“ SBI LIFE INSURANCE”

Bachelor of Commerce

(Banking & Insurance)

Semester VI

(2012-13)

Submitted by

HARISH.P.AGARWAL

SMT.M.M.K. COLLEGE OF COMMERCE AND ECONOMICS

BANDRA (W)

MUMBAI-50

“SBI LIFE INSURANCE”

Bachelor of Commerce

(Banking & Insurance)

Semester VI

(2012-13)

Submitted

In Partial Fulfilment of the requirements

For the Award of Degree of Bachelor of

Commerce – Banking & Insurance

By

Harish Agarwal

SMT.M.M.K. COLLEGE OF COMMERCE AND ECONOMICS

BANDRA (W)

MUMBAI-50

SMT.M.M.K. COLLEGE OF COMMERCE AND ECONOMICS

BANDRA (W)

MUMBAI-50

CERTIFICATE

(2012 – 2013)

This is to certify that Harish Agarwal of B.com (Banking & Insurance) Semester VI

(2012-13) has successfully completed the project on “SBI LIFE INSURANCE” under

the guidance of DR. A.C. VANJANI.

Date: -

Place: - MUMBAI

(Prof. Mr. Vishal R Tomar) (Dr. Ashok Vanjani)

Course Co-ordinator Principal

(Prof. Mr. Ashok Vanjani)

Project Guide External Examiner

DECLARATION

Date: -

I, MR. Harish Agarwal the student of B.Com (Banking & Insurance) Semester VI

(2012-13) hereby declare that I have completed the project on “SBI LIFE

INSURANCE” successfully.

The information submitted is true and original to the best of my knowledge.

Thank you,

Yours faithfully,

Harish Agarwal

ACKNOWLEDGEMENT

At the beginning, I would like to thank Almighty God for his shower of blessing. The

desire of completing this dissertation was given a way by my guide Dr. ASHOK

VANJANI. I am very much thankful to him for the guidance, support and for sparing

his precious time from a busy and hectic schedule.

I am thankful to Dr. ASHOK VANJANI, Principal of Smt. M.M.K. College. My

sincere thanks to Mrs. Vishal Tomar who always motivated and provided a helping

hand for conceiving higher education.

I would fail in my duty if I don‟t thank my parents who are pillars of my life. Finally, I

would express my gratitude to all those persons who directly and indirectly helped me

in completing dissertation.

Harish agarwal

DECLARATION

Date:-

I the undersigned Dr. ASHOK VANJANI, have guided Mr. Harish Agarwal for her

project, she has completed the project “SBI LIFE INSURANCE” successfully.

I hereby, declared that information provided in this project is true as per the best of my

knowledge.

Thank you,

Yours faithfully,

Harish agarwal

INDEX

SEQUENCE PG. No

1. Introduction

History of the Insurance 2. Company Profile

Organizational structure

Financial Performance

Recruitment Process Welfare

activity

Product and market competitors

Market Share

Various productlines Financial

analysis SWOT analysis 3. Introduction of the topic

4. Objectives of the Study

5. Results and Discussion 6. Analysis and findings

7. Limitations

8. Recommendations & Suggestions 9. CONCLUSION

History of Insurance: At a glance

Life Insurance in its modern form came to India from England in the year 1818.

Oriental ife Insurance Company started by Europeans in Calcutta was the first

life insurance company on Indian Soil. All the insurance companies established

during that period were brought up with the purpose of looking after the needs

of European community and Indian natives were not being insured by these

companies. However, later with the efforts of eminent people like Babu Muttylal

Seal, the foreign life insurance companies started insuring Indian lives. But

Indian lives were being treated as sub-standard lives and heavy extra premiums

were being charged on them. Bombay Mutual Life Assurance Society heralded

the birth of first Indian life insurance company in the year 1870, and covered

Indian lives at normal rates. Starting as Indian enterprise with highly patriotic

motives, insurance companies came into existence to carry the message of

insurance and social security through insurance to various sectors of society.

Bharat Insurance Company (1896) was also one of such companies inspired by

nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance

companies. The United India in Madras, National Indian and National Insurance

in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In

1907, Hindustan Co-operative Insurance Company took its birth in one of the

rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in

Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later

Bombay Life) were some of the companies established during the same period.

Prior to 1912 India had no legislation to regulate insurance business. In the year

1912, the Life Insurance Companies Act, and the Provident Fund Act were

passed. The Life Insurance Companies Act, 1912 made it necessary that the

premium rate tables and periodical valuations of companies should be certified

by an actuary. But the Act discriminated between foreign and Indian companies

on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance

business. From 44 companies with total business-in-force as Rs.22.44 crore, it

rose to 176 companies with total business-in-force as Rs.298 crore in 1938.

During the mushrooming of insurance companies many financially unsound

concerns were also floated which failed miserably. The Insurance Act 1938 was

the first legislation governing not only life insurance but also non-life insurance

to provide strict state control over insurance business. The demand for

nationalization of life insurance industry was made repeatedly in the past but it

gathered momentum in 1944 when a bill to amend the

Life Insurance Act 1938 was introduced in the Legislative Assembly.

Some of the important milestones in the life

insurance Businesses in India are:

1818: Oriental Life Insurance Company, the first life insurance company on

Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance

company started its business.

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 are taken over by

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

viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the

Government of India.

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

to the Triton Insurance Company Ltd., the first general insurance company

established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance

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 companies‟ viz. the

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

Oriental Insurance Company Ltd. and the United India Insurance Company Ltd.

GIC incorporated as a company.

Indian insurance company Indian Insurance comprised mainly two

Players.

Life Insurer: the important are.

Life Insurance Corporation of India (LIC)

HDFC Standard Life Insurance Company Ltd.

Max New York Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Company Ltd.

Kodak Mahindra Old Mutual Life Insurance Limited.

Birla Sun Life Insurance Company Ltd.

General Insurer General Insurance Corporation of India (GIC) GIC has four subsidiary companies

namely:

The Oriental Insurance Company Limited.

The New India Assurance Company Limited.

National Insurance Company Limited.

United India Insurance Company Limited.

Royal Sundaram Alliance Insurance Company Limited.

Reliance General Insurance Company Limited.

TATA AIG General Insurance Company Ltd.

Bajaj Allianz General Insurance Company Limited

ICICI Lombard General Insurance Company Limited.

Cholamandalam General Insurance Company Ltd.

HDFC-Chubb General Insurance Co. Ltd.

Introduction

SBI LIFE – a joint venture between

74% 26%

SBI Life Insurance is a joint venture between the State Bank of India and Cardiff

SA of France. SBI Life Insurance is registered with an authorized capital of Rs

1000 core and a paid up capital of Rs 350 carore. SBI owns 74% of the total

capital and Cardiff the remaining 26% State Bank of India enjoys the largest

banking franchise in India. Along with its 7 Associate Banks, SBI Group has

the unrivalled strength of over 14,000 branches across the country, the largest in

the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is The

Euro Zone‟s leading Bank. BNP is one of the oldest foreign banks with a

presence in India dating back to 1860. It has 9 branches in the metros and other

major towns in the country. Cardif is a vibrant insurance company specializing

in personal lines such as long-term savings, rotection products and creditor

insurance. Cardif has also been a pioneer in the art of selling insurance

products through commercial banks in France and 29 more countries.SBI Life

Insurance’s mission is to emerge as the leading company offering a

comprehensive range of Life Insurance and pension products at competitive

prices, ensuring high standards of customer ervice and world class operating

efficiency. The company plans to make the insurance buying process quick,

simple and based on well-informed judgment. In 2004, SBI Life Insurance

became the first company amongst private insurance players to cover 30 lacks

lives. The company expects to carve a niche in the Indian insurance market

through extensive product innovation and aims to provide the highest standards

of customer service through a technological interface. To facilitate this, call

centers have been already installed and help lines will be installed and customers

will have access to their accounts through the Internet or through SBI branches.

The company proposes to make available ready liquidity to its Life Insurance

policies by way of loans at SBI counters. This will make Life Insurance a liquid

asset in the financial portfolio of households. SBI Life Insurance is uniquely

placed as a pioneer to usher bank assurance into India. The company hopes to

extensively utilize the SBI Group as a platform for cross-selling insurance

products along with its numerous banking product packages such as housing

loans, personal loans and credit cards. SBI‟s access to over 100 million

accounts provides a vibrant base to build insurance selling across every region

and economic strata in the country.

Group Corporate

SBI Life extensively leverages the SBI Group as a platform for cross-selling

insurance products along with its numerous banking product packages such as

housing loans and personal loans. SBI‟s access to over 100 million accounts

across the country provides a vibrant base for insurance penetration across every

region and economic strata in the country ensuring true

Financial inclusion .

MANAGEMENT STYLE

FINANCE & ACCOUNTS

INVESTMENT

ACTUAR Y

IT MARKETING OPERATIONS

NEW BUSINESS

UDNERWRITING

CLAIMS

POLICY SERVING

ISSUE & PROBLEM SOLVING

Financial Performance

SBI LIFE POSTS NET PROFIT OF Rs. 301 Crores

Sustains its all-round performance and expansion, YTD DEC FY 10 - 11:

√ Increase in net profit by

52%

√ Branch network increases to 628

branches

√ Employee strength surges to 7334

employees

√ Moves to a new, larger and integrated corporate

office building

Mumbai, January 18, 2011: Sustaining its holistic business performance,

SBI Life Insurance, the leading new generation life insurer, has posted

impressive results during the first nine months of the FY 10 - 11. Growing by

52%, the company has set a new milestone, by crossing the landmark figure of

Rs 300 Crores in net profit during the period. Reflecting its superior efficiency

in it business operations, the company maintains the lowest “expense to GWP

(Gross Written Premium)” ratio in industry of 7.43%. SBI Life‟s Gross

Written Premium collection grew by 28% to Rs. 7,770 Crores The Asset Under

Management jumped by 50 % to Rs 36, 861 Crores from Rs. 24, 613

Crores as on 31st December, 2009. The company has uniquely expanded by

adding 134 new branches and increasing number of employees by 1349,

during the period, despite tough external conditions. The corporate office has

moved to a newly- acquired building in fast evolving commercial hub of

Mumbai. The new corporate building was inaugurated by Shri R Sridharan, MD

and GE (A & S), State Bank of India. Commenting on the performance, Mr. M

N Rao, MD & CEO, SBI Life Insurance said “Through continued emphasis on

strengthening business fundamentals, namely customer centricity and

operational excellence, we are confident that we will sustain our profitable

growth performance. We remain committed to catering to the life insurance

needs of Indian population encompassing all socio-economic and geographical

segments.”

Highlights of YTD Dec FY 10 - 11

Gross Written Premium Rs 7,770 Cr 28% ↑

Premium New Business Rs 4,699 Cr 6% ↑

Asset Under Management ( Y-

o-Y)

Rs 36, 861 Cr 50% ↑

All key distribution channels namely, Bancassurance, Agency and Corporate

Solutions have demonstrated profitable business growth during the period. The

Agency Channel provided a significant thrust to the overall business by

contributing 44% of total premium as a result of superior productivity levels of

Insurance Advisors. Bancassurance witnessed a remarkable growth of 43% and

contributed to over 36% cent of the total premium and Group Corporate

contributed to 18% of total premium. In the recent months, the company

introduced a series of “Simple and Smart” products that encompass new IRDA

guidelines compliant ULIPs, Pure Protection and Traditional products. The

rapidly launched six new ULIPs cater to the investment needs of the varied

customer segments. These include HNI-targeted Smart Elite, NAV-Guaranteed

Smart Performer, No Medicals ULIP – Saral Maha Anand, Flexible ULIP – Unit

Plus Super, Child Plan – Smart Scholar and ULIP with Automatic Asset

Allocation – Smart Horizon. Innovatively-featured, non-ULIPs rolled out are No-

Medicals, pure protection plan – Saral Shield, HNI targeted, pure protection plan

– Smart Shield and No Medicals, traditional savings plan – Saral. One of the

highlights towards achieving customer service excellence has been the national

launch of customer care initiative „SMS SOLVE”. A first-of- its kind in the life

insurance industry, the service allows customers to have their grievances resolved

in a simpler, paperless and faster manner. An innovative SMS-based service,

SMS SOLVE provides customers the ease of accessing SBI Life 24 X 7.

Customers are able to register their grievances about SBI Life‟s service by merely

sending SMS „SOLVE‟ to 56161. Testifying its multi-dimensional excellence,

the company has bagged numerous recognitions and awards recently. Being

adjudged the best, SBI Life‟s annual report has won Gold Shield from Institute of

Charted Accountants of India (ICAI) for excellence in Financial Reporting. Also,

International Certification Services (ICS) has awarded SBI Life "ICS Quality

Champion Award - 2010" for continual improvement in the Quality Process.

NDTV Profit Business Leadership award and Best Life Insurer 2010, Runner Up,

award by Outlook Money are the other key media recognitions that have been

conferred to SBI Life. Retaining the ISO 9001:2000 Certification for

superior claim process, globally topping the prestigious international

MDRT Table and reaffirmation of CRISIL “AAA/Stable” rating are other key

distinctions achieved by the company during initial current financial year. As per

the latest IRDA report, as of November 2010, the company has a market share of

18.27% among private life insurers and a total market share of 5.10 %.

Management Philosophy

Vision :

"To be the most trusted and preferred life insurance

provider " Mission

"To emerge as the leading company offering a comprehensive range of life

insurance and pension products at competitive prices, ensuring high standards

of customer satisfaction and world class operating efficiency, and become a

model life insurance company in India in the post liberalization period".

Values

Trustworthiness Ambition Innovation Dynamism Excellence

Distribution channel of SBI

Insurance Agents:

Insurance agents are those individual persons who work for one particular

insurance company. An insurance agent cannot work for more than one particular

at one point of time.

Corporate Group: Targeting Corporate for Gratuity and Group Pension products.

Agency Channel:

Agency channel have the most productive and active force of more than 25,000

Advisor. Our approach is to provide door-to-door need-based insurance solution

to customers after taking into account protection and wealth creation needs.

Agency channel has grown more than 300% over the last year and contributed

more than 45% to the company‟s new business premium collection.

PROCESS OF INSURANCE OPERATION A Without prejudice to the other express terms and conditions of this

Agreement and all and any implied rights of SBI Life Life Insurance after the

termination of this Agreement, the Advisor shall not: Use for his own benefit or

the benefit of any other person; or Disclose to any person;

Through any failure to exercise all due care and diligence, cause or permit

any unauthorized disclosure of any trade secrets or confidential information of

or relating to SBI Life Life Insurance which he may have received, used or

obtained during the term of this Agreement. Any such trade secrets and

confidential information shall at all times remain the property of SBI Life Life

Insurance.

a. For the purposes of this clause, trade secrets and/or confidential information

shall include, but not be limited to, lists of and information concerning

customers, Policyholders, employees, Advisors and agency managers of SBI

Life life Insurance, information relating to the working of any product, process,

invention, improvement or development carried on or used by SBI Life Life

Insurance, information relating to research projects, know-how, prices, rates,

discounts, mark-ups, business strategies, marketing, tenders and any price

sensitive information concerning SBI Life Life Insurance. For the avoidance

of doubt, the obligation of confidentiality in this clause extends to trade secrets

and confidential information howsoever stored, whether in hard copy documents,

records or computer programs.

b. Access to SBI Life Life Insurance computer resources, electronic data and the

like may be given to and shall be utilized by the Advisor only for the purpose of

carrying out the duties embodied in the Agreement.

c. The forgoing provisions on confidentiality and non-disclosure also apply to

employees of both the parties to this Agreement and the sad parties assume

liability for the breach or violation in any manner by their employees.

SALES & MARKETING

Key Milestones

Financial Year 11-12:

Awarded the most coveted NDTV Profit Business Leadership Award, twice in a

row, 2010 & 2011.Awarded „Most Trusted Life Insurance Brand - II By The

Economic Times, Brand Equity and Nielsen, Most Trusted Brands 2011.

Globally topped the prestigious Million Dollar Round Table (MDRT) for having

the aximum number of MDRT members, for three years consecutively.

CRISIL reaffirmed its AAA / Stable rating to SBI Life, indicating highest

financial strength to meet policyholder obligations.

ICRA reaffirmed its iAAA rating indicating highest claims paying ability

and a fundamentally strong position.

Won one of the most prestigious quality distinction, IMC Ramkrishna Bajaj

National Quality Awards 2011- "Certificate of Merit"

Awarded Silver Shield by ICAI for Excellence in Financial Reporting for FY 2010

– 11 under the Insurance category

Won „Best Presented Accounts Award„by The South Asian Federation of

Accountants

(SAFA), in the Insurance Category for the Annual Report FY 2009-10.

Financial Year 10-11:

SBI Life won the coveted Bloomberg UTV Financial Leadership Award 2011 -

"Life Insurer of the year". Won the most coveted NDTV Profit Business

Leadership Award 2010.

Globally topped the prestigious Million Dollar Round Table (MDRT) 2010 for

having the maximum number of MDRT members. Awarded the Gold Shield by

Institute of Chartered Accountants of India (ICAI) for Excellence in Financial

Reporting. Won the „ICS Quality Champion Award 2010‟ for Continual Quality

Improvement. Adjudged Best Life Insurer 2010

- Runner Up by Outlook Money

Launched an innovative customer care initiative - SMS „SOLVE‟ for prompt

Grievance Redressal. Appraised at Maturity level 3 of Capability Maturity

Model Integration (CMMI) Version 1.2 for its ISG Division.

ICRA reaffirmed ‟iAAA‟ rating to SBI Life, indicating highest claims paying

ability and meeting policyholders obligations.

CRISIL, country‟s leading rating agency, reaffirmed its highest financial rating

AAA/Stable to SBI Life.

Financial Year 08-09

Ranked among global top three in terms of number of Million Dollar Round

Table (MDRT) members.

Bagged the coveted personal finance award-Outlook Money NDTV Profit "Best

Life Insurer 2008".

CRISIL, country‟s leading rating agency, reaffirmed its highest financial

rating AAA/Stable to SBI Life. In 2007, SBI Life became the first life insurer in

India to receive this rating from CRISIL. ICRA assigned iAAA rating

indicating highest claims paying ability to SBI Life Insurance.

SWOT ANALYSIS

SBI LIFE INSURANCE CO. LTD AT A GLANCE

Joint venture between State bank of India and BNP Paribas Assurance.

SBI is the largest bank in India and BNP Paribas Assurance is France·s

largest Insurance company.

Investments: SBI-76% and BNP Paribas 24%. The Company started its operations

in 29 January

STATE BANK OF INDIA

Largest and oldest banking franchise of India dating back to 1806 AD.

6 Associate Banks, 16000 Branches all over the country.

BNP PARIBAS ASSURANCE :

4thLargest Insurance Company in France.

The Insurance arm of BNP Paribas Bank, the largest bank of

France.Operations in 41 countries around the world.

One of the oldest foreign banks with a presence in India dating back to1860

AD.

A worldwide leader in Creditor insurance products offering protection

toover 50 million clients.

STRENGTHS

No.1 Private Life Insurance company in India (as on 2009-10).

Leverages the State Bank Group Relationship as a platform for cross-

selling insurance products.

As it sells its products through banc-assurance division of SBI,therefore

less need on spending money for establishing separate branch offices.

Market share of 18.34% among private life insurers and a total market

share of 6.44%.

SBI·s access to over 100 million accounts across the country provides

for a vibrant base for insurance penetration in the country.

Growth at a rate of 40%.

IRDA has never banned any of SBI Life·s product.

Only private life insurance company to have posted profits (Rs 276

crores for they earended March 31st, 2010) and declared bonus.

Solvency ratio of 2.2 and share capital of Rs.1000 Crore, SBI Life is

one of the most capita lefficient life insurance companies in the industry.

Continues to maintain the lowest´expense to GWP (Gross Written

Premium)µ ratio in industry of 6.5%

Globally topping the prestigious international MDR Table (Million

DollarRound

Table ²30 Lacs collec tions by an agent in a year).

One of the market leaders in Unit Linked Plans by offering products

asSmart ULIP, UNIT +, UNIT +2, UNIT +3 etc.

Profitable business growth demonstrated by all key distribution channels.

Certifications of ISO 9001:2000, ISO 2700:2005 (Information security)

AAA rating by

ICRA, CRISIL etc.

WEAKNESSES

Less sales force than others (LIC·s 3 field advisor: SBI·s 1field advisor)

Low productivity of banc-assurance people.

People at top management/decision making level are from SBI. So,typical

PSU attitude in many aspects.

Hassle free online purchase of insurance policy is not available

Is less aggressive in generating business compared to other private

life insurance players.

Over dependence on the banc-assurance channels.

Less branch office compared to others. OPPORTUNITIES

As only 12% of the 40 crores insurable population is insured, thus, a

huge opportunity to reach out to more people.

It has an edge over LIC as far as service is concerned. So, it can grab more

market share from LIC by giving it a tough competition.

Not so much requirement on establishment of Brand (already have a good brand image of SBI). A huge revolutionary change (PARIBARTAN) in SBI is going to happen,

so there is an immense opportunity for SBI Life in future.

Huge market potentiality in Rural markets which has been untapped till

now.

Higher market penetration by being more aggressive in banc-

assurance channel of distribution.

Huge opportunity to grab customers by being more active through other

distribution channels as mall-assurance, brokers etc..

Lower premium ULIP policy (<10000) can attract lower income segment

market.

THREATS

Huge competition from other pre-existing 22 players in the Life

Insurance sector in

India.

ICICI Prudential, the market giantal ready pipped SBI Life to

regaint opposition, garnering new business worth Rs.303 crores (source

Economic Times,26th May·10)

New entrants in the pipe line of the life insurance business.

New tie-ups of competitors with innovative distribution channels.The

New Insurance guidelines from September·10 onwards is really a big

challenge or SBI Life·s bus

MARKETING STATEGIES & ACTIVITY

Marketing strategy consists of the analysis, strategy development, and

implementation activities in: “Developing a vision about the market(s) of interest

to the organization, selecting market target strategies, setting objectives, and

developing, implementing, and managing the marketing program positioning

strategies designed to meet the value requirements of the customers in each

market target”. Strategic marketing is a market-driven process of strategy

development, taking into account a constantly changing business environment

and the need to deliver superior customer value. The focus of strategic

marketing is on organizational performance rather than a primary concern

about increasing sales. Marketing strategy seeks to deliver superior customer

value by combining the customer-influencing strategies of the business into

a coordinated set of market-driven actions. Strategic marketing links the

organization with the environment and views marketing as a responsibility

of the entire business rather than a specialized function. Because of

marketing‟s boundary orientation between the organization and its customers,

channel members, and competition, marketing processes are central to the

business strategy planning process. Strategic marketing provides the expertise for

environmental monitoring, for deciding what customer groups to serve, for

guiding product specifications, and for choosing which competitors to

position against. Successfully integrating cross-functional strategies is critical

to providing superior customer value. Customer value requirements must be

transformed into product design and production guidelines. Success in

achieving high-quality goods and services require finding out which attributes

of goods and service quality drive customer value.

Marketing Strategy Process

The marketing strategy analysis, planning, implementation and management

process is described below. The strategic situation analysis considers market

and competitor analysis, market segmentation, and continuous learning about

markets. Designing marketing strategy examines customer targeting and

positioning strategies, marketing relationship strategies and planning for new

products. Marketing program development consists of product, distribution,

price, and promotion strategies designed and implemented to meet the value

requirements of targeted buyers. Strategy implementation and management

consider organizational design and marketing strategy implementation and

control.

Stage 1: Strategic Situation Analysis Marketing management uses the information provided by the situation analysis

to guide the design of a new strategy or change an existing strategy. The situation

analysis is conducted on a regular basis after the strategy is under way to

evaluate strategy performance and identify needed strategy changes.

Market Vision, Structure, and Analysis.

Markets need to be defined so that buyers and competition can be analyzed.

For a market to exist there must be (1) people with particular needs and wants

and one or more products that can satisfy buyers‟ needs, and (2) buyers willing

and able to purchase a product that satisfies their needs and wants. A product-

market consists of a specific product (or line of related products) that can

satisfy a set of needs and wants for the people (or organizations) willing and able

to purchase it. The term product is used to indicate either a physical good or an

intangible service. Analyzing product-markets and forecasting how they will

change in the future are vital to business and marketing planning. Decisions to

enter new product-markets, how to serve existing product-markets, and when

to exist in unattractive product-markets are critical strategic choices. The

objective is to identify and describe the buyers, understand their

preferences for products, estimate the size and rate of growth of the market, and

find out what companies and products are competing in the market. Evaluation

of competitors‟ strategies, strengths, limitations and plans is also a key aspect of

the situation analysis. It is important to identify both existing and potential

competitors. Competitor analysis includes evaluating each key competitor. The

analyses highlight the competition‟s important strengths and weaknesses. A key

issue is trying to figure out what each competitor is likely to do in future.

Segmenting Markets.

Market segmentation looks at the nature and extent of diversity of buyers‟

needs and wants in a market. It offers an opportunity for an organization to

focus in business capabilities on the requirements of one or more groups of

buyers. The objective of segmentation is to examine differences in needs and

wants and to identify the segments (sub- groups) within the product-market of

interest. Each segment contains buyers with similar needs and wants for the

product category of interest to management. The segments are described using

the various characteristics of people, the reasons that they buy or use certain

products, and their preferences for certain brands of products. Likewise, segments

of industrial product- markets may be formed according to the type of industry, the

uses for the product, frequency of product purchase, and various other factors.

Each segment may vary quite a bit from the average characteristics of the

entire product-market. The similarities of buyers‟ needs within a segment enable

better targeting of the organization‟s capabilities to buyers with corresponding

value requirements. And Marketing strategy is an ongoing process of

making decisions, implementing them, and tracking their effectiveness over

time. In terms of its time requirements, strategic evaluation is far more

demanding than planning. Evaluation and control are concerned with tracking

performance and, when necessary, altering plans to keep performance on

track. Evaluation also includes looking for new opportunities and potential

threats in the future. It is the concerning link in the strategic marketing planning

process. By serving as both the last stage and the first stage (evaluation

before taking action) in the planning process, strategic evaluation assures that

strategy is an ongoing activity Key insurance marketing strategies will always

include an in-depth review of the a value of follow-up. All successful sales

agents understand that consumers need to be contacted again and again in order

to make a vital connection. Also, great follow-up protocol lets the potential

customer know that good, solid customer service will be part of the over-all

package. Follow-up says to a consumer that they are important, thought of,

and that their business would be greatly appreciated. The consumer today not

only wants a product at a great price, they also want a personal relationship,

especially when it comes to financial system sales, such as various insurances.

Letters and phone calls are gentle reminders that the salesperson intends to serve

with his or her whole heart. And, once a sale is secured, a thank you call is

strongly advised .consumers today value information. We live in the information

age, and the savvy, faithful customer is one that has knowledge about the

products and services offered. The next most valuable insurance marketing tips

include the salesperson being the source of financial information for the

client. Newsletters, email updates, and notifications will keep customers informed

about issues surrounding insurance and other financial programs. There are

creative ways to approach these insurance marketing strategies. Newsletters

could include contests, special interest areas for kids, safety concerns, and

economic updates. There could even be an area for customer spotlights, or

encouraging testimonies of how the customers were helped through the office.

Of course, all new products and services should be showcased in any

informative hard copy or e-mail communication. Community marketing is another

great way to get advertising and name recognition. Successful networkers join

local community agencies, such as the local Chamber of Commerce, and sign up to

help in activities. This is a great way to get name and photographs listed in

newspaper articles and other media avenues. Also, charity work cannot only be

greatly beneficial to the community and those served, but may also open doors to

communicating with other volunteers, who could be potential clients. People

enjoy using services extended by like-minded providers. Creating a sense of

community is extremely important to insurance marketing strategies. There are

other insurance marketing tips and resources available and insurance agents

may find investigating several options to be beneficial. Many marketing

support companies offer email or publication updates, sharing information and

techniques that are proven to bring in success. Agents may want to browse the

Internet and find a few different insurance marketing tips programs to choose

from. Not only will these resources help keep salespersons abreast of the latest

strategies, but these support programs can also create a sense of community and

an opportunity for agents to share their own struggles and challenges with others

in the field.

Activity In the insurance industry there is a new way of thinking which determined the

passage from transactional marketing to a holistic marketing concept. In this

paper five key elements of holistic marketing are presented: relationship

marketing, integrated marketing, internal marketing, social responsibility

marketing and international marketing. In order to be successful insurance

companies have to be able to convince their clients of the usefulness of their

products and of the solidity of their businesses. In the current crisis situation,

trust is a vital element for the insurance industry and even if on short term,

liquidity is the target, as it ensures survival, on long and medium term the

objective has to be the consolidation of the trust of consumers in insurance

companies and the goal of the managers must be to win customer loyalty.

Keywords: holistic marketing in insurance, relationship marketing,

integrated marketing, internal marketing, social responsibility marketing,

international marketing, trust, customer loyalty, crisis Today the success of an

insurance company is based on the quality of the long term relationship

established between the company and its “partners”: customers, employees,

broker dealers, banks, hedge funds etc. In the insurance industry this new way

of thinking determined the passage from transactional marketing to a holistic

marketing concept. The traditional transaction marketing focused on meeting

customers‟ needs so that the company could obtain an immediate advantage.

This approach wasn‟t always benefic for the insurance companies and for their

clientsAn integrated marketing is a must in the insurance industry. The

insurance company must have a coherent marketing mix in order to satisfy

efficiently the needs of their clients. The marketing department of the insurance

company must coordinate and integrate all the activities included in the

marketing mix in order to maximize their joint effects: the insurance products

and services offered must be conceived as a solution for the needs of the client

and the setting of the premiums, distribution channels and company

communications must be done in an integrate perspective. The role of internal

marketing is to ensure that everyone in the insurance company embraces

appropriate marketing principles. The internal marketing is the task of hiring,

training and motivating the employees who want to serve customers well.

Social responsibility marketing is a key element in the marketing activity of an

insurance company due to the specific of the product. The role of the

insurance is to protect the insured against different risks, but also to create

benefic effects for the entire society. The marketing activity in insurance has

important causes and effects in the social, ethical and legal environment. The

social responsibility marketing activities demonstrate a corporate culture that is

designed to treat consumers fairly

Following are other objectives of

recruitment process- 1. Support the organization ability to acquire, retain and develop the best

talent and skills. 2. Increase the effectiveness of various recruiting

techniques. 3. This study provides the student a practical insight of various activities and

functions of the company.

4. The will also be able to develop in depth knowledge of Human Research

sector. The study is also required for the partial fulfillment of the requirement

for the degree of M.B.A. as per the curriculum

5. The study would help SBI to know the Employee`s attitude towards

the company. 6. To know the latest trend of the

company. MEANING &

DEFINITION

“The life insurance contract embodies an agreement in which broadly stated,

the insurer undertakes to pay a stipulated sum upon the death of the insurer to a

designated beneficiary.”

--- J.H.MAGEE “Life insurance contract may be defined whereby the insurer, in consideration of

premium paid either installment, undertakes to pay an annuity on the death of the

insured of a certain number of years.” --- R.S.SHARMA

Insurance advisor

A life adviser is a broker or intermediary authorized to sell or advise on the

policies of life insurance and financial products, such as unit trusts. Typical

examples of companies which employ financial advisers are banks, insurance

and life companies, general brokers, estate agents and building societies The

presence of a life insurance policy is essential in every individual's financial

portfolio. But at the same time, it is also important that the right insurance

products be bought and that too for the right reasons. With so many insurance

products vying for a place in the individual's portfolio, conducting a proper

evaluation can become quite a task. Taking the help of an insurance

advisor/agent can help solve this problem. An insurance advisor/agent can

play the part of the direct link between the insurance company and the

insurance seeker i.e. you. He is the one who can help you select the right policy

i.e. one which can help you fulfill your insurance needs. But for this, it is

important that you connect with an expert and qualified insurance advisor/agent.

The task is to choose the good quality advisor those who are having the

following quality. •Confidence

•Self motivation And Persuasion

•Urge to be financiallyindependent

•Relationship skills

I have to recognize where a person (whom I meet to recruit him/her as an

advisor) havingall these characteristics or not .If some person is closed enough

to these characteristicsthen. I discussed the following support pattern.After getting

all these information an advisor basically asked about the workingenvironment.

Then I discussed the working environment and try to convince him/her that

he/she has the potential to become an agent/advisor.

1. To be part of a world class sales team.

2. Work from his/her (advisor) own office or residence.

3. Work full time or part

time. 4. Earn commission, bonus and

incentives. 5.No upper limits On

earnins. 6. Flexible career. Therefore the first and for most problem is to convinced that

person those who having enough patience to listen my companies idea/views.

The role of the advisor is to quite effective to search a good prospect.

ROLE OF AN ADVISOR:

1. Identify future clients/prospect

2. Making appointment.

2. Conduct financial review meeting with prospect.

4. Close sale.

5. Get referral

6. Provide service to clients/prospect.

7. Follow internal sales and reporting system.After analyzing the quality (which the

company is looking for), back office service(which the company is giving to that

person). Functions to be performed, role to be played .I used to describe the

benefits which the advisor can get out of his/her joiningas an advisor in SBI Life

Insurance Company.

ROLE OF UNIT MANAGERS

In fulfilling his obligations under the Agreement, Advisor shall scrupulously

adhere to, follow and be bound by the Statutory provisions governing life

insurance Advisors and more particularly the code of conduct contained

therein, as in force from time to time. Without prejudice to the generalify of

the obligations of the Advisor to SBI Life Life Insurance, the Advisor shall:

a. Faithfully and diligently promote the business of SBI Life Life Insurace;

b. Ensure that any representation made and information provided is accurate;

c. Act diligently and carefully in providing any advice and ensure that

such advice is based on thorough analysis and take into account available

alternatives;

d. Ensure that any advice is reasonable in view of the customer‟s

circumstances;

e. Not admit any liability or make any false, misleading, deceptive or reckless

statement to the customer in respect of life insurance generally or any

particular product of SBI Life Life Insurance;

f. Solicit proposals for insurance for SBI Life Life Insurance as SBI Life

Life Insurance may from time to time determine during the term of this

Agreement;

g. Service the needs and requirements of customer introduced by self or

assigned by SBI Life life Insurance;

h. Meet the validation specified by SBI Life Life insurance including

production and persistency;

On successful completion of training the candidates get COT

i.e. the Completion of

Training Certificate by SBI Life INSURANCE?

Basic aim of the insurance plan satisfies the following objectives:- Protection of

economic value of assets.

Mechanism to reduce impact of adverse events on value generating assets.

Types of insurance

Insurance is generally classified into three main categories:

1. Life Insurance.

2. Health Insurance.

3. General Insurance. To get insurance an individual or an organization can approach to Insurance

Company directly, through Insurance agent of the concerned company or through

intermediaries.

Life insurance or life assurance is a contract between the policy owner and the

insurer, where the insurer agrees to pay a sum of money upon the occurrence

of the insured individual's or individuals' death or other event, such as terminal

illness or critical illness. In return, the policy owner agrees to pay a stipulated

amount called a premium at regular intervals or in lump sums. There may be

designs in some countries where bills and death expenses plus catering for after

funeral expenses should be included in Policy Premium.

NEED OF LIFE INSURANCE

. The functions of Insurance can be bifurcated into two parts: 1. Primary Functions

2.Secondary Functions

3. Other Functions

The primary functions of insurance include the following:

Provide Protection - The primary function of insurance is to provide

protection against future risk, accidents and uncertainty. Insurance cannot check

the happening of the risk, but can certainly provide for the losses of risk.

Insurance is actually a protection against economic loss, by sharing the risk with

others.

Collective bearing of risk - Insurance is a device to share the financial loss of few

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

among larger number of people. All the insured contribute the premiums

towards a fund and out of which the persons exposed to a particular risk is paid.

Assessment of risk - Insurance determines the probable volume of risk by

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

the premium rate also.

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

uncertainty to certainty. Insurance is device whereby the uncertain risks may be

made more certain.

The secondary functions of insurance include the

following: Prevention of Losses - Insurance cautions individuals and businessmen to adopt

suitable device to prevent unfortunate consequences of risk by observing safety

instructions; installation of automatic sparkler or alarm systems, etc. Prevention

of losses causes lesser payment to the assured by the insurer and this will

encourage for more savings by way of premium. Reduced rate of premiums

stimulate for more business and better protection to the insured .

The other functions of insurance include the

following: Means of savings and investment - Insurance serves as savings and

investment, insurance is a compulsory way of savings and it restricts the

unnecessary expenses by the insured's For the purpose of availing income-tax

exemptions also, people invest in insurance.

Source of earning foreign exchange - Insurance is an international business.

The country can earn foreign exchange by way of issue of marine insurance

policies and various other ways.

Risk Free trade - Insurance promotes exports insurance, which makes the

foreign trade risk free with the help of different types of policies under marine

insurance cover.

Conclusion

Summer training is a best example for a trainee to learn about the company

working, corporate culture under which is operating the functions. SBI

life insurance company under which I gained a significant knowledge with

respect to life insurance, its importance and applicability as well as

undertook the task to recruit capable life insurance advisors which is

conducive for the company to grow with more prosperity. What I taught in

the management institute utilized them fruitfully leading to the best

advantage to the company and to the best experience for mine. In all

Public Service jurisdictions, new approaches to recruitment are being used.In

many territories, the strategies are manual but, as automated methods

become more pervasive; those mechanisms that support its use will

assume greater popularity. Whatever the strategies selected for use, the

objective is to recruit the most qualified, committed individuals into the

organizations and ensure that the provision of government services to the

public is timely and effective, that the goods are of consistent high quality

and that the organizations achieve the objectives for which they have been

established. Life insurance is a noble service which is very important for

every citizen to learn and realize its importance because this is the only

source which can remain the status where one is with the family bread

earner and ever when he is not.With the growing financial sector I would

like to opt this industry for my future career

advancement and as an opportunity to service this industry.

BIBLOGRAPHY

www.irdaindia.org

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ct.com

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business.mapsofindi

a.com

finance.indiamart.co

m www.scribd.com

www.nseindia.com

www.bseindia.com

http://en.wikipedia.org/wiki/consumer_psyche