.
a) specifying requisite qualifications, code of conduct and practical training forintermediary or insurance intermediaries and agents.
b) specifying the code of conduct for surveyors and loss assessors
c)
promoting efficiency in the conduct of insurance business.
d) promoting and regulating professional organisations connected with theinsurance and re-insurance business.
e) levying fees and other charges for carrying out the purposes of this Act;f) calling for information from, undertaking inspection of, conducting enquiries
and investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organisations connected with the insurance business.
g) control and regulation of the rates, advantages, terms and conditions that maybe offered by insurers in respect of general insurance business not so
controlled and regulated by the Tariff Advisory Committee under section 64U
of the Insurance Act, 1938 (4 of 1938).
h) specifying the form and manner in which books of account shall bemaintained and statement of accounts shall be rendered by insurers and other
insurance intermediaries.
i) regulating investment of funds by insurance companies.
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j) regulating maintenance of margin of solvency. adjudication of disputesbetween insurers and intermediaries or insurance intermediaries.
k) supervising the functioning of the Tariff Advisory Committee.l) specifying the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organisations referred to in
clause(f).
m)specifying the percentage of life insurance business and general insurancebusiness to be undertaken by the insurer in the rural or social sector.
n)
exercising such other powers as may be prescribed
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RESEARCH METHODOLOGY
Research is defined as a scientific and systematic search for pertinent information on aspecific topic. The function of a marketing research is to provide information, which
assist marketer in recognizing and reacting to marketing oppurtunities and problems. In
essence, researchers mix managers to take the better decision.
TITLE
Recruitment of financial consultant
TITLE JUSTIFICATION
Recruitment is the process of finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applications from which new employees are selected.
Insurance agents, who may be referred to as insurance sales agents, help clients choose
insurance policies that suit their needs. Clients include individuals and families as well as
businesses. Captive agents work for an insurance company, and only sell that company's
products. Independent insurance agents, or brokers, represent several companies. Types
of insurance include property and Casualty, life, health, disability, and long-term care
insurance. It is important to study whether people are interested in becoming a financial
consultant. It should be kept in mind while recruiting that motivate people to become a
financial consultant , whether it is salary package, job prospects etc according to whichpeople are approached. People can be approached by various ways such as telecalling,
personal contacts or any other sources.
http://personalinsure.about.com/od/insurancetermsglossary/g/casualty.htmhttp://personalinsure.about.com/cs/onlinelearning/g/44.htmhttp://personalinsure.about.com/cs/onlinelearning/g/44.htmhttp://personalinsure.about.com/cs/onlinelearning/g/39.htmhttp://personalinsure.about.com/cs/onlinelearning/g/30.htmhttp://personalinsure.about.com/od/longtermcare/a/ltcguide.htmhttp://personalinsure.about.com/od/longtermcare/a/ltcguide.htmhttp://personalinsure.about.com/cs/onlinelearning/g/30.htmhttp://personalinsure.about.com/cs/onlinelearning/g/39.htmhttp://personalinsure.about.com/cs/onlinelearning/g/44.htmhttp://personalinsure.about.com/od/insurancetermsglossary/g/casualty.htm7/31/2019 Factors Influencing Recrutiment of Financial Consultants
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Objective:
Recruitment of agents:1. Collection of data
2. Making phone calls
3. Taking of appointments
4. Making the customer understand about the importance of insurance and
the benefits of becoming a financial consultant.
5. Providing awareness of the procedure and collection of documents.
Significance of the study
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure.
RESEARCH DESIGN
A marketing research design maybe described as a series of advance decisions that when
taken together comprises a master plan or model for the conduct of the investigation. A
marketing research design comprises of three types of research design. They are:
4 Exploratory Research5 Descriptive Research6 Experimentation
Exploratory Research seeks to discover new relationships. It takes insights into the
phenomenon or develops understanding. It looks for hypothesis. It works when the
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problem is not clear or vague or much less general. It aims at pruning down the
alternatives.
Descriptive Research aims at producing accurate description of variable relevant to
decision making being faced without establishing the cause-effect relationship that exist
between the variable.
Experimentation is a research process where the researcher manipulates one or more
variable under the permitted conditions with an aim of aim data collection thereby
exhibiting cause-effect relationship.
METHODOLOGY
Data can be classified under the two main categories, depending upon the sourcres used
for the collection purpose, i.e, Primary data. The validity and accuracy of final
judgement is most crucial and depends heavily upon how well the data is gathered in the
first place. The methodology adopted for data gathering also affects the conclusion drawn
there from.
Primary data: Primary data those data, which are collected by the investigator himself for
the purpose of a specific enquiry or study. Such data are original in character and are
generated by surveys conducted by individuals or research institutions. Thus and are
generated by surveys conducted by individuals of research institutions. Thus we say that
is being collected for the first is called primary data. Methods thats can be used for
collection of primary data are as follows:
Primary data: Primary data are those data, which are collected by the investigator
himself for the purpose of a specific enquiry or study. Such data are original in character
and are generated by surveys conducted by individuals or research institutions. Thus we
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can say that the data that is being collected for the first time is called primary data. These
are:
1.Direct personal observation
2.Telephone survey
3.Indirect personal interview
4.Questionnaire method
Secondary data: When a person uses data, which has already been collected by
someone else, then such data is known as secondary data. Secondary data should be used
with extra caution since someone else has collected it for his/her use. Before using such
data the investigator must be satisfied with regard to the reliability, accuracy, adequacy
and suitability of the data to the given problem under investigation.
Methods that can be used for collection of secondary data are as follows:
Newspapers and Magazines like Economic Times, Insurance Times etc. Internet
Both Primary data collection methods and Secondary data collection methods have
various advantages as well as limitations. Thus it would be prudent to use both these
methods to ones advantage.
SAMPLING METHODOLOGY
Sampling Unit : Individuals
Sampling technique : Convenient and Judgmental sampling
Sampling area : South Delhi
Sample Size : 100
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LIMITATION OF THE STUDY
The study could not be made that comprehensive due to time constraints. Some
customers feel uncomfortable to reveal some personal information relating to income etc.
It might have happened that some more essential information could have been collected.
1. Time constraints: Due to time limitation sample was chosen according to
convenience. The numbers of respondents were restricted to hundred only as
more number of respondent means more time.
2. Biases and non-cooperation of the respondents: There is probabilitythat
the respondents didnt give true answers due to different reasons. There may
also be a probability that they gave wrong information.
3. Financial constraint: Research work would have been more valuable if it
would have covered all the consumers in their respective areas. But due to
cost limitation this was not possible.
4. Geographical selectivity in research limiting to Delhi city only.
5. People are not interested in giving personal opinion.
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FACTS AND FINDINGS
Q1. Do you have adequate knowledge about insurance?
a. Yesb. .No
Reponses No of respondents
Yes 46
No 54
Q2Have you ever been approached for becoming a financial consultant?
a. Yes
b. No
Reponses No of respondents
Yes 57
No 43
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Q3 If yes , how have you been approached for becoming a financial
consultant?
a. By telecallingb. By existing financial consultantc. By personal contactsd. Others
Reponses No of respondents
By telecalling 25
By existing financial consultant 29
By personal contacts 34
Others 12
Q4 Are you interested in becoming a financial consultant?
a. Yesb. No
Reponses No of respondents
Yes 46
No 54
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Q5 What motivates you to become a financial consultant?
a. Salary packageb.
Reputation of HDFC
c. Job prospectsd. Working environment
Reponses No of respondents
Salary package 32
Reputation of HDFC 24
Job prospects 32
Working environment 12
Q6 What are your expectations from HDFC? ( rank them according to the
order of preference)
a. Good packageb. Cooperative colleaguesc. Good working environmentd. Career growth opportunitye. Working hours
Reponses No of respondents
Good package 22
Cooperative colleagues 11
Good working environment 21
Career growth opportunity 32
Working hours 14
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Q7. What extra incentives do you expect from HDFC?
a. Regular bonusb. Trips and picnicsc. Promotionsd. Gift vouchers
Reponses No of respondents
Regular bonus 28
Trips and picnics 18
Promotions 32
Gift vouchers 22
Q8 What is the duration you wish to be employed in HDFC for?
a.
01 yearb. 13 yearc. 35 yeard. Above 5 year
Reponses No of respondents
01 year 25
13 year 32
35 year 23
Above 5 year 20
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DATA ANALYSIS AND INTERPRETATION
Q1. Do you have adequate knowledge about insurance?
a. Yesb. .No
Interpretation
After the survey I found that 54% of respondents dont have adequate knowledge about
insurance and 46% percent have.
46%
54%
no of respondents
yes
no
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Q2Have you ever been approached for becoming a financial consultant?
a. Yes
b. No
Interpretation
After the survey I found that 57% of respondents have been approached for becoming afinancial consultant and 43% are not.
57%
43%
No of respondents
YES
NO
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Q3 If yes , how have you been approached for becoming a financial
consultant?
a. By telecallingb. By existing financial consultantc. By personal contactsd. Others
Interpretation
After the survey I found that highest percent of people are approached through personal
contacts.
25%
29%
34%
12%
No of respondents
By telecalling
By existing fiancial
consultant
By personal contacts
Others
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Q4 Are you interested in becoming a financial consultant?
a. Yesb. No
Interpretation
After the survey I found that 46% are interested in becoming financial consultant and
54% are not.
46%
54%
No of respondents
yes
no
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Q5 What motivates you to become a financial consultant?
a. Salary packageb. Reputation of HDFCc. Job prospectsd. Working environment
Interpretation
After the survey I found that salary package and job prospects are the highest motivator
to people for becoming a financial consultant.
32%
24%
32%
12%
No of respondents No of respondents
Salary package
Reputation of HDFC
Job prospects
Working environment
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Q6 What are your expectations from HDFC? ( rank them according to the
order of preference)
a. Good packageb.
Cooperative colleagues
c. Good working environmentd. Career growth opportunitye. Working hours
Interpretation
After the survey I found that 32% of people expects career growth opportunity,22% goodpackage, 21% good working environment,14% working hours and 11% cooperativecolleagues.
22%
11%
21%
32%
14%
No of respondents
good package
cooperative colleagues
good working
environment
career growth
opportunity
working hours
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Q7. What extra incentives do you expect from HDFC?
a. Regular bonusb. Trips and picnicsc.
Promotions
d. Gift vouchers
Interpretation
After the survey I found that highest percent of people expects promotions from HDFC
and lowest is gift vouchers.
28%
18%32%
22%
No of respondents
Regular bonus
Trips and picnics
Promotions
Gift vouchers
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Q8 What is the duration you wish to be employed in HDFC for?
a. 01 yearb. 13 yearc. 35 yeard. Above 5 year
\
Interpretation
After the survey I found that Highest percent of people like to be in HDFC for 1
to 3 year span of time.
25%
32%
23%
20%
No of respondents
0 - 1 year
1 - 3 year
3 - 5 year
Above 5 years
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RECOMMENDATIONS
1. HDFC Standard Life is having large number of channel partners but is notsupporting & taking care of all of them equally which results in increasing
discontent among new channel partners. Company should take some positive
action against it.
2. Company executives should visit customers on regular basis.
3. They should pay proper attention towards checking of various components ofinsurance before end user delivery, otherwise it tend towards defaming of
brand name in comparison to rivals.
4. Need to expand customer care centers as customer base of HDFC StandardLife is increasing with tremendous updraft.
5. Proper attention should be paid for advertisement planning otherwise it maylead to problem for customer as well as for company
6. Company should come up with some event management company to organizevarious promotional activities like carnivals, etc
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CONCLUSION
After making an in depth study about the HDFC Standard Life insurance have come
to the conclusion that there has been tremendous changes in the Insurance History.
The opening up of Insurance sector has changed the whole look of Insurance
Industry. Salary package and job prospects are the highest motivator for becoming a
financial consultant. Highest percent of people like to be in HDFC for 1 to 3 year
span of time. HDFC Standard Life Insurance Company continues to have one of the
widest reaches among new insurance companies. The company doubled the number
of offices to 104 across the country.
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BIBLIOGRAPHY
Books
Insurance management by Karam Pal, B.S Sodhi , M.C Garg . Human resource management by T.N Chabbra
Websites
www.yahoo.com www.google.com www.wikipedia.com www.hdfcslic.com
Brochures
HDFC Brochures
Newspapers
Economic Times
Hindustan Times
http://www.yahoo.com/http://www.yahoo.com/http://www.google.com/http://www.google.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.hdfcslic.com/http://www.hdfcslic.com/http://www.hdfcslic.com/http://www.wikipedia.com/http://www.google.com/http://www.yahoo.com/7/31/2019 Factors Influencing Recrutiment of Financial Consultants
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ANNEXURE
QUESTIONNAIRE
Please tick the appropriate box
Name:
Age:
Designation:
Annual household income:
1. upto Rs 2 lakh 2. Rs 2 lakh to lakh
3. 5 lakh to 8 lakh 4. Above 8 lakh
Q1. Do you have adequate knowledge about insurance?
1. YES
2. NO
Q2. Have you ever been approached for becoming a financial consultant?
1. YES
2. NO
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Q3 If yes ,how have you been approached?
1. By telecalling
2. By existing financial consultant
3 . By personal contacts
4 . Others
Q4.Are you interested in becoming a financial consultant?
1. YES
2. NO
Q5. What motivates you to become a financial consultant?
1. Salary package
2. Reputation of HDFC
3. Job prospects
4. Working environment
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Q6.What are your expectations from HDFC? (rank them according to the
order of preference).
1. Good package2. Cooperative colleagues3. Good working environment
4. Career growth opportunity5. Working hours
Q7. What extra incentives do you expect from HDFC?
1. Regular bonus2. Trips and picnics
3. Promotions
4.Gift vouchers
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Q8. What is the duration you wish to be employed in HDFC for?
1.01 year2. 13 year
3.35 year
4.Above 5 year