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Transcript of A Summer Training ing vysa
A SUMMER TRAINING PROJECT REPORT
On
“A comparative study of the distribution channels of other Life Insurance companies and ING Life Insurance Co. Ltd.
in the competitive market”
Submitted In Partial Fulfillment Of the
Requirements for the Award of the Degree Of
Bachelor of Business Administration (BBA)
To
Guru Gobind Singh Indraprastha University, Delhi
Submitted To: Submitted by Ms. Suman Shokeen Jayant Rana
09314201711
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL
VASANT KUNJ
Batch 2011 - 2014
CERTIFICATE
This is to certify that the Project Report (BBA -311) titled “A comparative study of the distribution channels of other life insurance companies and ING Life in the competitive market” done by Jayant Rana, Roll No.09314201711, is completed under my guidance.
Ms Suman Shokeen
(Project Guide)
Date:
ACKNOWLEDGEMENT
I owe my deepest gratitude to all the people associated with this project and helped me in
successfully completing this work.
I wish to extend my sincere thanks to Mr. Ashish Awasthi – Cluster Manager at ING Life
Insurance for giving me an opportunity to work for the organization. He has constantly
encouraged and inspired me to deliver nothing less than the best.
I would also like to express my gratitude to all the staff members at ING Life Insurance for their
support and co-operation during the period.
Lastly I would like to thank all the members of the ING Life for helping and supporting me
throughout this project.
(JAYANT RANA)
CONTENTS
S.NO. PARTICULARS Page No.
3 Chapter1- Introduction
4 Chapter2- Research Methodology
5 CHAPTER3- Company Profile
6 CHAPTER4 Findings
7 CHAPTER5- Conclusion
8 Bibliography/References
EXECUTIVE SUMMARY
Life is full of surprises, some pleasant and some not so pleasant. Our families and we have to
live with these uncertainties. Preparing for uncertainties of life is what insurance is all about.
Why waste precious moments contemplating tomorrow, when we have to live today? Insurance
is a tool, a solution for delegating the worries concerning tomorrow onto a trustworthy institution
so that you start living today.
In other words, Insurance is a legal contract that protects us from the financial costs that results
from loss of life, loss of health, lawsuits or property damage. Insurance provides a means for
individuals and societies to cope with some of the risks faced in everyday life. People purchase
contracts of insurance, called policies, from a variety of insurance organizations.
Almost everyone living in modern, industrialized countries buys insurance, for instance, laws in
most states require people who own a car to buy insurance before driving it on public roads.
The primary purpose of life insurance is therefore protection of the family in the event of death.
Today, insurance is also seen as a tool to plan effectively for the future years, retirement and for
children’s needs. Today, the market offers insurance plan that not just cover the life but at the
same time grow wealth too. When we insure our life, in effect what we are doing is insuring our
earning capacity. This guarantees that our dependants will be able to continue living without
financial hardships even in case of our demise.
ING LIFE INSURANCE CO. distributes its products through two channels i.e. Tied agency and
Alternate channels. The Tied agency comprises over 30,000 ING Life Advisors spread across the
country. The Alternate channel is a fast growing distribution channel and includes banc
assurance partner (ING VYSYA BANK), Cooperative Banks, Corporate Agents and Brokers.
In this summer intern project, I studied the distribution channels of ING Life and its competitors-
HDFC Life, ICICI Prudential, SBI Life, Birla Sun Life, Max Life, Aviva, etc. in the competitive
market, which helped me in knowing their channel partner distribution and their facts and figures
and AUM (Asst Under Management). Hence, my topic of study is “Study on Distribution
Channels of Life Insurance Companies on the competitive market”.
CHAPTER – 1INTRODUCTION
INSURANCE HISTORICAL BACKGROUND
In 1818, a British company called Oriental Life Insurance setup the first insurance firm in India
followed by the Bombay Assurance Company in 1823 and the Madras Equitable Life Insurance
Society in 1829. Though all this companies were operating in India but insuring the life of
European living in India only. Later some of the companies started providing insurance to
Indians with approximately 20% higher premium than Europeans as Indians were treated as
“substandard”. Substandard in insurance parlance refers to lives with physical disability.
Bombay Mutual Life Assurance Society was the first company established in 1871 which started
selling policies to Indians with “fair value”.
Insurance business was subjected to Indian company act1866, without any specific regulation. In
1905, the slogan “Be Indian-Buy Indian” declared by Swadeshi Movement gave birth to dozens
of indigenous life insurance and provident fund companies. In 1937, the Government of India
setup a consultative committee and finally first comprehensive “insurance act “was passed in
1938.
The insurance Amendment Act of 1950 abolished principal agencies. However, there were a
large number of insurance companies and the level of competition was high. There were also
allegations of unfair trade practices. The Government of India, therefore, decided to nationalize
insurance business.
An Ordinance was issued on 19th January, 1965 nationalizing the life insurance sector and Life
Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indians, 16
non-Indian insurers as also 75 provident societies- 245 Indian and foreign insurers in all. The
LIC had monopoly till the late 90s when the insurance sector was reopened to the private sector.
In 1968, the insurance act was amended to regulate investments and set minimum solvency
margins. The Tariff Advisory Committee was also setup then.
The process of re-opening of the sector had begun in the early 1990s and the last decade and
more has seen it been opened up substantially. In 1993, the Government setup a committee under
the chairmanship of RN MALHOTRA, former Governor of RBI, to propose recommendations
for reforms in the insurance sector. The objective was to complement the reforms initiated in the
financial sector. The committee submitted its reports in 1994 wherein, among other things. It
recommended that the private sector be permitted to enter the insurance industry. They stated
that foreign companies be allowed to enter by floating companies, preferably a joint venture with
Indian partners.
Following the recommendations of the RN MALHOTRA Committee report. In 1999, the
Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous
body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory
body in April, 2000. The key objectives of IRDA include promotion of competition so as to
enhance customer satisfaction through consumer choice and lower premiums, while ensuring the
financial security of the insurance market.
The IRDA opened up the market in August, 2000 with the invitation for applications for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the
power to frame regulations under section 114A of the Insurance Act, 1938 and has from 2000
onwards framed various regulations ranging from registration of companies for carrying on
insurance business to policyholder’s interests.
Today there are 24 general insurance companies including the ECGC and Agricultural Insurance
Corporation of India and 23 life insurance companies operating in the country.
The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with
banking services, insurance services add about 7% to the country’s GDP. A well developed and
evolved insurance sector is a boon for economic development as it provides long term funds for
infrastructure development at the same time strengthening the risk taking ability of the country.
Indian Insurance Market ($ bn):2010-2011
In oct.2000, IRDA (Insurance Regulatory and Development Authority) issued license paper to three companies, one public sector are successfully operating in India. The growth of the sector can easily be judged through figure-1. According to a study by McKinsey total life insurance market premiums in India is likely to more than double from the current US$ 40 billion to US$ 80-US$100 billion by 2012.
CHANGING COMPETITIVE ENVIRONMENT:
With the opening of insurance sector in India, the share of private insurer was very less. As
shown in table-1, total share of private insurer was just 2% in 2001-02. It was because of any
reason which includes credibility on private players:-
TABLE-1:
Insurance Sector 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008Public(LIC) 98 94 87 78 73.66 65.28 59.25Private 2 6 13 22 26.34 34.72 40.35
MARKET SHARE OF PUBLIC AND PRIVATE INSURANCE COMPANIES
Figure 2
Years
Market Shares
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
0 20 40 60 80 100 120
PrivatePublic(LIC)
Source: Compiled from Insurance annual reports
But soon because of innovative & customized products, novel distribution channels, aggressive
marketing etc.private players gave a tough competition to public sector company (LIC).
Gradually, the market share of private insurer went up and till financial year 2007-08, total share
of private insurer reached as high as 40.35%. The market share of LIC decreases after the entry
of private insurer but it doesn’t mean that the growth of LIC got down. LIC continue its growth
even after a cut throat completion from the private players.
Distribution channels in insurance
An insurance cover is an intangible product evidenced by a written contract known as
the‘policy’. Insurers market various insurance covers either directly or through various
distribution channels—individual agents, corporate agents (including Banc assurance) and
Brokers. The marketer in the distribution network is in direct interface with the prospect and the
customer.
Life insurance products are sold through individual agents and many of them have this as their
only career occupation. General insurance products are sold through individual agents, corporate
agents and brokers.
Distribution channels such as agents are licensed by the IRDA. To get an agency licence, one has
to have certain minimum qualifications; practical training in insurance subjects and pass an
examination conducted by the Insurance Institute of India.
IRDA regulations on licensing of agents/brokers lay down the code of conduct for individual
agents, corporate agents and brokers. A separate note on the code of conduct is appended to this
note.
Thus it is seen that the dos and don’ts for these intermediaries are given clearly at the point of
sale as well as in the event of a claim. Service does not end with the customer receiving his
document; it in fact only begins here. After sales service is as important or even more important–
like when a refund has to be made or when a claim has to be made.
One of the issues that are of great concern affecting professionalism in insurance activities is
resorting rebating by intermediaries. Rebating is prohibited as per Section 41 of the Insurance
Act, 1938 and the public are advised not to deal with intermediaries offering rebate of any kind.
Rebating means a share of commission receivable by the agent/broker is given to the
prospect/client. This is done to attract the client in the purchase of insurance contract by offering
cash. Competition among agents/brokers is so cut-throat, some agents indulge in such unethical
practices. Public are advised not to ask for any prohibited rebates in premium since commission
payment to an agent is the only income for some to take care of their families. Similarly, agents
are also advised not to indulge in such practices which could cause them loss of agency income.
Code of Conduct for Intermediaries
I. INSURANCE AGENT
Every insurance agent shall, ---
Identify himself and the insurance company of whom he is an insurance agent;
Disclose his licence to the prospect on demand;
Disseminate the requisite information in respect of insurance products offered for sale
by his insurer and take into account the needs of the prospect while recommending a
specific insurance plan;
Disclose the scales of commission in respect of the insurance product offered for sale, if
asked by the prospect;
Indicate the premium to be charged by the insurer for the insurance product offered for
sale;
Explain to the prospect the nature of information required in the proposal form by the
insurer, and also the importance of disclosure of material information in the purchase of
an insurance contract;
bring to the notice of the insurer any adverse habits or income inconsistency of the prospect, in
the form of a report (called “Insurance Agent’s Confidential Report”) along with every proposal
submitted to the insurer, and any material fact that may adversely affect the underwriting
decision of the insurer as regards acceptance of the proposal, by making all reasonable enquiries
about the prospect;
Inform promptly the prospect about the acceptance or rejection of the proposal by the
insurer;
Obtain the requisite documents at the time of filing the proposal form with the insurer;
and other documents subsequently asked for by the insurer for completion of the
proposal;
Render necessary assistance to the policyholders or claimants or beneficiaries in
complying with the requirements for settlement of claims by the insurer;
Advise every individual policyholder to effect nomination or assignment or change of
address or exercise of options, as the case may be, and offer necessary assistance in this
behalf, wherever necessary;
No insurance agent shall, ----
Solicit or procure insurance business without holding a valid licence;
Induce the prospect to omit any material information in the proposal form;
Induce the prospect to submit wrong information in the proposal form or documents
submitted to the insurer for acceptance of the proposal;
Behave in a discourteous manner with the prospect;
Interfere with any proposal introduced by any other insurance agent;
Offer different rates, advantages, terms and conditions other than those offered by his
insurer;
Demand or receive a share of proceeds from the beneficiary under an insurance contract;
Force a policyholder to terminate the existing policy and to effect a new proposal from
him within three years from the date of such termination;
Apply for fresh licence to act as an insurance agent, if his licence was earlier cancelled by
the designated person, and a period of five years has not elapsed from the date of such
cancellation;
Become or remain a director of any insurance company;
Every insurance agent shall, with a view to conserve the insurance business already
procured through him, make every attempt to ensure remittance of the premiums by the
policyholders within the stipulated time, by giving notice to the policyholder orally and
in writing;
II. CORPORATE AGENT
Every Licensed Corporate Agent shall abide by the code of conduct specified below:Every
corporate agent shall:
a) Be responsible for all acts of omission and commission of its corporate insurance executive
and every specified person;
b) Ensure that the corporate insurance executive and all specified persons are properly trained,
skilled and knowledgeable in the insurance products they market;
c) Ensure that the corporate insurance executive and the specified person do not make to the
prospect any misrepresentation on policy benefits and returns available under the policy;
d) Ensure that no prospect is forced to buy an insurance product;
e) Give adequate pre-sales and post-sales advice to the insured in respect of the insurance
product;
f) Extend all possible help and cooperation to an insured in completion of all formalities and
documentation in the event of a claim;
g) Give due publicity to the fact that the corporate agent does not underwrite the risk or act as
an insurer;
h) Enter into service level agreements with the insurer in which the duties and responsibilities of
both are defined.
Every corporate agent or a corporate insurance executive or a specified person shall also follow
the code of conduct specified below:
(i) Every corporate agent/ corporate insurance executive/ specified person shall, ---
(a) Identify himself and the insurance company of whom he is a representative;
(b) Disclose his licence/ certificate to the prospect on demand;
(c) Disseminate the requisite information in respect of insurance products offered for sale by his
insurer and take into account the needs of the prospect while recommending a specific insurance
plan;
(d) Disclose the scales of commission in respect of the insurance product offered for sale, if
asked by the prospect;
(e) Indicate the premium to be charged by the insurer for the insurance product offered for sale;
(f) Explain to the prospect the nature of information required in the proposal form by the
insurer, and also the importance of disclosure of material information in the purchase of an
insurance contract;
(g) bring to the notice of the insurer any adverse habits or income inconsistency of the prospect,
in the form of a report (called “Insurance Agent’s Confidential Report”) along with every
proposal submitted to the insurer, and any material fact that may adversely affect the
underwriting decision of the insurer as regards acceptance of the proposal, by making all
reasonable enquiries about the prospect;
(h) Inform promptly the prospect about the acceptance or rejection of the proposal by the
insurer;
(i) Obtain the requisite documents at the time of filing the proposal form with the insurer; and
other documents subsequently asked for by the insurer for completion of the proposal;
(j) Render necessary assistance to the policyholders or claimants or beneficiaries in complying
with the requirements for settlement of claims by the insurer;
(k) Advise every individual policyholder to effect nomination or assignment or change of
address or exercise of options, as the case may be, and offer necessary assistance in this behalf,
wherever necessary;
(ii) No corporate agent/ corporate insurance executive/ specified person shall, ----
(a) Solicit or procure insurance business without holding a valid licence/ certificate;
(b) Induce the prospect to omit any material information in the proposal form;
(c) Induce the prospect to submit wrong information in the proposal form or documents
submitted to the insurer for acceptance of the proposal;
(d) Behave in a discourteous manner with the prospect;
(e) Interfere with any proposal introduced by any other specified person or any insurance
intermediary;
(f) Offer different rates, advantages, terms and conditions other than those offered by his
insurer;
(g) Demand or receive a share of proceeds from the beneficiary under an insurance contract;
(h) Force a policyholder to terminate the existing policy and to effect a new proposal from him
within three years from the date of such termination;
(i) No corporate agent shall have a portfolio of insurance business from one person or one
organization or one group of organizations under which the premium is in excess of fifty percent
of total premium procured in any year;
(j) Apply for fresh licence to act as an insurance agent, if his licence was earlier cancelled by the
designated person, and a period of five years has not elapsed from the date of such cancellation;
(k) Become or remain a director of any insurance company;
(iii) Every corporate agent shall, with a view to conserve the insurance business already
procured through him, make every attempt to ensure remittance of the premiums by the
policyholders within the stipulated time, by giving notice to the policyholder orally and in
writing.
(iv) No director of a company or a partner of a firm or the chief executive or a corporate
insurance executive or a specified person shall hold similar position with another corporate agent
of any other insurance company.
III. INSURANCE BROKER
Every Insurance Broker shall follow recognised standards of professional conduct and discharge
his functions in the interest of the policyholders.
Conduct in matters relating to clients’ relationship— every insurance broker shall:
Conduct its dealings with clients with utmost good faith and integrity at all times;
Act with care and diligence;
Ensure that the client understands his relationship with the broker and on whose behalf
the broker is acting;
Treat all information supplied by the prospective clients as completely confidential to
themselves and to the insurer(s) to which the business is being offered;
Take appropriate steps to maintain the security of confidential documents in their possession;
Hold specific authority of client to develop terms;
Understand the type of client it is dealing with and the extent of the client’s awareness of
risk and insurance;
Avoid conflict of interest.
Conduct in matters relating to Sales practices— Every insurance Broker shall: —
(a) Confirm that it is a member of the Insurance Brokers Association of India or such a body of
brokers as approved by the Authority which has a memorandum of understanding with the
Authority;
(b) Confirm that he does not employ agents or canvassers to bring in business;
(c) Identify itself and explain as soon as possible the degree of choice in the products that are on
offer;
(d) Ensure that the client understands the type of service it can offer;
(e) Ensure that the policy proposed is suitable to the needs of the prospective client;
Conduct in matters relating receipt of remuneration— every insurance broker shall:—
(a) Disclose whether in addition to the remuneration prescribed under these regulations, he
proposes to charge the client, and if so in what manner;
(b) Advice the client in writing of the insurance premium and any fees or charges separately and
the purpose of any related services;
(c) If requested by a client, disclose the amount of remuneration or other remuneration it
receives as a result of effecting insurance for that client. This will include any payment received
as a result of securing on behalf of the client any service additional to the arrangement of the
contract of insurance; and
(d) Advise its clients, prior to affecting the insurance, of their intention to make any deductions
from the amount of claim collected for a client, where this is a recognised practice for the type of
insurance concerned.
Conduct in relation to matters relating to training — every insurance broker shall:
(a) That its staff are aware of and adhere to the standards expected of them by this code;
(b) Ensure that staff is competent, suitable and have been given adequate training;
(c) Ensure that there is a system in place to monitor the quality of advice given by its staff;
(d) Ensure that members of staff are aware of legal requirements including the law of agency
affecting their activities; and only handle classes of business in which they are competent;
(e) Draw the attention of the client to Section 41 of the Act, which prohibits rebating and
sharing of commission.
Every insurance broker shall display in every office where it is carrying on business and to which
the public have access a notice to the effect that a copy of the code of conduct is available upon
request and that if a member of the public wishes to make a complaint or requires the assistance
of the Authority in resolving a dispute, he may write to the Authority.
An insurance broker as defined in these regulations shall not act as an insurance agent of any
insurer under section 42 of the Act.
Every insurance broker shall abide by the provisions of the Insurance Act, 1938 (4 of 1938),
Insurance Regulatory and Development Authority Act 1999(41 of 1999), rules and regulations
made there under which may be applicable and relevant to the activities carried on by them as
insurance brokers.
E-sales
E-sales or online sales or we can call it as selling of policy through internet medium .E-sales is
an example of direct method. Online sales advertisement by insurer, employees selling policies
to customers directly. Though, it’s a new concept in the insurance sector, but insurers’ starting
adopting e-sales for its sales growth as e-sales reduces the intermediary costs like commission of
advisors, brokers, etc.
STATISTICS
The graph below shows the relative split of distribution channels in new business premium
collections for individual and group segments, based on public disclosures issued by life insurers
for the first three quarters of FY2012-13.
Source: Company quarterly disclosures
Individual agents accounted for approximately 96 per cent of the individual new business
premium collections of the LIC while direct business contributed 97 per cent of its unweighted
group new business premium collections in the period April to December 2012. During the same
period, with 44 per cent contribution, banc assurance was the leading distribution channel for
private life insurers for individual products, followed closely by individual agents contributing
39 per cent. For unweighted group new business premium, direct business was the largest
contributor in the nine month period ending December 2012.
OTHERS
The IRDA Board has authorised the National Securities Depository Limited (NSDL), Central
Depository Services Limited, Stock Holding Corporation of India, Karvy group and Computer
Age Management (CAMS) Repository Services to act as repositories for insurance policies. The
initiative will allow policyholders to maintain policies electronically and make modifications to
them. The services will be provided to policyholders without any charges as the repositories will
receive compensation directly from the insurance companies.
According to statistics released by Life Insurance Council, the total number of branches of life
insurers and employee headcount decreased by 608 and 10,000 respectively as at September
2012 as compared to September 2011. According to insurers, companies are reviewing existing
networks as the use of technology has decreased the need for physical offices. The number of
agents also reduced by over 200,000 during the same period.
Edelweiss Tokio Life intends to recruit 3,000 personal financial advisers in southern India by
2015 and plans to start operations in eastern India in the current financial year.
Future Generali Life will expand its advisor base by recruiting over 10,000 new advisors from
different sectors of society. This is an initiative to reach out to a wider audience base and
increase its market share.
Future Generali Life has entered into an agreement with Zoom developers, a service center
agency, through which the latter will distribute Generali’s micro-insurance products in Himachal
Pradesh. The company is looking at reaching out to 100,000 households in the region. The
products will be distributed through over 1,000 Common Service Centers delivery outlets in
Kangra, Una and Chamba districts of Himachal Pradesh.
India First Life has recently opened a Financial Planning Centre in Jaipur to intensify its
presence in the Tier-II and Tier-III cities. The set-up would offer services like processing
applications for new business, training of advisors, filing of claims and collecting and managing
customer records.
India First Life announced a corporate agency agreement with a local arm of Calcutta Stock
Exchange (CSE) – CSE Capital Markets Ltd to distribute its products. According to reports, CSE
Capital Markets have about 25 agents certified by the IRDA for selling insurance products. This
initiative is reportedly an effort by the insurer to reduce its dependence on the banc assurance
channel which accounts for 80 per cent of its sales.
Shriram Life is planning to expand its business in north India by adding 50 more branches.
During the expansion the company plans to concentrate on lowering operating expenses and on
targeting Tier-II locations, in order to remain profitable.
CHAPTER-2RESEARCH
METHODOLOGY
Research
Research is a scientific and systematic search for pertinent information on a specific topic. In
fact research is an art of scientific investigation.
Redman and Mory defines research, “As a systematic effort to gain new knowledge”.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solution; collecting, organizing and evaluating data;
making deduction and reaching conclusion and at last carefully testing the conclusion to
determine whether they fit the formulating hypothesis.
Research Methodology
Research methodology is a way to systematically solve the research problems. It may be
understood as a science of studying how research is done scientifically.
Research methodology for this study:
Research design – Descriptive Research
Secondary data collection tool – Websites, News papers
Secondary data:
The secondary data was collected through the internal and external sources. The internal
included companies’ brochures various journals. The external sources consist of peripherals,
books and journals, newspapers, magazines and websites of the advertisement etc.
Purpose of the study
The study will help the organization in knowing how the Life insurance companies’
distribution channels are performing.
Objective of the study
To understand the concept of Distribution channels, working and mechanism.
To know the Performance of Distribution channel partners of ING Life compared to the
other companies.
To evaluate performance of Life insurance companies’ channel partners.
Significance
Risk and Insurance
Global insurance
Penetration of insurance sector at world level as well as in India
Saving habits of Indian people
Liberalization of Indian Insurance Sector
Role of the Insurance Regulatory Authority of India
Performance of private players in insurance sector
A comparative studies on private and public sector of insurance companies
Performance evaluation of non-life insurers (public and private
Evaluation of General Insurance Sector in India
Urban and Rural penetration of Insurance sector in India
Role of Insurance Sector In terms of infrastructure development in India
CHAPTER-3COMPANY
PROFILE OF ING LIFE INSURANCE
ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank
Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of
Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. It
was in the year 1930 that a team of visionaries came together to found a bank that would extend
a helping hand to those who weren't privileged enough to enjoy banking services.It's been a
long journey since then and the Bank has grown in size and stature to encompass every area of
present-day banking activity and has carved a distinct identity of being India's Premier Private
Sector Bank.
In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made
rapid strides to reach the coveted position of being the number one private sector bank. In 1990,
the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then
Finance Minister Prof. MadhuDandavate, had termed the performance of the bank
‘Stupendous’. The 75th anniversary, the Platinum Jubilee of the bank was celebrated during
2005.
History of ING
ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank
Group. During the past years ING has become a multinational with diverse international
activities.
The roots of ING can be traced to the insurers De Nationale Levensverzekering Bank and De
Nederlanden van 1845 and to the public bank services such as De Rijkspostspaarbank and De
Postcheque- and Girodienst, as well as to the Nederlandsche Middenstands Bank. The oldest
legal predecessor is the Kooger Doodenbos from Koog in the province of North Holland,
founded in 1743. During that period many regional funds were created to insure people from
certain communities, professions, widows and orphans against bad fortune. Many of these small
organisations were taken over by larger nationwide operating companies such as De Nationale
Levensverzekering Bank. The fire insurers were the first to undertake international activities,
starting in the Dutch Indies, but later also in the rest of Asia and in America. This created the
foundation for the international company.The pillarisation of Dutch society that separated
Protestants, Catholics and Socialist/Liberals is also visible in the ING history.
The founding of ING as one company was started in 1990 when the legal restrictions on
mergers between insurers and banks were lifted in the Netherlands. This prompted insurance
company Nationale-Nederlanden and banking company NMB Postbank Groep to enter into
negotiations. The merger into Internationale Nederlanden Groep took place in 1991. The
market soon abbreviated the name to I-N-G. The company followed suit by changing the
statutory name to ING Groep N.V. Since 1991, ING has developed from a Dutch company with
some international business to a multinational with Dutch roots. This was achieved through a
mixture of organic growth, such as the creation of ING Direct from scratch, as well as various
large acquisitions.
The top of the company pedigree above shows the 'founding fathers' of ING; at the bottom you
will find the companies that ING has acquired since its establishment
In addition, companies were bought that have in the meantime been sold again. The first large
acquisition took place in 1995, when ING took over Barings Bank. This acquisition increased
the brand recognition of ING around the world and strengthened its wholesale banking presence
in the emerging markets. Some of Barings activities were integrated in ING's business units,
while other parts were closed down or sold. In 1999, ING acquired the German BHF-Bank, but
this Frankfurt-based merchant bank was divested in 2004. CenEbankiers also played an
important role in ING's history. It had been part of NMB since 1966, but in 2004 ING decided
to sell CenE. And then there was Life of Georgia. This insurance company was acquired by
Nationale-Nederlanden in 1979, resulting in a considerable increase in activities in the US. Via
Life of Georgia, the activities in Asia expanded considerably. However in 2004, ING as a group
had become well-established in both regions and Life of Georgia was sold. In 1956 an ING
predecessor (de Nationale) bought de Tiel-Utrecht. This significantly increased the size of the
company. But it was sold again in 1999 to De Goudse.
Furthermore ING participates in a number of financial institutions, such as Pacific Antai Life
Insurance and the China Merchants Fund Management. It has also established a partnership
with the Bank of Beijing. This has strengthened ING's presence in the emerging markets of
Asia, where ING has a longstanding presence. The Netherlands of 1845 had been active in
China since 1886 and NMB Bank had joint ventures in 1974 (Inter-Alpha Asia).
During its short existence, ING has grown into a global financial institution of Dutch origin
offering banking, investments, life insurance and retirement services.
ING COMPANY
ING In India
ING is present in all three fields of banking, insurance and asset management in the form of
ING, ING Vysya Life Insurance and ING Investment Management respectively. The presence
in all three fields signifies the importance that the group attaches to the Indian markets and the
group's operations here, as well as its bullish future outlook on the country.
ING and ING Vysya Life Insurance are headquartered in Bangalore, while the corporate office
of ING Investment Management is situated in Mumbai. The synergies arising out of the three
distinct but complimentary businesses are bound to be an asset to the group in the changing
market dynamics of the future. The first such signs are already visible on the horizon with
combined products being successfully launched by the different entities of the group in
conjunction with each other.
The origin of ING Group
On the other hand, ING group originated in 1990 from the merger between National –
Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Group NV.
Combining roots and ambitions, the newly formed company called “InternationalNederland
Group”. Market circles soon abbreviated the name to I-N-G. The company followed suit by
changing the statutory name to “ING Group N.V.”.
Profile
ING has gained recognition for its integrated approach of banking, insurance and asset
management. Furthermore, the company differentiates itself from other financial service
providers by successfully establishing life insurance companies in countries with emerging
economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization
is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning
retail market share in mature markets. Finally, ING distinguishes itself internationally as a
provider of ‘employee benefits’, i.e. arrangements of nonwage benefits, such as pension plans
for companies and their employees.
About ING Life
ING Vysya Life Insurance Company Limited is an established life insurance company with
over a decade of experience serving over I million customers in over 200 cities in India.
Headquartered in Bangalore, ING Vysya Life Insurance Company Limited is 100% owned by
Exide Industries Limited.
The company distributes its products through key channels like Tied Agency, Banc assurance
and Alliances. The Tied Agency channel comprises over 30,000 ING Vysya Life Insurance
Advisors, spread across the country. The Banc assurance and Alliances business within ING
Vysya Life Insurance is a fast growing distribution channel, and includes the Banc assurance
partner (ING Vysya Bank), Referral Partners, Corporate Agents and Brokers.
The word “ING” and the device are trademarks of ING Groep N.V. and are used under license.
MISSION
At ING Life, our mission is ‘To set the standard in helping
our customers manage their financial future.’
VALUES
Our business is driven on our values of Optimism,
Our Mission, Values & Personality
Knowledgeable, Trustworthy and Transparent.
Optimism: We bear an approach of ‘Optimism’
towards our company, towards each other, in our
products and in our care for our customer’s interests.
Knowledgeable: We cultivate the knowledgeable
value through our robust way of working, sharing and
actively communicating.
Trustworthy: We deliver trustworthiness by doing
the ‘right things in right way’, by delivering an‘easier’
customer experience and by being a socially
responsible corporate.
Transparent: Our value of ‘transparent’ drives our
actions, reflects in our products and services.
PERSONALITY ASPECTS
Our values are personified by our people through a set
of‘Personality aspects’. These personality aspects are:
Positive, Professional, Accountable and Transparent.
Positive: ING Life India employees live its value of
optimism by bearing a positive and can-do attitude to
their work.
Professional: At ING Life India, we expect the
highest standard of professional behavior by providing
professional advice to customers, by treating
customers equitably, abide by company’s culture and
act with compliance.
Accountable: ING Life India expects employees to be
accountable for their actions, words and decisions
such that it builds their personal integrity and fosters
ING Life India’s value of trustworthiness.
Straightforward: ING Life India expects employees
to be straightforward in their conduct and work while
dealing with customers and colleagues.
The Brand Positioning
The Brand Essence of ING Life is, ‘Experience the joy of
fulfilling your responsibility’. This essence is captured in the
unique brand positioning‘MeraFarz’, developed in 2007. This
positioning means, ING Life helps its customers fulfill their
responsibilities as provider towards themselves and their
families. ING Life provides its customers with the strength,
reliability and the right balance between long-term savings,
security & reasonable returns.
Product Portfolio
ING Life follows a "customer centric approach" while designing its
products. The Company's product portfolio offers products that cater to
every financial requirement, at all life stages. ING Life has developed an
exclusive tool - the Life Maker a simple tool which helps our customers
choose a plan most suitable to them, based on their needs, requirements
and current life stage. This tool helps build a complete financial plan for
life at every life stage, whether the requirement is
Protection, Savings, Retirement or Investment.
Management
Board of Directors (as on March 21, 2013)
Mr. RajanRaheja: Chairman
Mr. A. K. Mukherjee: Director
Mr. Kshitij Jain: Managing Director & CEO
Mr. N. N. Joshi: Director
Mr. Rajesh Kapadia: Director
Mr. Satish Raheja: Director
Executive Team (as on March 21, 2013)
Mr. Kshitij Jain: Managing Director & CEO
Mr. Rahul Agarwal: Chief Distribution Officer
Mr. B. Ashwin: Chief Operating Officer
Mr. UcoVegter: Chief Financial Officer
Mr. B N Rangarajan: Appointed Actuary & Chief Risk Officer
Leadership Profile
At ING, we pay significant attention to the way we manage our talent. This supports the
Company wide effort to develop a Winning performance Culture- a pivotal component of ING's
people strategy that allows us to attract, motivate, retain and develop the very best people for
continued business growth. Talent management at ING enables the leadership team to look
across all employees in the organization and make informed assessments based on three
principle areas: past performance, growth potential and ambition. We look at what has been
achieved against the pre-agreed individual objectives as well as how the performance is
achieved. We use the ING Leadership star as the reference- to measure the "how" of delivering
performance. All our Managers in leadership positions are expected to exhibit the five critical
leadership behaviors, as per ING Leadership Star.
The long journey of Eighty-three years has had several milestones…
1930 Set up in Bangalore
1948 Scheduled Bank
1985 Largest Private Sector Bank
1987 The Vysya Bank Leasing Ltd.Commenced
1988 Pioneered the concept of co-branding of credit cards.
1990 Promoted Vysya Bank Housing Finance Ltd.
1992 Deposits cross Rs 1000 crores
1993 Number of Branches crossed 300
1996 Signs strategic alliance with BBL
1998 Cash Management Services, & commissioning of VSAT, Golden Peacock Award- for
the Best HR Practices by Institute of Directors, Rated as Best Domestic Bank in India
by Global Finance.
2000 State –of –the –art Date Centre at ITPL, Bangalore.
RBI clears setting up of ING VYSYA LIFE INSURANCE CO
2001 ING Commenced life insurers
2002 The Bank launched a range of products and services like the Vysya paper Plus, the range
Of loan schemes for traders, ATM services, smartserv,personal assistant service, Save
Secure , an account that provides accident hospitalization and insurance cover,
Sambandh the International Debit card and the mi-b@nk net banking service.
2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd,vide their letter of
10.12.02
2003 Introduced customer friendly products like Orange savings, Orange current and
Protected Home loans.
2004 Introduced Protected Home Loans- a housing loan product
2005 Introduced Solo – My Own Account for Youth and customer service line-
Phone Banking Service
2006 Bank has networked all the branches to facilitate ‘AAA transaction.
2007 ING Life join hands with Bangalore One
2008 ING Life launches Golden Life
2009 ING Join hands with South India Bank.
2009 ING Life launches anew saving solution –ING Prime Life
2010 ING partners with Hero Honda FIH World Cup 2010 as major sponsor
2010 ING launches new guaranteed NAV ULIP-ING Market Shield
2011 ING launches ING Ace (Pensions, & Life, Traditional plan with guaranteed additions up
To 8.75%)
2011 ING records in Q 4( FY 2010-2011), aims to grow premium income to Rs 2000 crores
In FY 2011-2012.
2011 ING partners with Bollywood’s most awaited multi starrer Zindagi Na Milengi Dobara.
2012 ING appoints Law and Kenneth as it’s new advertising agency.
2013 ING launches a unique retirement solution- ING Golden Years Retirement Plan
Distribution channels of life insurance companies
ING Vysya Life has a diversified distribution platform. The company distributes it products
through key channels like Tied agency, Banc assurance and alliances. The Tied agency channel
comprises over 30,000 ING Life Insurance, advisors spread across the country. The Banc
assurance and alliances business within ING is a fast growing distribution channel and includes
the Banc assurance partners(ING VYSYA Bank), Referral partners, corporate agents and
Brokers. ING Vysya Life has strengthened its position as the leader in the life insurance industry
in cooperative banks tie ups. The company currently has tie ups with 130 cooperative banks
across the country.
We at SBI Life are in the process of strengthening our distribution network. As a
part of it we are now focusing on Corporate Agency & Broking as an alternate
channel. If you are interested in joining SBI Life as a Corporate Agent or want to
get empanelled as a Broker.
SBI Life has a unique multi-distribution model encompassing vibrant Banc
assurance, Retail Agency, Institutional Alliance and Corporate Solutions
distribution channels.
SBI Life extensively leverages the State Bank Group relationship 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, thus ensuring true financial
inclusion. Agency Channel, comprising of the most productive force of over
80,000 Insurance Advisors, offers door to door insurance solutions to customers.
HDFC Life Insurance
HDFC isa joint venture between Housing Development Finance Corporation Ltd (HDFC) and
Standard Life plc. , provider of financial services in U.K.It was established after private
companies were allowed to enter the insurance industry in 2000.
HDFC Life is planning to increase revenues through agency, direct selling and online channels.
Currently banc assurance is the major distribution channel for the insurer, accounting for more
than 70 per cent of its sales. The insurer’s sales through alternate channels have reportedly
increased to more than 12 per cent in 2012 from about 5 per cent in 2011. The company has
successfully launched an online point of sales (POS) system for its distribution channels recently.
--->Banc assurance partners:
-HDFC Bank
-Saraswat Bank
-Indian Bank
-The Ratnakar Bank
->Corporate agents-:
-HDFC Bank
-Indian Bank
-Ratnakar Bank
-HDFC Financial Services
-HDFC Securities LTD
-Saraswat Co-operative Bank
-HDFC Sales Pvt. LTD
ICICI Prudential Life Insurance
ICICI Prudential Life Insurance between ICICI bank, a premier financial powerhouse, and
prudential plc, a leading international financial services group headquartered in the UK. ICICI
Prudential was amongst the first private sector insurance companies to begin operations in
December, 2000 after receiving approval from Insurance Regulatory Development Authority
(IRDA).
ICICI Prudential Life Insurance Company comprises of two structures:
Banc assurance and Alliances
Tied agency
Banc assurance and Alliances: - ICICI Prudential Life Insurance a pioneer in offering life
insurance solutions through banks and alliances.Within a short span of years and with nearly a
large number of partners. Banc assurance and Alliances has emerged as a vital component of the
company’s’ sales and distribution strategy, contributing to approximately 1/3rd of company’s
total business. The business philosophy is to leverage the distribution synergies with their
partners and add value to its customers as well as partners. Banc assurance includes-:
->Banks
-ICICI
-South Indian Bank
-Lord Krishna Bank
-Some co-operative banks
->Corporate Agents
-Bajaj Capital
-India Info line
-Advanced Financial Services (Karvyy)
-Investment Managers
-Muthoot Insurance Group
Whereas Tide agency is the largest distribution channel of ICICI Prudential Life Insurance
comprising a large advisor force that targets various customer segments. The strength of tied
agency lies in an aggressive strategy of expanding and procuring quality business with focus on
sales and people development, tied agency has emerged as a robust, predictable and sustainable
business model. The company has assets under management i.e. AUM – Rs 74,000 crores as on
March, 31, 2013. Generally , this advisors works under the leadership of unit manager , who
motivate them in every step by providing training and guidance to them, usually each unit
manager have 20 to 30 advisors under them:
-Branch Sales Manager
-Sales Manager
-Asst. Sales Manager
-Unit Manager
-Advisors
AVIVA LIFE INSURANCE
Aviva is UK based-5th largest life insurance group. Aviva has joint venture with Dabur.40
million customer based company. The distribution channel of Aviva is Banc assurance which is
the major distribution channel in India. Multi-distribution strategy which means, they sell
products through intermediaries, corporate partners in the workplace and directly to customers.
Banc assurance partnership include: ABN AMRO, American Express, Lakshmi Villas Bank,
Centurion Bank of Punjab and Indusland Bank. Field force over 300000 financial planning
advisors across the country.
Channel partners
IndusInd Bank
IndusInd Bank Ltd., is one of the leading new-generation private-sector banks in India.
It commenced operations in 1994 and had a net worth of Rs.866 crore as of March 31, 2006. At
present, the Bank has a network of 148 branches and 87 offsite ATMs spread over 118
geographical locations in 24 states and Union Territories.
Personal Banking clients in India.
Aviva's relationship with RBS commenced in June 2002 when the bank was known as ABN
AMRO.The Bank introduces its customers to Aviva for insurance and provides access to its
affluent customer base across the country through its operations in 31 branches at 22 locations.
DBS
DBS Bank India is a branch of DBS Bank Ltd., one of the largest financial services groups in
Asia. DBS opened its first branch in Mumbai in 1995. Since opening its second branch in New
Delhi in 2005, DBS has rapidly expanded its network to 12 branches Visit the IndusInd Bank
Ltd. website www.indusind.com
Royal Bank of Scotland Group
In 300 years, The Royal Bank of Scotland Group has grown to become one of the largest
financial services groups in the world. They operate around the globe to provide banking
services for individuals, businesses and institutions.
RBS offers a broad range of transaction banking, fixed income and foreign exchange products
and services, including sales and trading, fixed income origination, derivatives, structured
lending and commodity financing.
Additionally, they provide a diverse range of product offerings including personal loans, credit
cards, savings accounts, financial planning, investment and insurance services, to meet the
everyday financial needs of over a million and 40 ATMs spread across the country in key
locations. In the last 5 years, DBS India has grown its customer base by about 20 times, and
increased its staff strength to over 800. Today, it is the first and the largest Asian bank in India
and is committed to building a universal banking franchise in India with a significant presence
across businesses, clients, products and services.
The bank's strong capital position, as well as "AA-" and "Aa1" credit ratings are among the
highest in the Asia-Pacific region and have earned it Global Finance's "Safest Bank in Asia"
accolade for four consecutive years, since 2009. DBS was also acknowledged as “India’s Best
Foreign Bank” by Financial Express – Ernst & Young in 2010 and Dun & Bradstreet for its
Asset Quality in 2011.
DBS leverages its insights, deep understanding of Asia and appreciation of local cultures to
provide innovative and comprehensive financial solutions. The bank offers a portfolio of
corporate banking and financial services to companies, financial institutions and small and mid-
tier clients across industries and segments. These include capital markets, credit facilities,
electronic banking services, securities and fiduciary services, treasury services, cash
management, deposit accounts, international banking and trade finance. DBS also offers wealth
management solutions through “DBS Treasures”, an exclusive wealth management service
offered to the bank’s most valued clients including “non-resident Indians” (NRIs) with products
tailored to suit the needs of customers working or living outside India, to help meet their banking
and financial aspirations.
For more information, please visit www.dbs.bank.in.
Cooperative and Regional Rural Banks
Rajasthan Gramin Bank
Vidharbha Kshetriya Gramin Bank
Prime Cooperative Bank
Sutlej Gramin Bank
MAX LIFE INSURANCE
Max Life Insurance, one of the leading life insurers, is a joint venture between Max India Ltd.
and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multi-business
corporate,while Mitsui Sumitomo Insurance is a member of MS&AD Insurance Group, which is
amongst the top general insurers in the world. Max Life Insurance offers comprehensive life
insurance and retirement solutions for long-term savings and protection to thirty lakh customers.
Distribution Channel
It has a country-wide diversified distribution model including the country's leading agent
advisors, exclusive arrangement with Axis Bank and several other partners. Max Life Insurance
is a quality business focused on delivering excellence to customers through advice based sale
process, customer centric approach to business, financial stability & investment expertise and
strong human capital.
BIRLA SUN LIFE INSURANCE CO Birla Sun Life Insurance Co. LTD. Is a joint venture between Aditya Birla Group, a well-known
Indian conglomerate and Sun Life Financial Inc., one of the leading international financial
services organizations from Canada. With an experience over a decade, BSLI has contributed to
the growth and development of the Indian life insurance industry and currently is one of the
leading life insurance companies in the country.
Distribution channel partner of BLSI
->Banc assuranceIn the initial phase BSLI has entered into a tie up with five cooperative banks
in the different regions of the country. These banks will be the model setup for the region and the
experience will be replicated with other cooperative banks in the region. BSLI has set up a
dedicated team within the organization to drive this initiative. The company is evaluating
possible tie-ups with several other cooperative banks in the country.Contributing nearly 45% of
the total individual life sales. The company currently has tie-ups with Citi Bank, Deutsche
Bank, IDBI Bank, Catholic Syrian Bank, KarurVysya Bank, Development Credit
Bank,HBC Global, etc.
There are close to 2000 urban cooperative banks in India with over 15 million customers and
nearly Rs.110000 crores in deposits. These banks have a huge customer base from the middle
class and very strong relationships with them, which is important in life insurance selling.
BSLI is looking at leveraging the strong relationship banking strengths of the cooperative bank
partners. The strategy will be to sell simple products from its suite initially and move up the
value chain with increasing awareness levels amongst customers and the staff of the banks. The
tie-ups are expected to increase BSLI's reach across the various regions in India.
-In the north, BSLI has tied up with Indian Mercantile Cooperative Bank, Luck now, which has
11 branches across the state. This was the first cooperative bank to commence sales of BSLI's
plans in the month of January 2006.
-In Bhopal the company has entered into a tie-up with Krishna Mercantile Cooperative Bank
which has a strong and loyal base of customers in the city of Bhopal.
-In the west BSLI has entered into a tie-up with the 'Thane Bharat Sahakari Bank', Mumbai that
has 12 branches and has received the license to operate 10 more branches in the state.
-To increase its reach in eastern India BSLI has tied with the Nagaland State Cooperative Bank,
Dimapur, which has a network of 25 branches and the Jamshedpur Urban Cooperative Bank,
Jamshedpur with two branches in the city of Jamshedpur.
About the Aditya Birla Group The Aditya Birla Group has a turnover close to Rs. 33,000 crore
(as on 31 March 2005) and is one of the largest business houses in India. It enjoys a leadership
position in all the sectors in which it operates. With over 75 business units, spanning the South
East Asian belt, Africa, Canada and the UK among others, it is reckoned as India's first
multinational corporation. The group is anchored by 72,000 employees and has seven lakh
shareholders, with a market capitalization of Rs.30, 500 crore.
CHAPTER-4FINDINGS
1. Market Share (in {percentage} %)
LIC 54.29
ICICI Prudential 7.32
HDFC LIFE
INSURANCE 5.89
SBI LIFE 6.05
MAX LIFE
INSURANCE 3.42
ING VYSYA LIFE
INSURANCE 1.26
AVIVA 1.16
BIRLA SUN LIFE
INSURANCE 3.45
BAJAJ ALLIANZ 2.09
OTHERS 15.07
54.29
7.32
5.89
6.05
3.421.26
1.15999999999999
3.452.09 15.07
LICICICI Prudential HDFC LIFE IN-SURANCESBI LIFEMAX LIFE IN-SURANCEING VYSYA LIFE INSURANCEAVIVABIRLA SUN LIFE INSURANCEBAJAJ ALLIANZOTHERS
2. Business Premium for individuals
( in lakhs)
LIC 3.14
HDFC LIFE 0.48
ICICI Prudential 1.07
SBI LIFE 2.08
MAX LIFE 1.62
ING 1.3
AVIVA 1.13
BIRLA SUN LIFE 0.58
BAJAJ ALLIANZ 0.66
LIC
HDFC LIFE
ICICI Prudential
SBI LIFE
MAX LIFE
ING
AVIVA
BIRLA SUN LIFE
BAJAJ ALLIANZ
0 0.5 1 1.5 2 2.5 3 3.5
3.14
0.48
1.07
2.08
1.62
1.3
1.12999999999999
0.58
0.660000000000007
LIC
HDFC LIFE
ICICI Prudential
SBI LIFE
MAX LIFE
ING
AVIVA
BIRLA SUN LIFE
BAJAJ ALLIANZ
0 0.5 1 1.5 2 2.5 3 3.5
3.14
0.48
1.07
2.08
1.62
1.3
1.12999999999999
0.58
0.660000000000007
3. Business Premium for corporate agents ( in lakhs)
AVIVA 2260.4
BIRLA SUN LIFE 251.58
HDFC LIFE 25717.5
ICICI PRU 8884.11
ING 37.9
MAX LIFE 2348.71
SBI LIFE 1769.24
BAJAJ ALLIANZ 198.33
LIC 444.9
AVIVA
BIRLA SUN LIFE
HDFC LIFE
ICICI PRU
ING
MAX LIFE
SBI LIFE
BAJAJ ALLIANZ
LIC
0 5000 10000 15000 20000 25000 30000
2260.4
251.58
25717.58
8884.11
37.9
2348.71
1769.24
198.33
444.9
AVIVA
BIRLA SUN LIFE
HDFC LIFE
ICICI PRU
ING
MAX LIFE
SBI LIFE
BAJAJ ALLIANZ
LIC
0 5000 10000 15000 20000 25000 30000
2260.4
251.58
25717.58
8884.11
37.9
2348.71
1769.24
198.33
444.9
4. Individual performance of life insurers-channel wise
( premium in crores)
AVIVA
BAJAJ ALLI
ANZ
BIRLA SU
N LIFE
HDFC LIF
E
ING LIFE
MAX LIFE
SBI LI
FE
ICICI PRU LIC
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Individual Agents Corporate AgentsBrokersDirect SellingTotal individual New BusinessReferrals-New Business
INSURER Individual Agents
Corporate Agents
Brokers Direct Selling
Total individual
Referrals-New
New Business
Business
AVIVA 239.4 248.21 11.08 28.58 527.71 0.12BAJAJ ALLIANZ
1192.86 182.1 9.57 72.85 196.92
BIRLA SUN LIFE
795.27 230.24 101.77 33.03 1249.57 1.92
HDFC LIFE
582.4 1869.57 134.25 129.26 2903.31
ING LIFE 418.17 188.75 6.39 15.36 636.21 15.36MAX LIFE
639.51 689.81 25.54 126.59 1707.64 2.44
SBI LIFE 1729.97 1484.62 81.35 1.58 3343.3ICICI PRU 1374.85 1131.73 168.37 217.92 3049.33LIC 41266.72 1097.89 17.39 264.13 42738.36TOTAL
CONCLUSIONInsurance is a subject matter of solicitation. It is basically done on the request of the
customer, but countries like India, where population in majority is not aware of insurance
product benefits and the illiteracy of the majority population contributes to this fact.
Recently, the opening of the markets for the foreign companies and inflow of foreign
currency and foreign partners in insurance business is contributing for the growth of this
industry at a greater speed. The growth rate of this sector is higher than the other sectors of
the market.
The contribution of the public sector companies at the initial stage cannot be ignored and
being taken lightly.
Most of the insurers whether life or general insurance, were covered by these public sector
companies only.
The private sector companies at large have set the pace and are developing new methods in
channels to approach the masses by making new channels and policies for life.
The Banc assurance is the latest development and now IRDA has even allowed the broker
licences to banks, giving them the multiple choices of different insurers to insure their
customers for the mutual benefits i.e. customer as well as bank itself. Though, insurers, one
or the other has to get the business.
The development of new private companies like ING, AVIVA, BAJAJ ALLIANZ, ICICI,
etc. has aggressively started marketing and are increasing their market shares by adopting the
latest marketing strategies and training the person specialized for specific products and in
particular market segments in insurance itself. Though, even today, public sector is having
the major portion of the businesslike LIC, SBI, etc. but they are not as aggressive in adopting
the latest marketing trends and patterns. Though, gradually they have started realizing the
need of the hours and are placing their executives and a recruiting officer from the institution
setup, specifically for training and education by IRDA and other institutions contributing in
developing the insurance sector for the masses.
E-sales is a direct method of insurance marketing and we used to call it as a ‘online sales ‘.
Nowadays, e-sales become most beneficial method in insurance marketing. Private insurance
companies prefer e-sales as it reduces the intermediary costs like commission or agents and
brokers, etc.
With the help of e-sales, customer could opt for any product which fulfills the customer
requirements as per their needs and the customer could also go through the terms and
conditions of company and would be aware of the products of the life insurers. It’s a mutual
beneficiary method for both i.e. customers as well as for the company.
Limitations of the study
The data collection was strictly confined to secondary data.
No primary data is associated with the project.
Collecting Net Added Value is very difficult.
Timing was very limited.
Data for insurance channel partner’s was not available easily.
Selection of distribution channel partners of life insurance
companies for study the topic is very difficult because of
variances in channels.
BIBLIOGRAPHY
Websites www.Irda.gov.in
www.Nsdl.in
www.Ing.co.in
www.Lic.co.in
www.Sbi life
www.Aviva.co.in
www.Bajaj Allianz.co.in
www.HDFC Life.co.in
www.ICICI Pru.co.in
www.Birla sun.co.in
www.Bima.com
Journals
IRDA Annual Reports
IRDA History Reports
IRDA Annual Disclosure Reports