Organizational Study of IDBI

federal Life Insurance

Submitted by,

Vinothkumar.j

(Kongu School of Management studies).

INTRODUCTION TO IDBI FEDERAL LIFE INSURANCE:

COMPANY PROFILE:

IDBI Federal Life Insurance Co Ltd:

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. G.V.Nageswara Rao is the MD & CEO of the company. There are totally 2,200 on-roll employees and 7,500 agents in the Company.The Company have been started at the year 2008 with low investment. Soon after the company achieved its Break even in the year 2013 with 5.34 crores of profit. The products that provide value and convenience to the customer. A continuous process of innovation product and service delivery we intend to deliver world-class wealth management, protection and retirement solutions to Indian customers. Having started in March 2008, in just five months of inception we became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on January 31st 2012, the company has issued over lakh 3.60 lakh policies with over Rs 14, 230Cr in Sum Assured.

IDBI Bank Ltd:

IDBI Bank Ltd. India’s premier industrial development bank. Started in the year 1956 to support India’s industrial backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail finance. Today, it is India’s foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from 783 branches and 1328 ATMs. The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in India’s financial sector –National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock Holding Corporation of India Ltd), CARE (Credit Analysis and Research Ltd).

Federal Bank:

Federal Bank is one of India’s leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 739 branches and 797 ATMs spread across India. The bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, and any where banking, debit cards, online bill payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank has won several awards and recommendations.

Ageas:

Ageas is an international insurance company with a heritage spanning more than 180 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. They are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia. It is an undisputed leader in the Belgian market for individual life and employee benefits, as well as a leading non-life player, through AG Insurance. Internationally Ageas has a strong presence in the UK, where it is the second largest player in private car insurance. The company also has subsidiaries in France, Germany and Hong Kong. Ageas has a track record in developing partnerships with strong financial institutions and key distributors in different markets around the world and successfully operates partnerships in Luxembourg, Italy, Portugal, China, Malaysia, India and Thailand. Ageas employs more than 13,000 people and has annual inflows of almost EUR 18billion.

VISION AND MISSION:

Vision :

To be the leading provider of wealth management, protection and retirement solutions that meets the needs of our customers and adds value to their lives.

Mission:

To continually strive to enhance customer experience through innovative product offerings, dedicated relationship management and superior service delivery while striving to interact with our customers in the most convenient and cost effective manner.

MEMORANDUM OF UNDERSTANDING:

Industrial Development bank of India Limited (IDBI), Federal Bank and Fortis jointly announced that they have signed a Memorandum of Understanding (MoU) for formation of a Life Insurance Company in India. The MoU was signed at Federal Towers, Kochi.IDBI and Fortis had stated on March7, 2006 that they were jointly seeking a third partner to pursue the Life Insurance business. IDBI and Fortis have now jointly identified Federal Bank as the third partner. It is the intention to establish a Life Insurance company, which will initially be 48% owned by IDBI, 26% by Federal Bank and 26% by Fortis. 

ORGANIZATIONAL STRUCTURE :

ZONAL –WISE ORGANIZATIONAL STRUCTURE:

CHIEF EXECUTIVE OFFICER

Mr.Nageshwara Rao

TRAINING HEAD

Mrs. Vaishali

HUMAN RESOURCES HEAD

Mrs. Radhika Venkatraman

MARKETING HEAD

Mr. Amit Tripathi

COUNTRY HEAD

Mr.Murali

PRODUCTS IN BRIEF:

COUNTRY

HEAD

NORTH ZONEHEAD

EAST ZONEHEAD

WEST ZONEHEAD SOUTH ZONEHEAD

COIMBATORE

LUCKNOW

MUMBAI

JAIPUR

GUJARAT

BANGLORE

HYDERABADORISSAUP

LUCKNOW

PUNJAB

DELHI

Wealthsurance Milestone Plan:  

The combined knowledge of our partners’ customer base of over 9 million, and the combined expertise in the insurance business allowed us to look at the category in a different way. Customers are often left perplexed by the various insurance options, insurance plus investment options, insurance riders and the multitude of other complicated terminologies that hit them every day. This is apparent in the way customers buy insurance - as an investment. So we decided to design one product that can have the flexibility to incorporate within itself, all the possible investments and insurance combinations. We realized that, to reach long-term financial goals, one needs to have a balanced investment plan. If this plan continues to work, the power of compounding can ensure that one would logically reach their goals. Simple, isn’t it? Unfortunately, life is uncertain and any plan is incomplete without being prepared for uncertainties. Be it your changing risk appetite or a major illness or accident that poses a sudden financial demand that could force one to break this plan. One break in a continuous investment plan can heavily dent your investment objectives. This very insight forms the basis of our product. Presenting an insured wealth plan. A plan that not only allows the policyholder to invest according to their changing risk appetite; it also provides a host of insurance benefits to protect them against uncertainties, so that they don’t have to break their investment to meet sudden financial demands and their money can keep compounding. The Wealthsurance Milestone Plan enables the policyholder to save and build wealth to meet their financial goals. This Plan comes with a wide range of 13 investment options and 7 insurance benefits - all packaged with a low charge structure and unmatched flexibility. Moreover, get tax benefits on investment and returns under Sec 80C and Sec 10(10D).

Homesurance Protection Plan:

 

Homesurance Protection Plan is a mortgage reducing term insurance plan that secures the policyholder, irrespective of interest fluctuations at a nominal cost with high benefits. Homesurance Protection Plan provides full insurance cover for properties even under construction, thus ensuring that the beneficiary gets the full sanctioned amount in case of any unfortunate event. It also has an innovative fixed period cover for those who would aim to prepay their loans early and would find a cover for the full term a waste.

Bondsurance Plan: 

Given the ever-changing market conditions, a certain segment of customers prefer to invest their money in guaranteed return products. Bondsurance™ is designed for customers looking for guaranteed returns which will not get affected by financial market conditions. It offers guaranteed return on investment along with life insurance cover. Investment in the Plan is eligible for deduction under Sec 80C of the Income Tax Act and the maturity amount is tax-free under Sec 10(10D) of the Income Tax Act.

Group Microsurance Plan:

 

Microfinance is recognized globally as the foremost tool in pulling large numbers of poor households from the grip of poverty. Micro-insurance in particular is an explicit need and desire of poor households as it offers some protection from their intense vulnerability to external shocks. Microsurance Plan is a one of its kind insurance plan which can be very useful for various Micro Financial Institutions and NGOs, wherein not only the members but even the member’s family gets an insurance cover.

Termsurance Protection Plan: 

A term plan is a term plan, that’s how this product has been seen. We realized, different people have different needs for insurance. Some look for a large cover option at a low cost, while others seek return of premium on maturity of the policy. There are some who may want their plan to keep in touch with inflation, while others may seek flexible premium payment options. Termsurance Protection Plan is not a typical term insurance plan that gives you a cover for the premium; it is innovatively designed to deliver more value to the customers who are looking for a flexible protection plan and a large insurance cover at an affordable cost. The plan offers a Level Paying Term, like a usual term plan. In addition it also offers a Return of Premium so you can get the premiums paid, back on maturity. That’s not all, we understood that by the time an insurance policy matures, inflation and rising costs can make the cover inadequate. Termsurance Protection Plan offers the unique Increasing Cover option that automatically increases the cover every year without increasing the premium. This way, your sum assured keeps increasing just like rising costs and inflation, keeping you adequately covered till maturity. The Premium is eligible for tax deduction under Sec 80C.

Grameen Suraksha Plan:

 

Termsurance Grameen Suraksha is a low-cost, simple term individual insurance plan targeted at the rural population. It is an ideal plan to protect the policyholder’s family members in the event of unfortunate demise of the major income earner.

Grameen Bachat Yojana Plan: 

Termsurance Grameen Bachat Yojana is a low-cost risk protection plan targeted at the rural population. It is an ideal plan to protect family members in the event of unfortunate demise of the major income earner and also to save for specific events like repayment of loan, daughter's marriage or child's education. The plan offers life cover at a nominal cost along with the option of refund of premiums paid by you at maturity. This product has got a very unique mix of options that allow the customers to receive either of 0%, 50%, 90% or 100% return of premium. The coverage terms offered are 3 years, 5 years & 10 years. The customer has the flexibility of get the sum assured ranging from Rs. 5,000 to Rs. 1,00,000 in the multiples of Rs. 1,000.

Incomesurance Endowment & Money Back Plan:

 

Incomesurance Endowment & Money Back Plan is a unique combination of the oldest type of insurance policies. On purchasing a typical endowment plan, it is difficult to know the final maturity amount at the time of investing. Also, the maturity date is usually fixed and therefore, if your goals shifted, like getting your daughter married earlier, your plan would not provide the required flexibility. Knowing the customer helped us to combine the Endowment & Money Back plans into a single plan that would allow you to withdraw at maturity but also take your money back at intervals. This way, you can now have the flexibility to tailor your investment to your life’s goals. To add, we linked the returns to the G-Sec rates, transparently declared by the government. This way, you would know the exact amount on maturity at the time of investing. So you could invest according to the desired corpus you intended to build. The Premium is eligible for tax deduction under Sec 80C. Also, the Guaranteed Annual Payout and other benefits upon death are tax-free under Sec 10(10D).

Healthsurance Hospitalization and Surgical Plan: 

Every year, millions of adults in India are admitted to hospitals due to illness or injury. With the sharp rise in lifestyle diseases in the country, hospitalization has now become a real chance for most of us. Yet, when you bring up hospitalization, "It won’t happen to me!" is the typical response from people at large. It is this insight that helped us create Healthsurance Hospitalization and Surgical Plan. This new insurance plan offers a host of features and benefits that are designed to help you manage the extra financial burden that comes with hospitalization.

INTRODUCTION TO THE INDUSTRY:

Insurance companies:

IRDA has so far granted registration to 18 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are included, there are currently 13 insurance companies in the life side and 13 companies operating in general insurance business. General Insurance Corporation has been approved as the "Indian reinsurer" for underwriting only reinsurance business.

Insurance Industry in India:

Indian insurance is a flourishing industry, with several national and international players competing and growing at rapid rates. Thanks to reforms and the easing of policy regulations, the Indian insurance sector been allowed to flourish, and as Indians become more familiar with different insurance products, this growth can only increase, with the period from 2010 - 2015 projected to be the 'Golden Age' for the Indian insurance industry.

The insurance sector in India has a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. Indian insurance companies offer a comprehensive range of insurance plans, a range that is growing as the economy matures and the wealth of the middle classes increases. The most common types include: term life policies, endowment policies, joint life policies, whole life policies, loan cover term assurance policies, unit-linked insurance plans, group insurance policies, pension plans, and annuities. General insurance plans are also available to cover motor insurance, home insurance, travel insurance and health insurance.

Due to the growing demand for insurance, more and more insurance companies are now emerging in the Indian insurance sector. With the opening up of the economy, several international leaders in the insurance sector are trying to venture into the India insurance industry.

History of the Insurance sector:

The history of the Indian insurance sector dates back to 1818, when the Oriental Life Insurance Company was formed in Kolkata. A new era began in the India insurance sector, with the passing of the Life Insurance Act of 1912.

The Indian Insurance Companies Act was passed in 1928. This act empowered the government of India to gather necessary information about the life insurance and non-life insurance organizations operating in the Indian financial markets.

Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate

the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect

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

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crores from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

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

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four company’s 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.

In 1994, the committee submitted the report and some of the key recommendations included:

Structure:

Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate.

Competition:

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market.

Regulatory Body :

The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.

Investments:

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time).

Customer Service:

LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body. The Insurance Regulatory and Development Authority Act of 1999 brought about several crucial policy changes in the insurance sector of India. It led to the formation of the Insurance Regulatory and Development Authority (IRDA) in 2000.

Structure of the industry:

The IDBI Federal is having the market structure of Perfect Competition. Because many Public and private insurance companies are providing service to the customers by different products. The list of Insurance companies is shown below.

List of players of the Insurance corp. Ltd in India:

1. Bajaj Allianz Life Insurance Company Ltd.

2. Birla Sun Life Insurance Co. Ltd.

3. HDFC Standard Life Insurance Co. Ltd.

4. ICICI Prudential Life Insurance Co. Ltd.

5. ING Vysya Life Insurance Company Ltd.

6. Life Insurance Corporation of India

7. Max New York Life Insurance Co. Ltd.

8. Met Life India Insurance Company Ltd.

9. Kotak Mahindra Old Mutual Life Insurance Ltd.

10. SBI Life Insurance Co. Ltd

11. Tata AIG Life Insurance Company Ltd.

12. Reliance Life Insurance Company Ltd.

13. Aviva Life Insurance Co. India Pvt. Ltd.

14. Sahara India Life Insurance Co, Ltd.

15. Shriram Life Insurance Co, Ltd.

16. Bharti AXA Life Insurance Company Ltd.

17. Future General Life Insurance Company Ltd.

Major Players of the Insurance Corporation:

1. Life Insurance Corporation of India.

2. ICICI Prudential Life Insurance Co. Ltd.

3. ING Vysya Life Insurance Company Ltd.

4. Bajaj Allianz Life Insurance Company Ltd.

5. HDFC Standard Life Insurance Co. Ltd.

Barrier of Industry:

HUMAN RESOURCE DEPAPARTMENT:Around 2200 Employees and about 7500 agents are working for the Organisation.IDBI

federal Bank provides many facilities to the employees as well as agents. Let us see the Human

resource department structure, recruitment process, Training process and other privileges of the Organization. At IDBI Federal, the managerial style is Participative in nature.

STRUCTURE OF THE DEPARTMENT:

MANPOWER PLANNING:

MD & CEO

COUNTRY SALES HEAD

HUMAN RESOURCE HEAD

SERVICE DEPARTMENT

RECRUITMENT

CHIEF MANAGER

SENIOR MANAGER

PAY ROLL

ASSISTANT MANAGER

RECRUITMENT PROCESS:The Recruitment process of IDBI federal completely through the Internship method.

Based on the Real time experience the candidates are recruited to the organization. The selected

SENIOR MANAGER

CHIEF MANAGER

ASSISTANT MANAGER 1

ASSISTANT MANAGER 2

ASSISTANT MANAGER 3

ASSISTANT MANAGER 4

AGENT

AGENT

AGENT

AGENT AGENT

AGENT

AGENT

AGENT

AGENT

AGENT

AGENT

AGENT

AGENT

AGENT

AGENT

AGENT

candidates are proposed to Achieve target policies. The Target of the each employee is 5 products sale. So, each candidate should sell 5 products to make him as the employee of the organization. This is the selection method where the organization is recruiting the lower level managers which are based on the task performing.

TRAINING:

Training is must for every individual when he enters into the organization. Even though the candidate has experience he also should get training. Why because the organization culture, values and beliefs are different from one organization to other. That’s why the training program plays a key role in every organization.

Training program following by IDBI Federal is different at various levels. Mainly in training program the company concentrates on sales managers, agents, operations executives and tele-callers.

Training program for sales managers:

The training program duration for the sales manager is 15 – 20 days. The company Motivating and encouraging Advisors during the training period. During the period they are get training on product knowledge. Here the company helps the managers, how to approach different customers and how to handling the objection etc.

Training program for operations executives:

They will get training on customer database files. They will teach how to taking care of the customer files. So the company provides them training in product information and documentation. The renewals will be informed periodically.

PERFORMANCE APPRAISAL:The Performance appraisal of IDBI federal is based upon 2 types.

1. Employees Appraisal.

2. Agents Appraisal.

Employees Appraisal:The Employee appraisal is based upon the target system. There are three levels in the

performance appraisal. Lower level: For the Post of Manager level, the employee must achieve the product sales worth of 7.2lakhs at the Annual period of the year.Higher level: For the Post of Senior Manager Level, the employee must achieve the product sales worth of 22.2lakhs at the Annual period of the year.

Agents Appraisal:The Agents are paid with commission percentage for every sale which is depending upon

the products.

AWARDS:

The awards and the other grievances are provided only based upon the individual performance. The Company Provides free foreign trip for the employees all the year and best performer Awards of the year.

Example: One of the employees awarded for created best Advertisement award for the childsurance Plan.

OTHER RELAVANT INFORMATION:The Company Provides non-interest loan for the employees in the IDBI Bank and Federal

Bank. Also, It Provides health insurance to the family members of the employee. Programs like Quick Starter king/Queen, Hero March, Super April, Best performer and Best Project augmented the morale of the interns. Monetary compensation in the form of commission and non monetary compensation (Stature oriented) like Best performer and Best project really gave us the drive to work in for the company.

MARKETING DEPARTMENT:

STRUCTURE OF THE DEPT:

BRAND NAME & LOGO:

COIMBATORE

AREA HEAD

DEPUTY MANAGER

BAND 1

SENIOR EXECUTIVE

BAND 3BAND 2BAND 1BAND 3BAND 2BAND 1

CHIEF MANAGER

BAND 2 BAND 3

MANAGEMENT TRAINEES

DISTRIBUTION CENTER

BANKS

AGENT’S

BRANCH HEAD

MARKETING MIX:

The term insurance marketing refers to the marketing of Insurance services with the aim to create customer and generate profit through customer satisfaction. The Insurance Marketing focuses on the formulation of an ideal mix for Insurance business so that the Insurance organization survives and thrives in the right perspective.

The marketing mix is the combination of marketing activities that an organization engages in so as to best meet the needs of its targeted market. The Insurance business deals in selling services and weight age in the formation of marketing mix for the Insurance business is needed.

The marketing mix includes sub-mix of 4P’s of marketing i.e. the product, its price, place, promotion. The above mentioned 4 P’s can be used for marketing of Insurance products, in the following manner:

PRICING:

In the insurance business the pricing decisions are concerned with: i) The premium charged against the policies. ii) Interest charged for defaulting the payment of premium and credit facility, and Commission charged for underwriting and consultancy activities.

With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. In a developing country like India where the disposable income in the hands of prospects is low, the pricing decision also governs the transformation of potential policyholders into actual policyholders. The strategies may be high or low pricing keeping in view the level or standard of customers or the policyholders. The pricing in insurance is in the form of premium rates.

The three main factors used for determining the premium rates under a life insurance plan are mortality, expense and interest. The premium rates are revised if there are any significant changes in any of these factors.

Mortality (deaths in a particular area):

When deciding upon the pricing strategy the average rate of mortality is one of the main considerations. In a country like South Africa the threat to life is very important as it is played by host of diseases.

Expenses:

The cost of processing, commission to agents, reinsurance companies as well as registration are all incorporated into the cost of installments and premium sum and forms the

integral part of the pricing strategy.

Interest:

The rate of interest is one of the major factors which determine people’s willingness to invest in insurance. People would not be willing to put their funds to invest in insurance business if the interest rates provided by the banks or other financial instruments are much greater than the perceived returns from the insurance premiums.

PLACE:

This component of the marketing mix is related to two important factors,

i) Managing the insurance personnel, and

ii) Locating a branch.

The management of agents and insurance personnel is found significant with the viewpoint of maintaining the norms for offering the services. This is also to process the services to the end user in such a way that a gap between the services- promised and services offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem. The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence of the personnel.

The agents and the rural career agents acting as a link, lack professionalism. The front-line staff and the branch managers also are found not assigning due weight age to the degeneration process. The insurance personnel if not managed properly would make all efforts insensitive. Even if the policy makers make provision for the quality up gradation, the promised services hardly reach to the end users.

It is also essential that they have rural orientation and are well aware of the lifestyles of the prospects or users. They are required to be given adequate incentives to show their excellence. While recruiting agents, the branch managers need to prefer local persons and provide them training and conduct seminars. In addition to the agents, the front-line staff also

needs an intensive training programmed to focus mainly on behavioral management. Another important dimension to the Place Mix is related to the location of the insurance branches.

While locating branches, the branch manager needs to consider a number of factors, such as smooth accessibility, availability of infrastructural facilities and the management of branch offices and premises. In addition it is also significant to provide safety measures and also factors like office furnishing, civic amenities and facilities, parking facilities and interior office decoration should be given proper attention. 

Thus the place management of insurance branch offices needs a  new vision, distinct approach and an innovative style. This is essential to make the work place conducive, attractive and proactive for the generation of efficiency among employees. The branch managers need professional excellence to make place decisions productive. has around thousands and thousands of insurance agents all over India to manage their regional customers effectively. Also, has over 796 branches all over India which help in increasing their customer base.

PEOPLE:

Understanding the customer better allows in designing appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. Training the employees, use of IT for efficiency, both at the staff and agent level, is one of the important areas to look into. has created various financial products which have been tailored according to the needs of the customers. They have over thousands of sales personnel who are trained efficiently to bridge in the gap between the customers and the company.

PROMOTION:

The insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy is very high and the rural economy has dominance in the national economy. It is essential to have both personal and impersonal promotion strategies.

In promoting insurance business, the agents and the rural career agents play an important role. Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch managers and front line staff. They also have to be given proper training in order to create impulse buying. Advertising and Publicity, organization of conferences and seminars, incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through the mobile publicity van units would be effective in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders.

Promotional strategies:

 Commercial Ads.  Print Ads. Conducting events. Personnel selling.  Word of mouth.

Viral marketing.

They have brought out many interesting and humorous ads of their products such as Wealthsurance, Incomesurance, Retiresurance etc which has got very good response from customers. They have also conducted events with an aim to create interest around financial planning with Life Insurance at branches which was critical to getting prospects interested in products. 

Building an engagement process around the solution being offered gives an additional boost to this cause. Spelling Bee was a specially created spelling contest created to connect with children. The philosophy of this module hinged around making learning fun. The event was timed to coincide with Children’s day in November 2010. The spellings to be completed revolved around visual and verbal cues to words related to saving, money and finance and aimed at teaching children the value of money early in life.

The engagement started with the spelling contest for kids and gave their IRMs a natural opening for a discussion with parents about financial planning for their children’s future needs like education. This is a sort of channel marketing which had adopted to create awareness as well as to educate the future generation about the company and the importance of saving. important for any intangible product especially like life insurance and financial savings where people should be given complete education about such products because of which all insurance companies take due care while formulizing their promotional strategies.

BRAND AWARENESS:

Awareness Percentage of Various products:

20%

12%

15%8%5%

40%

IncomesuranceTearmsuranceHealthsuranceHomesuranceRetiresuranceUnaware

People seen Advertisement of Life Insurance Company from:

TV2%

Newspaper10%

In-ter-net

11%

None77%

Advertising Budget : IDBI Federal Ltd spends nearly across 4 crores 51 lakhs per annum

for their Promotion and advertising activities.

Marketing Channel:

FINANCE DEPARTMENT:

IDBI Federal Life Insurance has posted a maiden profit of Rs 9.24 crores for financial

year 2012-13, its fifth year of operation. The company achieved its Break even in the year 2013 with 5.34 crores of profit.

National head

Regional head

Zonal head

Manager

Asst.Manager

Agents

Agent 1 Agent 4Agent 3Agent 2

BALANCE SHEET FOR THE YEAR 2012-13 :

PROFIT&LOSS ACCOUNT:

CURRENT LIABILITIES:

REVENUE ACCOUNT:

RESERVE AND SURPLUS SCHEDULE:

GENERAL OBSERVATION:

SWOT ANALYSIS:

1. Products.2. Incomesurance plan.

1. Brand Awareness2. Promotion

STRENTHS WEAKNESS

INT

ER

NA

L

1. Products.2. Incomesurance plan.

1. People trust on Big public sector insurance companies

Example: LIC, NIC.2. Very high competition.

3. Lack of infrastructure in rural areas.

1. Insurable population.2. Fast-track career

development.3. The IDBI Federal group is

going to open 100 branches.

4. International companies helps in building world class expertise in local market.

1. Brand Awareness2. Promotion

THREATSOPPURTUNITIES

INT

ER

NA

LE

XT

ER

NA

L